GPCA ’22: Collaboration key for GCC chemicals net zero ambitions

SINGAPORE (ICIS)–Collaboration will be key for the Gulf Cooperation Council’s (GCC) chemicals industry if it were to meet the region’s net zero emissions target by 2050 while meeting demand for conventional energy resources, the secretary general of the Gulf Petrochemicals and Chemicals Association (GPCA) said.

“This will not be an easy task, but the Arabian Gulf chemical industry is well placed to capitalise on the clean energy transition and grow its investment in the circular economy and hydrogen development,” Abdulwahab Al-Sadoun told ICIS.

In the GCC, average carbon dioxide (CO2) intensity increased by 3% in 2021, year on year, as emissions rebounded following the end of COVID-19-related lockdowns in 2020.

However, it has remained on a declining trend, Al-Sadoun noted.

“If the industry is to achieve its net zero ambition by 2050, it would need to focus on growing its utilization of renewables, improving its energy efficiency, reducing its emissions, focusing on recycling and using recycled content in its products, and capitalizing on new markets for carbon and other by-products as part of the circular economy,” he said.

These focus areas were behind the motivation for the GPCA Forum theme this year: Chemistry in Action: Shaping a Sustainable Future.

The event will be held in Riyadh, Saudi Arabia, on 6-8 December.

“Climate change, food insecurity, and economic upheaval are here to stay, posing grave challenges for the future. The need of the hour now are strong leadership and immediate solution,” Al-Sadoun said.

According to the International Energy Agency, in the Net Zero Emissions by 2050 Scenario, CO2 emissions would start to decouple from production in the coming few years.

“We would need to reach a 17% CO2 emission reduction by 2030, compared with 2021, despite an increase in production,” Al-Sadoun said.

To get on track with the net zero scenario, both the private and public sectors will need to achieve technological innovation, efficiency gains and higher recycling rates, he said.

“Collaboration, above all else, will be key to drive its circularity ambition and turn it into a new reality for our current and the next generations to come,” Al-Sadoun said.

The clean energy market represents a tremendous opportunity in the GCC, which has the potential to be a world leader in this space, he said.

Some of the “green” energy projects by regional players include Saudi Aramco’s pilot blue ammonia project.

Another project is the $5bn green hydrogen production facility in Neom by Air Products and Acwa Power; the Abu Dhabi Hydrogen Alliance.

As well as OQ’s green hydrogen plant planned to be built in Duqm, Oman; among others.

In October, Saudi Aramco announced the creation of a $1.5bn sustainability fund to invest in technology supporting its energy transition.

“As the market opportunity continues to grow and technologies become more viable, it is likely that we will continue to see more of these projects get commissioned, as the ones that have already been commissioned come on stream,” Al-Sadoun said.

“The health of the market and financial plans of chemical companies will have a role to play in new project investments and this will be determined by ongoing factors globally, which are out of the industry’s control and subject to ongoing volatility and change,” he added.

Front page picture: Abdulwahab Al-Sadoun, GPCA’s secretary general
Picture source: GPCA

Interview article by Nurluqman Suratman

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