INTERVIEW: ‘Hero of the Planet’  Bill McDonough calls for a rethink of carbon in the circular economy

Illustration by Luis Grañena
Short Url
Updated 30 August 2020
Follow

INTERVIEW: ‘Hero of the Planet’  Bill McDonough calls for a rethink of carbon in the circular economy

  • World-renowned sustainable design advocate explains Saudi Arabia’s leading role in global energy transition

Bill McDonough pulled no punches. “It’s a very, very serious issue. The science is clear and the signals are seriously scary. Let’s just face it,” he said during an hour-long Zoom meeting from his home in Virginia in the US.

He was talking about the threat to humanity from environmental pollution and resulting climate change, and he is well-qualified to talk about it. Called “A hero for the planet” by Time magazine, and the only recipient of the US Presidential Award for Sustainable Development, McDonough is regarded as the “father of the circular economy,” the strategy that aims to transform the lives and livelihoods of humanity — before environmental disaster does that for us.

Now McDonough has joined forces with Saudi Arabia to meet that challenge and, in particular, to determine the place of hydrocarbon fuels — the lifeblood of the Kingdom — within the coming energy transition.

“This requires massive heroic behavior. Let’s do something over the next 10 years that will astonish our children,” he said, hammering home the scale of the challenge.

That message would not be out of place in the preachings of many environmental agitators, but McDonough brings to it intellectual pedigree and a track record of pragmatic application. When he says, “I’m going to design buildings like trees,” it is much more than just a slogan.

Born in Tokyo, as a child McDonough pondered big questions like the destruction of Hiroshima by the atomic bomb, dabbling in physics, chemistry and international relations before settling on architecture as a profession.

The concept of the “circular economy” grew out of his work in regenerative building design on the “cradle to cradle” principle — the idea that human constructions should be built with future generations firmly in mind.

International recognition for his work rose steadily from the environmentally aware 1990s until publication — along with Michael Braungart — of the book “Cradle to Cradle — Remaking the Way We Make Things” in 2002.

The principles in the book were adopted by the Chinese government in its 5-year plans and by the World Economic Forum in 2014. In Davos, McDonough built a structure called the ICE House — with the help of SABIC of Saudi Arabia — to illustrate the concept of sustainable design.

That collaboration with the Kingdom was evidence of an increasingly close relationship. McDonough had earlier met Prince Abdul Aziz bin Salman, the Saudi energy minister, and found an enthusiastic listener for his ideas.

“I know this was natural to him, it was all intrinsic to his thinking. One of the most elegant parts of the dialogue is that I really enjoy working with him, talking to someone who has thought as deeply about this as he has,” McDonough said of the prince, who made energy efficiency a keystone of the Kingdom’s energy strategy.

Those conversations made him think more about the role of carbon within the circular model, which had three guiding tenets.


BIO

Born: Tokyo, 1951

Education

  • Dartmouth College,  Hanover, NH, US
  • Yale University, New Haven, CT, US

Career

  • Dean of architecture, University of Virginia 
  • Founder, McDonough Innovation
  • William McDonough & Partners
  • Relationships with several leading global universities and the World Economic Forum

Everything is a resource for something else; in nature, the “waste” of one system becomes food for another, either through biological or technical process.

Second, energy should be clean and renewable, with an emphasis on solar sources as well as wind, geothermal and other forms of energy.

Third, celebrate the diversity in local ecosystems in which design is adapted to specific circumstances in an “elegant and efficient” way.

“That is the basis of the ‘cradle to cradle’ approach — waste equals food, celebrate diversity, and use renewables, especially solar. It’s a beautiful thing,” McDonough said.

In a 2016 article in the magazine Nature, he coined the phrase that was picked up by environmental realists around the world, and especially in Saudi Arabia: “Carbon is not the enemy,” which seemed an appropriate rallying cry for a country and an economy that owes its modern development to hydrocarbons in the form of oil.

“I had this revelation when they asked me to work on it, because this is actually super-important. Carbon is actually a material in the circular economy, but it’s also a fuel, which is very unusual, so it deserves special attention. We decided to start working on this with the Saudis,” he said.

