Around the world, the focus on the energy transition is intensifying, driven by the need to create a sustainable future for our planet and the generations to come.
2023 was the hottest year on record and scientists suspect that changing temperatures are linked to rising greenhouse gas emissions, 75% of which stem from fossil fuels. Earlier this year, the United Arab Emirates (UAE) experienced more rainfall than it had seen since records began 75 years ago, an adverse weather event of the kind that’s affecting more and more countries worldwide. Climate change will only affect us further, unless we work together to accelerate the energy transition today.
Having spent much of the past eight months across the GCC – from Qatar and Saudi Arabia to the UAE – I’m not only fascinated by how the UAE have successfully brought the world together for COP28, but by the leading role the Gulf states are playing in countering climate change with innovation. They’re investing in renewables as well as Climate Tech and are attracting the best and brightest to the region to build a greener future.
How is the UAE advancing sustainability?
The GCC is now one of the world’s largest markets for renewable energy. The UAE, alongside other Gulf states, has rolled out over 30 programs to drive sustainability, such as the Green Agenda 2030 and Net Zero 2050 Strategy. Underlying these initiatives is a firm commitment to economic diversification, with the UAE continuing to foster the expansion of its non-oil economy, which has been growing at an enviable 6% a year.
Renewables are key to the UAE’s diversification efforts and the country’s investment in them significantly exceeds its devotion to fossil fuels, having committed $50 billion to clean energy projects and planning to commit the same amount over the next decade. But as important as renewables, are novel energy storage solutions.
Can today’s batteries power the energy transition?
As a young and agile nation, the UAE has a history of being quick to adapt. In just over 50 years, the country has become an innovation hub at the forefront of Artificial Intelligence (AI), Fintech, Genomics, and much more. And while the UAE’s Deep Tech ecosystem is still in its early days, there’s an opportunity to fast-track its growth to complement investment in renewables with more energy innovation.
Because the UAE – like much of the region – has sulfur in abundance, the GCC could become the epicenter of battery industry disruption and the transition from lithium-ion to lithium-sulfur batteries. Sulfur, unlike conventional battery materials like cobalt, manganese, and nickel, doesn’t have to be mined, costs a fraction of these materials, is three times more energy-dense than traditional battery materials.
But to make a new generation of batteries a reality, we need more visionary partners and investors, willing to commit with the long-term in mind. Lithium-sulfur batteries are ever-improving and recent breakthroughs in anode chemistry have made them safer and increased the cycle life, making the technology much more commercially viable. From Electric Vehicles (EVs) and electric vertical take-off and landing (eVTOL) aircraft to energy storage and wearables, lithium-sulfur batteries have a wide range of use cases and can go a long way in making sustainability a near-term reality.
What This Means for the GCC
What I’ve experienced firsthand since coming to the region for GITEX Global last year is that the UAE has a track record of making the impossible possible. It has the world’s tallest building as well as the deepest and highest pools, artificial islands that few thought would take shape, and cosmopolitan cities which outdo their global counterparts in safety and advanced technology. It’s this unique blend of vision and pragmatism – found across the region, be it Qatar or Saudi Arabia – that the battery industry urgently needs to future-proof itself and there’s no place like the GCC with the resources and conditions enabling it.
For us at theion, with our sustainable lithium-sulfur battery technology, that means doubling down on our expansion to the GCC, bringing with us a unique and patented technology, aiming for forging regional partnerships to build on that know-how, and contributing to talent development and job creation in the GCC.
Together, we can create a future where clean, affordable, and reliable energy is accessible to all. The Gulf states are leading the way to that future, and entrepreneurs from across the world have an opportunity to support their efforts. Sustainability isn’t an ideal; it’s a shared responsibility and an attainable reality. The GCC can teach us plenty about unlocking potential – if we’re willing to learn.
By Matthias Fengler, CFO of theion GmbH and Managing Director of theion’s Middle East operations.
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