Aramco have signed a joint development agreement to construct and establish a first-of-its-kind synthetic electro fuel (e-fuel) demonstration plant.

It will be located in Enowa’s Hydrogen Innovation and Development Center (HIDC) and aims to demonstrate technical feasibility and commercial viability by producing 35 barrels per day of low-carbon, synthetic gasoline from renewable-based hydrogen and captured carbon dioxide (CO2).

The e-fuel technology, built on a circular carbon economy approach, has the potential to reduce CO2 emissions by over 70 per cent on a complete life cycle basis, compared to conventional fuels.

Once complete, the integrated facility will generate 12 tons of synthetic methanol per day from green hydrogen and CO2, using proprietary technologies developed by ThyssenKrupp Uhde.

The synthetic methanol will then be converted into low-carbon gasoline using ExxonMobil’s Fluidized-Bed Methanol-to-Gasoline (MtG) technology.

The HIDC will also produce green hydrogen by leveraging an on-site 20-megawatt electrolyzer, powered by renewable energy sources.

The innovation center being created by Enowa will showcase the region’s vast potential to generate and use wind and solar power commercially.

Aramco has been exploring technologies for low-carbon synthetic fuels for several years. The demonstration plant in NEOM is the result of intensive research and development efforts aiming to optimize the production of synthetic fuels.

Similarly, ENOWA sees e-fuels as a critical future portfolio element of a circular carbon economy, helping to reduce emissions and validating next-generation green fuel technologies for future large-scale projects.

Ahmad Al Khowaiter, Aramco Executive Vice-President of Technology and Innovation, said: "Synthetic fuels can play an important role to accelerate the decarbonization of the global vehicle fleet. We are excited to be working alongside our partners to demonstrate a potential path towards realizing this vision."

Through a joint development agreement, Neom will oversee the construction of the plant, while Aramco and ENOWA will jointly oversee operations and investment in relevant research programs.

Peter Terium, Enowa CEO, said: "This partnership represents another significant milestone for ENOWA. As Saudi Arabia cements its global leadership role in a circular carbon economy driven by green hydrogen, we have an unprecedented opportunity to showcase the transformative capabilities of pioneering, sustainable technologies."