Karim Aly, managing partner of Ecobility, which champions sustainable development, talks to Samantha Keck about the potential for biofuels in the UAE and the MENA region as well as his company’s business strategy for the new decade.
What was the driving force behind Ecobility? Are you happy with the progress of the business so far?
Karim Aly
Karim Aly (KA): Ecobility is the result of our firm belief in sustainable development and our desire to help tackle the environmental challenges affecting the MENA (Middle East and North Africa) region. A fundamental principle from the beginning was to create an organisation that would help bridge the ‘disconnection’ that exists today between most businesses and the environment.
The incredible reaction the company has received since its launch inspires us, and we continue to generate interest as we work tirelessly to bring sustainability to the mainstream.
How would you rate the progress of development of alternative energy industries in the UAE?
KA: The UAE has been making strides in promoting the development of alternatives over the last few years. We are witnessing constant efforts to diversify the nation’s power sources, thereby greatly enhancing our long-term energy security and mitigating the potential concentration risk of a predominant reliance on fossil fuels.
We have seen wind and solar installations being brought into the mix, with nuclear and WTE [waste-toenergy] plants also planned to feed the grid in the near future. There has also been progress in the liquid fuels space with Ecobility’s flagship venture – Emirates Biodiesel, the first commercial scale biofuels producer in the Gulf Co-operation Council.
How has the financial crisis impacted the development of alternative energy industry in the UAE?
KA: The advancement of the alternative energy industry is a function of the amount of funding made available to it which, in turn, naturally peaks at times when oil prices are high. Historically, we’ve seen huge appetites for renewables at times when the price of oil was at levels deemed to be ‘unsustainable’ for long-term growth.
Globally, the financial crisis led most private capital into a period of consolidation, resulting in very little capital committed for the industry. In an interesting contrast, the UAE’s domestic appetite for alternatives has remained healthy and high on the agenda as government-led infrastructure investment moves ahead, coupled with the population’s rising energy demands.
How would you rate the success of ‘Make the Switch’ campaign in the UAE since it started? Do you have any plans to expand the initiative and awareness amongst the population?
KA: Make the Switch has been a great success in terms of increasing the nation’s awareness about energyefficiency and in achieving substantial environmental and economic gains at the same time. The campaign has won several awards in recognition of its innovation, creative communication and overall purpose.
We’ve recently crossed the halfway mark of our one million bulb target, saving the nation almost 250 million kilowatt per hour (kwh) in electricity consumption, and preventing over 145,000 tonnes of carbon-dioxide emissions. We are definitely planning a few surprises in 2010 to further expand Make the Switch, so keep an eye out!
On a scale of 1-10 (10 being very conscious of the environment), how would you rate the ecoconsciousness of the UAE populace?
KA: That’s a tricky one because the UAE’s population mix is unlike any other. Our incredibly diversified society makes it difficult to establish a collective eco-consciousness score because the population has such widely varying levels of awareness and ‘eco-habits’.
However, with the swift rise in the significance placed on sustainability in the UAE and the associated awareness and knowledge building initiatives being undertaken, I would say we are a four going on eight. Our pace of advancement is really something to be proud of.
What do you think is the biggest stumbling block to using and producing biofuels in this country?
KA: It actually has more to do with the accessibility of fossil fuels rather than the existence of obstacles for biofuels. With the huge reserves in regional crude deposits, there was very little need to develop an industry for renewable liquid fuels in the past. Today, as sustainability and energy diversification play a more important role, biofuels have become a viable reality.
At Emirates Biodiesel, we maintain the view that biofuels should come only from low impact feedstocks, such as inedible oils, which have helped us in gaining recognition and acceptance as a sustainable project and prospective supplier to heavy diesel consumers in the UAE. Interestingly, the diesel engine was actually designed to run on peanut oil but, as the oil industry gained momentum, it was more convenient to shift to a more widely available fossil fuel. So in fact, Emirates Biodiesel is just picking up where the original plan was disrupted.
What percentage of the energy market do you think alternative energy will make up in five years?
KA: Speaking about the UAE in particular, we currently have pragmatic governmentset targets in place which add vigour to the industry, making it much more structured.
For example, we know that Abu Dhabi has set a target to generate seven per cent of all its power from renewable sources by 2020. I would, therefore, suspect that if the current trends continue, we can be at the three per cent mark over the coming five years.
Are you looking to expand into other verticals for Ecobility?
KA: We are constantly on the lookout for new opportunities and solutions – conceptual or already commercialised – which are aligned with our corporate ethos. For example, there’s been plenty of activity in the water space, and we hope to announce something soon.
What are your business strategies for Ecobility in 2010 as well as the next five years?
KA: Our strategy is founded on our vision for a lowcarbon future where the overall awareness of energy consumption is heightened. Consequentially, we will be placing much of our effort in the energy efficiency segment to help boost energy productivity and reduce our energy demand. We will simultaneously be exploring the niche renewables industry with a view to possibly incubating one or more greenfield ventures.
