December 04, 2024 [Aramco]- Aramco, one of the world’s leading integrated energy and chemicals companies, has signed a shareholders’ agreement with Linde and SLB, paving the way for development of a Carbon Capture and Storage (CCS) hub that is expected to become one of the largest globally. 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.
It represents a significant milestone for the project and is a key component in Aramco’s emission mitigation strategy. With the support of the Ministry of Energy, phase one of the new CCS hub in Jubail, in the Kingdom of Saudi Arabia’s Eastern Province, is expected to capture and store up to nine million metric tons of CO2 annually, and construction is expected to be completed by the end of 2027. Later phases are expected to further expand its capacity.
The project 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.”
Oliver Pfann, Linde EVP EMEA, said: “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 decarbonization projects. We look forward to jointly realizing this landmark project which supports the development of a lower-carbon economy.”
Gavin Rennick, SLB President, New Energy, said: “SLB is proud to be a part of ground-breaking efforts to enable abatement of millions of tons of CO2 annually through the Jubail CCS hub. Leveraging our proven portfolio of CCS technologies and extensive experience in complex CCS projects around the world, we are confident that SLB will play a critical role in advancing this important initiative. This project aligns perfectly with our commitment to industrial decarbonization, and we look forward to collaborating closely with Aramco and Linde to make it a success.”
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.
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. The captured CO2 will be transported through a pipeline network and stored below ground in a saline aquifer sink, leveraging the Kingdom’s significant geological potential for CO2 storage.
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