Clean energy

Aramco and ENOWA partner to create pioneering e-fuel demonstration plant

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Aramco, a leading global energy and chemicals company, and NEOM’s energy and water company ENOWA, have entered a joint development agreement to build and operate a pioneering synthetic electro fuel (e-fuel) demonstration facility, the official Saudi Press Agency (SPA) reported.

The joint development agreement was signed on the sidelines of the Future Investment Initiative in Riyadh on Tuesday as part of the Kingdom’s efforts to accelerate the development of lower-carbon synthetic fuels paving the way for a successful decarbonization process.

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According to Aramco, the agreement aims to produce 35 daily barrels of environmentally friendly synthetic gasoline from renewable hydrogen and captured CO2, potentially reducing CO2 emissions by over 70 percent compared to traditional fuels and generating 12 tons of synthetic methanol daily from green hydrogen and CO2.



Aramco views this project as a step toward decarbonizing the global vehicle fleet, while ENOWA emphasizes its commitment to promoting sustainable technologies, SPA added.

“Synthetic fuels can play an important role in accelerating the decarbonization of the global vehicle fleet. We are excited to be working alongside our partners to demonstrate a potential path towards realizing this vision,” Aramco Executive Vice President of Technology and Innovation Ahmad O. Al Khowaiter said.

From his side, ENOWA Chief Executive Officer Peter Terium said: “This partnership represents another significant milestone for ENOWA. As Saudi Arabia cements its global leadership role in a circular carbon economy driven by green hydrogen, we have an unprecedented opportunity to showcase the transformative capabilities of pioneering, sustainable technologies.”

In a move that underscores its commitment to sustainable technology, SPA explained, Aramco has recently set in motion a partnership with Formula 2 and 3, with the intention of incorporating synthetic components into fuel formulations.

According to SPA, Aramco has collaborated with Repsol to produce synthetic diesel and jet fuel for automobiles and aircraft, showing Saudi Arabia’s determination to embrace eco-friendly alternatives in the automotive and aviation industries.

The demonstration plant will be located in ENOWA’s Hydrogen Innovation and Development Center (HIDC).

The facility will utilize an on-site 20-megawatt electrolyzer for green hydrogen production, showcasing the region’s renewable energy capabilities.

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E-fuel in Saudi Arabia

The Saudi government’s vision is to foster a circular carbon economy. By harnessing green hydrogen and captured CO2, e-fuel initiatives hold the potential to significantly reduce CO2 emissions, in hopes to combat climate change and ensure environmental sustainability.

With these initiatives at the forefront, Saudi Arabia is solidifying its position as a key player in the global transition towards eco-friendly energy solutions, underscoring its dedication to driving innovation and sustainability in the energy sector.

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