Riyadh – Mubasher: Saudi Arabian Oil Company (Aramco) has penned a shareholders’ agreement with Linde and SLB to develop a Carbon Capture and Storage (CCS) hub, according to a press release.
The CCS hub is expected to become one of the largest globally, which will back Aramco’s strategy to achieve net-zero Scope 1 and gas emissions across its wholly-owned operated assets by 2050.
Under the joint deal, the Saudi oil giant will acquire a 60% shareholding in the CCS hub, while Linde and SLB will take a 20% stake, each.
Phase one of the new CCS hub in Jubail is expected to capture and store up to nine million metric tonnes of CO2 annually, with the construction expected to be completed by the end of 2027. Later phases are projected to further expand its capacity.
The announcement was made during the Saudi Green Initiative Forum, within the United Nations Convention to Combat Desertification (UNCCD) 16th Conference of the Parties (COP16) that is being held in Riyadh.
It anchors a circular carbon economy approach to lower emissions that will contribute to the Kingdom’s 2060 net-zero target.
Ashraf Al Ghazzawi, Aramco EVP of Strategy & Corporate Development, said: “This announcement represents a step forward in delivering on our strategy to contribute to global carbon management solutions and achieve our emission mitigation goals.”
“Aramco’s collaboration with SLB and Linde demonstrates the importance of global partnerships in driving technological innovation, reducing emissions from conventional energy sources and enabling new, lower-carbon energy solutions. This CCS hub is among several programs that will enable us to meet rising demand for affordable, reliable, and more sustainable energy.”
Oliver Pfann, Linde EVP EMEA, commented: “Carbon capture and sequestration is essential for achieving the Kingdom’s emission reduction targets. Linde is proud to collaborate with Aramco and SLB, contributing Linde’s innovative technology and experience in delivering world-scale decarbonisation projects.”
Aramco recently signed a joint agreement with TotalEnergies and Saudi Investment Recycling Company (SIRC) to potentially establish a sustainable aviation fuels (SAF) plant across the Kingdom.
