INTERVIEW: ‘Hero of the Planet’  Bill McDonough calls for a rethink of carbon in the circular economy

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Updated 30 August 2020
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INTERVIEW: ‘Hero of the Planet’  Bill McDonough calls for a rethink of carbon in the circular economy

  • World-renowned sustainable design advocate explains Saudi Arabia’s leading role in global energy transition

Bill McDonough pulled no punches. “It’s a very, very serious issue. The science is clear and the signals are seriously scary. Let’s just face it,” he said during an hour-long Zoom meeting from his home in Virginia in the US.

He was talking about the threat to humanity from environmental pollution and resulting climate change, and he is well-qualified to talk about it. Called “A hero for the planet” by Time magazine, and the only recipient of the US Presidential Award for Sustainable Development, McDonough is regarded as the “father of the circular economy,” the strategy that aims to transform the lives and livelihoods of humanity — before environmental disaster does that for us.

Now McDonough has joined forces with Saudi Arabia to meet that challenge and, in particular, to determine the place of hydrocarbon fuels — the lifeblood of the Kingdom — within the coming energy transition.

“This requires massive heroic behavior. Let’s do something over the next 10 years that will astonish our children,” he said, hammering home the scale of the challenge.

That message would not be out of place in the preachings of many environmental agitators, but McDonough brings to it intellectual pedigree and a track record of pragmatic application. When he says, “I’m going to design buildings like trees,” it is much more than just a slogan.

Born in Tokyo, as a child McDonough pondered big questions like the destruction of Hiroshima by the atomic bomb, dabbling in physics, chemistry and international relations before settling on architecture as a profession.

The concept of the “circular economy” grew out of his work in regenerative building design on the “cradle to cradle” principle — the idea that human constructions should be built with future generations firmly in mind.

International recognition for his work rose steadily from the environmentally aware 1990s until publication — along with Michael Braungart — of the book “Cradle to Cradle — Remaking the Way We Make Things” in 2002.

The principles in the book were adopted by the Chinese government in its 5-year plans and by the World Economic Forum in 2014. In Davos, McDonough built a structure called the ICE House — with the help of SABIC of Saudi Arabia — to illustrate the concept of sustainable design.

That collaboration with the Kingdom was evidence of an increasingly close relationship. McDonough had earlier met Prince Abdul Aziz bin Salman, the Saudi energy minister, and found an enthusiastic listener for his ideas.

“I know this was natural to him, it was all intrinsic to his thinking. One of the most elegant parts of the dialogue is that I really enjoy working with him, talking to someone who has thought as deeply about this as he has,” McDonough said of the prince, who made energy efficiency a keystone of the Kingdom’s energy strategy.

Those conversations made him think more about the role of carbon within the circular model, which had three guiding tenets.


BIO

Born: Tokyo, 1951

Education

  • Dartmouth College,  Hanover, NH, US
  • Yale University, New Haven, CT, US

Career

  • Dean of architecture, University of Virginia 
  • Founder, McDonough Innovation
  • William McDonough & Partners
  • Relationships with several leading global universities and the World Economic Forum

Everything is a resource for something else; in nature, the “waste” of one system becomes food for another, either through biological or technical process.

Second, energy should be clean and renewable, with an emphasis on solar sources as well as wind, geothermal and other forms of energy.

Third, celebrate the diversity in local ecosystems in which design is adapted to specific circumstances in an “elegant and efficient” way.

“That is the basis of the ‘cradle to cradle’ approach — waste equals food, celebrate diversity, and use renewables, especially solar. It’s a beautiful thing,” McDonough said.

In a 2016 article in the magazine Nature, he coined the phrase that was picked up by environmental realists around the world, and especially in Saudi Arabia: “Carbon is not the enemy,” which seemed an appropriate rallying cry for a country and an economy that owes its modern development to hydrocarbons in the form of oil.

“I had this revelation when they asked me to work on it, because this is actually super-important. Carbon is actually a material in the circular economy, but it’s also a fuel, which is very unusual, so it deserves special attention. We decided to start working on this with the Saudis,” he said.

The relationship with SABIC went back to 2015, but he found his services much in demand as plans for the megaprojects of the Vision 2030 strategy advanced. He became an adviser to the Red Sea Development Company, the Royal Commission for AlUla, and for the Al-Soudah project run by the Public Investment Fund, as well as a member of the higher council of NEOM, the huge urban development planned for the Kingdom’s northwest.

