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BAHRAIN POLYTECHNIC Transport and Energy in Bahrain Aysha S. Alheddi

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Bahrain Polytechnic

Transport and Energy in Bahrain

Aysha S. Alheddi

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Contents

1. Introduction........................................................................................................................................................2

2. The current state of energy usage in Bahrain.....................................................................................................2

2.1 Production and Consumption of energy sources in Bahrain.......................................................................2

2.1.1 Oil........................................................................................................................................................2

2.1.2 Natural Gas.........................................................................................................................................2

2.1.3 Electricity............................................................................................................................................2

3. Energy usage within Bahrain's transport industry..............................................................................................2

3.1 Road Transport...........................................................................................................................................2

3.2 Air Transport...............................................................................................................................................2

3.3 Maritime Transportation............................................................................................................................2

4. Energy usage in Bahrain's logistics industry........................................................................................................2

5. Viable future options for Bahrain's transport and logistics industry in regards to it energy requirements........2

5.1 Solar Energy................................................................................................................................................2

5.1.1 Development stages of solar energy in Bahrain..................................................................................2

5.1.2 Advantages of Solar Power.................................................................................................................2

5.1.3 Solar power implementation..............................................................................................................2

5.2 Wind Energy................................................................................................................................................2

5.3 Biofuels.......................................................................................................................................................2

5.4 Example from Dubai...................................................................................................................................2

6. Conclusion..........................................................................................................................................................2

7. Bibliography........................................................................................................................................................2

8. Table of Figures..................................................................................................................................................2

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1. Introduction

Having one of the highest rates of energy consumption and usage in the world, it is

necessary that Bahrain formulate new regulations and policies in order to enable the

establishment of long-term inclusive sustainable energy programmes for the

purpose of ensuring that the supply of energy meets the rapid energy demand

growth and that it is sufficient to all society sectors. The aim of this paper is to

analyze the current state of energy consumption and usage in Bahrain as it relates to

the industry of logistics and transport within the kingdom. Also, to highlight and

discuss the viable options for the future of the logistics and transport industry in

terms of the energy requirements in Bahrain.

2. The current state of energy usage in Bahrain

The energy consumption is very high in Bahrain and about ten times more than

several developing countries such as Japan. The total energy consumption and usage

in Bahrain was estimated to be 5,089 ktoe (kilo-tones oil equivalent) in the year of

2009. In addition, when it comes to the sources of energy consumed, the largest

energy source consumed is natural gas at 2,945 ktoe followed by the products of oil

at 1,277 ktoe and lastly the generation of electricity at 875 ktoe. And considering the

consumption of energy per sectors, the largest consumption of energy in Bahrain

comes from the industry sector with about 3,051 ktoe, followed by the sector of

transportation at 1,129 ktoe, then the housing and residential sector at about 549

ktoe, after that the commercial and public services sectors at 300 ktoe, and lastly the

agriculture and forestry sectors at 4 ktoe (Bahrain , 2012).

2.1 Production and Consumption of energy sources in Bahrain Source of Energy Production Consumption Source

Natural Gas 445.68 BCF 445.68 BCF(Overview data for

Bahrain , 2013)

Oil 55.1577 bbl/d 50.493 bbl/d(Overview data for

Bahrain , 2013)Wind 12 to 15% of the 12 to 15% of the (Bahrain , 2012)

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electricity needs of Bahrain world

Trade Centre

electricity needs of Bahrain world Trade Centre

With reference to REEEP Policy Database, Bahrain has 0% of production and

consumption of several sources of energy which are; coal, solar, geothermal, wave

and hydro energy sources. Also, the annual energy demand in Bahrain is expected to

increase by 10% in next decade. Hence, the Bahraini government have plans for

building two hybrid renewable energy plants, in addition to a number of small solar

and wind installations in order to be able to meet the future energy demands.

However, due to the lack of research and prevalence of the non-renewable fossil

fuels, there hasn’t been any efforts made for developing the potential for biomass,

geothermal and hydro-electric technologies. In addition, even though Bahrain does

not have an installed solar capacity. Still, the faculty of engineering in the University

of Bahrain (UOB), have created and constructed two mobile solar power plants

(hybrid wind and solar power generation plant and system for water desalination) as

well as an experimental solar system for heating water and smaller fixed plants.

