Aramco announced the creation of a $1.5 billion sustainability fund to invest in technology that can support a stable and inclusive energy transition. It was unveiled at the sixth edition of the Future Investment Initiative (FII) and is among the largest sustainability-focused venture capital funds globally.
Managed by Aramco Ventures, the venture capital arm of Aramco, the fund is an extension of the company’s efforts to meet the world’s growing energy demand, with lower greenhouse gas emissions.
According to the Saudi oil giant, the fund plans to invest in technologies that support the company’s net-zero 2050 ambition in its wholly-owned operational assets, as well as development of new lower-carbon fuels. Initial focus areas will include carbon capture and storage, greenhouse gas emissions, energy efficiency, nature-based climate solutions, digital sustainability, hydrogen, ammonia and synthetic fuels. The fund will target investments globally.
Aramco President and CEO, Amin H. Nasser, said: “The sustainability fund reinforces our commitment to leverage innovative technologies that will make a difference in addressing the dual challenge of achieving greater energy security and sustainability.”
Aramco’s sustainability efforts
Saudi Aramco is developing its blue ammonia and hydrogen business, with the aim of producing up to 11 million metric tons of blue ammonia per year by 2030 — with the potential to support significant emissions reductions in hard-to-decarbonise sectors such as heavy-duty transport, heating and industrial applications.
The company is also exploring opportunities to reduce GHG emissions along the entire value chain of its products, and aims to implement a range of initiatives to support the Circular Carbon Economy framework in which CO2 emissions are reduced, reused, recycled and removed.