Aramco and ENOWA, NEOM's energy and water company, have entered into a collaborative development agreement to construct a groundbreaking synthetic electro fuel (e-fuel) demonstration facility, situated at ENOWA's Hydrogen Innovation and Development Center (HIDC). The objective is to showcase the technical feasibility and commercial viability of producing 35 barrels per day of low-carbon, synthetic gasoline using renewable-based hydrogen and captured carbon dioxide (CO2).
This e-fuel technology, rooted in a circular carbon economy approach, holds the potential to reduce CO2 emissions by more than 70% over the entire lifecycle compared to traditional fuels. The integrated facility will also produce 12 tons of synthetic methanol daily from green hydrogen and CO2, employing proprietary technologies developed by ThyssenKrupp Uhde. This synthetic methanol will be further transformed into low-carbon gasoline using ExxonMobil's Fluidized-Bed Methanol-to-Gasoline (MtG) technology.
The HIDC will additionally generate green hydrogen, powered by a 20-megawatt electrolyzer, running on renewable energy sources. This endeavor will serve as a testament to the region's vast capacity to harness wind and solar power for commercial use.
Aramco has been actively exploring low-carbon synthetic fuel technologies for an extended period. The NEOM-based demonstration plant reflects the culmination of intensive research and development efforts aimed at optimizing synthetic fuel production. Similarly, ENOWA regards e-fuels as a pivotal element in a circular carbon economy, contributing to emission reduction and validating next-generation green fuel technologies for larger-scale projects.
Ahmad O. Al Khowaiter, Aramco's Executive Vice President of Technology & Innovation, expressed enthusiasm about the potential of synthetic fuels to expedite global vehicle fleet decarbonization.
Under the joint development agreement, NEOM will manage the construction of the plant, while Aramco and ENOWA will jointly oversee operations and investments in relevant research programs.
Peter Terium, ENOWA's Chief Executive Officer, underlined the transformative potential of sustainable technologies in Saudi Arabia's leadership role in a circular carbon economy driven by green hydrogen. He emphasized the collaborative opportunity with Aramco in developing an advanced e-fuel facility in NEOM, which would spur innovation and facilitate the implementation of future clean energy solutions.
Roland Kaeppner, ENOWA's Managing Director of Hydrogen and Green Fuels, cited the project as a concrete manifestation of the circular carbon economy in action and a demonstration of their commitment to supporting Saudi Arabia's climate action mission through scientific innovation.
The integrated e-fuel facility serves as a flagship project within Aramco's broader research, development, and demonstration initiatives for low-carbon synthetic fuels.
Aramco's collaboration with Formula 2 and 3 in 2022 aimed to explore the integration of synthetic components in fuel formulation for motorsports. In parallel, Aramco and Repsol are planning to explore the production demonstration of low-carbon synthetic diesel and jet fuel for automobiles and aircraft.
Aramco's Transport Technologies R&D division, with a global presence, is actively advancing multiple technologies to enable a more reliable, affordable, and sustainable future for transportation.