Moreover, Aluminium Bahrain (ALBA), have adopted and installed the solar water

heating system which was constructed by UOB and since it has been used, 100kg of

carbon dioxide are reduced on a daily basis (Bahrain , 2012).

The column chart below shows the energy consumption from fossil fuels in Bahrain

(Fossil fuel energy consumption (% of total) in Bahrain, 2010)

Figure 1 - Energy Consumption from fossil fuels in Bahrain

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And according to the World Bank Report which was published in 2010, the

percentage of the total energy consumed from fossil fuels in Bahrain in the year

2009 was 99.85. these fossil fuels consist of oil, petroleum, coal and natural gas

products (Fossil fuel energy consumption (% of total) in Bahrain, 2010).

Moreover, during the Energy Management Conference of this year, Shaikh Ahmed

bin Mohammed Al-Khalifa, the Minister of Finance who is in charge of the gas and oil

affairs stated that the kingdom is continuously adopting several constructive

initiatives and steps towards energy management in recreation of energy

sustainability (NOGA, 2013).

2.1.1 Oil

The production of oil in Bahrain has remained comparatively stable during the last

decade, while the domestic consumption surged which resulted in decreasing the

Bahraini oil. The following chart shows the total oil production and consumption of

Bahrain from 1999 until 2009 (Astalavista, 2012)

Figure 2 - Bahrain's Total Oil Production and Consumption (1999-2009)

In 2012, the total oil liquids of Bahrain were estimated to be 49,160 bbl/d which

included 45,000 bbl/d of crude oil, and this estimation is the least between the GCC

countries, especially that the total consumption of oil in Bahrain is 50,490 bbl/d. And

by the end of the decade, Bahrain is planning to increase its oil production to

100,000 bbl/d in total (Country Analysis Note, 2013).

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2.1.2 Natural Gas

Bahrain is a small producer of natural gas and in 2011, the production of dry natural

gas reached 446 billion cubic feet. (Country Analysis Note, 2013). All of the natural

gas production of Bahrain is consumed in power plants or in heavy industries where

it is used as a feedstock. Aluminum Bahrain (ALBA) is biggest domestic consumer of

natural gas in the kingdom. Overall, the demand on natural gas in Bahrain has

rapidly grown during the recent years and this demand growth is likely to continue

because of the growing requirements of natural gas for the domestic energy-intense

industries and power plants (Astalavista, 2012). Thus, in order to be able to meet the

future demand on gas, Bahrain is planning to import gas from several sources either

by the pipelines from Qatar or via the imports of the liquefied natural gas (LNG) after

the new LNG terminal contract awarding (Country Analysis Note, 2013).

Figure 3 - Bahrain's Natural Gas Production and Consumption (1999-2009)

The above chart shows the percentages of natural gas production and consumption

from 1999 to 2009 which is relatively similar because as it was mentioned previously,

Bahrain consumes all the natural gas that is produced. Therefore, alternative sources

for gas are considered in order to plan meeting of future demand (Astalavista, 2012).

2.1.3 Electricity

Electricity generation in Bahrain has grown by 9% since 2009 when the kingdom had

2.8 gigawatts of installed capacity for electricity gathering. Indeed, Bahrain's

electricity is generated mostly with natural gas and oil. The Electricity and Water

Authority of Bahrain (EWA) is expecting the same growth level of electricity

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generating over the current decade. In addition, for the purpose of meeting the

growing demand, Bahrain encouraged the independent power projects (IPPs) by

allowing the privatization of state-owned assets for the power sector such are the

gas-fired Al Ezzel plant which started its commercial operations in 2006 (Astalavista,

2012).

