Saudi and French companies link up for green projects

SPA

Saudi Arabia and France have signed commercial agreements to push the development of renewables and green fuel production in the kingdom.

The agreements were signed at the Saudi-French Investment Forum, attended by French president Emmanuel Macron in Riyadh.

Saudi Aramco, Saudi Investment Recycling Company (SIRC), a subsidiary of the Public Investment Fund (PIF), and France’s energy major TotalEnergies signed a deal to explore the development of a sustainable aviation fuel (SAF) plant in Saudi Arabia’s Eastern province.

The focus will be on harnessing new engineering and technology to recycle and process local waste or residues from the circular economy, such as used cooking oils and animal fats, to produce SAF.

Aramco president and CEO Amin Nasser said addressing aviation emissions through lower-carbon alternatives was becoming imperative as air travel demand rises in the kingdom.

Aramco is pursuing several potential innovative solutions to address transport emissions, Nasser said, adding that the move could benefit domestic and international airlines as tourism and aviation sectors expand in the kingdom.

In August, Masdar, the UAE’s state-backed clean energy company, partnered with TotalEnergies to develop the commercial production of SAF using methanol produced from green hydrogen in Abu Dhabi.

SAF is an alternative liquid fuel produced from sources including waste oil and fats, green and municipal waste and non-food crops, or synthesised using captured carbon.

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In June, the International Air Transport Association (Iata) said that the tripling of SAF production in 2024 to 1.9 billion litres (1.5 million tonnes) was on track. However, this would account for 0.53 percent of aviation’s fuel needs this year.

TotalEnergies also partnered with Saudi developer Aljomaih Energy and Water Company and signed a power purchase agreement with the Saudi Power Procurement Company (SPPC) for their 300 megawatt Rabigh 2 solar power plant.

Another power purchase agreement for the Al Masa’a solar power plant project was signed between SPPC, French state-owned EDF and Chinese State Power Investment Corporation.

In addition, SIRC and Veolia signed a deal to develop waste management and recycling in the kingdom.