Earlier this year, McDonough became an adviser and collaborator with the King Abdullah Petroleum Studies and Research Center in Riyadh, and delivered one of the keynotes for the Kingdom’s Energy Ministry at the G20 energy meeting in March.

His thinking crystallized. “The problem is not carbon — the problem is us. Carbon is an innocent element, and like I pointed out, there is the sun, there is carbon in the atmosphere, and then there is the soil, also carbon. If you say you want to be carbon free, think about it — are you saying to want to decarbonize yourself? Impossible,” he said.

He classes carbon into three kinds, and has an intricate set of slide illustrations to emphasize the point. “Living carbon,” which is an essential ingredient to human life and the basis for all agriculture. “It’s a positive thing to want to make more living carbon,” he said.

Then there is durable carbon, which is also a positive when it is an enduring form, like a building, or a city, or — the example he gave — a piece of paper, which can last for centuries in the form of a book.

Then there is the third kind — “fugitive” carbon — which he called “the big whoops.” This is the form that escapes into the atmosphere during industrial, transportation and manufacturing processes, or is washed up on a shoreline as plastic waste.

“It’s probematic to have durable carbon go fugitive,” he said.

It almost goes without saying that McDonough is a firm believer in the various international accords, especially the Paris agreement on climate change, that seek to limit, and even reverse, environmental damage by controlling output of “fugitive” carbon into the atmosphere, and these limits are built into all his models. “We have to work within those limits,” he said.

The main solution to fugitive is the process known as CCUS — carbon capture, utilization and storage — which has also become a major plank of the Kingdom’s energy strategy. CCUS techniques are implemented by Saudi Aramco and in NEOM. “What’s going on at NEOM is phenomenal and magnificent, because they’re planning on running on 100 percent renewable power,” he said. “All of a sudden they’re going to be making hydrogen with electrolysis. So we’re going to have what we call ‘green hydrogen,’ which is a magnificent prospect for the human future,” he said.

McDonough does not like the term “fossil fuels,” which he says encourages the idea that the only use for hydrocarbons is to burn them; nor does he like the phrase “hydrocarbon resources.” “Let’s just call them sources that we get from nature,” he said.

Just as important, fugitive carbon can be transformed into a variety of materials, like plastics and polymers, that are essential for human life. 

McDonough said that the work of SABIC, the Saudi petrochemical group now owned by Aramco, in this regard was “especially important.” 

Nor is McDonough a fan of those on the extreme wing of the environmental movement who say the world should stop using hydrocarbon fuels completely.

“I think the big picture for all of us in terms of social benefit, and intelligent behavior and design is that we do want inexpensive energy for everyone so they can make their lives better. We just don’t want to destroy the atmosphere,” he said.

The challenge is to meet the environmental standards most countries agree are necessary to prevent the warming of the Earth by more than 2 degrees Celsius above pre-industrial levels by the middle of the century, and McDonough believes there has to be a unified commitment on the part of humanity to meet this essential target.

McDonough has worked with the US space agency NASA on building design, producing some of the most advanced and environmentally friendly constructions in the world. “President Kennedy famously said we were going to do a moonshot, and within 10 years man was walking on the moon. I’d like to do an Earth shot. 

Let’s put Mars off for a little bit. Before I go to work on the red planet, can I come back to the blue one?” he said.

Does he think humanity can get there by 2050 and pull itself back from the brink of climate catastrophe? “I think so. I think we  have to,” he said.


Saudi Arabia to welcome Middle East’s first TRIBE hotel in King Salman Park

Updated 23 December 2024
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Saudi Arabia to welcome Middle East’s first TRIBE hotel in King Salman Park

  • TRIBE Riyadh King Salman Park hotel will feature two restaurants, meeting facilities, banquet hall, gym, and swimming pool
  • TRIBE Living will introduce 150 apartments ranging from studios to three-bedroom units

RIYADH: French hospitality group Accor and Naif Alrajhi Investment have signed an agreement to bring the Middle East’s first TRIBE hotel to Saudi Arabia. 

The project, featuring a 250-key property, will be situated within Riyadh’s King Salman Park and will include the debut of TRIBE Living, a new residential community concept. 

The collaboration builds on the partnership between the two entities, which successfully launched Fairmont Ramla Serviced Residences last year, according to a press release. 

This initiative aligns with Saudi Arabia’s Vision 2030, which aims to diversify the economy and boost the tourism sector, targeting 150 million annual visitors by 2030. 

“The introduction of TRIBE and TRIBE Living to Saudi Arabia showcases our focus on design-led, lifestyle experiences that meet the growing demand for modern, accessible hotel offerings in Riyadh,” said Duncan O’Rourke, Accor’s CEO for premium, midscale and economy brands for Middle East, Africa and Asia Pacific. 