Figure 4 - Gulf Cooperation Council (GCC) Electricity Grid

Moreover, in order to enhance the sustainability of electricity generating, the GCC

countries shared a unified power grid since 2009. The project linked the grids of

Bahrain, Saudi Arabia, Qatar, and Kuwait in addition to UEA and Oman which were

integrated to the grid by 2011. With this project, the power supplies became more

secured even during emergencies and it reduced the power generating costs for the

member countries (Astalavista, 2012).

3. Energy usage within Bahrain's transport industry

3.1 Road Transport

The consumption of energy in the transport sector in Bahrain includes the heavy

duty vehicles such as large trucks and public buses. And the light duty vehicles such

as the private cars, minivans and small trucks. The population growth, living

standards and economic activities are the factors which determine the demand and

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energy used for the transportation sector (Transportation sector energy

consumption, 2013).

Figure 5 - Diesel fuel consumption for the road transport sector in Bahrain

The numbers of heavy and light duty vehicles in Bahrain is increasing which raises

the demand for liquid transportation fuels. And the private vehicles ownership

personal travel demand is increasing as well, as a result of urbanization and personal

income increase. And with reference to the 2010 World Bank Report, the diesel fuel

usage for road transport was 432 ktoe in 2009 in Bahrain (Road sector diesel fuel

consumption kteo in Bahrain, 2013).

3.2 Air Transport

As it showed it the chart below, the consumption of jet fuel in Bahrain has been

steadily increasing as a result of the growing demand for passenger aviation and air

freight (Bahrain Jet Fuel Production and Consumption by Year, 2013).

Figure 6 - Bahrain's Jet fuel production and consumption (1984-2010)

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The aviation fueling service in Bahrain is provided by Bahrain Aviation Fueling

company (BAFCO) which supplies about 600,000 US gallons of fuel on a daily basis to

125 aircrafts at the airport (BAFCO Vehicle Fleet, 2013). The supplied aviation fuel is

of Jet A-1 grade which is produced to global specifications by the Bahrain refinery

located in Sitra. About 13,000 BBLs of fuel is pumped daily from the tanks is Sitra's

refinery to Arad through dedicated pipelines and then onto the planes (Bahrain

Petroluem Company , 2013).

3.3 Maritime Transportation

The demand on fuel (diesel) for the shipping industry in Bahrain is slightly increasing

due to the international trade growth and the high industrial outputs in addition to

the fact that maritime transportation is used for the movement of freight, oil, goods

and materials to and from Bahrain.

4. Energy usage in Bahrain's logistics industry

The consumption of energy in the logistics industries is increasing along with the

rapid expansion of the industry, as a result the demand for different energy sources

has increased as well (Sustainable Energy for All: Opportunities for the

Transportation and Logistics Industry, 2012). As it was mentioned in the previous

paragraphs, the logistics industry is directly related to the transportation industry

and therefore, the consumption of both industries is relatively similar as the logistics

industry uses the road, air and maritime for operating.

5. Viable future options for Bahrain's transport and logistics industry in regards to it energy requirements

As it was previously showed in the report, Bahrain is highly dependent on fossil fuels

as a source of energy and to meet the requirements of logistics and transportation.

And as fossil fuels are going to extinct and run out, there is a strong need for Bahrain

to have diversity in its energy sources in addition to ensuring that the energy sources

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that are viable for the future are sustainable, secure, clean and affordable to use for

the logistics and transport sector.

5.1 Solar Energy

Obviously, Bahrain is distinguished with its high weather temperature for all the year

and especially during summer. In addition, August is considered to be the hottest

month of the year in Bahrain because it has the highest temperature which is around

38 Celsius. Even during winter, the weather temperature stays relatively high and

mostly about 19 Celsius (Weather Averages for Bahrain , 2013). For this reason, it is

thought that solar energy will be one of the most suitable and sustainable options as

an energy source for Bahrain's future transport and logistics sector requirements.

Also, solar power and electric vehicles can be used for the transport and logistics as

well as for private use but in order to do that, the kingdom will need to provide solar

or electric power fueling stations.

