KSA’s Aramco and Enowa partner up on e-fuels: Saudi oil giant Aramco and Enowa — Neom’s energy and water utility subsidiary — have signed a joint development agreement (JDO) to establish an e-fuel demonstration plant in KSA’s Neom, according to a company statement. The e-fuels demonstration plant aims to make a case for the technical feasibility and commercial viability of e-fuel production in the kingdom, the statement notes. The financial details of the agreement and an expected launch date for the planned facility were not provided.

E-fuels? Synthetic e-fuels — also known as electro fuels — are generated from a mix of green hydrogen and captured carbon dioxide or monoxide. Low-carbon e-fuel is already compatible with 28 mn European-made cars across 24 engine families in circulation since 2014, and could offset 400 mn tons of emissions by 2050, according to a recent report by Aramco and Dutch automaker Stellantis.

The details: Under the JDO, Neom will oversee construction for the plant which will be located in Enowa’s Hydrogen Innovation and Development Center (HIDC), while Aramco and Enowa will jointly manage operations and investment for the project and “relevant research programs.” The companies are initially targeting a 35 barrel daily production capacity from green hydrogen and captured CO2. If proven viable, the companies plan to up daily production volumes to some 12 tons of synthetic methanol, which would then be converted into low-carbon gasoline using ExxonMobil’s Fluidized-Bed Methanol-to-Gasoline (MtG) technology. Aramco plans to utilize its e-fuels to help decarbonize the transport sector.

Locally produced green hydrogen: The e-fuels plant in Neom will develop an undisclosed number of solar and wind power farms and will leverage HIDC’s planned 20 MW electrolyzer capacity to provide feedstock for the e-fuels production, according to Aramco.

Aramco has the carbon capture infrastructure down: Last month, Aramco signed an agreement to build one of the world’s largest carbon capture and storage hubs with the capacity to store up to 9 mn tons of carbon dioxide a year by 2027. The facility, which will be located in Jubail, will get some 6 mn tons of CO2 from Aramco, with the rest to come from other industrial sources.

Not Aramco’s first e-fuels demo plant: Last year, Aramco and Repsol signed a partnership agreement to similarly establish an e-fuels demonstration plant in Spain that will initially have an 8k liter daily production capacity. The production demonstration of low-carbon synthetic diesel and jet fuel for automobiles and aircraft.

IN OTHER KSA NEWS- NEOM launches its tech-focused investment fund: Saudi Arabia’s Neom yesterday launched its investment arm, the NEOM Investment Fund (NIF), in a bid to help expand its technology-focused portfolio, SPA reports. NIF — a wholly owned subsidiary of Neom — plans to establish joint ventures with global next-gen companies as well as “multinationals and institutional investors,” and says it will also look to snap up shares in tech-focused startups through equity investments, the news agency notes. The company — which has already announced investments in companies including Regent, Pony.AI, Boom Technology, BlueNalu, and Animoca Brands — will also look to expand its global tech foothold through mergers and acquisitions agreements.