SABIC, BASF & Linde team up to reduce CO2 emissions

Steam crackers play a central role in the production of basic chemicals and require a significant amount of energy to break down hydrocarbons into olefins and aromatics.
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Updated 27 March 2021
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SABIC, BASF & Linde team up to reduce CO2 emissions

Saudi chemical manufacturing company SABIC has signed a joint agreement with BASF and Linde to develop and demonstrate solutions for electrically heated steam cracker furnaces. The partners have already jointly worked on concepts to use renewable electricity instead of the fossil fuel gas typically used for the heating process. With this innovative approach focusing on one of the petrochemical industries’ core processes, the parties strive to offer a promising solution to significantly contribute to the reduction of CO2 emissions within the chemical industry.

Steam crackers play a central role in the production of basic chemicals and require a significant amount of energy to break down hydrocarbons into olefins and aromatics. Typically, the reaction is conducted at temperatures of about 850 degrees Celsius in their furnaces. Today, these temperatures are reached by burning fossil fuels. By using electricity from renewable sources, the fundamentally new technology has the potential to reduce CO2 emissions by as much as 90 percent. 

BASF and SABIC have bundled their extensive know-how and intellectual property in developing chemical processes together with their longstanding experiences and knowledge in operating steam crackers, while Linde contributed with its intellectual property, expertise in developing and building steam cracking furnace technologies and driving future industry commercialization.

Yousef Al-Benyan, vice chairman and CEO of SABIC, said: “Our industry thrives on innovation and collaboration which enable us to come up with and deliver important contributions to urgent global challenges like resource efficiency and CO2 reduction. This agreement brings together the deep technical knowledge and implementation focus that can help transition energy-intensive processes within our industry to be low-carbon emitting processes. This flagship sustainability initiative forms part of SABIC’s long-term vision and climate change strategy to transform our business through the concept of circular carbon economy.”

“This technology leap will be a milestone on the path to a low-emission chemical industry. We have not only developed the world’s first electrical heating concepts for steam crackers, but also want to demonstrate the reliability of key components for use in this type of high-temperature reactors. To be able to drive a timely scale-up and industrial implementation of this technology, investment support and competitive renewable energy prices will be important prerequisites,” said Dr. Martin Brudermüller, chairman of the board of executive directors of BASF SE.

“With this project we are singling out a particular industrial CO2 producer. Cracking furnaces are one of the largest CO2 emission sources in the whole petrochemical value chain. This is a time-tested, optimized technology that we are now putting on a completely new footing, not in the laboratory, but on a large industrial scale. The effect this project will have is significant. We are proud to be part of it,” said Juergen Nowicki, executive vice president, Linde and CEO of Linde Engineering.

The partners applied for financial grants at the EU Innovation Fund and the funding program Decarbonization in Industry (new program of the German Federal Ministry for the Environment). The parties are evaluating construction of a multi-megawatt demonstration plant at BASF’s Ludwigshafen site, targeted for start-up as early as 2023, subject to a positive funding decision.


Saudi Arabia world’s safest and most attractive investment destination, says chairman of Sumou Holding

Updated 09 March 2026
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Saudi Arabia world’s safest and most attractive investment destination, says chairman of Sumou Holding

Saudi Arabia has emerged as one of the world’s safest and most attractive destinations for investment, supported by the strength and resilience of its economy, according to Ayed bin Farhan Al-Qahtani, chairman of Sumou Holding.

Al-Qahtani said the Kingdom’s economy has consistently demonstrated its ability to navigate global and regional crises. He noted that Saudi Arabia has historically adapted to challenging conditions and emerged stronger, thanks to prudent economic policies and effective governance, both of which have reinforced the market’s financial strength. Al-Qahtani added that Saudi Vision 2030 has reshaped the structure of the national economy by diversifying income sources and leveraging the country’s core strengths, creating a more flexible and sustainable economic environment capable of withstanding global volatility.

According to Al-Qahtani, business activity across Saudi Arabia continues to operate normally despite current global uncertainties, highlighting the adaptability and experience of Saudi companies across multiple sectors.

Sumou Holding currently manages an investment portfolio valued at about $10 billion. Al-Qahtani said that the group plans to expand its investments in the Kingdom while seeking to attract additional foreign capital through international partnerships and joint ventures.

The company is evaluating a range of new opportunities across key sectors and particularly in real estate, which Al-Qahtani described as one of the most secure and attractive investment sectors in the Saudi market amid rising demand for residential, commercial, and development projects.

Saudi Arabia’s property market has also undergone significant regulatory reforms aimed at boosting its appeal to international investors. A new foreign property ownership law, which came into effect in early 2026, allows non-Saudis — individuals and companies, residents and non-residents — to own residential, commercial, and agricultural properties across designated areas of the Kingdom.

The framework will increase capital inflows into the real estate sector while introducing specific ownership rules for the holy cities of Makkah and Madinah, two markets Al-Qahtani said remain among the most secure and globally attractive for long-term investment.

Sumou Holding owns two companies listed on the Saudi Exchange: Sumou Real Estate Co. and Ader Real Estate Co.

Al-Qahtani added that the group’s international arm, Ader Global, is building partnerships with global investors and directing capital toward promising opportunities in the Saudi market, reinforcing the Kingdom’s role as a regional hub for investment and multinational companies.

With its strong regulatory framework, investment security, and continued government support for the private sector, Saudi Arabia is well positioned to attract further foreign capital in the coming years, Al-Qahtani said, cementing the country’s status as a leading global investment destination both today and in the future.