Saudi actively promotes stable and inclusive energy transition

According to recent news from the American “Chemistry Weekly”, Saudi Aramco is calling for a more practical approach to promote the global energy transition. Saudi Aramco believes that if it is to implement a long-term low-carbon strategy and ensure a stable supply of energy, fossil fuels must play a key role.

Advocate for a stable and inclusive energy transition

In a keynote speech at a recent digital forum hosted by oil services giant Schlumberger, Saudi Aramco President and CEO Nasser emphasized the need for a more credible energy transition plan. Nasser believes that the energy transition plan should be based on three strategic pillars, that is, policy makers and other stakeholders recognize that in the long run, there is still a need for sufficient and affordable conventional energy; new energy and low-carbon energy should be steadily developed. Supplement the proven conventional energy; further reduce the carbon footprint of conventional energy through technical means.

When announcing Saudi Aramco’s third-quarter financial results, Nasser said that the company’s goal is to achieve net zero emissions from all assets by 2050, while investing in and increasing long-term oil and gas production capacity, including continuing to expand the scale of its downstream business. More recently, Nasser also said, “The company will continue to seek to harness the enormous potential of our petrochemicals to meet growing global demand, which is critical to supporting the materials transition needed for a low-carbon future. In addition, we will continue to research new low-carbon Carbon energy solutions, and strive for a more practical, stable and inclusive energy transition.”

Arthur Lumayen, Chairman of Saudi Aramco, said, “Climate change is a key issue and why Saudi Aramco has integrated sustainability well into its strategy and investment decisions. The company will build key Domestic, regional and international partnerships to achieve a stable and inclusive energy transition to meet the world’s energy needs with lower carbon emissions”.

Actively promote low-carbon hydrogen and ammonia projects

Saudi Aramco’s goal is to increase the output of blue ammonia to 11 million tons per year by 2030. Blue ammonia is mainly used as a carrier of blue hydrogen and will support carbon emission reduction in heavy-duty transportation, heating and industrial applications. Saudi Aramco has also set a target to capture, utilize or store 11 million tonnes of carbon dioxide equivalent per year by 2035.

The 37,800 tons of blue ammonia produced by Agro-Nutrition, a subsidiary of Saudi Basic Industries Corporation, and the 8,075 tons of blue hydrogen produced by Sasref, a subsidiary of Saudi Aramco, have passed the certification of TUV Rheinland, an independent testing, inspection and certification agency in Germany. “This is an important milestone in our efforts to develop clean energy solutions and increase our hydrogen and ammonia export capabilities,” said Otwell Teheny, Saudi Aramco’s vice president for chemicals.

Farhad Ashli, SABIC’s vice-president for energy efficiency and carbon management, said the company is using the infrastructure to produce blue ammonia to meet growing global demand for sustainable solutions. Hydrogen will play an important role in the decarbonization process and is part of SABIC’s roadmap to achieve carbon neutrality by 2050, with an interim goal of cutting carbon emissions by 20% by 2030.

At the same time, according to the Saudi Aramco project partner Air Products, the NEOM green hydrogen and green ammonia project, the flagship project of Saudi Aramco with an investment of US$5 billion in Saudi Arabia, has entered the stage of full implementation and is scheduled to be put into operation in 2026.

Air Products is working with ACWA Power and NEOM on a green hydrogen and ammonia project in the Red Sea that will produce 240,000 tons of green hydrogen per year, which will then be processed into 1.2 million tons of green ammonia, mainly for export. ACWA Power and Air Products each own a 33.3% interest in the NEOM green hydrogen joint venture, with NEOM holding a 33.4% interest. NEOM is a joint stock company wholly owned by the Saudi sovereign wealth fund.

Launch investment fund to support energy transition

Saudi Arabia does not rely entirely on its large conventional energy reserves and financial resources to fund its energy transition. Saudi Aramco recently launched a $1.5 billion Sustainability Fund that will invest in technologies that support a stable and inclusive energy transition. The fund will be one of the largest sustainability-focused venture capital funds in the world.

Managed by Saudi Aramco’s venture capital arm, the fund plans to invest globally in energy transition technologies to support the company’s wholly-owned operating assets to achieve its 2050 goal of net-zero emissions, as well as the development of new low-carbon fuels. Initial areas of focus will include: hydrogen, ammonia, carbon capture and storage (CCS), synthetic fuels, greenhouse gas emissions, energy efficiency, nature-based climate solutions and more.

