Nonmetallic in Oil and
Gas, Automotive and
Renewables Value
Proposition Session February 2020
Disclaimer
This presentation may contain certain forward-looking statements with respect to Saudi Aramco’s (the “Company”) financial position,
results of operations and business, and certain of the Company’s plans, intentions, expectations, assumptions, goals and beliefs. These
statements include all matters that are not historical fact and generally, but not always, may be identified by the use of words such as
“believes”, “expects”, “are expected to”, “anticipates”, “intends”, “estimates”, “should”, “will”, “shall”, “may”, “is likely to”, “plans” or
similar expressions, including variations and the negatives thereof or comparable terminology.
You should be aware that forward-looking statements are not guarantees of future performance and that the Company’s actual financial
position, results of operations and business, and the development of the industries in which it operates may differ materially from those
made in or suggested by such forward-looking statements. Factors that could cause actual results to differ materially from the Company’s
expectations are contained in cautionary statements in the Company’s Prospectus filed with the Saudi Arabian Capital Markets Authority and
available at https://cma.org.sa/en/Market/Prospectuses/Pages/default.aspx (the “Prospectus”) and include, among other things, the following:
• (1) oil and gas supply, demand and price fluctuations; (2) global economic market conditions; (3) competition in the industries in
which the Company operates; (4) conditions affecting the transportation of products; (5) operational risk and hazards common in the
oil and gas, refining and petrochemicals industries; (6) the cyclical nature of the oil and gas, refining and petrochemicals industries;
(7) weather conditions; (8) political and social instability and unrest and actual or potential armed conflicts in the MENA region and
other areas; (9) managing the Company’s growth; (10) risks in connection with projects under development and recent and future
acquisitions and joint ventures, including with respect to SABIC; (11) managing the Company’s subsidiaries, joint operations, joint
ventures, associates and entities in which it holds a minority interest; (12) the Company’s exposure to interest rate risk and foreign
exchange risk; (13) risks related to operating in a regulated industry and changes to oil, gas, environmental or other regulations that
impact the industries in which the Company operates; and (14) international trade litigation, disputes or agreements.
The Prospectus contains a more complete discussion of the factors that could affect the Company’s future performance and the
industries in which it operates. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. All subsequent written and oral forward-looking statements attributable to the
Company or to persons acting on its behalf are expressly qualified in their entirety by the cautionary statements referred to above.
Saudi Aramco: Public
• Drives domestic value creation byworking with suppliers for mutualbenefits
• Envisions to improve investment, andmaximize long term economic growthand diversification
• Focuses on delivering quality jobs,advancing innovation and enhancingglobal competitiveness
IKTVA is designed to reward Saudi Aramco’s suppliers for the use and development of local labor and sub-suppliers
Saudi Aramco: Public
Anticipated Market Size
The
Opportunity
The Business
Case
Executive Summary
Raw Material Intermediates Finished
Products
Value Chain Mapping
Each will Provide:
Investments opportunities will cover nonmetallic materials in oil & gas,
automotive and renewables sectors
PE/GF
Unidirectional Tape February 2020
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Establish multiple state of
the art manufacturing facilities
of Unidirectional Tape to
serve growing local and
international demand
The opportunity
1. Global demand is expected to
grow at 40% annually for the
next 10 years
2. New applications are going to
utilize UD Tape including Oil &
Gas, Automotive and Marine .
3. Attractive cost base including
low logistics, land, utilities, and
labor costs
The business case
Unidirectional Tape Manufacturing Represent an Attractive Opportunity
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
UD Tape Applications
Marine
Sports Gears
Automotive
Wind Turbines
Aerospace
Building &
Construction
© Saudi Arabian Oil Company, 2020
Oil & Gas
Saudi Aramco: Public
The global demand on UD
Tape is expected to grow
at 40% from 21 Tons in
2020 and will reach 5,500
Tons year 2030
Source: Saudi Aramco Internal Analysis
UD Tape Global Demand in O&G
22 118 283
561 725
1,011
1,415
1,981
2,773
3,883
5,436
-
1,000
2,000
3,000
4,000
5,000
6,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
an
tity
in
(T
ON
)
Global Demand of Product UD Tape
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
The global demand on UD
Tape is expected to grow
at 40% from 21 Tons in
2020 and will reach 5,500
Tons year 2030
KSA Demand on UD Tape
2.15 11.7928.26
56.0772.54
101.07
141.50
198.10
277.34
388.27
543.58
0.00
100.00
200.00
300.00
400.00
500.00
600.00
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Quanti
tiy (
Ton)
KSA Demand of UD Tape
Source: Frost and Sullivan Analysis
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping
Key ingredients are available locally and in GCC
region.
The resins required to make
UD tape are available locally.
Available Locally
Localization Opportunity
Polyethylene
Glass Fiber
Ethelyne UD Tape
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping Analysis
Raw Material Intermediates Final
Products Support Services
• Potential exists to establish glass fiber producing facility to meet the local, regional and global demand.
• Opportunity exists to increase the production of Polyethylene to meet the increasing demand.
• Opportunity exists to establish
facilities for UD Tapes
manufacturing to supply
different markets
• UD Tapes are used across multiple sectors such as:
- Automotive
- Aerospace
- Sports equipment
- Civil work
- Marine
- Wind turbines
• Opportunity exists to establish testing centers to test different UD tape products based on their applications.
© Saudi Arabian Oil Company, 2020
Carbon Fiber
Reinforced Polymers
(CFRP)February 2020
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
The opportunity
Establish multiple state of
the art manufacturing facilities
of Carbon Fiber Reinforced
Polymers Parts to serve
growing local and
international demand
The opportunity
1. Global demand is expected to
grow at 15% annually for the
next 10 years
2. New applications are going to
utilize Carbon Fiber Reinforced
Plastics including Automotive,
Aerospace and Civil Work.
