RAISING standards
With the total annual cost of environmental degradation in the Kingdom estimated at SAR86 billion, the time for sustainable action is now.
How have operations evolved in the last year, and how does that reflect the current position of the Saudi market toward green practices?
With the support of the financial and banking sector, the new giga-projects are taking environmental sustainability seriously. At ENTEC, we assist project owners in preparing their RFPs in line with many of the KPIs set out by the NTP. These efforts are supported by the nation-wide realization that the total annual cost of environmental degradation in the Kingdom is estimated at SAR86 billion. Although they do not necessarily use the exact terms “energy,” “water,” or “sustainability,” these projects open up opportunities for ENTEC to be involved in multiple ways, targeting a wide array of government and private players. Environmental practices represent an inter-sectorial domain; every sector of the economy is related to sustainability and the environment. Naturally, public entities will lead the way in this process, with the private sector taking inspiration and following suit. As such, we are helping Saudi cities make the top of the sustainable and resilient cities list. This not only means a wide array of consulting projects, but also the implementation of various infrastructure and sustainable solutions.
“We are helping Saudi cities make the top of the sustainable and resilient cities list.”
What major challenges does the private sector face in adopting best environmental practices?
Although Saudi Arabia has great potential due to its national programs and regulations, one of the major challenges is the lack of environmental training in most enterprises and industries. This is why we became certified by IEMA, an international accreditation body for specialized environmental courses, in order to support the upgrading of our clients. Another challenge is the resistance shown by the industrial sector in implementing sustainable practices. The implementation of a circular economy is a crucial step to develop a sustainable industrial sector, and the different authorities are slowly moving toward this goal. In order to do so, Saudi Arabia needs to start centralizing all its ministries in terms of sustainable practices and standards. Only by doing so will the industrial, medical, aviation, oil and gas, construction, tourism, and other sectors, whether local or international, be able to reap quantifiable benefits in Saudi Arabia.
Where do you expect technological upgrades to have the greatest impact on the environmental sector?
A number of new initiatives and projects highlight the link between Vision 2030 and NTP 2020, which offers a perspective on which technology is bound to have the greatest impact on the environmental sector. In the water sector, there are projects worth SAR10.344 billion and upcoming ones worth SAR24.706 billion. In the renewable energy sector, there are projects in the second phase worth SAR5.2 billion. These numbers clearly show that both renewable energy and water management will probably witness the latest upgrades from a technological point of view. For this technological innovation to happen smoothly, the Saudi market needs to rely on strategic and dynamic partnerships that allow it to bring the latest technologies into the country, which is what ENTEC does. The key will be looking outside the country, predicting what the future holds, and convincing companies to adopt certain technologies or changes in their business model to stay ahead of the curve.
How do you balance economic demand with environmental sustainability?
As the Saudi market is slowly progressing into green practices, most investors have become aware of the importance of this transformation. Building codes, tariffs, and taxes have had a big impact on the community, and this realization has opened up opportunities to engage with both end-users and businesses and convince them of the financial feasibility of green practices. ✖
Martin Kaschek
CEO, CERAFILTEC GmbH
Thamer AlQuthami
CEO, ENERIZONS What was the driver behind the acquisition of Enerizons by Al-Nasser Group, and what role does it play in the group’s strategic goals?
The acquisition allows it to combine its technical background with the experience and guidance of an established business group with strong connections in the market. There was a need to collaborate, integrate, and form a better representation of the company to offer potential clients a wider array of solutions. Regardless of its technical soundness, a business or solution will not be successful unless it can be economically feasible and widely accepted by clients. It was a win-win situation that will also benefit the country and neighboring markets. Indeed, we are ready to expand our business in the region and cooperate with international firms and companies interested in working together for strategic projects, be they technical and financial.
What is happening in terms of power systems and the transition to a smart grid?
We currently have a conventional system from the 19th century that combines generation, transmission, and distribution through infrastructure lines built around the country. However, in the smart grid power system 2.0, distributed generation is spread all over a target area, with connectivity between power assets and infrastructure optimized through constant communication and interaction.
How did SAUR’s operations start, and how have they advanced to their current stage?
SAUR has been active in the country for more than 10 years. We began here by getting different requests from municipalities, mostly in Jeddah and Mecca, for support in optimization of ongoing operations and maintenance works. From these deals and support missions, we developed two major contracts. One was a contract for the National Water Company to manage the operation of the entire water infrastructure in Mecca and Taif, which lasted for about six and a half years and ended in 2017. That was about the same time as our contract with Marafiq to run the power and water infrastructure inside the industrial areas of the Royal Commission in Jubail and Yanbu. Since 2011, we have been cooperating with Marafiq for this project under a dedicated joint venture called MaSa.