Collaboration is a crucial element in Oman’s journey towards sustainability’

MUSCAT: Collaboration is a crucial element in Oman’s journey towards sustainability and ambition to reach Net Zero by 2050, said leading experts at a panel discussion held during the inaugural Gulf Business Summit, organised by Gulf Leaders Circle, recently.

Distinguished speakers and panelists from Oman and Saudi Arabia presented their frank views on the event titled, ‘Building Bridges: Exploring the Economic and Strategic Implications of Saudi Arabia-Oman MoUs and Vision Plans.’

Powered by OQGN, the summit was supported by the Ministry of Commerce, Investment and Industry Promotion (MoCIIP) and Oman Energy Association and was attended by leading policy-makers from Oman and Saudi Arabia.

Well-known media personality Murthada Al Lawati moderated the third panel discussion in his own inimitable style on the topic of sustainability.

The panel featured leading corporate honchos and included Mansoor Ali Al Abdali (Managing Director of OQGN), Dhafir Al Shehri (Director of Saudi Water Partnership

Company), Sami Al Lawati (Technical Director at PDO), Harssha Shetty (CEO of Jindal Shadeed) and Saif bin Hamad Al Ramahi (Clean Energy Specialist at Environment Authority of Oman).

Al Abdali began by expressing delight at the success of the company’s IPO and reiterated the company’s commitment to sustainability in alignment with Oman’s Vision 2040. “We are delighted to become a publicly listed company,” he said.

‘Decarbonisation strategy integrated’

On OQGN’s sustainability initiatives, Al Abdali emphasised the company’s commitment through a “comprehensive approach towards sustainability.”

He said: “Our policy towards sustainability permeates through operational excellence and growth strategies. Our approach is from an internal perspective as we delve into our operational excellence and then incorporate it into our expansion strategies. In our initial steps, we established a sustainability committee, and subsequently, we formed a dedicated sustainability team. Their primary focus is to ensure the successful execution of our company’s sustainability programme, aligning it with the national agenda.”

Al Abdali added: “OQGN recently concluded its decarbonisation strategy, which is now being integrated into several strategic initiatives scheduled over the next five years. A key aspect of this initiative is the goal of reducing flaring by 7 percent by the year 2030.

“OQGN is leveraging its success and expertise in natural gas transportation to play a pivotal role in providing infrastructure for the transportation of alternative energy sources, such as hydrogen. We are also trying to be a player in the CCUS and are proud to say we are among the utility service providers in the country. We were also the first company to sign a MoU with Hydrom.”

The OQGN boss said: “We have plans to engage actively in the transportation of CO2, and we are already in discussions with various stakeholders, both from our end and the recipient side, to support the effective utilisation and secure storage of CO2.”

Dhafir Al Shehri, Director of the Saudi Water Partnership Company, discussed the critical role of water reserves in Saudi Arabia’s quest for diversifying resources and ensuring a sustainable future.

‘Less water-intensive agriculture’

Al Shehri said: “Geographically, Saudi Arabia grapples with water intensity and faces the challenge of water scarcity. However, the Saudi government has undertaken comprehensive measures and has assumed full responsibility to ensure water availability for both the present generation and those to come, meeting their essential needs.”

On boosting water supply, he said: “The plan is to go from 9 million cubic of water per day to 18 million cubic water per day. This is 80 percent of the municipal water in Saudi Arabia coming from desalination. To ensure efficient water transmission, Saudi Arabia is investing in resilient pipelines. We are going from 40 percent to 50 percent increase in the capacity of transmitting this water.”

On reducing water consumption per capita, Al Shehri explained, “Saudi Arabia ranks among the highest consumers of water, particularly when it comes to optimising demand-side agriculture. We are shifting towards high-value, less water-intensive agriculture. The goal for wastewater treatment and reuse is being developed and we have 86 percent use through wastewater treatment, alongside an increase in reuse from 26 percent to nearly 75 percent. This reclaimed water can serve various industrial and general users.”

PDO’s ambitious goals in reduction of emissions

Sami Al Lawati, Technical Director at PDO (Petroleum Development Oman), highlighted the importance of sustainability and referred to His Majesty’s directive in October, announcing Oman’s commitment to Net-Zero Emissions (NZE) by 2050, a milestone that PDO has wholeheartedly embraced.