3. Attractive cost base including
low logistics, land, utilities, and
labor costs
The business case
Carbon Fiber Reinforced Polymers Manufacturing Represent an Attractive Opportunity
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Light weight Increased strength Corrosion resistance
CFRP Advantages
X-ray transparencyLow Coefficient of Thermal Expansion
Chemical resistivity
Thermal and electrical conductivity
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
CFRP Applications
Automotive
Civil Work Robotics
Sporting GoodsAerospace
Medical Instruments
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
The global demand on
CFRP is expected to grow
at 15% from 172
Production Lines in 2020
and will reach 700.00 MM
Ton year 2030
Global Demand for CFRP in Automotive Industry
173198
228263
302
348
400
460
529
609
700
0
100
200
300
400
500
600
700
800
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Pro
du
cti
on
Lin
es
Global Demand of CFRP Production Lines
Source: Stahl Automotive Consulting
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Current CFRP parts
are dominated by
Body-in-White
parts and closures
With more R&D
and reduction in
CF price, other
parts (like chassis)
will become CFRP
This requires
different process
technology such as
Pultrusion
CFRP Automotive Parts Manufacturing Processes
Process technology share
in % part volume Exemplary parts
1%IM 1%
WCM
25%
30%
43%
RTM
SMC
SMC
PUL
RTMRear wall
Roof rail
C-Pillar
IMRoof
Doors
WCMSills
Roof bow
Trunk cover
Chassis strut
bars
Pultrusion
Source: Stahl Automotive Consulting
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping
Key ingredients are available locally and in GCC
region.
The resins required to make
CFRP are available locally.
Most of the value chain for
CFRP is not available locally.
Available Locally
Localization Opportunity
Resin
Carbon
Fiber CFRP CFRP Parts
PANAcrylonitrile Propylene
Ammonia
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping Analysis
Raw Material Manufacturing Final Products Support Services
• Potential exists to establish Carbon Fiber producing facility to meet the local, regional and global demand.
• The most commonly used resins to make CFRP are Epoxy, Vinyl Ester, Nylon and Polyester. Opportunity exists to increase the production of these resins to meet the increase demand.
• Opportunity exists to establish
facilities for CFRP products
utilizing one of the
manufacturing processes:
- SMC
- WCM
- RTM
- IM
• CFRP products are used across multiple sectors such as:
- Automotive
- Aerospace
- Sports equipment
- Civil work
- Robotics
- Medical instruments
• Opportunity exists to establish testing centers to test different CFRP products based on their applications.
• Opportunity exists to establish maintenance centers to repair/replace CFRP parts
© Saudi Arabian Oil Company, 2020
Hydrogen Tanks February 2020
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Establish multiple state of
the art manufacturing facilities
of Hydrogen Tanks to serve
growing local and
international demand
The opportunity
1. Global demand for hydrogen
vehicles is expected to grow at
46% annually for the next 10
years
2. Hydrogen tanks are used in
passenger vehicles, heavy duty
truck and fuel stations
3. Attractive cost base including
low logistics, land, utilities, and
labor costs
The business case
Hydrogen Tanks Manufacturing Represent an Attractive Opportunity
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
The opportunity
Hydrogen tanks are used in passenger cars, heavy duty trucks and fuel stations
Hydrogen vessel(2 vessels per car)
Hydrogen fuel cell passenger car
Hydrogen vehicle Infrastructure
Cylinder for transport
Cylinder for station
Hydrogen heavy Duty Trucks
Hydrogen vessel(6 vessels per truck)
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Global Hydrogen Vehicle Forecast
Hydrogen vehicles forecastsale is forecasted to growat a rate of 46% annuallyreaching ~2.5MM units in2030
Source: Roland Berger Consultancy; Hexagon composites, Stahl Automotive Consulting
22 44 134 228 371
508 650
798 1,000
1,400
2,020
34 68 109 151
194
238
286
335
385
437
490
-
500
1,000
1,500
2,000
2,500
3,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Tho
usa
nd
Un
its
Hydrogen Vehicles Global Demand
Trucks
Passenger Cars
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping
Key ingredients are available locally and in GCC
region. Primary raw materials include
polyethylene terephthalate
(PET), polypropylene (PP),
nylon based on the specific
end application which are
available locally.
Available Locally
Localization Opportunity
Resin
Hydrogen Vessels Carbon Fiber Composite
Carbon Fiber
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping Analysis
Raw Materials Carbon Fiber Composites
Hydrogen Vessels
• Opportunity exists to manufacture carbon fiber locally
• Leverage the advantage of the availability of resin locally to reduce the cost of material
• Establish multiple carbon fiber composites manufacturing facilities to supply local and regional growing demand
• Establish multiple facilities to manufacture hydrogen vessels for different applications:
- Hydrogen vehicles
- Heavy duty trucks
- Fuel Stations
© Saudi Arabian Oil Company, 2020
Polycarbonate
Glazing February 2020
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Establish multiple state of
the art manufacturing facilities
of Polycarbonate Glazing to
serve growing market in the
automotive sector
The opportunity
1. Global demand is expected to
grow at 9% annually for the
next 10 years
2. New applications are going to
utilize Polycarbonate including
automotive, construction and
electronics.
3. Attractive cost base including
low logistics, land, utilities, and
labor costs
The business case
Polycarbonate Glazing Manufacturing Represent an Attractive Opportunity
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Polycarbonate Glazing Advantages
Toughness and High Impact
Strength Transmittance
LightweightProtection from UV
radiation
Chemical Resistance
Heat Resistance
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Global Polycarbonate Glazing Demand
The global demand ofPolycarbonate glazingis expected to grow at9% from 4,000 Ton in2020 and will reach 9,600Ton year 2030
4,060 4,426
4,824 5,258
5,731 6,247
6,809
7,422
8,090
8,818
9,612
-
2,000
4,000
6,000
8,000
10,000
12,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
an
tity
in
(T
ON
)
Global Demand of Polycarbonate Glazing
Source: Transparency Market Research © Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping
Key ingredients are available locally and in GCC
region.
