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.


Global investors commit more than $3bn to King Salman Park as Saudi giga-project secures new deals

Updated 10 March 2026
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Global investors commit more than $3bn to King Salman Park as Saudi giga-project secures new deals

RIYADH: The King Salman Park Foundation has secured more than $3.8 billion in new private-sector commitments at the MIPIM 2026 real estate conference, including a landmark $3 billion fund backed by international investors to develop a major mixed-use district in the heart of Riyadh.

According to a press release, the announcements bring total committed investment in the 17.2 sq. kilometers urban regeneration project to over $5.3 billion across five major packages.

Launched in 2019 under Saudi Vision 2030, the development is designed to be the world’s largest city park and aims to boost green space, improve quality of life, and feature over 1 million trees and extensive leisure facilities.

A $3 billion metro-connected district

The largest of the two packages, designated Package 5, will see a consortium led by Kolaghassi Development Co. deliver a residential-led district with a total built-up area exceeding 1 million sq. meters. 

It will provide approximately 3,700 residential units, a K–12 school, around 300 hospitality keys and more than 100,000 sq m of Grade A office space alongside a wide variety of retail and dining offerings.

The development is supported by a Saudi-domiciled, Capital Market Authority-regulated fund managed by Mulkia Investment Co. that has attracted leading investors from the Kingdom and across the world.

Kolaghassi Development Co. will lead the project alongside Al Othaim Investment, one of the Kingdom’s real estate players, and RXR, a New York-headquartered real estate investor and operator.

“Securing investment of this scale, supported by international capital and expertise, is an important milestone for King Salman Park,” said George Tanasijevich, CEO of King Salman Park Foundation. 

$850 million cultural district package

In a separate announcement, the Foundation confirmed the award of Package 4 to a consortium led by Retal Urban Development Co., with support from a fund managed by SAB Invest.

The project has a total value exceeding $850 million and will host more than 600 residential units, over 140 hotel keys, and almost 50,000 sq m of Grade A office space, alongside curated retail and food and beverage experiences.

“This opportunity reflects the maturity of Saudi Arabia’s real estate investment landscape and our confidence in culture-led, mixed-use urban destinations as a driver of sustainable returns,” said Abdullah Al-Braikan, CEO and founder of Retal Urban Development Co.

Ali Al-Mansour, CEO of SAB Invest, said the fund structure brings together “long-term capital, experienced development partners, and a shared commitment to place-making excellence” while contributing to Riyadh’s cultural vibrancy and the Kingdom’s quality-of-life ambitions under Vision 2030.