ATfter the revolt of the “yellow vests”, then that of the motorhomes, France is not ready to reconnect with the idea of a carbon tax imposed on motorists to convince them to switch to electric. Which doesn’t mean she’s gone. But today it is the oil-producing countries that are cashing in, through a rise in prices which is slowly moving towards 100 dollars a barrel (95 dollars on Friday February 11, or around 84 euros). And, for some, its use will ultimately be the same, financing the energy transition. This is the case of Saudi Arabia, which has decided, no more and no less, to transform its oil into hydrogen, the fuel of the future, without CO2 emissions.2 provided that it is produced by renewable energies.
Not so trivial
This Saturday, February 12, the country announced the transfer by the State of 4% of the shares of its national oil company Saudi Aramco, to its sovereign fund, the Public Investment Fund (PIF). A little accounting exercise that is not so trivial. First, because 4% of one of the richest listed companies in the world, it still represents 80 billion dollars. Then, the generous dividends paid each year will feed the coffers of the fund. Finally, this will significantly improve the debt rating of the PIF and allow it to launch the issue of green bonds in complete peace of mind to finance gigantic projects in the field of renewable energies. In the kingdom of Saud, oil does not have the smell of sulfur that is sometimes found in the West.
Until now, the Saudi fund, like its counterparts in Qatar or Abu Dhabi, recycled oil money into holding foreign assets. Two-thirds of the PIF’s portfolio is invested in Uber, Lucid Motors, Softbank, and even British soccer club Newcastle United. But, since Prince Mohammed Ben Salman has visions, priorities change. His “vision 2030” intends to take his country out of oil monoculture to make it a giant of trade and industry.
A high-tech, half-floating port populated by factories, amusement parks, engineers and flying taxis
His vision is a utopian city, built on the shores of the Red Sea, not far from the Suez Canal. A high-tech, half-floating port populated by factories, amusement parks, engineers and flying taxis. This Silicon Valley of the sands is called Neom. The major works are just beginning but it already aims to become, with the help of the American Air Products, the world’s leading producer of hydrogen, with 650 tonnes per day. The German ThyssenKrupp has already signed a contract to equip a 2 gigawatt electrolysis plant. Solar and wind power will provide the energy to produce this gas. Production is supposed to start in 2026, according to the Financial Times, who adds that two Korean companies, Samsung and Posco, are already working on the export side. An energy transition in the shadow of the derricks, linked by an invisible thread to our motorhome problems.