Cumene Polycarbonate
Most of the raw material inthe polycarbonate glazingvalue chain is availablelocally.
Available Locally
Localization Opportunity
Propylene Phenol Bisphenol APolycarbonate
Glazing
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping Analysis
Raw Materials Manufacturing Finished Products
• All raw materials required to produce polycarbonate are available locally.
• Establish multiple polycarbonate glazing manufacturing facilities to supply local, regional and global growing demand.
• Polycarbonate products are mainly made using one of these manufacturing techniques: extrusion, thermoforming and injection molding.
• Different additives are added to polycarbonate based on the applications. For example, fiberglass is added to increase the strength. While antimicrobial are added when polycarbonate is used for food applications.
• Polycarbonate applications in KSA are expected to grow. Potential applications include:
• Automotive parts such as light housing, headlamp bezel & lenses
• Construction applications such as repairing stressed structures, cladding, bridge construction
• Medical such as surgical instruments, drug delivery systems, hemodialysis membranes, blood reservoirs, blood filters
• Electronics such as circuit breakers and enclosures
• Consumer Products such as glasses and large-volume water bottles
© Saudi Arabian Oil Company, 2020
Lithium Ion
Batteries EnclosuresFebruary 2020
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Establish multiple state of
the art manufacturing facilities
of Lithium Ion Batteries
Enclosures to serve growing
local, regional and
international demand
The opportunity
1. Global demand is expected to
grow at 12% annually for the
next 10 years
2. Saudi Arabia is targeting
localizing Electric Vehicles and
Lithium Ion Batteries
manufacturing
3. Attractive cost base including
low logistics, land, utilities, and
labor costs
The business case
Lithium Ion Batteries Enclosures Manufacturing Represents an Attractive Opportunity
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Polycarbonate Enclosures Benefits
Lightweight Durable Customizable Cost Efficient
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Lithium Ion Batteries Global Demand
Demand for Lithium IonBatteries is expected togrow at a rate of 12%annually to reach 390 GWhin 2030
Source: Prescient & Strategic Intelligence Private Limited
125140
157176
197
220
247
276
309
347
388
0
50
100
150
200
250
300
350
400
450
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
an
tity
in
( G
Wh
)
Global Demand of Automotive Lithium Ion Batteries Enclosures
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Polycarbonate in Li-Ion Batteries
Polycarbonate in automotive can be used for replacing glass in the Li-Ion battery:
Crash absorberBattery housing cover
Cooling plate
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping
Key ingredients are available locally and in GCC
region.
Most of the raw material inthe polycarbonateenclosures value chain isavailable locally.
Available Locally
Localization Opportunity
Cumene Polycarbonate Propylene Phenol Bisphenol APolycarbonate
Enclosures
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping Analysis
Raw Materials Manufacturing Support Services
• All raw materials required to produce polycarbonate are available locally.
• Establish multiple polycarbonate lithium ion batteries enclosures manufacturing facilities to supply local, regional and global growing demand.
• Polycarbonate products are mainly made using one of these manufacturing techniques: extrusion, thermoforming and injection molding.
• Different additives are added to polycarbonate based on the applications. For example, fiberglass is added to increase the strength. While antimicrobial are added when polycarbonate is used for food applications.
• High potential to localize supporting services for lithium-ion batteries such as:
o Logistics
o Testing
o Repair
© Saudi Arabian Oil Company, 2020
Epoxy February 2020
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Epoxy Applications in Automotive Sector
Flooring Adhesives &
SealantsCoating
Source: HIS Market Report
Electrical Insulation
and Laminates
Electronics
Encapsulation Automotive
Composite parts
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Epoxy Benefits
Source: HIS Market Report
Heat Resistance Superior Electrical
Insulation Strong Mechanical
Properties
Easily ShapedGood Adhesion to
Substrates
Resistance to corrosive liquids
and environments
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Epoxy is used for
multiple applications, but
the most common
application is for
coatings
Source: Technavio Report
Epoxy Applications
55.20%23.50%
15.10%
6.20%
Coatings
Adhesives
Composites
Other
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
The global demand on
Epoxy is expected to grow
at 3% from 1.35 MM Ton in
2020 and will reach 1.82
MM Ton year 2030
Source: IHS Market Report & Saudi Aramco Internal Analysis
Epoxy Global Demand
1.35 1.39
1.43 1.48
1.52 1.57
1.61 1.66
1.71 1.76
1.82
-
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
an
tity
in
(M
M T
ON
)
Global Demand of Epoxy
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
The KSA demand on
Epoxy is expected to
grow at 3% from 9.45
Kilo Ton in 2020 and will
reach 12.71 Kilo Ton year
2030.Total GCC demand
is expected to reach
21.78 Kilo Ton by year
2030
Source: IHS Market Report
Epoxy Global Demand
9.5 9.7 10.0 10.3 10.6 11.0 11.3 11.6 12.0 12.3 12.7
6.8 7.0
7.2 7.4
7.6 7.8
8.1 8.3
8.6 8.8
9.1
16.2 16.7
17.2 17.7
18.2 18.8
19.4 19.9
20.5 21.1
21.8
-
5.0
10.0
15.0
20.0
25.0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Quanti
tiy (
Kilo T
on)
KSA & GCC Demand of Epoxy
KSA Rest of GCC
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping
Key ingredients are available locally and in GCC
region.
All main raw materials to
produce epoxy resins are
available locally.
Available Locally
Localization Opportunity
Benzene Cumene Phenol Bisphenol A Epoxy Resin
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping Analysis
Raw Material IntermediatesFinished Products
Logistics and Support Services
Step
Raw material required to make epoxy resin is available locally. Opportunity exists to increase the supply to meet the increased demand to produce epoxy locally.
