Brent crude futures remained stable…
The war premium for oil…
Saudi Arabia has signed a deal with Greece for the establishment of a jointly-owned company to link up the two countries’ power grids with the goal of supplying Europe with clean energy, Reuters reports.
The new company, Saudi Greek Interconnection, joins Greece’s IPTO and Saudi Arabia’s National Grid, each with a 50% stake.
Greece’s energy mix is already 40% renewable, and the country is seeking to boost this further, while lowering costs. To that end, Greece is also seeking to build an undersea cable that will link its grid to Egypt for renewable energy.
The potential $4-billion project could have the capacity to transport some 3,000 megawatts per day, though a feasibility study has not yet been conducted.
A similar deal has been struck with both Cyprus and Israel, with the three countries pursuing a $900-million underwater power cable.
Saudi Crown Prince Mohammad Bin Salman (MBS) has also been hitting up France, with talk of the possibility of exporting Saudi renewables and hydrogen to the European country, though no official deals have been signed.
Earlier this month, Riyadh and Washington formalized a bilateral agreement to cooperate on an intercontinental green transit corridor to traverse Saudi Arabia, which is eyeing top-ranking status on the green energy scene.
According to the U.S. Department of State, the project will “facilitate the transit of renewable electricity and clean hydrogen via transmission cables and pipelines as well as constructing rail linkages.”
Saudi Arabia is heavily pushing green deals and has recently vowed to increase the percentage of renewables in its energy mix, with the wildly ambitious NEOM project considered its focal point. NEOM, once completed, will be the world’s first city without roads.
Saudi green energy initiatives, particularly those that foster more and cheaper clean energy for Europe, have been hastened by Russia’s war on Ukraine and the Western sanctions response.
By Charles Kennedy for Oilprice.com
Charles is a writer for Oilprice.com