Saudi Arabia actively promotes stable and inclusive energy transition

According to recent news from the American “Chemistry Weekly”, Saudi Aramco is calling for a more practical approach to promote the global energy transition. Saudi Aramco believes that if it is to implement a long-term low-carbon strategy and ensure a stable supply of energy, fossil fuels must play a key role.

Advocate for a stable and inclusive energy transition

In a keynote speech at a recent digital forum hosted by oil services giant Schlumberger, Saudi Aramco President and CEO Nasser emphasized the need for a more credible energy transition plan. Nasser believes that the energy transition plan should be based on three strategic pillars, that is, policy makers and other stakeholders recognize that in the long run, there is still a need for sufficient and affordable conventional energy; new energy and low-carbon energy should be steadily developed. Supplement the proven conventional energy; further reduce the carbon footprint of conventional energy through technical means.

When announcing Saudi Aramco’s third-quarter financial results, Nasser said that the company’s goal is to achieve net zero emissions from all assets by 2050, while investing in and increasing long-term oil and gas production capacity, including continuing to expand the scale of its downstream business. More recently, Nasser also said, “The company will continue to seek to harness the enormous potential of our petrochemicals to meet growing global demand, which is critical to supporting the materials transition needed for a low-carbon future. In addition, we will continue to research new low-carbon Carbon energy solutions, and strive for a more practical, stable and inclusive energy transition.”

Arthur Lumayen, Chairman of Saudi Aramco, said, “Climate change is a key issue and why Saudi Aramco has integrated sustainability well into its strategy and investment decisions. The company will build key Domestic, regional and international partnerships to achieve a stable and inclusive energy transition to meet the world’s energy needs with lower carbon emissions”.

Actively promote low-carbon hydrogen and ammonia projects

Saudi Aramco’s goal is to increase the output of blue ammonia to 11 million tons per year by 2030. Blue ammonia is mainly used as a carrier of blue hydrogen and will support carbon emission reduction in heavy-duty transportation, heating and industrial applications. Saudi Aramco has also set a target to capture, utilize or store 11 million tonnes of carbon dioxide equivalent per year by 2035.

The 37,800 tons of blue ammonia produced by Agro-Nutrition, a subsidiary of Saudi Basic Industries Corporation, and the 8,075 tons of blue hydrogen produced by Sasref, a subsidiary of Saudi Aramco, have passed the certification of TUV Rheinland, an independent testing, inspection and certification agency in Germany. “This is an important milestone in our efforts to develop clean energy solutions and increase our hydrogen and ammonia export capabilities,” said Otwell Teheny, Saudi Aramco’s vice president for chemicals.

Farhad Ashli, SABIC’s vice-president for energy efficiency and carbon management, said the company is using the infrastructure to produce blue ammonia to meet growing global demand for sustainable solutions. Hydrogen will play an important role in the decarbonization process and is part of SABIC’s roadmap to achieve carbon neutrality by 2050, with an interim goal of cutting carbon emissions by 20% by 2030.

At the same time, according to the Saudi Aramco project partner Air Products, the NEOM green hydrogen and green ammonia project, the flagship project of Saudi Aramco with an investment of US$5 billion in Saudi Arabia, has entered the stage of full implementation and is scheduled to be put into operation in 2026.

Air Products is working with ACWA Power and NEOM on a green hydrogen and ammonia project in the Red Sea that will produce 240,000 tons of green hydrogen per year, which will then be processed into 1.2 million tons of green ammonia, mainly for export. ACWA Power and Air Products each own a 33.3% interest in the NEOM green hydrogen joint venture, with NEOM holding a 33.4% interest. NEOM is a joint stock company wholly owned by the Saudi sovereign wealth fund.

Launch investment fund to support energy transition

Saudi Arabia does not rely entirely on its large conventional energy reserves and financial resources to fund its energy transition. Saudi Aramco recently launched a $1.5 billion Sustainability Fund that will invest in technologies that support a stable and inclusive energy transition. The fund will be one of the largest sustainability-focused venture capital funds in the world.

Managed by Saudi Aramco’s venture capital arm, the fund plans to invest globally in energy transition technologies to support the company’s wholly-owned operating assets to achieve its 2050 goal of net-zero emissions, as well as the development of new low-carbon fuels. Initial areas of focus will include: hydrogen, ammonia, carbon capture and storage (CCS), synthetic fuels, greenhouse gas emissions, energy efficiency, nature-based climate solutions and more.