- Liquid Epoxy
- Hardeners
- Solid/Solid Solutions
- Specialty Epoxies
- Blends
- Brominated Epoxies
- NOVOLACS
• Epoxy is used for different applications:
• 1- Coatings: industrial, marine, protective, automotive, packaging
• 2- Electronics: circuit board, chips, encapsulation
• 3- Composites: industrial, recreational, transportation, aerospace
• 4- Adhesives: industrial, electronics, construction, aerospace, consumer
Potential exists to develop the aftersales services including:
1- Logistics services
2- MaintenanceGaps
© Saudi Arabian Oil Company, 2020
People Movers February 2020
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Establish multiple state of
the art manufacturing facilities
of People Movers to serve
growing local and
international demand
The opportunity
1. Global demand is expected to
grow at 15% annually for the
next 10 years
2. New applications are going to
utilize People Movers including
Oil and Gas, Industry and
Marine
3. Attractive cost base including
low logistics, land, utilities, and
labor costs
The business case
People Movers Manufacturing Represent an Attractive Opportunity
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
People Movers Applications
Plants Sites Campuses Airports
Shopping Centers Parks
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
People Movers Global Demand
The global demand on PeopleMovers is expected to growat 15% from 1.04 MMVehicles in 2020 and willreach 5.00 MM Vehiclesyear 2030
Source: Stahl Automotive Consultancy
1.01.2
1.41.6
1.8
2.5
2.9
3.3
3.8
4.4
5.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
an
tity
in
( M
M V
eh
icle
s)
Global Demand of People Movers
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
People Movers KSA Demand
The KSA demand on PeopleMovers is expected to growat 15% from 10 ThousandVehicles in 2020 and willreach 42 Thousand Vehiclesyear 2030.
Source:Saudi Aramco internal analysis
1012
1416
18
21
24
28
32
36
42
0
5
10
15
20
25
30
35
40
45
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
anti
tiy
( Th
ou
san
d V
eh
icle
s)
KSA Demand for People Movers
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping
Key ingredients are available locally and in GCC
region.
The key resins to manufacture
a large portion of the vehicles
body are available locally.
Available Locally
Localization Opportunity
Raw Material (Resins)
Exterior Parts manufacturing
Assembly
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping Analysis
Raw Materials Parts
Manufacturing Assembly
Support Services
• The main polymers required to
manufacture the body of
people movers are available
locally • Establish multiple facilities to
produce parts for people
movers
• Opportunity exists to establish multiple facilities for assemble of people movers to meet the local and regional demand
• Opportunity exists to establish facilities for after sales services such maintenance and repair of people movers.
© Saudi Arabian Oil Company, 2020
Nonmetallic Application in
Renewable Energy—Solar
Value PropositionFebruary 2020
Saudi Aramco: Public
Renewable Energy Sector Advantages
The opportunity
1. KSA demand is growing at 20%
and will reach 40 GW by year
2030 in the solar sector.
2. Attractive cost base including
low logistics, land, utilities, labor
costs and availability of raw
materials
The business case
Potential exist to establish
multiple manufacturing
facilities in the kingdom for
Solar components to cater
for the growing demand in the
kingdom, ME region, and the
globe.
The opportunity
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
KSA & Middle East Market Insights
KSA Reduction
of CO2
Vision 2030 Clean Crude
Usage
Saudi Arabia is committed to
reduce CO2 emissions which
will derive Renewable Energy
sector into a growth for the
upcoming years.
The development of renewable
energy is part of a wider
objective of the “Vision 2030”
to reform and diversify Saudi
Arabia’s oil-dependent
economy.
To use crude oil in more
sustainable life cycle
production such as nonmetallic.
This will enable the growth of
RE in the power generation
and electricity sectors.
Don’t “burn it”, “use it”
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Global Demand of Renewable Energy—Solar
The global cumulative
installed Solar capacity
as a source of energy is
expected to grow at 20%
CAGR from 648 GW
installed in 2019 and will
reach 4,800 GW year 2030
Source: IEA, Saudi Aramco Internal Analysis
778933
1,1201,344
1,612
1,935
2,322
2,786
3,344
4,012
4,815
0
1,000
2,000
3,000
4,000
5,000
6,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
an
tity
in
(G
W)
Global Cumulative Installed Capacity of Renewable Energy - Solar
20%*
*CAGR
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Saudi Arabia and GCC’s Demand of Renewable Energy—Solar
Source: MOE, REPDO, and Saudi Aramco Internal Analysis
• The KSA demand on
Solar as a source of
energy is expected to
grow at CAGR of 20%
from 5.96 GW in 2019
and will reach 40 GW
year 2030.
• Total KSA cumulative
installed solar capacity
translate to about $40**
Billion total spend.
20%*
6.6 7.99.5
11.413.7
16.419.7
23.7
28.4
34.1
40.9
3.94.7
5.66.7
8.1
9.7
11.6
13.9
16.7
20.1
24.1
10.512.6
15.118.1
21.8
26.1
31.3
37.6
45.1
54.2
65.0
0
10
20
30
40
50
60
70
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Quanti
tiy (
GW
)
KSA & GCC Demand of Renewable Energy - Solar
KSA Rest of GCC
**Calculation based on $1/W*CAGR
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Solar Panel Component
Aluminum Frame
Tempered Glass
Encapsulant - EVA
Solar Cells
Encapsulatn - EVA
Back Sheet
Junction Box© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping—Solar
62
Key ingredients are available locally and in GCC region.
Solar Panels (Standard,
Bi-facial, and Thin Film)
For Solar Panels, key raw
materials are already existed
locally. The key opportunities
are in the components and
finished products
manufacturing as well as after
sales services.
Available Locally Localization Opportunity
Source: Persistence Market Research &
Junction Box
Panel Frames
Front Panels (Glass or
Polycarbonate)
Solar Cells
Back Sheet
Polycarbonate (PC) or
Silica Sand
Aluminum
HDPE (High Density
Polyethylene)
Polyethylene
Terephthalate (PET)
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping Analysis—Solar
Gaps Polycarbonate (PC) or Silica
Sand, Aluminum, HDPE (High
Density Polyethylene) and
Polyethylene Terephthalate
(PET) are available in the
Kingdom. Opportunity exist for
current manufacturers to
increase production to meet
growing global demand.