5.1.1 Development stages of solar energy in Bahrain

Bahrain started installing a number of solar panels which are considered to be one of

the most viable future options for the kingdom, this was done for the purpose of

measuring the efficiency of solar power. About 21,000 solar panels were installed by

Bapco and they cover about 34,000 sq.m of area. In addition, this project was a

collaboration between Bapco,

the Electricity and Water

Authority, the National Oil and

Gas Authority and University of

Bahrain. Moreover, this step

demonstrates the commitment

of Bahrain into implementing strategies that are practical to enhance the

sustainability of the kingdom's energy sources, go green and solving the climate

change, economic development and energy security challenges (KEY SOLAR ENERGY

PROJECT ON TRACK , 2013). What is more is that Bahrain have also installed mini

solar systems on top of the streetlights which work by saving power during the day

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Figure 7 - Solar power project in Awali City

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to use it in the night. The facilities of the transport and logistics sector are supported

by this project as they benefit from the power for the streetlights. Also, Bahrain is

considering the idea of using the oil revenue to research solar power in terms of

implementation and sustainability, by doing this the kingdom will be able to have a

sustainable economy for the future energy. Furthermore, in order to reduce the

energy costs, solar panels have also been installed in Sheikh Khalifa bin Salman

highway for irrigation. There panels are used for generating power for equipments of

irrigation not needing irrigation workers and to ensure the effectiveness of the

system during night, the system has been designed to work on timers (Bahrain plans

big solar irrigation project, 2012).

5.1.2 Advantages of Solar Power

Solar power is one of the most environmentally friendly options that Bahrain can

implement and the products used to generate solar power are always available such

as the mirrors and solar cells. Also, solar power can be used for large scale systems

like the industrial areas and power stations in addition to small portable application.

And the construction and installation costs of solar power are decreasing nowadays

(Bahrain Solar, 2011).

5.1.3 Solar power implementation

Firstly, large open areas are required for the placement and installation of a huge

number of solar panels which are essential for generating the needed amount of

power. For instance, these solar panels can be installed in the southern part of

Bahrain (Sakhir) which is not used for anything and therefore the country will be able

to benefit from the unused area by installing solar panels as well as solar power

stations. Again, this will be one of the best options that can be taken by Bahrain for

the future of energy as it will be very sustainable because of the high temperature

weather conditions that the kingdom has throughout the year, and in addition to

using solar power to meet the requirements of the transport and logistics sector, it

can as well be used for many other purposes. Moreover, solar power is directly

converted for the solar radiation to electrical energy through solar cells and it is

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transformed to electricity by using photovoltaic converters which work on

converting the solar power into electricity directly in order for it to be ready to use

for different purposes (Converting Sunlight into Electricity, 2013).

5.2 Wind Energy

In addition to solar energy which was discussed previously, Bahrain also supports the

development of wind energy as well as other renewable energy sources with the aim

of promoting an environmentally friendly, affordable and stable source of energy

which the kingdom can use in the

future. In this matter, Bahrain took a

step by co-operating with a Japanese

company and installing a 50 meter

high measurement system for wind

power at the Bahrain refinery for the

period of 12 months, this was done

for the aim of studying the feasibility

and possibility of the use and

utilization of wind power as a

renewable source of energy for the

future of Bahrain. Other than that,

Bahrain has installed the wind

turbines as it was mentioned in a previous section at Bahrain's World Trade Center

(SINGH, 2009).

5.3 Biofuels

The advanced Biofuels are high-energy liquid fuels for transportation which are

extracted from the agricultural waste and agriculture, waste materials and municipal

waste in addition to several other feedstock's that are sustainable and biomass-

based. As Biofuels are a safe alternative for fossil fuels that can be used like

petroleum diesel, part of the fuel requirements of the road transportation in Bahrain

can be covered by the use of Biofuels because they are clean, CO2 efficient and high

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Figure 8 - Bahrain World Trade Center Wind Turbines (Wind turbines incorporated in high tower buildings , 2013)

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lubricity. Also, it can be used to generate and

produce electricity in order to cover the

increasing demand of electricity in Bahrain.

