Saudi Aramco has published its first sustainability report, which outlines ways in which the company plans to further tackle emissions while delivering reliable, affordable energy solutions.
Saudi Aramco’s net-zero ambition
The report, which expects to be updated on an annual basis – provides more information on Aramco’s efforts to support the overall energy transition, with set interim targets that the company aims to achieve by 2035.
The report’s release follows the company’s announcement of its ambition to achieve net-zero scope 1 and scope 2 greenhouse gas (GHG) emissions across its wholly-owned operated assets by 2050.
Saudi Aramco aims to reduce its upstream carbon intensity, by 2035 – which is already one of the lowest in the industry – by 15% to 8.7kg of CO2 equivalent per barrel of oil equivalent (CO2e/boe), against its 2018 baseline of 10.2kg CO2e/boe.
The company also aims to reduce or diminish net scope 1 and scope 2 GHG emissions across its wholly-owned operated assets – both in its upstream and downstream segments – by over 50 million metric tons of CO2e annually by 2035, when compared to the business-as-usual forecast.
“Our ambition is to achieve operational net-zero by 2050 and our sustainability report highlights how we aim to continue meeting the world’s rising demand for secure, reliable and affordable energy, while also contributing to the broader energy transition. We are investing for the long-term, against a backdrop of global energy and economic uncertainty, and we will continue to integrate breakthrough technologies in our operations over the next decade and beyond,” said Saudi Aramco president and CEO, Amin H. Nasser.
The Dhahran RD Centre focuses on the upstream, downstream, and sustainability domains.
Saudi Aramco is utilising the circular carbon economy framework that focuses on reducing, reusing, recycling, and removing GHG emissions. By 2035, the company aims to achieve emissions reduction and mitigation through several steps. Having renewables investment of 14 million metric tons of CO2e reduction annually, investing in carbon capture, utilisation, and storage with11 million metric tons of CO2e reduction annually, and implement energy efficiency improvements with 11 million metric tons of CO2e reduction annually.
Additionally, Saudi Aramco intends to reduce methane and flaring by 1 million metric tons of CO2e of reduction annually, and offsets 16 million metric tons of CO2e mitigation annually.
The report also outlines the company’s focus on 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.
In compiling the report, and to identify appropriate metrics and performance indicators, Aramco evaluated more than 150 environmental, social and governance topics to establish their relative importance to the company’s key stakeholders. The sustainability report highlights four focus areas: climate change and the energy transition, safe operations and people development, minimising environmental impact, and growing societal value.