The relationship with SABIC went back to 2015, but he found his services much in demand as plans for the megaprojects of the Vision 2030 strategy advanced. He became an adviser to the Red Sea Development Company, the Royal Commission for AlUla, and for the Al-Soudah project run by the Public Investment Fund, as well as a member of the higher council of NEOM, the huge urban development planned for the Kingdom’s northwest.

Earlier this year, McDonough became an adviser and collaborator with the King Abdullah Petroleum Studies and Research Center in Riyadh, and delivered one of the keynotes for the Kingdom’s Energy Ministry at the G20 energy meeting in March.

His thinking crystallized. “The problem is not carbon — the problem is us. Carbon is an innocent element, and like I pointed out, there is the sun, there is carbon in the atmosphere, and then there is the soil, also carbon. If you say you want to be carbon free, think about it — are you saying to want to decarbonize yourself? Impossible,” he said.

He classes carbon into three kinds, and has an intricate set of slide illustrations to emphasize the point. “Living carbon,” which is an essential ingredient to human life and the basis for all agriculture. “It’s a positive thing to want to make more living carbon,” he said.

Then there is durable carbon, which is also a positive when it is an enduring form, like a building, or a city, or — the example he gave — a piece of paper, which can last for centuries in the form of a book.

Then there is the third kind — “fugitive” carbon — which he called “the big whoops.” This is the form that escapes into the atmosphere during industrial, transportation and manufacturing processes, or is washed up on a shoreline as plastic waste.

“It’s probematic to have durable carbon go fugitive,” he said.

It almost goes without saying that McDonough is a firm believer in the various international accords, especially the Paris agreement on climate change, that seek to limit, and even reverse, environmental damage by controlling output of “fugitive” carbon into the atmosphere, and these limits are built into all his models. “We have to work within those limits,” he said.

The main solution to fugitive is the process known as CCUS — carbon capture, utilization and storage — which has also become a major plank of the Kingdom’s energy strategy. CCUS techniques are implemented by Saudi Aramco and in NEOM. “What’s going on at NEOM is phenomenal and magnificent, because they’re planning on running on 100 percent renewable power,” he said. “All of a sudden they’re going to be making hydrogen with electrolysis. So we’re going to have what we call ‘green hydrogen,’ which is a magnificent prospect for the human future,” he said.

McDonough does not like the term “fossil fuels,” which he says encourages the idea that the only use for hydrocarbons is to burn them; nor does he like the phrase “hydrocarbon resources.” “Let’s just call them sources that we get from nature,” he said.

Just as important, fugitive carbon can be transformed into a variety of materials, like plastics and polymers, that are essential for human life. 

McDonough said that the work of SABIC, the Saudi petrochemical group now owned by Aramco, in this regard was “especially important.” 

Nor is McDonough a fan of those on the extreme wing of the environmental movement who say the world should stop using hydrocarbon fuels completely.

“I think the big picture for all of us in terms of social benefit, and intelligent behavior and design is that we do want inexpensive energy for everyone so they can make their lives better. We just don’t want to destroy the atmosphere,” he said.

The challenge is to meet the environmental standards most countries agree are necessary to prevent the warming of the Earth by more than 2 degrees Celsius above pre-industrial levels by the middle of the century, and McDonough believes there has to be a unified commitment on the part of humanity to meet this essential target.

McDonough has worked with the US space agency NASA on building design, producing some of the most advanced and environmentally friendly constructions in the world. “President Kennedy famously said we were going to do a moonshot, and within 10 years man was walking on the moon. I’d like to do an Earth shot. 

Let’s put Mars off for a little bit. Before I go to work on the red planet, can I come back to the blue one?” he said.

Does he think humanity can get there by 2050 and pull itself back from the brink of climate catastrophe? “I think so. I think we  have to,” he said.


ACWA Power secures landmark $80m bridge loan from Bank of China for Uzbekistan projects

Updated 11 sec ago
Follow

ACWA Power secures landmark $80m bridge loan from Bank of China for Uzbekistan projects

RIYADH: Saudi energy giant ACWA Power has secured an $80 million equity bridge loan from the Bank of China for its Uzbekistan initiatives.

