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.


Closing Bell: Saudi main market closes the week in red at 10,526 

Updated 25 December 2025
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Closing Bell: Saudi main market closes the week in red at 10,526 

RIYADH: Saudi equities ended Thursday’s session modestly lower, with the Tadawul All Share Index slipping 14.63 points, or 0.14 percent, to close at 10,526.09.    

The MSCI Tadawul 30 Index also declined 3.66 points, or 0.26 percent, to 1,389.66. In contrast, the parallel market outperformed, as Nomu jumped 237.72 points, or 1.02 percent, to close at 23,430.93.  

Market breadth on the main market remained tilted to the downside, with 156 stocks ending lower against 99 gainers.    

Trading activity eased further, with volumes reaching 80.46 million shares and total traded value amounting to SR1.66 billion ($442 million).    

On the movers’ board, Saudi Industrial Export Co. led the gainers, rising 6.6 percent to SR2.10, followed by Consolidated Grunenfelder Saady Holding Co., which advanced 6.43 percent to SR9.60.    

Raoom Trading Co. climbed 4.36 percent to SR61.05, while Astra Industrial Group gained 4.35 percent to close at SR139. Riyadh Cables Group Co. added 3.77 percent to end the session at SR135.00.    

On the downside, Methanol Chemicals Co. topped the losers’ list, falling 5.96 percent to SR7.41.  

Flynas Co. retreated 5.43 percent to SR61.00, while Leejam Sports Co. dropped 5 percent to close at SR100.80.    

Alramz Real Estate Co. slipped 4.64 percent to SR55.50, and Almasane Alkobra Mining Co. declined 4.55 percent to SR84.00.  

On the announcement front, ACWA Power said it has completed the financial close for the Ras Mohaisen First Water Desalination Co., a reverse osmosis desalination project with a capacity of up to 300,000 cubic meters per day, alongside associated potable water storage facilities totaling 600,000 cubic meters in Saudi Arabia’s Western Province.    

The project was financed through a consortium of local and international banks, with total funding of SR2.07 billion and a tenor of up to 29.5 years, while ACWA Power holds an effective 45 percent equity stake.  

Shares of ACWA Power ended the session at SR185.90, up SR0.2, or 0.11 percent.     

Meanwhile, Consolidated Grunenfelder Saady Holding Co. announced the sign-off of a customized solutions project with Saudi Aramco Nabors Drilling Co., valued at SR166.0 million excluding VAT.    

The 24-month contract covers the sale and maintenance of field camp facilities, with the financial impact expected to begin from the first quarter of 2026.