Finland, Saudi Arabia sign MoU to develop energy co-op

Finland and Saudi Arabia on Wednesday signed a memorandum of understanding (MoU) in Riyadh with the view to develop cooperation in energy sector, said Ministry of Economic Affairs and Employment in a press release.

The MoU aims to enhance technical and economic cooperation between the two countries in the energy sector and promote the access of Finnish companies to the Saudi Arabian market.

Jarno Syrjälä, Under-Secretary of State at the Finnish Ministry for Foreign Affairs signed the MoU on behalf of Minister of Climate and the Environment Kai Mykkänen while Assistant Minister of Saudi Arabia Nasser Alqahtani signed on behalf of the Minister of Energy, HRH Abdulaziz bin Salman Al Saud.

The Ministry of Economic Affairs and Employment, supported by the Ministry for Foreign Affairs and in cooperation with the energy industry, has been responsible for preparing the MoU in Finland.

The MoU puts a strong emphasis on broad-based development of cooperation in the energy sector.

It identifies opportunities for cooperation in many areas, including renewable energy, development of stable electricity systems, various technologies and solutions to mitigate climate change (e.g. carbon capture, utilisation and storage, and removal technologies) as well as in collaboration and partnerships with smart cities and large energy projects.

The growing transition towards renewable energy sources and variable energy production is challenging the existing energy systems, which requires a comprehensive understanding of how the system works.

Moreover, digitalisation, cyber security and artificial intelligence will increasingly be linked to the production, transfer and use of energy.

The fact that the expertise and offerings of Finnish companies meet Saudi Arabia’s objectives and future priorities well creates a good basis for cooperation and business in the energy sector.

Finnish companies have extensive skills and knowledge in the energy sector and can offer diverse clean energy solutions to speed up the energy transition.

It is very appropriate for Finland to increase its climate handprint around the world, while at the same time Finnish companies are able to boost their business operations.

The MoU promotes R&D activities of research institutes and companies, including SMEs and start-ups, and contributes to creating a framework for new types of joint innovation activities.

Historically, Saudi Arabia has been heavily dependent on oil revenues. However, its goal is to diversify its economy and reduce dependence on fossil fuels. This objective includes extending the energy industry to other sectors, such as renewable energy and, especially, solar and wind power.

Saudi Arabia has launched ambitious renewable energy programmes, with solar and wind power playing a key role in its national renewable energy strategy. In particular, the country seeks to make use of solar power as it benefits from abundant sunlight all year round.

Saudi Arabia is also committed to significant investments in green hydrogen production, which is one means of moving towards a carbon-neutral economy. Green hydrogen is seen as a future energy source, and the country aims to become one of its leading producers.