Global integrated energy and chemical company Saudi Aramco has signed a joint development agreement with NEOM's energy and water company ENOWA to build the first demonstration plant for synthetic electronic fuel (e-fuel). It will be located at ENOWA's Hydrogen Innovation and Development Center (HIDC), aiming to demonstrate technical and commercial feasibility by producing 35 barrels of low-carbon synthetic gasoline per day from renewable hydrogen and captured carbon dioxide (CO2).

Compared to traditional fuels, electronic fuel technology based on circular carbon economy methods has the potential to reduce carbon dioxide emissions by over 70% throughout the entire lifecycle. Once completed, the complex will use proprietary technology developed by ThyssenKrupp to produce 12 tons of synthetic methanol per day from green hydrogen and carbon dioxide. Then, the synthesized methanol will be converted into low-carbon gasoline using ExxonMobil's fluidized bed methanol to gasoline (MtG) technology. HIDC will also utilize on-site 20MW renewable energy electrolysis cells to produce green hydrogen. The innovation center created by ENOWA will showcase the enormous potential of the region in the commercial production and utilization of wind and solar energy.

For several years, Saudi Aramco has been exploring low-carbon synthetic fuel technology. The demonstration plant of NEOM is the result of intensive research and development efforts aimed at optimizing the production of synthetic fuels. Similarly, ENOWA regards electronic fuels as a key combination element of circular carbon economy, which can help reduce emissions and validate next-generation green fuel technologies for future large-scale projects.

According to the joint development agreement, NEOM will oversee the construction of the factory, while Aramco and ENOWA will jointly supervise the operation and investment of related research projects. Peter Terium, CEO of ENOWA, said: 'This partnership is another important milestone for ENOWA.'. As Saudi Arabia consolidates its global leadership position in a green hydrogen driven circular carbon economy. We have an unprecedented opportunity to showcase the transformative power of innovative and sustainable technologies. ENOWA looks forward to collaborating with Aramco to develop state-of-the-art electronic fuel facilities at NEOM, which will drive innovation and facilitate the economic implementation of future clean energy supply. ”

The integrated electronic fuel facility will demonstrate the technical and commercial feasibility of the synthetic gasoline value chain, and is the flagship project of Saudi Aramco's broader research, development, and demonstration work in low-carbon synthetic fuels. In 2022, Saudi Aramco announced a partnership with Formula 2&3 to explore the introduction of synthetic components in fuel formulations to provide power for racing side lines. In addition, Saudi Aramco and Repsol are planning to explore production demonstrations of low-carbon synthetic diesel and jet fuel for automobiles and aircraft. Saudi Aramco's Transportation Technology R&D department has branches in Paris, Detroit, and Shanghai, with headquarters in Dalam, and is advancing various technologies aimed at achieving a more reliable, economical, and sustainable transportation future.