Under the terms of the shareholders’ agreement Aramco will take a 60% equity interest in the CCS hub, with Linde and SLB each owning a 20% stake. The project is a key component in Aramco’s emission mitigation strategy and will support the company’s ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly-owned operated assets by 2050.
Ashraf Al Ghazzawi, Aramco EVP of Strategy & Corporate Development, said, “CCS plays a critical role in furthering our sustainability ambitions and our new energies business. 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.”
Phase one of the CCS hub will have the capacity to capture nine million tonnes of CO2 from three Aramco gas plants and other industrial sources. Later phases are expected to further expand its capacity. The captured CO2 will be transported through a pipeline network and stored below ground in a saline aquifer sink, taking advantage of the Kingdom’s significant geological potential for CO2 storage.
Today’s announcement, made during the Saudi Green Initiative Forum, in Riyadh, reflects a circular carbon economy approach to reducing emissions that will contribute to the Kingdom’s 2060 net-zero target.