World energy supply must be sustainable, says Aramco officer

Saudi Aramco’s Wasit Gas Plant. Experts believe that Hydrogen could help the world reduce CO2 by making conventional hydrocarbon fuels sustainable. Aramco recently completed a blue ammonia supply chain demonstration. (Reuters/File)
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Updated 18 November 2020
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World energy supply must be sustainable, says Aramco officer

  • Sector has been a ‘force for good’ amid the chaos of the coronavirus disease pandemic

JEDDAH: Any successful vaccine for the coronavirus disease (COVID-19) would rely on the global energy sector for its mass production, said Ahmad Al-Khowaiter, chief technology officer at Saudi Aramco, on Tuesday.

“Fortunately, we have an energy system in place that can power the manufacture, transportation and storage of the billions of doses (of vaccine) required to defeat the virus,” he said.

This came during a media briefing on meeting the dual global energy and climate challenges as part of the G20 Riyadh Summit, where Al-Khowaiter talked of how the world’s energy supply, though it had been “a force for good” and was reliable and affordable, needed to be more sustainable.

“The question is not if we reduce our emissions, but how? And for me, that starts with a fundamental rethink,” he added. “We must stop thinking of the global energy system as a linear economy of infinite resources and limitless capacity to absorb waste. Instead, taking our inspiration from nature, we must treat it as a circular system.

“Each year, as part of the natural carbon cycle, the Earth recycles 20 times as much C02 as humans emit, locking it away in trees or plankton, where it becomes energy for other organisms, a source of life and growth, rather than a source of harm,” he added.

The energy system must be designed to do the same, he said. “That is what is meant by the circular carbon economy concept championed by Saudi Arabia during the presidency of the G20. Instead of take, make and throw away, we must increasingly reduce, recycle and reuse.”

He quoted the Saudi Energy Minister Prince Abdul Aziz bin Salman, when he said: “We don’t believe in a low carbon economy. We believe in a low emissions economy. That is what matters to the future of the planet.”

Al-Khowaiter noted that hydrogen could help the world reduce CO2 by making conventional hydrocarbon fuels sustainable. “It could allow us to recycle CO2 through synthetic fuels, and crucially, if we combine it with carbon capture, we can remove the CO2 associated with the hydrogen production process. In addition, hydrogen is sustainable through renewable generation.”

To prove the concept of carbon capture during the production of low or zero carbon products, the official said that Aramco recently completed a low CO2 ammonia or blue ammonia supply chain demonstration.

“We took natural gas, converted it to hydrogen, then to ammonia and then captured the CO2 that resulted and sequestered it in our enhanced oil recovery project. (The blue ammonia) was shipped from Saudi Arabia to our partners in Japan, where it is now being used in zero-carbon power generation. This is just one example of what is possible under a circular carbon economy approach,” he explained.

He added that as important as renewals are and as much progress as they have made in so many recent years, renewables will not achieve the Paris Agreement aim of greenhouse gas balance in the second half of this century on their own.

Aramco is investing in all relevant technologies and more, said Al-Khowaiter, but technology alone is not the whole solution, as the right policy is also needed. “That means supporting our growing carbon and hydrogen markets just as wind and solar were back in their early days, with clear incentives for companies at every stage from production, to capture, to transport, to storage and reuse.”

With real determination and realistic optimism about the world’s shared interests, humans can face the challenges together, he concluded.


Stc Group issues US dollar-denominated sukuk with a total value of $2bn

Updated 11 sec ago
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Stc Group issues US dollar-denominated sukuk with a total value of $2bn

RIYADH: Stc Group has issued US dollar-denominated sukuk with a total value of $2 billion across two tranches.

The group clarified that the issuance included the offering of $750 million in sukuk with a 5-year maturity at a yield of US Treasury plus 75 basis points, and an issuance of $1.250 billion with a 10-year maturity at a yield of UST plus 90 basis points, according to the Saudi Press Agency.

It noted that the total order book exceeded $8 billion across both tranches, with a coverage rate exceeding 4 times, and participation from over 300 investors in the subscription.

The issuance garnered strong demand from a broad and diverse base of international investors, reflecting solid confidence in the robustness and efficiency of stc Group’s business model and strategy. 

This strategy is aimed at strengthening its digital leadership, seizing infrastructure opportunities, enabling massive projects, and contributing to the realization of Vision 2030 objectives, with a focus on achieving sustainable growth based on operational efficiency and maximizing shareholder value.

This issuance enhances stc Group’s access to international capital markets and solidifies investor confidence in the strength of its credit position. 

It also supports its strategic role in accelerating the pace of digital transformation in the Kingdom and building a thriving digital economy.