According to an official press release, the payment is split equally between Chinese yuan and US dollars, marking the first loan cooperation deal by a bank from the Asian country using its native currency involving a company from the Kingdom.

ACWA Power said the fund will boost its Tashkent 200 megawatts solar photovoltaic power plant and 500 MW per hour battery energy storage system project in Uzbekistan.

“This transaction culminated the initial agreement reached during the 3rd BRF (Belt and Road Forum) summit in October 2023, where ACWA Power was represented by its chairman as a keynote speaker,” the company said in a statement.

ACWA Power’s Chief Financial Officer, Abdulhameed Al-Muhaidib, highlighted the significance of this milestone, citing its alignment with Saudi Arabia’s Vision 2030 and China’s Belt and Road initiative. 

He said: “We are delighted to deepen our cooperation with Bank of China to bring renewable energy at competitive tariffs to our key markets, including Uzbekistan.”

ACWA Power has a longstanding relationship with Chinese entities, dating back over 15 years, with investments from the Asian country in the company’s projects exceeding $10 billion.

The General Manager of the Bank of China, Pan Xinyuan, said: “I believe that the Belt and Road Initiative is in harmony with Saudi Arabia’s Vision 2030. Bank of China will further leverage its strengths to support the cooperation between Saudi enterprises like ACWA Power and their Chinese partners for win-win objectives.”

He added: “Looking ahead, Bank of China will continue to improve financial connectivity to push the Belt and Road economies on a track of sustainable and high-quality development.”

ACWA Power has been collaborating with multiple countries to develop its plants.

Earlier this month, the company signed a $800 million agreement with Senegal’s Ministry of Water to develop a desalination facility.  

It announced the inking of a water purchase agreement for the construction of the facility in Dakar, Senegal in a statement on the Saudi stock exchange, Tadawul.  

ACWA Power will be responsible for the infrastructure, design and financing as well as construction, operation and maintenance of the Grande Cote seawater desalination plant in the West African country.


Microsoft to invest $1.5bn in UAE-based AI firm G42 

Updated 17 min 55 sec ago
Follow

Microsoft to invest $1.5bn in UAE-based AI firm G42 

RIYADH: Global tech giant Microsoft will invest $1.5 billion in the UAE-based artificial intelligence technology company G42, aiming to offer the latest AI solutions and skilling initiatives.  

As part of the deal, G42 will grant the US firm a minority stake and Brad Smith, Microsoft’s vice chair and president, will join the Emirati firm’s board of directors, according to a press release. 

Smith said: “Our two companies will work together not only in the UAE, but to bring AI and digital infrastructure and services to underserved nations.”  

He added: “We will combine world-class technology with world-leading standards for safe, trusted, and responsible AI, in close coordination with the governments of both the UAE and the United States.” 

The deal will see G42 utilizing Microsoft Azure to run its AI applications and services, partnering to deliver advanced solutions to global public sector clients and large enterprises.  

Moreover, the companies will collaborate to bring advanced AI and digital infrastructure to nations in the Middle East, Central Asia, and Africa, ensuring equitable access to services, the release added.  

“Microsoft’s investment in G42 marks a pivotal moment in our company’s journey of growth and innovation, signifying a strategic alignment of vision and execution between the two organizations,” said Tahnoon bin Zayed Al-Nahyan, chairman of G42. 

“This partnership is a testament to the shared values and aspirations for progress, fostering greater cooperation and synergy globally,” he added. 

The agreement also encompasses a $1 billion investment in a fund for developers, which aims to bolster the creation of a skilled and diverse AI workforce, as well as foster innovation and competitiveness for the UAE and the broader region. 


UAE grocery store chain Spinneys to float 25% stake on Dubai Financial Market

Updated 16 April 2024
Follow

UAE grocery store chain Spinneys to float 25% stake on Dubai Financial Market

RIYADH: UAE-based grocery store operator Spinneys 1961 Holding PLC has announced its intention to proceed with an initial public offering on the Dubai Financial Market.

