Implementing a product-level carbon accounting strategy presents significant challenges. (Image source: Canva Pro)

World Future Energy Summit, and Strategy& Middle East have jointly published a new report titled "Rethinking Corporate Decarbonization: From Enterprise Targets to Product Strategies". Strategy& Middle East is part of the PwC network.

The report assures that carbon accounting will give companies a competitive advantage.

“Shifting to product-level carbon accounting offers GCC energy players several strategic advantages, such as enabling tailored emissions reductions to meet market standards, improving compliance with global policies and enhancing product transparency to build customer trust and reputation. Additionally, it establishes flexibility for adapting to shifting policies and market dynamics, ensuring long-term resilience”, the report says.

Implementing a product-level carbon accounting strategy presents significant challenges. Many energy companies in the GCC have yet to establish comprehensive carbon accounting policies at the corporate level, let alone extend these frameworks to individual products.

Additionally, several GCC nations are still in the process of shaping their regulatory and legislative frameworks for carbon emissions. Accurate allocation of emissions from shared facilities, particularly in complex operations, requires robust methodologies and extensive data management, adding further complexity to the process.

Therefore GCC energy players must:

• Develop, codify and deploy robust product-level carbon accounting frameworks that align with global regulations.
• Invest in advanced automation and data management systems for accurate emissions reporting and real-time policy compliance.
• Focus decarbonisation efforts on products exported to high-regulation markets, ensuring compliance and competitive advantage.
• Investing in capabilities to continuously track and respond to shifting carbon policies globally, ensuring adaptability and leadership.

“This marks a pivotal moment for energy players. Setting broad corporate emissions targets is no longer sufficient. By adopting product-level decarbonisation, GCC energy companies can transform regulatory pressures into growth opportunities, securing their position as leaders in the global energy transition,” said James Thomas, partner at Strategy& Middle East.

“GCC energy companies have a unique opportunity to lead by example, leveraging innovative decarbonisation strategies to align with global demands. This transition will not only safeguard market access but also position them as pioneers in the low-carbon economy,” added Leen AlSebai, general manager of RX Middle East and head of the World Future Energy Summit.

Together, they aim to create an international supply chain for cost-effective and reliable green hydrogen exports.

ACWA Power has signed an MoU with Snam, a European energy infrastructure operator, to explore collaborative investments in establishing a green hydrogen supply chain from Saudi Arabia to Europe.

Snam, focused on developing a pan-European multi-molecule energy infrastructure to advance energy security and Net Zero goals, joins forces with ACWA Power, which operates green hydrogen and ammonia production facilities in Saudi Arabia. Together, they aim to create an international supply chain for cost-effective and reliable green hydrogen exports.

The partnership includes evaluating the development of an ammonia import terminal in Italy, facilitating the delivery of green hydrogen to Europe through the 3,300 km South H₂ Corridor, connecting Italy, Austria, and Germany, thereby strengthening Europe’s green energy transition.

Marco Arcelli, CEO of ACWA Power, said, “We are excited to join forces with Snam to drive significant advancements in the green hydrogen sector. With power sector emissions already down 40% compared to 20 years ago, we now need to focus our collective efforts on new, low carbon molecules to decarbonise our sectors. Bringing our expertise together will help accelerate this process.”

Stefano Venier,CEO of Snam, said, “The EU’s ambitious decarbonisation targets need decisive action across all manufacturing sectors, utilising all available technologies in a practical, efficient and accelerated manner. Hydrogen plays a key-role here, and we are glad to pursue development opportunities in this field also through agreements like the one we signed with ACWA Power: the development of the ammonia import terminal is synergic with that of the South H₂ Corridor.”

Vertiv experts also engaged attendees in discussions about emerging 2025 data centre trends.

Vertiv recently participated in the inaugural Data Center Nation event in Riyadh, which brought together leading innovators, key stakeholders, and industry experts.

A key highlight of Vertiv’s involvement was a panel discussion titled “Cooling the AI Era,” led by Piergiorgio Tagliapietra, director of application engineering thermal management for EMEA at Vertiv. The session explored the impact of Artificial Intelligence (AI) on data centre infrastructure, particularly the increasing demand for high-performance computing (HPC). With AI adoption driving rack densities beyond 100 kW per rack, the discussion focused on the transition from traditional cooling systems to advanced solutions such as direct-to-chip liquid cooling and rear-door heat exchangers.

Visitors to Vertiv’s booth experienced the cutting-edge Vertiv 360AI platform, an integrated cooling solution combining liquid and air-cooling technologies. Capable of handling high-density deployments of up to 132 kW per rack, the platform ensures exceptional heat management, operational efficiency, and scalability to meet future requirements.

Vertiv experts also engaged attendees in discussions about emerging 2025 data centre trends. These included strategies for managing power and cooling demands, improving energy efficiency, implementing sustainable practices, and addressing cybersecurity challenges. Additionally, the conversations emphasised the importance of AI Factory roadmaps, integrating IT with infrastructure, and navigating evolving regulatory frameworks surrounding AI technologies and their environmental impact.

The fabrication yard will form part of a wider maritime and offshore cluster which designed to support the energy industry. (Image source: NMDC Energy)

Abu Dhabi-based NMDC Energy has inaugurated an advanced fabrication yard in Ras Al Khair, Saudi Arabia, which will provide offshore facilities fabrication as well as onshore modularisation

The 400,000 sq m facility incorporates the latest fabrication processes, and is equipped with the latest features in automation and digitalisation. The fabrication yard will form part of a wider maritime and offshore cluster which is designed to support the energy industry. It is hoped that it will encourage industry by boosting growth, investment, trade, and employment within the Ras Al Khair region and beyond.

The yard was officially inaugurated at the iktva Forum & Exhibition 2025, which took place at the Dhahran Expo between 13 and 16 January 2025. The event showcased the Kingdom’s progress in localisation and saw the signature of 145 agreements and Memoranda of Understanding (MoUs) valued at around US$9bn, which are expected to advance the localisation of goods and services in Saudi Arabia, boosting local content in the supply chain and fostering collaboration.

Important market

Saudi Arabia is an important market for NMDC Energy, accounting for 38% of its total revenue. The company has made a significant contribution to the Kingdom’s localisation efforts, entering into a long-term agreement for offshore development with Aramco in 2016, which includes a commitment to Saudi workforce development. The company plans to continue its support for localisation efforts to raise its iktva score of 39% in 2025 to 51% by 2028.

NMDC Energy H.E. Mohamed Hamad Ghanem Hamad Almehairi, chairman of NMDC Energy, said, “The inauguration of Ras Al Khair represents a bold and exciting new chapter for energy cooperation for both the UAE and Saudi Arabia, which will bring vast tangible benefits to both nations. We’re proud that NMDC Energy will serve as an engine of economic development by powering priority industries, enabling businesses, and advancing solutions across the energy value chain. We foresee vast opportunities to collaborate and to pursue projects in areas that will maximise the value of the resources in both our nations, as well as ensure that the UAE and KSA remain leaders in the regional energy transition.”

Eng. Yasser Zaghloul, CEO of NMDC Group, added, “Saudi Arabia is pushing forward at a relentless speed to develop efficient, competitive, and responsive port and manufacturing ecosystems that will enhance the nation’s economic growth to ensure it keeps pace with global developments. At NMDC, we’re playing a pivotal role in these efforts, and we’re helping to strengthen UAE-KSA collaboration across vital sectors.”