Most of the components of
the solar panel are currently
not available in the Kingdom
such as: Front Panels (Glass
or Polycarbonate), Panel
Frames, Junction Box, etc..
Therefore, there is an
opportunity to localize some
of them, as demand will be
derived by the localization of
solar panel industry.
Opportunity exist to
establish local
companies to meet
growing demand on:
1- Solar Panels
(Standard, Bi-facial, and
Thin Film)
2- Cable Racks
3- Solar Farms
Opportunity exist to
establish installation,
service and after sale
businesses in the kingdom
Step Raw Material Components Finished ProductsInstallation & After
Sale Serv.
© Saudi Arabian Oil Company, 2020
Renewable Energy
Front Panels
Value PropositionFebruary 2020
Saudi Aramco: Public
Renewable Energy Sector Advantages
1. KSA RE Solar demand is
growing at 20% and will reach
40 GW by year 2030. Front
Panels represent 3% of total
production cost of SP, giving an
opportunity of $1.2 Billion.
2. Attractive cost base including
low logistics, land, utilities, labor
costs and availability of raw
materials
The business case
Potential exist to establish
multiple manufacturing
facilities in the kingdom for
Solar components to cater
for the growing demand in the
kingdom, ME region, and the
globe.
The opportunity
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
KSA & Middle East Market Insights
KSA Reduction
of CO2
Vision 2030 Clean Crude
Usage
Saudi Arabia is committed to
reduce CO2 emissions which
will derive Renewable Energy
sector into a growth for the
upcoming years.
The development of renewable
energy is part of a wider
objective of the “Vision 2030”
to reform and diversify Saudi
Arabia’s oil-dependent
economy.
To use crude oil in more
sustainable life cycle
production such as nonmetallic.
This will enable the growth of
RE in the power generation
and electricity sectors.
Don’t “burn it”, “use it”
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Global Demand of Renewable Energy—Solar
The global cumulative
installed Solar capacity
as a source of energy is
expected to grow at 20%
CAGR from 648 GW
installed in 2019 and will
reach 4,800 GW year 2030
Source: IEA, Saudi Aramco Internal Analysis
778933
1,1201,344
1,612
1,935
2,322
2,786
3,344
4,012
4,815
0
1,000
2,000
3,000
4,000
5,000
6,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
an
tity
in
(G
W)
Global Cumulative Installed Capacity of Renewable Energy - Solar
20%*
*CAGR
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Saudi Arabia and GCC’s Demand of Renewable Energy—Solar
Source: MOE, REPDO, and Saudi Aramco Internal Analysis
• Total KSA cumulative
installed solar capacity
translate to about $40**
Billion total spend.
• Front Panel represent
3% of the production
cost for each solar
panel.
20%*
6.6 7.9 9.511.4
13.716.4
19.723.7
28.4
34.1
40.9
3.94.7
5.66.7
8.1
9.7
11.6
13.9
16.7
20.1
24.1
10.512.6
15.118.1
21.8
26.1
31.3
37.6
45.1
54.2
65.0
0
10
20
30
40
50
60
70
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Quanti
tiy (
GW
)
KSA & GCC Cumulative Installed Capacity of Renewable Energy -Solar
KSA Rest of GCC
**Calculation based on $1/W*CAGR
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Saudi Arabia Demand—Front Panel
Source: MOE, REPDO, and Saudi Aramco Internal Analysis
• Total KSA demand is
expected to reach 160**
Million Solar Panels
cumulative by year
2030.
• As Front Panels
represent 3% of the
total production, a total
investment opportunity
of $1.2 Billion is
available in Kingdom.26.44 31.73
38.07 45.69
54.82
65.79
78.94
94.73
113.68
136.42
163.70
-
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030Quanti
ty (
Panels
) in
Million
KSA Cumulative Demand of Solar Panel
KSA Rest of GCC
**Calculation is based on today’s mono-facial
panel efficiency of 250 W per unit
20%*
*CAGR
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Solar Panel Component
Aluminum Frame
Tempered Glass
Encapsulant - EVA
Solar Cells
Encapsulatn - EVA
Back Sheet
Junction Box© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping—Front Panel
71
Key ingredients are available locally and in GCC region.
Solar Panels (Standard, Bi-
facial, and Thin Film)
For Front Panel (3% of total
Solar Panel Cost), key raw
materials are already existed
locally (Polycarbonate or
Silica Sand). The key
opportunities are in the
finished products
manufacturing as well as after
sales services.Available Locally Localization Opportunity
Source: Persistence Market Research &
Junction Box
Panel Frames
Front Panels (Glass
or Polycarbonate)
Solar Cells
Back Sheet
3%Polycarbonate (PC) or
Silica Sand
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Raw Material Components Finished ProductsInstallation & After
Sale Serv.
Value Chain Mapping Analysis—Front Panel
72
Gaps Polycarbonate (PC) or Silica
Sand is available in the
Kingdom. Opportunity exist for
current manufacturers to
increase production to meet
growing local/global demand of
panel frames production.
Most of the components of
panel frames are currently
available in the Kingdom such
as: Polycarbonate (PC) or
Silica Sand. Therefore, there
is an opportunity to localize
the production of front panel
as demand will be derived by
the installation plans of solar
panel sector.
Opportunity exist to
establish local
companies that
manufacture Front
Panels to meet
growing demand on:
Solar Panels
(Standard, Bi-facial,
and Thin Film)
Opportunity exist to
establish installation,
service and after sale
businesses in the kingdom
Step
© Saudi Arabian Oil Company, 2020
Renewable Energy
Panel Frames
Value PropositionFebruary 2020
Saudi Aramco: Public
Renewable Energy Sector Advantages
1. KSA RE Solar demand is
growing at 20% and will reach
40 GW by year. Panel Frames
represent 3% of total production
cost of SP.
