Fossil Fuel Power Plants Still On Books for Saudi Arabia, Despite Energy Concerns

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Researched by Industrial Info Resources (Sugar Land, Texas)--Demand for electricity in Saudi Arabia peaked at more than 40 gigawatts (GW) last year, and it's expected to continue climbing. After 2030, electricity demand could reach 120 GW as it increases an average of 8% per year. Domestic oil consumption is expected to go up as well. The government and oil producers estimate that local demand will increase from its current 3 million barrels per day (BBL/d) to at least 8 million BBL/d within the next 20 years, making alternative forms of energy a major priority.

Renewable sources of energy, such as solar and wind, are viable options for Saudi Arabia, and the country recently signed nuclear agreements with France and Russia. This makes it the most recent Middle Eastern nation to publicly announce its intentions to develop nuclear energy, a trend that is rapidly gaining popularity as an alternative to oil. Another option is to simply install better insulation in homes, thus regulating consumption case-by-case.

Saudi Arabia is not throwing in the fossil fuel towel yet, though. According to Industrial Info's Power Database, Saudi Arabia currently has at least 14 active fossil fuel-fired power projects scheduled to be brought online within the next 10 years. Half of these will be oil-fired, while the other half will utilize natural gas as a feedstock. Natural gas is also becoming a more prominent fuel source in Middle Eastern power stations. In the past, natural gas was used as an injectable to aid in the pressure maintenance of oil fields.

The 14 projects that are being tracked by Industrial Info represent nearly 30 GW and more than $30 billion worth of investments. Domestic firms are primarily involved, though several projects are being developed in conjunction with European and Asian firms, particularly those from Germany and South Korea. South Korea has become heavily involved in Middle East energy development, becoming the first company to build nuclear power stations in the region.

Of the aforementioned projects, two of the largest are being developed in association with Fichtner GmbH and Company KG (Stuttgart, Germany). Both projects, one of which will involve Doosan Heavy Industries and Construction (SEO:034020) (Seoul), will feature desalination units utilizing reverse osmosis. The 2,800-megawatt (MW) plant will utilize natural gas as a feedstock, while the 1,700-MW plant will fire oil. Both power stations are due for completion in 2014.

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