The fund will be one of the world’s largest sustainability-focused venture capital funds.
Aramco, Saudi Arabia’s energy giant and one of the world’s most valuable companies, announced Wednesday that it would be launching a $1.5 billion sustainability fund to invest in technology to support a stable and inclusive energy transition.
The fund will be managed by Aramco Ventures, the venture capital arm of Aramco. The company said that the fund is part of its efforts to meet the world’s growing energy demand and lower greenhouse gas emissions. “Climate change is a critical issue, which is why sustainability is well-integrated into Aramco’s strategy and investment decisions. The company is harnessing innovation and collaboration as it seeks long-term solutions to global energy challenges,” Aramco Chairman, Yasir Al-Rumayyan said in a statement.
“By driving large-scale investments and building key domestic, regional and international partnerships, Aramco aims to enable a stable and inclusive energy transition that meets the world’s need for energy with lower emissions,” he added. The fund will invest in technologies to help Aramco achieve its goal of hitting net zero by 2050 in its wholly-owned operational assets – in addition to supporting the development of lower-carbon fuels.
Initially, the fund will focus on 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. “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, and show how these two great imperatives can and must co-exist,” Aramco President and CEO, Amin Nasser, said.
“Our participation in the MENA region’s first voluntary carbon market in Saudi Arabia represents another pathway towards our long-term net-zero ambition and demonstrates how we can deliver a multi-pronged approach in addressing the climate challenges we face,” he added. Alongside its net zero goals, Aramco is also developing blue ammonia and hydrogen businesses – both future fuels that experts have previously pointed to as being replacements for hydrocarbons.
The company said that it is currently exploring opportunities to reduce greenhouse gas emissions along its entire value chain, and is aiming to implement a range of initiatives to reduce, reuse, recycle, and remove C02 emissions.
TAGGED: Aramco, Aramco Sustainability Fund, Aramco Ventures, Climate Change, Energy Transition, Greenhouse Gases, Saudi Arabia, Saudi Aramco, Technology Investment.