SUSTAINABLE

HOMEGROWN ELECTRICAL VEHICLE BRAND MAKES HEADWAY

Ceer, Saudi Arabia's first electric vehicle (EV) brand and original equipment manufacturer (OEM), unveiled 11 new partnerships worth SAR 5.5 billion (approximately USD 1.5 billion) at the third Public Investment Fund (PIF) Public Sector Forum in February.

Most of the agreements are with Saudi companies, marking a significant milestone in Ceer's commitment to achieving 45% localisation targets. These partnerships will contribute substantially to the Saudi automotive sector, further stimulating the economy as per the Vision 2030 goals. 

Ceer, a joint venture between PIF and Hon Hai Precision Industry Co. (Foxconn), will license component technology from BMW for use in the vehicle development process. Foxconn will develop the electrical architecture of the vehicles, resulting in a portfolio of products that will lead in the areas of infotainment, connectivity and autonomous driving technologies. Each vehicle will be designed and manufactured in Saudi Arabia and tested to the highest global automotive quality control and safety standards. Ceer vehicles are scheduled to be available in 2025.

“While we are bringing global expertise and world-class partners to Saudi Arabia, building a robust local ecosystem is even more critical,” said Ceer CEO Jim DeLuca. “These partnerships are crucial not only for a thriving automotive industry, but also for creating future jobs and driving economic growth in the kingdom. By working with local suppliers, we ensure access to high-quality components for Ceer vehicles while simultaneously fostering a sustainable automotive sector in Saudi Arabia.

GREEN AI FACTORY

In February, NEOM, which is building a massive sustainable city on the Red Sea coast, signed a partnership agreement with DataVolt, a Saudi company specialising in data centre investment, development, and operations, to design and build a large-scale artificial intelligence (AI)-powered data centre with a total capacity of 1.5 gigawatts of clean power.

The project will be located in Oxagon, NEOM’s hub for clean and advanced industries, and will be executed in phases. Oxagon’s high-speed fibre optic connectivity via subsea cables, cost-effective renewable energy, and advanced industrial ecosystem make it an ideal site for developing a large-scale green AI factory.The first phase, backed by an initial investment of USD 5 billion, is expected to be operational by 2028.

Designed to support high-density computing, the AI data centre will feature an energy-efficient infrastructure aligned with Oxagon's mission to address global challenges associated with traditional data centres.

“Saudi Arabia’s strategic location and abundant green energy resources position it as a prime destination for modern, sustainable data centres", said DataVolt chief executive Rajit Nanda.

Both NEOM and DataVolt committed to fully powering the facility with renewable energy, integrating cutting-edge cooling technologies to set new global standards for data centre sustainability.

Data centres currently account for 1% to 1.3% of total global electricity consumption, which is projected to rise significantly due to the rapid growth of generative AI. As a result, clean and sustainable solutions are urgently needed to minimise their carbon footprint, according to the International Energy Agency (IEA).

RENEWABLE ENERGY STORAGE

The Royal Commission for Makkah City and Holy Sites, in collaboration with the Ministry of Energy, the Transport General Authority, the General Directorate of Civil Defence, and the General Department of Traffic, launched the second trial of a hydrogen fuel cell-powered bus in February.

The initiative is part of the memorandum of understanding signed between the commission and the Ministry of Energy to implement a pilot project for hydrogen fuel cell buses on designated routes. The experiment aims to explore hydrogen applications in transportation, gain commercial and technical expertise, and gather insights for potential future expansion. It also seeks to raise public awareness about hydrogen technology.

To further expand the country’s renewable sector, King Abdullah University of Science and Technology (KAUST) identified top 10 recommended locations for solar and wind energy storage through a new research study.

These locations will contribute to accelerating the kingdom's transition to renewable energy sources, enhancing water resource management, and strengthening food security.

As Saudi Arabia possesses immense potential in solar and wind energy, the study focused on determining how the transition to these renewable sources can support water management in the country, aiming to achieve at least half of its electricity capacity from renewable energy sources. Realising this goal requires significant changes in the energy sector, which was responsible for about half of the country's carbon dioxide emissions in 2022.

Electricity consumption significantly increases between the winter and summer seasons in some years, necessitating infrastructure capable of storing energy harvested from wind and solar sources during the cooler months for use in the hotter months.

One of the solutions the kingdom is investing in is batteries, which store energy only for daily cycles. However, to store energy over longer seasonal cycles, authorities are considering seasonal pumped hydro storage. In this approach, desalinated water can be stored in reservoirs on high mountains and released on demand to generate energy and supply water.