Aramco invested in powering India’s energy and economic ambitions

Fahad Al-Dhubaib, Sr. VP Strategy & Market Analysis, demonstrates how Saudi Arabia’s national oil company is leveraging technology and innovation leadership in new markets to support growing demand for energy through carbon capture and storage, hydrogen production and lower-carbon fuels.

What are Aramco’s main priorities in the Indian market?

As the leading energy and chemicals company, Aramco is committed to powering the Indian economy by enabling mobility, manufacturing and clean cooking. Aramco’s exclusive access to some of the world’s largest traditional reservoirs, together with our technology leadership and our fully integrated networks and systems uniquely position us to meet India’s growing demand for energy, now and decades from now.

We are investing to be the world’s leading converter of hydrocarbons into the essential chemicals and materials that drive economic and social progress around the globe. This makes Aramco exceptionally well-placed to provide both the energy and essential petrochemicals required to help India become a global manufacturing hub and deliver on the “Make in India” vision. Aramco is also interested to collaborate with India in other areas, including energy storage, digitisation and renewables. We are committed to collaborate with Indian government agencies and businesses to successfully address the country’s growing demand for energy.

Why is Aramco interested in India?

India has undergone enormous modernisation in the last two decades, rising to become the world’s fifth largest economy in 2019 and showing consistently strong economic growth year-on-year. India is now the world’s third largest consumer of energy and demand is predicted to rise at least 3 per cent annually.

India is a country with incredible potential and needs access to affordable, reliable energy to deliver on its ambitions. As India accelerates its drive to become a world manufacturing hub and realise its ambitious vision for “Make in India”, it will require partners that understand and are able to support the scale of India’s ambitions. Aramco is a trusted global partner that understands the needs of Asia’s rising economic powers.  

How does Aramco plan to achieve its net-zero ambition?

Aramco’s ambition is to achieve net zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly-owned operated assets by 2050. Last year, Aramco published its 2022 Sustainability Report, detailing the company’s sustainability performance and focus areas in support of an orderly energy transition. To achieve our net zero aspirations, we have set targets for various levers we plan to utilise.

This includes:

• Up to 11 million metric tons of CO2 equivalent (CO2e) annually from CCS by 2035.
• An additional 11 million metric tons of CO2e reduction annually from energy efficiency improvements.
• Yet another 14 million metric tons of CO2e reduction annually from renewables investments.
• And 16 million metric tons of CO2e mitigation annually by 2035 through CO2 offsets.

We also announced a new CCS Hub, which is planned to capture up to 9 million metric tons of CO2 per year by 2027.

What technologies is Aramco leveraging to mitigate emissions?

We are leveraging our technology and innovation leadership to be a major player in the new markets for carbon capture and storage technologies, hydrogen production and lower-carbon fuels. We apply technology, innovation, and resources to invest in lowering our emissions, as well as to support environmental protection, biodiversity and nature-based solutions.

Aramco has a US$7 billion venture capital arm that invests in disruptive technologies, including in start-ups with the potential to reduce emissions from Aramco’s operations. Particular areas of interest also include chemicals, direct air capture and mineralisation. We aim to play a role in driving a materials transition, a fundamental shift in the production, use, and disposal of materials that Aramco is leading through cutting-edge R&D, innovation, and strategic investments.

We are invested in tomorrow. From energy and chemicals, to maritime, logistics, and advanced technologies, we are using our expertise and global network to diversify our business, and help support the Kingdom of Saudi Arabia’s continued economic growth, diversification and industrial transformation.