2. Attractive cost base including
low logistics, land, utilities, labor
costs and availability of raw
materials
The business case
Potential exist to establish
multiple manufacturing
facilities in the kingdom for
Solar components to cater
for the growing demand in the
kingdom, ME region, and the
globe.
The opportunity
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
KSA & Middle East Market Insights
KSA Reduction
of CO2
Vision 2030 Clean Crude
Usage
Saudi Arabia is committed to
reduce CO2 emissions which
will derive Renewable Energy
sector into a growth for the
upcoming years.
The development of renewable
energy is part of a wider
objective of the “Vision 2030”
to reform and diversify Saudi
Arabia’s oil-dependent
economy.
To use crude oil in more
sustainable life cycle
production such as nonmetallic.
This will enable the growth of
RE in the power generation
and electricity sectors.
Don’t “burn it”, “use it”
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Global Demand of Renewable Energy—Solar
The global cumulative
installed Solar capacity
as a source of energy is
expected to grow at 20%
CAGR from 648 GW
installed in 2019 and will
reach 4,800 GW year 2030
Source: IEA, Saudi Aramco Internal Analysis
778933
1,1201,344
1,612
1,935
2,322
2,786
3,344
4,012
4,815
0
1,000
2,000
3,000
4,000
5,000
6,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
an
tity
in
(G
W)
Global Cumulative Installed Capacity of Renewable Energy - Solar
20%*
*CAGR
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Saudi Arabia and GCC’s Demand of Renewable Energy—Panel Frames
Source: MOE, REPDO, and Saudi Aramco Internal Analysis
• Total KSA cumulative
installed solar capacity
translate to about $40**
Billion total spend.
• Panel frames represent
3% of the production
cost for each solar
panel.
20%*
6.6 7.9 9.511.4
13.716.4
19.723.7
28.4
34.1
40.9
3.94.7
5.66.7
8.1
9.7
11.6
13.9
16.7
20.1
24.1
10.512.6
15.118.1
21.8
26.1
31.3
37.6
45.1
54.2
65.0
0
10
20
30
40
50
60
70
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Quanti
tiy (
GW
)
KSA & GCC Cumulative Installed Capacity of Renewable Energy -Solar
KSA Rest of GCC*CAGR **Calculation based on $1/W
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Saudi Arabia Demand—Panel Frames
Source: MOE, REPDO, and Saudi Aramco Internal Analysis
• Total KSA demand is
expected to reach 160**
Million Solar Panels
cumulative by year
2030.
• As Panel Frames
represent 3% of the
total production, a total
investment opportunity
of $1.1 Billion is
available in Kingdom.26.44 31.73
38.07 45.69
54.82
65.79
78.94
94.73
113.68
136.42
163.70
-
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030Quanti
ty (
Panels
) in
Million
KSA Cumulative Demand of Solar Panel
KSA Rest of GCC
**Calculation is based on today’s mono-facial
panel efficiency of 250 W per unit
20%*
*CAGR
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Solar Panel Component
Aluminum Frame
Tempered Glass
Encapsulant - EVA
Solar Cells
Encapsulatn - EVA
Back Sheet
Junction Box© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping—Panel Frames
80
Key ingredients are available locally and in GCC region.
Solar Panels (Standard, Bi-
facial, and Thin Film)
For Panel Frames (3% of total
Solar Panel Cost), key raw
materials are already existed
locally (Aluminum). The key
opportunities are in the
finished products
manufacturing as well as after
sales services.
Available Locally Localization Opportunity
Source: Persistence Market Research &
Junction Box
Panel Frames
Front Panels (Glass or
Polycarbonate)
Solar Cells
Back Sheet
Aluminum/Polymer 3%
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Raw Material Components Finished ProductsInstallation & After
Sale Serv.
Value Chain Mapping Analysis—Panel Frames
81
Gaps Aluminum is available in the
Kingdom. Opportunity exist for
current manufacturers to
increase production to meet
growing local/global demand of
panel frames production.
Most of the components of
panel frames are currently
available in the Kingdom such
as: Aluminum. Therefore,
there is an opportunity to
localize the production of
panel frames as demand will
be derived by the installation
plans of solar panel sector.
Opportunity exist to
establish local
companies that
manufacture Panel
Frames to meet
growing demand on:
Solar Panels
(Standard, Bi-facial,
and Thin Film)
Opportunity exist to
establish installation,
service and after sale
businesses in the kingdom
Step
© Saudi Arabian Oil Company, 2020
Renewable Energy
Solar – Cable Racks
Value PropositionFebruary 2020
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Renewable Energy Sector Advantages
1. KSA Solar demand is growing
at 20% and will reach 40 GW by
year 2030, Cable Racks
represent 7% of total SP’s cost.
2. Attractive cost base including
low logistics, land, utilities, labor
costs and availability of raw
materials
The business case
Potential exist to establish
multiple manufacturing
facilities in the kingdom for
Solar components to cater
for the growing demand in the
kingdom, ME region, and the
globe.
The opportunity
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
KSA & Middle East Market Insights
KSA Reduction
of CO2
Vision 2030 Clean Crude
Usage
Saudi Arabia is committed to
reduce CO2 emissions which
will derive Renewable Energy
sector into a growth for the
upcoming years.
The development of renewable
energy is part of a wider
objective of the “Vision 2030”
to reform and diversify Saudi
Arabia’s oil-dependent
economy.
To use crude oil in more
sustainable life cycle
production such as nonmetallic.
This will enable the growth of
RE in the power generation
and electricity sectors.
