NEOM, Saudi Energy Ministry sign MoU on cooperation in energy fields

Image courtesy: NEOM

The Saudi Ministry of Energy and NEOM have signed an MoU on enhancing cooperation in the energy fields, according to the state-run Saudi Press Agency.

The MoU outlines the collaboration between the two sides to develop modern technologies in the energy sector, following applicable laws and regulations.

It also includes periodic monitoring and evaluation of achievements and areas of improvement, as well as providing technical and organisational solutions in areas such as renewable energy technologies, hydrogen, sustainability, and innovation.

Furthermore, the partnership aims to coordinate and integrate the two organisations with various energy system entities including the Water and Electricity Regulatory Authority, the Nuclear and Radiological Regulatory Commission, the King Abdullah City for Atomic and Renewable Energy and the Saudi Energy Efficiency Center.

Meanwhile, NEOM will be powered by 100 per cent clean energy, through renewable solar, wind and green hydrogen-based energy. The region is designed to be a blueprint for sustainable urban living with minimal impact on the environment and enhanced livability.

ENOWA, NEOM’s energy and water company and Saudi Electricity Company (SEC) signed agreements with Hitachi Energy last May to supply three high-voltage direct current (HVDC) transmission systems The three HVDC links will have a total power capacity of up to 9 gigawatts (GW).

The agreements include an order from ENOWA’s engineering, procurement and construction management partner, SEC, to provide one of the world’s first 3 GW, 525 kilovolt (kV) HVDC Light transmission system connecting Oxagon with the western city of Yanbu.

NEOM takes shape

Saudi Arabia’s Crown Prince and Prime Minister Mohammed bin Salman said in July that NEOM will be partly financed through a flotation expected in 2024.

The planned mega-city secured $5.6bn (SAR21bn) in financing and finalised contracts in June to develop its workforce’s first phase of housing expansion. It is expected to have a capacity for 450,000 people by 2026 and between 1.5 and two million people by 2030, eventually housing nine million by 2045.

The futuristic city emerging in the northwest corner of Saudia Arabia is progressing forward with several core developments including THE LINE, Trojena, Oxagon, and Sindalah as infrastructure building unfolds across the region.

Earlier in January, unveiled plans to build Norlana, an ultra-modern active lifestyle community and the latest addition to the $500bn futuristic city. The launch of Norlana follows the unveiling of Leyja, Epicon, Siranna, and Utamo – which are sustainable tourism destinations located in the Gulf of Aqaba.

Saudi Arabia’s wealth fund, the Public Investment Fund, is the cornerstone investor in NEOM, a 26,500-square-km high-tech development on the Red Sea.

Read: Exclusive: Joseph Bradley on transforming NEOM into an epicentre of innovation