Aramco, one of the world’s leading integrated energy and chemicals companies, and Riyadh Air, Saudi Arabia’s new premium international airline, have signed a memorandum of understanding (MoU) during the FII 8th Edition conference in Riyadh. The agreement sets the stage for potential collaborations in areas such as low-carbon fuel supply and sustainability.
“We are delighted by the prospect of exploring a wide variety of opportunities for collaboration between Aramco and Riyadh Air. Both companies have expressed a desire to adopt the latest technologies, elevate experiences, and contribute to sustainability objectives,” stated Yasser M. Mufti, Aramco executive vice president of products and customers.
Advancing Saudi Arabia’s environmental targets
Mufti added that Aramco’s work to develop lower-carbon fuels, its strong focus on digitalization, and its aviation experience, among other things, provide a strong platform for potential cooperation with Riyadh Air.
For his part, Adam Boukadida, chief financial officer of Riyadh Air, explained that the partnership with Aramco aligns perfectly with the airline’s ambition to become a leading global airline committed to sustainability and low-carbon fuels.
“By leveraging Aramco’s expertise, we aim to improve our operational capabilities and provide outstanding experiences for our guests. Together, we can play a significant role in advancing the Kingdom’s environmental and economic objectives,” he added.
Aramco at FII8
In addition to its partnership with Riyadh Air, Aramco announced several partnerships with key entities including Taulia, the Saudi Industrial Development Fund, and Gas & Oil Pakistan during its participation at FII8.
Aramco and Taulia, an SAP company and leading fintech provider of working capital management solutions supported by the Saudi Industrial Development Fund (SIDF) as one of the key finance providers of the domestic industrial sector, signed agreements to establish a supply chain financing solution.
The entities joined forces to establish one of the world’s largest supply chain financing programs, which aims to provide an alternative and affordable source of financing for Aramco’s suppliers. The financing solution aims to unlock billions of Saudi Riyals in liquidity, enabling suppliers to optimize working capital, gain access to alternative financing, and strengthen business relationships.
During the conference, Aramco also launched its first station in Pakistan with Gas & Oil Pakistan, marking a significant milestone in its downstream expansion strategy.
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Aramco’s lower-carbon solutions
During his participation at FII8, executive vice president of strategy and corporate development at Aramco, Ashraf Al Ghazzawi, highlighted the oil giant’s efforts towards exploring lower-carbon solutions including hydrogen and carbon capture to support the company’s net-zero ambitions.
Al Ghazzawi highlighted Aramco’s target of producing around two million tons per annum of blue hydrogen. He noted that the company took major steps to achieve this target, including buying 50 percent of a hydrogen hub in Saudi Arabia’s east coast. With this hub, the company seeks to provide low-carbon hydrogen to industries in the region at a competitive cost. Al Ghazzawi also added that with SABIC, Aramco demonstrated three shipments of blue hydrogen to Asia to test the blue hydrogen value chain.
As for progress on carbon capture and storage, Aramco is also gearing up to launch the world’s largest nine million tons per annum facility in Saudi Arabia. Aramco’s efforts in reducing its carbon emissions not only serve its net-zero ambitions but also unlock the potential of blue hydrogen to several markets including Asia.
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