Amr Nabil/AP Save for later Print Download Share LinkedIn Twitter Saudi Arabia's energy transition strategy relies heavily on "low carbon" oil, using technology to reduce emissions from its production rather than cutting volumes themselves. But the kingdom, which has a 2060 net-zero target, is also advancing renewable power projects and pursuing investments in hydrogen and carbon capture and storage (CCS). The Saudi transition plan is rooted in the belief that investment in all forms of energy must be encouraged to keep up with global demand as the world gradually transitions from fossil fuels to low carbon sources. Saudi Energy Minister Prince Abdulaziz bin Salman said this week that continued arguments by some that all new investments in fossil fuels should stop immediately were contributing to a lack of policymaking clarity, hurting not only outlays in oil and gas but also fresh bets on cleaner fuels like hydrogen. "We are not even talking about oil, we are not talking gas," he said. "People go around talking about blue, green, purple, pink hydrogen, but in the final analysis, who is going to be the offtaker?" With this high level of uncertainty, "how on earth can one envisage our energy future?" he asked. A recent survey by Bain & Company of more than 600 energy executives found that accessing capital for new low carbon investments is not a major constraint — but ensuring a return on investment is. “Most customers aren’t willing to pay much more to support these new businesses at scale, so companies will need government policy support to incentivize the investment,” the report said.
