Each SPV will enter into a 15-year Storage Services Agreement with SPPC. As part of Vision 2030, KSA aims to supply 50% of its electricity from renewable energy by 2030 and has set a clear plan to transition its energy mix towards solar, wind and other renewable energy sources.
National oil company Aramco has commissioned its innovation center LAB7 to study the potential of fuel cell technology in Saudi Arabia. In December 2021, Aramco and the French technology company Gaussin agreed to evaluate the possibilities of producing hydrogen-powered vehicles in Saudi Arabia.
Saudi Arabia, being one of the world's largest oil producers, recognizes the importance of transitioning to cleaner and more sustainable forms of transportation. The Saudi government has taken several steps to promote the adoption of electric vehicles.
At this year's World Economic Forum in Davos, Saudi Arabia's Minister of Investment, Khalid Al Falih, announced the establishment of three EV production facilities in the Kingdom. While local production will initially serve domestic demand, in the medium- and long-run, the majority of Saudi-manufactured EVs could be exported.
“ The share of electric vehicles is targeted to rise to 30 percent by 2030 in the capital of Riyadh. In 2017, the Saudi Arabian Standards, Metrology and Quality Organization (SASO) banned the import of electric vehicles (EVs) due to the lack of a legislative regulation of the import.
Saudi Arabia has long sought to establish a local automotive industry. Now the California-based EV manufacturer Lucid Motors is setting up a manufacturing facility in King Abdullah Economic City (KAEC; 120 kilometers north of Jeddah). Saudi Arabia's state-owned Public Investment Fund (PIF) holds a 63 percent stake in Lucid Motors.