Aramco announces $1.5bn sustainability fund
SUMMARY
Initial focus areas will include CCS, greenhouse gas emissions, energy efficiency, nature-based climate solutions, digital sustainability, hydrogen, ammonia and synthetic fuels.
By Shardul SharmaSaudi Aramco on October 26 announced the creation of a $1.5bn sustainability fund to invest in technology that can "support a stable and inclusive energy transition". It was unveiled at the sixth edition of the Future Investment Initiative.
Managed by Aramco Ventures, the venture capital arm of Aramco, the fund plans to invest in technologies that support the company’s announced net-zero 2050 ambition in its wholly-owned operational assets, as well as development of new lower-carbon fuels.
Initial focus areas will include carbon capture and storage, greenhouse gas emissions, energy efficiency, nature-based climate solutions, digital sustainability, hydrogen, ammonia and synthetic fuels. The fund will target investments globally.
In addition, Aramco’s wholly-owned subsidiary Aramco Trading Company has participated in the first voluntary carbon credits auction organised by the Public Investment Fund (PIF). It follows the signing of a memorandum of understanding between Aramco and PIF earlier this year, to participate in a regional voluntary carbon market to be launched in Saudi Arabia in 2023.
“Climate change is a critical issue, which is why sustainability is well-integrated in Aramco’s strategy and investment decisions. The company is harnessing innovation and collaboration as it seeks long-term solutions to global energy challenges,” Aramco chairman, Yasir O. Al-Rumayyan, said.
Aramco’s ambition is to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly-owned operated assets by 2050. In June, the company also announced a set of interim targets that it aims to achieve by 2035.
“The sustainability fund reinforces our commitment to leverage innovative technologies that will make a difference in addressing the dual challenge of achieving greater energy security and sustainability, and show how these two great imperatives can and must co-exist,” Aramco CEO, Amin H. Nasser, said:
The company is also developing its blue ammonia and hydrogen business, with the aim of producing up to 11mn metric tons/year of blue ammonia by 2030 — with the potential to support significant emissions reductions in hard-to-decarbonise sectors such as heavy-duty transport, heating and industrial applications.
