The Clap
Aramco and NEOM’s Energy and Water (Enowa) have signed a joint development agreement to establish the first experimental synthetic fuel factory.
What
The new factory will be located at NEOM’s Hydrogen Innovation and Development Center, where it will assess the technical and commercial viability. It will produce 35 barrels per day of low-carbon synthetic gasoline from renewable hydrogen and extracted carbon dioxide.
So What
According to the global oil giant, synthetic fuel technology based on the circular carbon economy approach can reduce carbon dioxide emissions by over 70% based on a full life cycle assessment, compared to traditional fuels.
This aligns with Aramco’s efforts to unveil low-carbon synthetic fuel technologies for several years. NEOM will construct the factory, while Aramco and Innova will jointly oversee operations and investments in related research programs.
Now What
NEOM has announced the creation of its NEOM Investment Fund, aimed at supporting the development of its 14 priority sectors and increasing their long-term value. It will serve as the strategic investment arm for NEOM, enhancing its portfolio with global investments through mergers, acquisitions, and investments in various emerging tech companies.
Upon the fund’s announcement, it made investments aimed at advancing modern technologies and clean industries. This included Regent, a U.S. company specializing in electric seaplane production; Pony.ai, a leader in autonomous vehicle technology; Boom Technology, known for supersonic passenger aircraft; Bluenalu, renowned for cell-based seafood products; and Animoca Brands, recognized for digital properties, central web technologies, and metaverse.