Underscoring the company’s ambitious targets, he said, “We have taken an additional step by declaring our commitment to reducing our emissions by half by 2030.”

“One of the noteworthy areas to achieve this is power generation, responsible for a significant share of industry emissions. About 10 percent of our power comes from renewables. By about 2026, 30 percent of our power will be coming from renewables because we are going into and are already in the market with three renewable projects, a mix of wind and solar. By 2030, PDO aims to have a substantial 50 percent of its power generated from renewable sources,” said Al Lawati.

Al Lawati added: “Collaboration with various stakeholders is at the core of the journey towards sustainability. There is no path to net zero emission without collaboration. And this is the forum where we come and collaborate.”

Harssha Shetty, CEO of Jindal Shadeed, shed light on the pioneering initiatives and strategies employed by the company to minimise its environmental impact and drive sustainability within the steel industry in Oman.

Jindal’s green steel project to come up in Duqm

Shetty began by emphasising the critical need for the steel industry to lead in decarbonisation efforts. He said, “If there is one industry in the world which has to decarbonise first, it’s the steel industry. Eight percent of the greenhouse gases being emitted today are because of the steel industry.”

Highlighting Jindal Shad-eed’s achievements, Shetty said, “As per the World Steel Association, the average carbon dioxide emission per tonne of steel is 2.32 tonnes per tonne of steel. And at Jindal Shadeed, it’s just 1.57 tonnes.

“This impressive efficiency places Jindal Shadeed at the forefront of sustainable steel production.”

Elaborating further, he added: “Jindal Shadeed has embraced the DRI-NG (Direct Reduced Iron with Natural Gas) technology, a forward-looking solution with the capability to transition to DRI green hydrogen-based technology. This technology has the potential to reduce carbon emissions to as low as 0.7 tonnes per ton of steel, significantly below the industry average of 2.3.”

Shetty said: “The business rationale against sustainability philosophy is no more a question of balancing.

“Sustainability in my own opinion, is a very strong business case. It is not very easy to believe. Especially when someone says that it costs 40-50 percent more to produce green steel compared to normal steel. One may wonder how it may become a business case.

“We have proved that it can be a business case. We are investing in a US$3bn green hydrogen steel project in Duqm by 2026. Our current steel production in Sohar is one ton lower than the standard CO2 emission world average.”

“We will be one of the first to produce green steel and it is possible as we are lucky to be part of an ecosystem Oman has. Solar intensity, wind velocity, and a very proactive government all have contributed to the success,” he said.

Shetty added: “Our success in reducing carbon imprints is largely due to the use of the right technology and efficiency in operations. We are future ready and are also starting a pilot project on carbon capture. This will help further reduce CO2 emissions by a large extent.”

Recognising the persistent challenge of carbon emissions, the Jindal Shadeed CEO said, “We are channelling investments into a pilot carbon capture facility, with the potential to reduce capture costs to under 50 percent of current rates.”

Saif bin Hamad Al Ramahi, a Clean Energy Specialist at the Environment Authority of Oman, provided insights into Oman’s strategic approach to addressing the unique challenges posed by renewable energy and sustainability in the region’s harsh climate.

According to Al Ramahi, the country’s ambitions are boldly set on reaching net-zero emissions by 2050.

‘Power sector frontrunner in sustainability drive’

Al Ramahi shared that the net-zero team collaborates with various entities and stakeholders to navigate the transition effectively.

He said, “Currently, we are collaborating with numerous ministries and entities to develop projects that facilitate this transition and ensure it remains well-managed. These projects play a pivotal role in putting Oman on the road to a sustainable and eco-friendly future.”

“Notably, the power sector emerges as a frontrunner in Oman’s sustainability drive. It is taking the lead in shaping the country’s transformation, surpassing other sectors such as industry, housing and buildings, and oil and gas.

“I think the power sector, which is electricity, will reach net zero before any other sector,” Al Ramahi added.

The event partners were Ministry of Commerce, Investment and Industry Promotion, OQGN, Seven Seas Petroleum, ITHCA, ODP, Khazaen, Al Maha Petroleum, Petrofac, Opal, Green Tech Mining, Jindal Shadeed, Dunes Middle East, Artic KSA, Port of Salalah, and Dur AlSanam.