The TRIBE Riyadh King Salman Park hotel will also feature two restaurants, meeting facilities, a banquet hall, a gym, and a swimming pool. 

TRIBE Living will introduce 150 apartments ranging from studios to three-bedroom units, offering residents access to the hotel’s dining and recreational amenities, the release added. 

Since its launch in 2017, the TRIBE brand has grown to 18 hotels with 2,708 rooms globally. 

Riyadh is emerging as a global hub for business and leisure, fueled by growing demand for premium accommodations. Accor aims to capitalize on this trend with 1,683 operational keys in the city and 2,740 in the pipeline. 

The announcement follows the King Salman Park Foundation’s plan to develop its first real estate investment plot in collaboration with Naif Alrajhi Investment. 

“We are delighted to be working with Accor once again, a trusted partner, to introduce new and iconic brands to the local market for the first time. This partnership is a significant step forward in our ongoing commitment to delivering world-class destinations that cater to both local and international audiences,” Naif Saleh Al-Rajhi, chairman and CEO of Naif Alrajhi Investment. 

The project is part of King Salman Park’s Package 1, a 290,000-sq.-meter mixed-use development featuring residential, commercial, retail, and recreational spaces. The district is strategically located near the park’s key attractions, such as the Royal Arts Complex and Visitors Pavilion. 

Accor is planning substantial growth in the Kingdom, with 45 new establishments and 9,800 keys expected by 2030, O’Rourke told Arab News in May. 

Saudi Arabia’s hospitality sector has gained momentum, driven by large-scale events such as Riyadh Season and AlUla Season. 

A report by JLL released earlier this month highlighted that urban infrastructure development is creating new opportunities in the Kingdom, driven by the government’s push for economic diversification and increased tourism.


Closing Bell: Saudi main index closes in green, reaches 11,949 points

Updated 23 December 2024
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Closing Bell: Saudi main index closes in green, reaches 11,949 points

  • MSCI Tadawul Index increased by 15.52 points, or 1.05%, to close at 1,500.07
  • Parallel market Nomu lost 285.18 points, or 0.91%, to close at 30,953.11 points

RIYADH: Saudi Arabia’s Tadawul All Share Index increased by 0.84 percent or 99.42 points to reach 11,948.79 points on Monday. 

The total trading turnover of the benchmark index was SR4.9 billion ($1.3 billion), as 111 of the listed stocks advanced, while 117 retreated. 

The MSCI Tadawul Index also increased by 15.52 points, or 1.05 percent, to close at 1,500.07. 

The Kingdom’s parallel market Nomu dropped, losing 285.18 points, or 0.91 percent, to close at 30,953.11 points. This comes as 32 of the listed stocks advanced while 51 retreated. 

The main index’s top performer, Zamil Industrial Investment Co., saw a 4.31 percent increase in its share price to close at SR33.90. 

Other top performers included Saudi Reinsurance Co., which saw a 4.20 percent increase to reach SR47.15, while the Mediterranean and Gulf Insurance and Reinsurance Co.’s share price rose by 4.16 percent to SR23.52. 

Red Sea International Co. also recorded a positive trajectory, with share prices rising 3.89 percent to reach SR56.10. 

Kingdom Holding Co. also witnessed positive gains, with 3.75 percent reaching SR9.13. 

National Co. for Learning and Education was TASI’s worst performer, with the firm’s share price dropping by 3.94 percent to SR204.60. 

Aldrees Petroleum and Transport Services Co. followed with a 3.84 percent drop to SR120.20. Riyadh Cement Co. also saw a notable drop of 3.61 percent to settle at SR32.05. 

Walaa Cooperative Insurance Co. and MBC Group Co. were among the top five poorest performers, with shares declining by 3.52 percent to settle at SR17.56 and by 3.17 percent to sit at SR54.90, respectively. 

On the announcement’s front, Almujtama Alraida Medical Co. disclosed that Khabeer Althanyia Investment Co. — a major shareholder — has announced its intention to distribute and deposit its 630,673 shares in Almujtama Alraida, representing 6.64 percent of the company’s capital, into the investment portfolios of its current partners. 

The move, according to a filing on Tadawul, will result in changes to the list of the company’s major shareholders. 

Almujtama Alraida Medical Co.’s share price dropped 2.91 percent on Monday to settle at SR30.05. 

