Handling the country’s rising waste levels is becoming a major problem for Saudi Arabia. The Kingdom produces more than 15 million tons of municipal solid waste every year, and this amount is likely to increase as the population and cities grow. Often, people direct much of their trash to landfills, which require space and produce greenhouse gases such as methane.
As a result, Saudi Arabia has set waste management and circular economy targets within its Vision 2030 plan. Waste-to-energy (WTE) technologies are used to change waste into electricity or heat. By using this method, we not only save landfills but also use more energy from sources other than fossil fuels.
By 2040, Saudi Arabia plans to reduce waste in landfills to only 10% by using waste-to-energy projects. Based on the Saudi Waste Management Association, WTE is expected to account for 16% of waste diversion by then.
What is Waste-to-Energy and Why is it Important?
Waste-to-energy means that municipal solid waste is burned in plants to produce electricity or heat. Instead of putting garbage in landfills, it is converted into something useful.
It is significant for several reasons. First of all, it cuts the amount of waste ending up in landfills by up to 90%. Landfills are responsible for producing methane which is 28 times stronger than carbon dioxide at trapping heat over 100 years. WTE helps decrease the number of emissions that pollute the environment.
Second, WTE gives us a stable supply of renewable energy. Currently, Saudi Arabia depends on oil and gas, but WTE could help the country achieve its goal of using 50% renewable energy by 2030.
Circular Economy Pilots and Policy Framework
Saudi Arabia is working on Circular Economy Pilots and a Policy Framework. The government in Saudi Arabia has introduced several initiatives and pilot programs aimed at making waste reusable, recyclable or convertible to energy. The plan introduced by the SWPC, Saudi Waste and Pollution Control Company, centers on renovating waste management facilities, supporting recycling and growing projects using waste-to-energy (WTE).
In Riyadh and Jeddah, pilot programs are using new technologies to change waste into energy. To explain, Riyadh is hoping to convert over 1 million tons of rubbish into energy each year, which will cut down on the use of landfill and generate around 200 megawatts. The government supports private investors by creating public-private partnerships (PPPs) which provide the industry with capital, technology and expertise.
Key Waste-to-Energy Projects
The WTE project in Jeddah is one of the biggest in the area. The plant can process 3,500 tons of waste daily and transform it into 100 megawatts of electricity. The project is the result of a partnership between SWPC and private investors.Jeddah can lessen its use of fossil fuels and manage its waste by generating electricity from trash. The plant is equipped with modern systems to limit the impact on the environment.
Riyadh produces more than 5 million tons of waste every year. The WTE project will process 1.3 million tons every year and generate nearly 200 megawatts of electricity. ACWA Power, a company from Saudi Arabia focused on renewable energy, is helping to build the WTE plant in Riyadh. Because the company is experienced in solar and wind energy, this initiative is more likely to succeed. It is predicted that the Riyadh WTE project will keep about 200,000 tons of CO2 out of the air by sending waste to the plant and making clean electricity.
Using Public-Private Partnerships for Waste Management
The Saudi government is now relying more on private companies for waste management. The government offers guidance and a plan, and motivates private companies to manage and operate WTE plants. Clear investment and work procedures in the privatisation model draw ESG capital. Firms such as ACWA Power and SWPC join forces with global investors to finance and handle projects that use the latest technology and support sustainability. With public-private partnerships, governments spend less. For example, the Jeddah WTE project is a PPP that uses technology from international companies and experts.
ESG Capital: Why WTE is Attractive
Environmental, Social and Governance (ESG) investors are finding waste-to-energy projects in Saudi Arabia to be a promising area. The projects are selected because they focus on environmental issues, help society and have good governance in place.
WTE plants help control the release of methane gases from landfills. Energy production from waste helps to reduce the amount of methane that enters the atmosphere. It is estimated that a regular waste-to-energy plant can prevent 1.2 million tons of CO2 equivalent from being released into the atmosphere each year. It helps Saudi Arabia achieve its climate goals and also meets the requirements set by other nations to lower carbon emissions.
These types of projects create many jobs in the community. The Jeddah WTE project is estimated to produce more than 1,000 jobs for individuals appointed to work during the construction, operation and maintenance of the facility. They offer sustainable jobs to people in communities that are striving to use other kinds of employment instead of oil-related jobs. As well as hiring people directly, these projects assist the logistics, engineering and environmental sectors.
The waste-to-energy sector in Saudi Arabia is supported by open and effective public-private partnerships (PPPs). They ensure that the government and private companies both know what is expected of them and how they will be judged. They ensure investors are confident about the company’s success and that it follows all environmental laws over the years. PPPs in this field also make it possible to transfer needed technologies and improve how things are done which is necessary for a project’s success.
Between 2023 and 2030, the International Finance Corporation (IFC) expects the global WTE market to grow annually by 5.3%. The growth of ESG investing in the Middle East and especially in Saudi Arabia, is likely due to government action and a rise in awareness about ESG. This puts the WTE sector in Saudi Arabia at the forefront of responsible investments for the long run.
Challenges and Opportunities Ahead
Despite the advances in waste-to-energy projects in Saudi Arabia, there are still some difficulties. It is very expensive to construct these plants in the first place. It usually costs between $400 and $600 to process a ton of waste. Because the costs are so high, the government must regularly support these projects with incentives and subsidies.
There is also a challenge linked to the materials found in Saudi Arabia’s waste. There is a lot of organic material and moisture in the waste found in the country. As a result, incinerating wet waste is not very efficient since it burns badly and produces more emissions.
It is also important to increase public awareness. Many individuals continue to mix up waste-to-energy with the traditional burning of waste, which may lead to pollution. This problem can cause people in the community to oppose the construction of new WTE facilities. More information and education need to be made available to support and illustrate the advantages of modern waste-to-energy technologies.
The rules for managing waste and generating energy are still being formed. The country should have clear guidelines on emissions, strong rules and laws that motivate people to separate waste and recycle it. These regulations will help ensure the sustainable development of the waste-to-energy sector.
Source: Research Gate
Nevertheless, there are many opportunities for WTE in Saudi Arabia. There is a lot of waste in the country, the government is dedicated to sustainability and more ESG investors are showing interest in it. All these points make waste-to-energy a promising area for future progress and development.
Conclusion
In the future, WTE will help Saudi Arabia achieve its goals of a circular economy and using various energy sources. By 2030, the Ministry of Energy plans for renewable energy to reach 50%, and WTE will make a significant contribution. As companies continue with pilot projects and expand in Riyadh, Jeddah, Dammam and other cities, the country’s WTE capacity will grow from around 200 MW to over 700 MW by 2030. Saudi Arabia will use partnerships with international groups to introduce new, efficient and eco-friendly WTE technologies. WTE will be developed more in Saudi Arabia because of Vision 2030 and the growing number of environmental regulations.
ESG capital in Saudi Arabia is making important progress in the waste-to-energy sector. It deals with both waste and energy problems, providing decent results for the environment, society and the company’s finances. The nation is making progress in the circular economy thanks to major projects in Jeddah and Riyadh, privatising waste and government policies. If you’re looking for channeling funds into sustainable growth efforts, the waste-to-energy industry in Saudi Arabia is full of new possibilities.
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