What's good about Biofuels is that it can

decrease the dependence of fossil fuels, decrease

the CO2 emissions and air pollution, enhance the

sustainability of fuel and improve the balance of

greenhouse (Definition of Advanced Biofuels ,

2012). In addition, according to a research done

by the university of Bahrain (UOB), the pits of

dates can be used as a feedstock for biofuels with

8% content of oil (Sapp, 2013). And after chemical processing, around 10% of the

nuclei of date palms can be transformed to biodiesel. And the reason why this can

be a very viable option for Bahrain in the future is that the estimated number of

productive palm trees in Bahrain is 380,000 which means that 8pc of oil can be

extracted from kernels and the production will areach 156,7 tonnes (Biofuel from

date palms 'possible' , 2013). To my mind, the use of biofuels as a petroleum diesel

alternative can be a very good option to use for transportation in the future.

5.4 Example from Dubai

Considering that the geographical factors, resources, location and weather

conditions similarity between Bahrain and UAE, the steps taken by Dubai are a very

good example to be taken for it is the first country in the GCC that has a global

energy council for overseeing the energy production and demand aspects. Also, in

order to reduce the traffic congestion issues and environmental pollution, Dubai has

built a metro which runs on electricity and is now considered to be the most

sustainable transportation mode available in the city. In addition, Dubai is planning

to get 71% of its energy from gas, 5% from solar power, 12% from clean coal and

12% from nuclear power as part of their 2030 vision which aims to getting energy

from various sources for the purpose of ensuring the future sustainability of their

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Figure 9 - Palm Trees in Bahrain

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energy and efficiency of their energy resources (Dubai's green drive gains steam,

2013).

Likewise, the 2030 vision of Bahrain also aims to reduce the kingdom's dependency

on fossil fuels for transportation and electricity generating and transfer into using

green and renewable sources of energy for electricity production as well as for

transportation which is a very vital aspect of the kingdom's logistics sector and by

doing this, Bahrain will have a more sustainable sources of energy. Moreover, when

it comes to transportation, there are plans for constructing a metro system which

will be linking between all of the GCC countries, when this project is implemented, it

will highly increase the efficiency and effectiveness of transportation for these

countries including the Kingdom of Bahrain and indeed it will affect on the logistics

industry as it will be of a great benefit for the logistical operations of the kingdom

(Salama, 2013).

6. Conclusion

In conclusion, this report have covered the unique requirements of sustainable

transportation and energy in the Kingdom of Bahrain in terms of the current state of

energy consumption which is related to the industry of logistics and transport within

the kingdom. Also, the viable options for Bahrain's future industry of logistics and

transport considering the kingdom's energy requirements. These options included

the solar energy, wind energy and biofuels. However, I am convinced that when

considering the possibilities and weather conditions of Bahrain, the most suitable

option would be solar energy even though the other two options can be highly

effective and efficient as well, hence Bahrain can implement several options in order

to have diversity in its sources of energy and to ensure the sustainability of the

sources that are used.

Question 1 Word Count 1643

Question 2 Word Count 1648

Total Assignment Word Count 3291

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7. BibliographyAstalavista. (2012, March 12). Bahrain Energy Report . Retrieved from EndOfCrudeOil :

http://www.endofcrudeoil.com/2012/03/bahrain-energy-report.html

BAFCO Vehicle Fleet. (2013). Retrieved from THE BAHRAIN AVIATION FUELLING COMPANY: http://bafcobh.wix.com/1#!__home-pag/fleet

Bahrain . (2012). Retrieved from Reegle: http://www.reegle.info/policy-and-regulatory-overviews/BH

Bahrain Jet Fuel Production and Consumption by Year. (2013). Retrieved from IndexMundi: http://www.indexmundi.com/energy.aspx?country=bh&product=jet-fuel&graph=production+consumption

Bahrain Petroluem Company . (2013). Retrieved from Bahrain Airport Company: http://www.bahrainairport.com/en/doing-business-with-us/our-partners/bahrain-petroleum-company.html

Bahrain plans big solar irrigation project. (2012, December 22). Retrieved from Trade Arabia: http://www.tradearabia.com/news/CONS_227677.html

