Omar AL OMAR
CEO
AL OMAR CENTER

A roadmap for green energy projects

Kuwait

Omar Al Omar, CEO of the Al Omar Center, talks to The Energy Year about the operational implications of partnering with international EPC companies and the ways in which Kuwait can foster the development of green energy projects. The Al Omar Center is a trading and contracting company located in Kuwait.

What are the operational implications of partnering with international EPC companies in landmark projects?
Understanding all the elements of partnering with an EPC company is very complex. Being a company that understands the sector inside and out, it is very important to bring forth your best knowledge and to initiate your activities by assisting and weighing in on the right consortium patterns, legal and regulatory compliance, quality control, and risk management, as well as developing the right mobilisation patterns for the most efficient logistic routes. After having achieved that, you can provide the international company with the best opportunity to be as competitive and as efficient as possible while engaging in a region like GCC.

What was the contribution of Al Omar Centre in the Clean Fuel Project?
The Clean Fuel Project is one of the largest and most significant projects in the history of the Kuwaiti oil and gas sector, positioning Kuwait among major exporters of high-quality and eco-friendly products. All the technical knowledge, abilities and know-how that we acquired in our previous years of operation helped us in providing consultation and entertaining the interest from our principals, to evaluate their capacities in order for us to formulate a clear strategy that helped in the execution of such a large-scale project. Apart from adhering to the Euro 5 fuel standards, I think this project plays a major role in displaying and illustrating Kuwait’s intention to move forward with environmentally friendly initiatives.
Our contribution was instrumental for the safe and timely execution and successful delivery of the project objectives. We supported the consortium with major logistics, procurement and construction support activities.

How can Kuwait foster the development of green energy projects?
I think there is always room to grow in our efforts to decarbonise. We are being surpassed by neighbouring countries. If we look at the initiatives of the UAE, they are massive compared to what Kuwait is doing. The same is true for Saudi Arabia. However, I don’t think that we should take anything away from our current efforts.
As a leading company, this is what we’ve focused on for the past few years. I think it’s very important to understand the significance of bringing about green projects and understanding the effect that they will have on the region and climate. We are engaging with a lot of vital players across the globe and discussing many interesting projects. We have connected with the Norwegian Minister of Climate and the Environment for example, and we are exploring options to develop green hydrogen initiatives.
Honestly, I do not see green energy as a challenge that would hinder our oil and gas economy sector but as an opportunity that would help us progress forward as a region and as a country and not look at the short-term benefits but at the long-term implications.

What growth do you see happening in the power and the water desalination sectors?
I see that a major overhaul of Kuwait’s oil and gas sector is underway following the awarding of contracts, which are expected to drive the sector during the upcoming period. If we look at the second phase of the Doha project, for example, there’s a significant amount of investment happening inside the region and outside as well. I was in discussion with the current president of Kenya about the possibility to explore the different power plant energy and water desalination solutions for Sub-Saharan Africa. They have been very impressed and have done a lot of due diligence about the quality and capacity of the projects that we have completed here in the Middle East. In the region, we may lack some industries, but if you talk about the execution of major projects, we execute and deliver at the highest quality.

Which are the key strategic pillars of your growth plans?
Covid-19 brought unique challenges to all aspects of our lives over the past three years. The pandemic changed how we live, work and socialise, resulting in unprecedented impacts on member economies. Since oil and gas play an essential role in our business’ economic activities, the effects of the pandemic hit us significantly. However, we took this as an opportunity, as it forced us to re-innovate the company, digitise our processes, reposition our portfolios and transform our operating models. This has already increased our productivity significantly and has allowed us to allocate funds to strategic investments like green energy.
Moving ahead, I think it’d be imperative to invest in the digitisation of operational procedures, creating opportunities for us to work more efficiently and productively. Additionally, the pandemic has increased client demand for technologically advanced digital experiences, which has further driven the need for businesses to digitise in order to meet these changing expectations.

How important is the role of the private sector in bringing new technologies into Kuwait?
I think it plays a very important role. It is usually the private sector that drives innovation and investment in new technologies, which can help to modernise and diversify the economy, increase productivity and efficiency, and create new jobs. Especially in this region, the private sector can help to foster competition and drive down costs, which can make new technologies more accessible and affordable for consumers and businesses.
Although the government also plays an important role in creating a conducive environment for the private sector to thrive, I wouldn’t suggest that businesses wait for the government to take initiative regarding new, innovative technologies.
A lot of our partners have been with us for more than 25 years. We brought them on, and nurtured them to understand the market properly until they became a leading player in executing the services. Today, a lot of these partners are eager to provide their solutions, and as an effort to give back to the environment, we should entertain every solution that could potentially generate growth for Kuwait and the GCC region.

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