Najran Cement Co. announced that its shareholders approved the transfer of SR163.62 million from its statutory reserve, as reported in its financial statements for the year ending Dec. 31, 2023, to its retained earnings balance of SR138.15 million. 

The decision was made during the company’s extraordinary general meeting held on Dec. 22, according to a statement on Tadawul. 

Shareholders also approved the repurchase of up to 17 million shares to be held as treasury shares, citing the board’s view that the company’s stock is trading below its fair value. 

The share buyback will be financed through the firm’s resources, including cash balances or credit facilities, with the board authorized to complete the process within 12 months of the meeting date. 

The repurchased shares can be retained for a maximum of 10 years, after which the company will comply with applicable laws and regulations, the statement said. 

Najran Cement Co.’s share price saw a 1.22 percent dip on Monday to close at SR8.92.


Saudi Arabia inaugurates Yanbu Grain Terminal to boost food security, trade

Updated 23 December 2024
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Saudi Arabia inaugurates Yanbu Grain Terminal to boost food security, trade

  • Yanbu Grain Handling Terminal will serve public and private sector importers
  • It boasts a storage capacity of 156,000 tonnes, including 12 silos with a combined capacity of 96,000 tonnes

RIYADH: Saudi Arabia has inaugurated the Yanbu Grain Handling Terminal, underscoring the Kingdom’s efforts to strengthen public-private partnerships, enhance agricultural trade, and bolster food security across the region.

The event was attended by Abdulrahman Al-Fadli, minister of environment, water and agriculture, and by various government and private sector officials, according to the Saudi Press Agency.

The Yanbu Grain Handling Terminal will serve public and private sector importers, and boasts a storage capacity of 156,000 tonnes, including 12 silos with a combined capacity of 96,000 tonnes.

Food security has risen up the agenda in recent years, as countries in the Gulf contend with the impacts of climate change, the consequences of trade-disrupting conflicts such as the Ukraine-Russia war, and interruptions to supply routes through the Red Sea.

In September 2022, in response to these challenges, the Kingdom collaborated with regional partners to launch a food security action plan with an initial funding of $10 billion.

The Yanbu Grain Handling Terminal will be operated by the National Grains Co., a joint venture between the national shipping carrier Bahri and the Saudi Agricultural and Livestock Investment Co.

It features a 650-meter conveyor belt and a discharge rate of 800 tonnes per hour directly from ships, with an annual handling capacity exceeding 3 million tonnes of grain.

According to Bahr’s statement to the Saudi Stock Exchange, the inauguration delay was caused by the inclusion of additional requirements to enhance future operational efficiency, along with the construction of extra infrastructure to accommodate potential future expansions.

The company said that because of this the total project cost rose by 7 percent from the initially allocated SR412.5 million ($109.7 million), though the increase is not deemed significant.

The Yanbu Grain Handling Terminal aims to become a world-class logistics hub, connecting three continents and supporting the Kingdom’s vision for a resilient and efficient agricultural supply chain.

Established in 2020 as a strategic partnership between SALIC and Bahri, the National Grain Co. aims to fulfill the Kingdom’s future feed grain requirements while enhancing its global competitiveness.

It is committed to advancing grain trade, handling, and storage through the Yanbu terminal, strengthening supply chains and ensuring price stability across Saudi Arabia.

SALIC, a Public Investment Fund-owned company, was formed in 2011 to secure food supply for Saudi Arabia through mass production and investment.

When the project was announced in 2020, Al-Fadli, who is also the chairman of SALIC’s board of directors, said: “The project aims to enhance the velocity of the main grain influx to Saudi Arabia and is considered the first regional center for grains in the commercial port of Yanbu.”

 

He added that SALIC relies on the geographical location of the Kingdom and the port infrastructure to enhance food distribution in the region by linking the Kingdom to global grain sources, especially countries where SALIC is investing.

 

A grain delivery service to customers within the Kingdom has been introduced as part of the project, ensuring greater proximity to clients, enhanced customer experience, and improved profitability margins.


UAE’s ADNOC boosts drilling capabilities with 2 new jack-up rigs

Updated 23 December 2024
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UAE’s ADNOC boosts drilling capabilities with 2 new jack-up rigs

  • ADNOC Drilling will expand its fleet to 142 platforms
  • UAE possesses the sixth-largest crude oil reserves globally

JEDDAH: The Abu Dhabi National Oil Co. has received two new jack-up rigs, reinforcing its position as one of the largest drillship fleet owners globally.

ADNOC Drilling will launch the new rigs by the first quarter of next year, expanding its fleet to 142 platforms. This marks a strong year for the company, showcasing its performance and strategy, according to UAE state news agency WAM.