Bahrain Solar. (2011). Retrieved from Bahrain Solar: http://bahrainsolar.com/

Biofuel from date palms 'possible' . (2013, March 12). Retrieved from Gulf Daily News: http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=349125

Converting Sunlight into Electricity. (2013). Retrieved from Global Kyocera: http://global.kyocera.com/solarexpo/solar_power/mechanism.html

Country Analysis Note. (2013, February). Retrieved from EIA: http://www.eia.gov/countries/country-data.cfm?fips=BA

Definition of Advanced Biofuels . (2012, April 17). Retrieved from Advanced Biofuels USA: http://advancedbiofuelsusa.info/truly-sustainable-renewable-future

Dubai's green drive gains steam. (2013, April 13). Retrieved from Khaleej Times: http://www.khaleejtimes.com/kt-article-display-1.asp?xfile=data/uaebusiness/2013/April/uaebusiness_April217.xml&section=uaebusiness

Fossil fuel energy consumption (% of total) in Bahrain. (2010). Retrieved from Trading Economics: http://www.tradingeconomics.com/bahrain/fossil-fuel-energy-

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consumption-percent-of-total-wb-data.html

KEY SOLAR ENERGY PROJECT ON TRACK . (2013, April 17). Retrieved from Gulf Daily News: http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=351547

NOGA. (2013, December 10). Minister of Finance, Minister in Charge of Oil and Gas Affairs opens First Energy Management Conference and Exhibition 2013. Retrieved from National Oil and Gas Authority: http://www.noga.gov.bh/index.php?page=4498

Overview data for Bahrain . (2013, May 30). Retrieved from EIA: http://www.eia.gov/countries/country-data.cfm?fips=BA

Road sector diesel fuel consumption kteo in Bahrain. (2013). Retrieved from Trading Economics: http://www.tradingeconomics.com/bahrain/road-sector-diesel-fuel-consumption-kt-of-oil-equivalent-wb-data.html

Salama, S. (2013, October 29). GCC rail network to link all 6 Gulf states by 2018. Retrieved from Gulf News : http://gulfnews.com/news/gulf/uae/traffic-transport/gcc-rail-network-to-link-all-6-gulf-states-by-2018-1.1248632

Sapp, M. (2013, March 12). Bahrain finds possibility for date pit-based biodiesel. Retrieved from BioFuel Digest : http://www.biofuelsdigest.com/bdigest/2013/03/12/bahrain-finds-possibility-for-date-pit-based-biodiesel/

SINGH, M. (2009, June 16). Bahrain energy use 'is soaring'. Retrieved from Gulf Daily News: http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=253316

Sustainable Energy for All: Opportunities for the Transportation and Logistics Industry. (2012, October 2). Retrieved from Accenture : http://www.accenture.com/us-en/Pages/insight-sustainable-energy-transportation-industry.aspx

Transportation sector energy consumption. (2013, July 25). Retrieved from EIA: http://www.eia.gov/forecasts/ieo/transportation.cfm

Weather Averages for Bahrain . (2013). Retrieved from Holiday Weather: http://www.holiday-weather.com/bahrain/averages/january/

Wind turbines incorporated in high tower buildings . (2013). Retrieved from ClimateandFuel: http://www.climateandfuel.com/pages/wind.htm

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8. Table of Figures

Figure 1 - Energy Consumption from fossil fuels in Bahrain.....................................................2

Figure 2 - Bahrain's Total Oil Production and Consumption (1999-2009).................................2

Figure 3 - Bahrain's Natural Gas Production and Consumption (1999-2009)...........................2

Figure 4 - Gulf Cooperation Council (GCC) Electricity Grid........................................................2

Figure 5 - Diesel fuel consumption for the road transport sector in Bahrain............................2

Figure 6 - Bahrain's Jet fuel production and consumption (1984-2010)...................................2

Figure 7 - Solar power project in Awali City..............................................................................2

Figure 8 - Bahrain World Trade Center Wind Turbines (Wind turbines incorporated in high

tower buildings , 2013).............................................................................................................2

Figure 9 - Palm Trees in Bahrain...............................................................................................2

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