How does Aramco plan to achieve net-zero emissions by 2050?

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Aramco's Strategy for Achieving Net-Zero Emissions by 2050

Aramco plans to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly owned operated assets by 2050 through a multi-pronged approach focusing on five key levers. These levers include enhancing energy efficiency, significantly reducing methane emissions and flaring, increasing the utilization of renewable energy sources, implementing Carbon Capture and Storage (CCS) technologies, and developing or purchasing carbon offsets. These initiatives are designed to not only meet the 2050 target but also to lower the company's upstream carbon intensity by 15% by 2035.
Advancing Energy Efficiency and Methane Reduction

Aramco is actively pursuing energy efficiency by deploying large-scale power co-generation facilities, which supplied 5.3 GW of power in 2023, offering a more efficient alternative to conventional power generation. Concurrently, the company is focused on minimizing methane emissions and flaring, achieving a methane intensity of 0.05% and nearing zero routine flaring. This is partly facilitated by the Master Gas System, established in 1975, which captures flared gas for use as sales gas, a valuable commodity for power generation and industrial applications.
Expanding Renewable Energy Integration and Carbon Capture

In the realm of renewable energy, Aramco contributes to Saudi Arabia's national objective of generating 12 GW of solar and wind power. For carbon mitigation, the company is progressing with the development of a global Carbon Capture and Storage (CCS) hub. This initiative aims to capture 9 million tonnes of CO2 equivalent by 2027, undertaken in collaboration with international industry leaders. These four primary levers have already contributed to Aramco's upstream carbon intensity in 2022 being among the lowest in the industry.
Utilizing Carbon Offsets and Developing New Energy Solutions

The fifth strategic pillar for Aramco involves carbon offsets, which includes a significant reforestation effort. The company has planted 24 million mangrove trees and has a target to plant 300 million by 2035. This natural carbon sequestration is supplemented by the purchase of high-quality carbon offsets. Furthermore, Aramco is introducing a blue hydrogen commercialization plan, aiming for a production capacity of 2 million tonnes per annum by 2030, signaling a commitment to emerging lower-carbon energy carriers.
Industry Collaboration and Investment in Sustainability

Aramco is actively engaging in industry-wide decarbonization efforts by signing the Oil & Gas Decarbonization Charter (OGDC), a platform promoting knowledge sharing and best practices among peers. This initiative is supported by Aramco's expanded global venture capital arm, Aramco Ventures, which allocated $1.5 billion through its sustainability fund to invest in startups developing climate technological solutions. These investments underscore Aramco's commitment to balancing energy security, affordability, and sustainability through innovation and collaboration.

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How does Aramco plan to achieve net-zero emissions by 2050?

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