For over 50 years, ADNOC Drilling has been the exclusive provider of drilling and rig-related services to ADNOC Group under agreed contractual terms, supporting the firm’s upstream operations in exploring and developing oil and gas resources in the UAE.

With most of the Gulf country’s crude oil and gas reserves located in Abu Dhabi, ADNOC oversees the majority of nationwide exploration, appraisal, development, and production activities, which are managed by ADNOC, either independently or in partnership with third parties.

In its analysis of the company’s performance, JPMorgan, a global financial services firm, said: “Since its initial public offering, ADNOC Drilling has proven to be a high-quality, defensive business, consistently meeting and surpassing guidance and expectations. The exceptional performance also reflects positive progress with ADNOC Drilling’s two joint ventures.”

The UAE possesses the sixth-largest crude oil reserves globally, with approximately 107 billion stock tank barrels of proven oil reserves. Since its inception in 1972, ADNOC Drilling has played a crucial role in enabling ADNOC to unlock the country’s oil and gas resources efficiently and reliably, contributing to the nation’s energy sector.

This year, Enersol, a joint venture between Alpha Dhabi Holding and ADNOC Drilling, acquired four oilfield services technology companies, while Turnwell, another business partnership between ADNOC, SLB, and Patterson-UTI, set a record for initial well delivery time, accelerating the development of the UAE’s unconventional energy reserves.

Following its second upward guidance revision this year alongside its third-quarter results, ADNOC Drilling is on track to deliver its best-ever performance in Q4. ADNOC Drilling anticipates at least mid-single-digit expansion as it scales operations, according to WAM.

ADNOC forecasts a rise in drilling activity in the coming years, driven by its commitment to increasing crude oil production capacity by 25 percent, reaching five million barrels per day by 2027.

As the company looks to expand beyond the UAE and explore opportunities in the region, it foresees a growing need to expand its rig fleet to support its strategic growth plans.

The energy giant believes that expanding its rig fleet will enhance its current capabilities in rig hire, drilling, completion services, and associated operations and enable the company to offer unconventional drilling and biogenic well services. This expansion is expected to contribute to increased revenue and profitability.


Terminal 4 at Cairo International Airport to boost Egypt’s aviation and tourism sectors

Updated 23 December 2024
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Terminal 4 at Cairo International Airport to boost Egypt’s aviation and tourism sectors

  • Project is expected to bolster the country’s tourism goals and improve traveler experiences
  • Egypt’s aviation sector also improved 36 spots to 27th in the 2024 edition of the Air Transport Infrastructure Index

RIYADH: Egypt is advancing its aviation sector with the ongoing development of Terminal 4 at Cairo International Airport, set to accommodate 30 million passengers annually.

According to a statement from the Cabinet, the “New Republic Air Gateway” project is expected to bolster the country’s tourism goals, improve traveler experiences, and position Egypt as an international aviation hub.

This year, the government announced plans to involve the private sector in airport management, including a global tender for Cairo International.

Egypt’s aviation sector also improved 36 spots to 27th in the 2024 edition of the Air Transport Infrastructure Index, aligning with Vision 2030’s focus on sustainable development, innovation, and global competitiveness.

Prime Minister Mostafa Madbouly, during a meeting at the New Administrative Capital, reviewed progress on the project alongside Minister of Civil Aviation Sameh El-Hefny. The session focused on the terminal’s specifications, implementation strategy, and potential to reshape the African nation’s aviation and tourism landscapes.

“Airport development works come within the framework of presidential directives to upgrade the Egyptian airport system, raise its capacity and improve the level of services provided to passengers,” he said.

At the meeting, Madbouly emphasized the importance of creating world-class facilities to accommodate rising traveler numbers. 

El-Hefny outlined the project’s phased execution, with completion expected within four to five years. He also revealed that negotiations are underway with international firms specializing in airport construction and management to ensure world-class execution. 

The minister emphasized the cutting-edge features of the new terminal, including its ability to initially handle 30 million passengers annually, with expansion potential to 40 million. 

In September 2023, Cairo Airport Co. partnered with Pangiam, a trade and travel technology company, and signed two agreements to develop the new terminal. These deals, focused on enhancing the airport’s operations with advanced technology, include a feasibility study to incorporate emerging technologies and deliver a seamless travel experience.

The terminal will feature a state-of-the-art runway equipped with advanced navigation and lighting technologies that meet international standards. 

Once operational, Terminal 4 is expected to elevate Cairo International Airport’s global status, making it a hub for regional and international travel.