How would you describe Alfanar’s position within Saudi Arabia’s energy transition?
Alfanar has positioned itself at the forefront of the energy transition in Saudi Arabia. Around 2010, we took early steps in renewable energy when the sector was in its infancy. By 2015, as the country launched its plans for green energy, we had already built a strong team, many of whom had been pioneers in Spain and other countries.
Technology transfer is at the core of what we do. We have always criticised how some foreign companies come to Saudi Arabia for mega-projects, execute them, and leave without transferring any technology or know-how. We emphasise localisation, and a great example is our smart meter project for the Saudi Electricity Company, which is the largest of its kind and also the largest IoT project in Saudi Arabia. Most of the software was developed in-house, and we designed our dedicated smart meters. Additionally, everything that goes into our solar projects, except the panels, is manufactured here.
What impact have your operations had on domestic supply chains?
One of the reasons we are so happy with Aramco’s IKTVA programme is that it allows us to measure capacity building and helps us ensure that local content is being prioritised. We have developed a strong reputation over the past two decades, and this has attracted talented professionals to work with us who want to contribute to the national energy transition. This, in turn, has helped the country reinforce its expertise and capabilities to develop large-scale renewable energy projects.
Alfanar is involved in green hydrogen internationally. What is your perspective on the future of green hydrogen in Saudi Arabia?
Green hydrogen is in the process of proving itself as a tradable commodity, whether in ammonia or green hydrogen form. If it becomes tradable, it could have a massive impact on the energy industry. It’s a risky segment, but we believe hydrogen will play a very important role. Saudi Arabia is very eager to adopt new technologies, and we are excited to support these efforts as they evolve.
What is your strategy for attracting partners and making projects economically viable?
We have created holding companies for various areas of our business, including one for digital infrastructure, another for green fuels and another for green energy. Investors can participate in individual projects under these companies, or they can invest at the holding level. We are flexible and welcome partners who align with our goals.
Vision 2030 emphasises investments in digitalisation and AI. How do you see these segments evolving in Saudi Arabia?
The data centre market is booming in Saudi Arabia. One major challenge for AI that is becoming increasingly evident is the availability of power. We are seeing consumption rates of 20 KW per rack, and that could easily increase to 100 KW. Data centres could potentially require up to 2 GW of power, so there could be huge opportunities for Alfanar, as we are well-positioned in the power sector. We aim to be at the forefront of AI and are exploring the development of large-scale data centres in Saudi Arabia as part of our strategy.
What have been some of the company’s key milestones over the years?
I am incredibly proud of the board’s vision for human capital. 30 years ago, they identified the human element as the most critical factor for our success, and that has made Alfanar one of the top companies in the region. Our chairman has always emphasised sustainability, quality and human capital. These are the elements that have guided us.
Rather than focusing solely on profits and losses, we have consistently asked ourselves, “Are our operations sustainable?” and “Are we delivering the best quality?” Most importantly, we have asked ourselves, “Are we taking care of our people?” This philosophy has been central to our growth and success.