The continuing business challenges that are part of the current oil landscape are serving as the impetus for Saudi Arabia and Abu Dhabi to find additional common ground when it comes to seeking out new areas of economic growth. That’s why the two nations’ state-run oil companies forged an agreement at the start of April to start heading in that direction.
More specifically, Saudi Aramco and the Abu Dhabi National Oil Company, better known as Adnoc, will be searching to develop more of the renewables market and create new technologies. The ultimate goal is to use the combined knowledge garnered into a more efficient weapon against the current financial woes that have now lasted nearly three years.
Part of the motivation from the Kingdom’s perspective is to navigate their way through the current circumstances, though another key factor is enhancement of the company as it prepares for next year’s expected IPO. That includes a renewables program that has established targets to reach through 2030.
The first of those goals is to have 3.45 gigawatts of renewable energy installed within the next three years. By that 2030 target date, the amount the Saudis are seeking is 9.5 gigawatts, an imposing number made closer by the incremental steps currently being taken.
As ample as the supply of oil deposits within Saudi Arabia are, the reality is that other forms of energy are being used by the Kingdom’s oil customers. That means tapping into the surging renewables market, which is something that the Saudis could potentially exploit.
To help them in that quest, Saudi Aramco agreed on April 2 to a carbon capture plan with a company named Masdar that will derive renewable energy to be used by the Saudis, United Arab Emirate and other countries around the world.