Don’t “burn it”, “use it”
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Global Demand of Renewable Energy—Solar
The global cumulative
installed Solar capacity
as a source of energy is
expected to grow at 20%
CAGR from 648 GW
installed in 2019 and will
reach 4,800 GW year 2030
Source: IEA, Saudi Aramco Internal Analysis
778933
1,1201,344
1,612
1,935
2,322
2,786
3,344
4,012
4,815
0
1,000
2,000
3,000
4,000
5,000
6,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
an
tity
in
(G
W)
Global Cumulative Installed Capacity of Renewable Energy - Solar
20%*
*CAGR
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Saudi Arabia and GCC’s Demand of Renewable Energy—Cable Racks
Source: MOE, REPDO, and Saudi Aramco Internal Analysis
• Total KSA cumulative
installed solar capacity
translate to about $40**
Billion total spend.
• Cable racks represent
7% of the production
cost for each solar
panel.
20%*
6.6 7.9 9.511.4
13.716.4
19.723.7
28.4
34.1
40.9
3.94.7
5.66.7
8.1
9.7
11.6
13.9
16.7
20.1
24.1
10.512.6
15.118.1
21.8
26.1
31.3
37.6
45.1
54.2
65.0
0
10
20
30
40
50
60
70
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Quanti
tiy (
GW
)
KSA & GCC Cumulative Installed Capacity of Renewable Energy -Solar
KSA Rest of GCC
*CAGR**Calculation based on $1/W
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Saudi Arabia Demand—Cable Racks
Source: MOE, REPDO, and Saudi Aramco Internal Analysis
• Total KSA demand is
expected to reach 160**
Million Solar Panels
cumulative by year 2030.
• As Cable Racks
represent 7% of the total
production cost for each
solar panel, a total
investment opportunity
of $2.5 Billion is
available in Kingdom.26.44
31.73 38.07
45.69 54.82
65.79
78.94
94.73
113.68
136.42
163.70
-
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030Quanti
ty (
Panels
) in
Million
KSA Cumulative Demand of Solar Panel
KSA Rest of GCC
**Calculation is based on today’s mono-facial
panel efficiency of 250 W per unit
20%*
*CAGR
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping—Cable Racks
88
Key ingredients are available locally and in GCC region.
Solar Panels (Standard, Bi-
facial, and Thin Film)
For Cable Racks (7% of total
Solar Panel cost), key raw
materials are already existed
locally (Aluminum/Steel). The
key opportunities are in the
finished products
manufacturing as well as after
sales services.
Available Locally Localization Opportunity
Source: Persistence Market Research &
Junction Box
Panel Frames
Front Panels (Glass or
Polycarbonate)
Solar Cells
Back Sheet
Alu
min
um
l S
tee
l
Cable Racks
Solar Farm
HD
PE
& o
the
r P
oly
me
rs
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Raw Material Components Finished ProductsInstallation & After
Sale Serv.
Value Chain Mapping Analysis—Cable Racks
89
Gaps Aluminum and Steel are
available in the Kingdom.
Opportunity exist for current
manufacturers to increase
production to meet growing
local/global demand of cable
racks production.
Most of the components of
cable racks are currently
available in the Kingdom such
as: Aluminum, Steel. Others
are under development to be
locally produced such as
Fiber Glass. Demand will be
derived by the installation of
solar panel, leaving cable
racks to be a good
opportunity.
Opportunity exist to
establish local
companies to meet
growing demand on:
Cable Racks due to
the installation
capacity plans of solar
panels.
Opportunity exist to
establish installation,
service and after sale
businesses in the kingdom
Step
© Saudi Arabian Oil Company, 2020
Renewable Energy
Solar Inverter
Value PropositionFebruary 2020
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Renewable Energy Sector Advantages
1. KSA RE demand is growing at
20% and will reach 40 GW by
year 2030 in the Solar energy
sector. Inverter represent 4% of
total production cost of SP.
2. Attractive cost base including
low logistics, land, utilities, labor
costs and availability of raw
materials
The business case
Potential exist to establish
multiple manufacturing
facilities in the kingdom for
Solar components to cater
for the growing demand in the
kingdom, ME region, and the
globe.
The opportunity
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
KSA & Middle East Market Insights
KSA Reduction
of CO2
Vision 2030 Clean Crude
Usage
Saudi Arabia is committed to
reduce CO2 emissions which
will derive Renewable Energy
sector into a growth for the
upcoming years.
The development of renewable
energy is part of a wider
objective of the “Vision 2030”
to reform and diversify Saudi
Arabia’s oil-dependent
economy.
To use crude oil in more
sustainable life cycle
production such as nonmetallic.
This will enable the growth of
RE in the power generation
and electricity sectors.
Don’t “burn it”, “use it”
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Global Demand of Renewable Energy—Solar
The global cumulative
installed Solar capacity
as a source of energy is
expected to grow at 20%
CAGR from 648 GW
installed in 2019 and will
reach 4,800 GW year 2030
Source: IEA, Saudi Aramco Internal Analysis
778933
1,1201,344
1,612
1,935
2,322
2,786
3,344
4,012
4,815
0
1,000
2,000
3,000
4,000
5,000
6,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
an
tity
in
(G
W)
Global Cumulative Installed Capacity of Renewable Energy - Solar
20%*
*CAGR
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Saudi Arabia and GCC’s Demand of Renewable Energy—Inverter
Source: MOE, REPDO, and Saudi Aramco Internal Analysis
• Total KSA cumulative
installed solar capacity
translate to about $40**
Billion total spend.
• Inverter represent 4% of
the production cost for
each solar panel.
20%*
6.6 7.9 9.511.4
13.716.4
19.723.7
28.4
34.1
40.9
3.94.7
5.66.7
8.1
9.7
11.6
13.9
16.7
20.1
24.1
10.512.6
15.118.1
21.8
26.1
31.3
37.6
45.1
54.2
65.0
0
10
20
30
40
50
60
70
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Quanti
tiy (
GW
)
KSA & GCC Cumulative Installed Capacity of Renewable Energy -Solar
KSA Rest of GCC*CAGR
**Calculation based on $1/W
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Saudi Arabia Demand—Inverters
Source: MOE, REPDO, and Saudi Aramco Internal Analysis
• Total KSA demand is
expected to reach 160**
Million Solar Panels
cumulative by year 2030.
