Against the backdrop of the global pursuit of energy transition and green and low-carbon development, Gulf countries have steadfastly embarked on the exploration of energy structure adjustment in recent years, increasing investment in clean energy with unprecedented strength and making every effort to reduce excessive dependence on oil, aiming to achieve diversified economic development.
The main member countries of the Gulf Cooperation Council, including the United Arab Emirates, Oman, Bahrain, Qatar, Kuwait, and Saudi Arabia, have long held a pivotal position in their economic landscape in terms of oil revenue. The relevant data clearly shows that in Gulf countries, oil revenue accounts for 50% -80% of total fiscal revenue and 20% -90% of total exports. For example, in 2019, petroleum products accounted for approximately 77% of Saudi Arabia's total exports; 30% of the UAE's GDP is directly related to oil and gas production; Oman's fossil energy output accounts for 35% of its GDP, 60% of its total exported goods, and 70% of its total fiscal revenue; Kuwait has proven oil reserves of 94 billion barrels, accounting for approximately 10% of the world's total reserves, and oil and gas production accounts for about 45% of its GDP; More than 80% of Qatar's government revenue comes from oil and gas; Bahrain, known as the 'Pearl of the Gulf', also accounts for about 20% of its GDP in terms of oil production.
However, the quiet changes in the supply and demand structure of the international oil market, as well as the increasingly urgent pressure to address climate change, have made Gulf countries deeply aware of the need to accelerate the pace of energy transformation. The International Monetary Fund solemnly points out that without sustained energy restructuring and in-depth economic structural reforms, the oil wealth of Gulf countries may face a crisis of depletion by 2034. At the same time, with the increasing global demand for emissions reduction, since October this year, Gulf countries have successively announced ambitious national greenhouse gas emission reduction targets: Saudi Arabia announced that it will spend about 180 billion US dollars to strive for net zero carbon emissions by 2060; The United Arab Emirates firmly claims to achieve carbon neutrality by 2050; Bahrain has explicitly stated that it will achieve carbon neutrality by 2060; Qatar has set a grand goal of achieving a 25% reduction in carbon emissions by 2030.
In order to achieve the grand blueprint of energy transformation, Gulf countries have been vigorously implementing a series of carefully planned and key projects for the development of clean energy in recent years, and have achieved remarkable phased results in practice. A detailed analysis report by the International Energy Agency last year showed that the rapid development of clean energy in Gulf countries is expected to significantly reduce about 136 million tons of carbon dioxide emissions in the coming years.
The carefully released 2050 Energy Strategy Plan by the UAE government clearly states that by 2050, the proportion of low-carbon energy in the overall energy consumption of the UAE will significantly increase from the current 25% to over 50%, and its carbon footprint in the power sector will be significantly reduced by over 70%. At the same time, we need to increase the energy consumption efficiency of enterprises and individuals by more than 40%. The Afghan government emphasized that it has continuously increased its investment in renewable energy and low-carbon technologies over the past 15 years, investing at least 600 billion dirhams (approximately 3.67 dirhams per US dollar) in the renewable energy sector by 2050. At present, the United Arab Emirates has successfully built and operated two solar power plants, and is about to launch a third, more ambitious solar power plant. Among them, the "Maktoum Solar Park" is even more ambitious, with plans to achieve a photovoltaic power generation scale of 5000 megawatts by 2030.
The Saudi government firmly stated in its "Vision 2030" that it will spare no effort to achieve diversification of the Saudi economy and significantly expand its competitiveness. The Saudi Energy Minister recently revealed plans to invest 380 billion riyals (approximately 3.75 riyals per US dollar) in renewable energy projects by 2030. In April of this year, Saudi Arabia solemnly announced the construction of a 1500 megawatt solar power plant, which will undoubtedly become the largest solar power plant in the country and is expected to be officially put into operation in the second half of 2022.
According to the sustainable development goals of Qatar's 2030 National Vision, Qatar Hydro Corporation solemnly announced this year that it will continue to spare no effort in strengthening the construction of electric vehicle charging stations. In August of this year, the company carefully installed Qatar's first "energy storage and electric vehicle photovoltaic power station" in the city of Mezemir, providing a continuous source of solar power for cars through 216 photovoltaic panels distributed within a range of 270 meters. As of now, Qatar has successfully installed 19 charging stations nationwide. The Water and Electricity Corporation is also working closely with institutions such as the Qatar Ministry of Transport and Communications and the Qatar Foundation to complete the installation and operation of 8 new stations, and will also complete the bidding for the installation and operation of 100 charging stations nationwide.
At the beginning of this year, Oman officially launched the 25 MW Kabus solar power plant project. The project is located in the Suhar Port Free Zone in northern Oman, covering an area of approximately 50 hectares. The operation of the Cabos solar power plant is expected to reduce over 25000 tons of carbon dioxide emissions annually.
The Bahraini government has proposed a clear plan to add 255 megawatts of photovoltaic installed capacity by 2025. In January of this year, Bahrain teamed up with the United Nations Development Programme to launch a 3-megawatt tender, covering multiple distributed solar power facilities in 8 locations, including 66 government buildings. In addition, a 25 megawatt solar module production project in Bahrain International Investment Park is also accelerating construction.
In the field of clean energy, hydrogen energy is regarded as the most promising clean energy in the 21st century due to its significant characteristics of wide sources, high combustion heat value, and high recycling efficiency. In recent years, some Gulf countries have keenly observed this trend and accelerated the development of hydrogen energy, viewing it as a key link in energy transformation.
The United Arab Emirates officially joined the International Hydrogen Council this year. Abu Dhabi National Oil Company announced in a high-profile manner that it will produce 300000 tons of hydrogen annually on a large scale, and successfully exported the first batch of blue hydrogen to Japan in early August. Kuwait National Oil Company has recently successfully completed a $16 billion hydrocracking unit, which can produce approximately 454000 tons of clean fuel annually.
Saudi Arabia has recently carefully formulated a $7 billion green hydrogen project, which is expected to be fully completed by 2025. After completion, the daily production capacity of green hydrogen will be 650 tons, and the annual production capacity of green ammonia will be 1.2 million tons. This will undoubtedly become one of the largest green hydrogen projects in the world. Saudi Aramco CEO Nasser expressed confidence that the company has enormous potential for hydrogen growth and exports, and is eager to gain a larger share in the vast hydrogen energy market.
In August of this year, Oman established the "National Hydrogen Energy Alliance" with foresight, consisting of 13 public and private sector institutions, covering important institutions such as government departments, oil and gas operators, research institutions, and ports. This project is also a key component of Oman's "2040 Vision" economic transformation plan for energy diversification goals.
According to an in-depth analysis by the Saudi Economic News, if these new energy plans of the Gulf countries can be effectively implemented, they will significantly reduce the overall carbon emissions of the Gulf countries and effectively promote the gradual optimization of their economic structure.
UAE Gulf Economic Affairs Expert Muasumi analyzed in depth that Gulf countries have unique advantages in developing hydrogen energy. PwC's Global Energy Head, Van Hoof, emphasized that the next 10 years are crucial for the development of hydrogen projects, including the construction of infrastructure for large-scale production, import, distribution, and use of hydrogen energy. "If we successfully grasp this in the coming years, it will pave the way for exponential growth in hydrogen supply after 2030.
In summary, Gulf countries are actively promoting clean energy construction with firm determination and strong measures, accelerating the steady pace of energy transformation, and contributing important forces to the transformation of the global energy landscape and sustainable development.
(Editer：admin)