Al Seer Group, Spinney’s parent company and the selling shareholder, expects to sell 25 percent of the total issued share capital of the firm, equivalent to a total of 900 million shares.

The IPO’s subscription period will begin on April 23 and the DFM listing is set for May 9, the company said in a release.

The offering will be made available to UAE retail investors with 5 percent or 45 million shares in the first tranche, while the second tranche will provide professional stakeholders with 855 million shares.


Dubai’s high-end property sales rise on overseas demand

Updated 16 April 2024
Follow

Dubai’s high-end property sales rise on overseas demand

DUBAI: Sales of homes in Dubai worth $10 million or more rose 6 percent in the first quarter versus last year, an industry report showed on Tuesday, as demand from the international ultra-rich for homes in the emirate showed little sign of abating, according to Reuters. 

A total of 105 homes worth an overall $1.73 billion were sold from January to March, up from around $1.6 billion a year earlier, according to property consultancy Knight Frank.

Activity was dominated by cash buyers, with palm tree-shaped artificial island Palm Jumeirah the most sought-after area, accounting for 36.3 percent of sales by total value, followed by Jumeirah Bay Island and Dubai Hills Estate.

Home to the world’s tallest tower, the UAE’s Dubai is seeking to grow its economy through tourism, building a local financial center and by attracting foreign capital, including into property.

The recent property boom has shown signs of fizzling out, however, with developers, investors and brokers worrying whether a painful correction akin to the slump that rocked the emirate in 2008 can be avoided.

Last year, Dubai ranked first globally for number of home sales above $10 million, selling nearly 80 percent more such properties than second-placed London, according to Knight Frank.

The city also bucked the trend of falling luxury prices seen in cities like London and New York last year, posting double-digit gains, Knight Frank said in February.

“The level of deal activity in Dubai continues to strengthen, particularly at the top end of the market, where the near constant stream of international high-net-worth-individuals vying for the city’s most expensive homes persists,” said Faisal Durrani, Knight Frank’s head of research for Middle East and Africa.

Durrani told Reuters Dubai was aided by the relative affordability of its luxury homes, where well-heeled buyers can purchase about 980 sq. feet of residential space for $1 million, “about three or four times more than you would get in most major global gateway cities.”

The strong demand suggests many international investors are acquiring Dubai property for second homes rather than “constant buying to flip,” he said, referring to the past practice of buying in order to sell to others quickly for more money. 


Oil Update — prices rise on China growth, Middle East tensions 

Updated 16 April 2024
Follow

Oil Update — prices rise on China growth, Middle East tensions 

SINGAPORE: Oil prices rose on Tuesday after data showed China's economy grew faster than expected, while heightened tensions in the Middle East also kept markets on edge after Israel said it would respond to Iran’s weekend missile and drone attack, according to Reuters. 

Brent futures for June delivery rose 20 cents, or 0.2 percent, to $90.30 a barrel by 10:57 a.m. Saudi time. US crude futures for May delivery rose 21 cents, or 0.3 percent, to $85.62 a barrel. 

Earlier in the day oil prices had risen nearly 1 percent following the release of official data from China showing gross domestic product in the world’s biggest oil importer grew 5.3 percent in the first quarter, year-on-year, comfortably beating analysts’ expectations. 

However, both benchmarks pared some gains as a raft of other Chinese indicators including real estate investment, retail sales and industrial output showed demand remained weak in the face of a protracted property crisis. 

Oil prices soared last week to the highest levels since October, but fell on Monday after Iran’s weekend attack on Israel proved to be less damaging than anticipated, easing concerns of a quickly intensifying conflict that could displace crude barrels. 

“Israel’s response will determine whether the escalation ends or continues. The conflict could still be contained to Israel, Iran and its proxies, with possible involvement of the US,” analysts at ANZ Research said in a note on Tuesday. 

Israel’s Prime Minister Benjamin Netanyahu on Monday summoned his war cabinet for the second time in less than 24 hours to weigh how to react to Iran’s first-ever direct attack on Israel. 

Iran produces more than 3 million barrels per day of crude oil as a major producer within the Organization of the Petroleum Exporting Countries.