• As Inverter represent 4%
of the total production
cost for each solar
panel, a total investment
opportunity of $1.6
Billion is available in
Kingdom.26.44 31.73
38.07 45.69
54.82
65.79
78.94
94.73
113.68
136.42
163.70
-
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030Quanti
ty (
Panels
) in
Million
KSA Cumulative Demand of Solar Panel
KSA Rest of GCC**Calculation is based on today’s mono-facial
panel efficiency of 250 W per unit
20%*
*CAGR
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping—Inverter
96
Key ingredients are available locally and in GCC region.
For Inverter (4% of total Solar
Panel Cost), key raw materials
are already existed locally
(HDPE). The key opportunities
are in the finished products
manufacturing as well as after
sales services.
Available Locally Localization Opportunity
Source: Persistence Market Research & REPOD
HDPE (High Density Polyethylene)
Charge Controller
InverterAC Power Electric & Wiring components
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Raw Material Components Finished ProductsInstallation & After
Sale Serv.
Value Chain Mapping Analysis—Inverter
97
Gaps HDPE (High Density
Polyethylene) and Electric
wiring components are
available in the Kingdom.
Opportunity exist for current
manufacturers to increase
production to meet growing
local/global demand of panel
frames production.
Most of the components of
Inverters are currently
available in the Kingdom such
as: HDPE (High Density
Polyethylene). Therefore,
there is an opportunity to
localize the production of
Inverter as demand will be
derived by the installation
plans of solar panel sector.
Opportunity exist to
establish local
companies that
manufacture Inverter
to meet growing
demand on: Solar
Panels Farms
Opportunity exist to
establish installation,
service and after sale
businesses in the kingdom
Step
© Saudi Arabian Oil Company, 2020
Renewable Energy
Wind
Value PropositionFebruary 2020
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Renewable Energy Sector Advantages
1. KSA demand is growing at 20%
and will reach 16 GW by year
2030 for Wind energy sector.
2. Attractive cost base including
low logistics, land, utilities, labor
costs and availability of raw
materials
The business case
Potential exist to establish
multiple manufacturing
facilities in the kingdom for
Wind components to cater
for the growing demand in the
kingdom, ME region, and the
globe.
The opportunity
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
KSA & Middle East Market Insights
KSA Reduction
of CO2
Vision 2030 Clean Crude
Usage
Saudi Arabia is committed to
reduce CO2 emissions which
will derive Renewable Energy
sector into a growth for the
upcoming years.
The development of renewable
energy is part of a wider
objective of the “Vision 2030”
to reform and diversify Saudi
Arabia’s oil-dependent
economy.
To use crude oil in more
sustainable life cycle
production such as nonmetallic.
This will enable the growth of
RE in the power generation
and electricity sectors.
Don’t “burn it”, “use it”
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
The global demand on
Wind as a source of
energy is expected to
grow at 11% from 648
GW installed in 2019 and
will reach 1,863 GW year
2030
Global Demand of Renewable Energy—Wind
656728
808897
996
1,105
1,227
1,362
1,512
1,678
1,863
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
an
tity
in
( G
W)
Global Demand of Renewable Energy - Wind
Source: IEA, Saudi Aramco Internal Analysis
11%
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Saudi Arabia and GCC’s Demand of Renewable Energy—Wind
Source: Saudi Aramco Internal Analysis
• The KSA demand on
Wind as a source of
energy is expected to
grow at 20% from 2.6
GW in 2019 and will
reach 16 GW year 2030.
• Total GCC demand is
expected to reach 27
GW by year 2030
2.6 3.1 3.74.5
5.46.4
7.79.3
11.1
13.4
16.0
1.82.1
2.63.1
3.7
4.4
5.3
6.4
7.6
9.1
11.0
4.45.2
6.37.5
9.0
10.9
13.0
15.6
18.8
22.5
27.0
0
5
10
15
20
25
30
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Quanti
tiy (
GW
)
KSA & GCC Demand of Renewable Energy - Wind
KSA Rest of GCC
20%
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping—Wind
103
Key ingredients are available locally and in GCC region. For Wind Turbine, key raw
materials are already existed
locally to produce blades and
key components. The key
opportunities are in the
components and finished
products manufacturing as
well as after sales services.
Available Locally Localization Opportunity
Source: Persistence Market Research &
Wind Turbine
Generator
Tower
Blades & Rotors
Cabling
Gearbox
Carbon Fiber / Fiber
Glass
Epoxy
Metal
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Raw Material Components Finished ProductsInstallation & After
Sale Serv.
Value Chain Mapping Analysis—Wind
104
Gaps Carbon Fiber, Fiber Glass,
Aluminum, Expoxy Coated
Steel are not available in the
Kingdom. Yet, Opportunities
exist for local market to start
the localization of these key
items to meet growing local
and global demand.
Most of the components of
the Wind Turbine are
currently not available in the
Kingdom such as: Blades &
Rotors, Tower, Gearbox,
etc.. Therefore, there is an
opportunity to localize some
of them, as demand will be
derived by the localization of
Wind turbine industry.
Opportunity exist to
establish local
companies to meet
growing demand on:
1- Blades & Rotors
2- Tower of wind turbine
Opportunity exist to
establish installation,
service and after sale
businesses in the kingdom
Step
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Saad Alkhuzayim
Local Business Development
Saudi Aramco
In case you are interested in discussing these opportunities further, please contact
Farah AlTurkestani
Local Business Development
Saudi Aramco
For More Business Development & Market Information Visit:
Website: www.iktva.sa/opportunities
Email: [email protected]
© Saudi Arabian Oil Company, 2020
Thank you
© Saudi Arabian Oil Company, 2020