Integrating the Climate Change Challenge with the Circular Carbon Economy See Pages 2 and 3

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Integrating the Climate Change Challenge with the Circular Carbon Economy See Pages 2 and 3 March 4, 2020 Vol. LXXV, No. 10 a weekly Saudi Aramco publication for employees We need to work together and collaborate to find a solution to reduce our emissions. — Amin Nasser CCUS: integrating the climate change challenge with the circular carbon economy see pages 2 and 3 There was strong interest at the first International Carbon Capture Utilization and Storage Conference in Saudi Aramco’s capture and reinjection project, which the company commenced in 2015 to annually inject about 800,000 tons of carbon dioxide (CO2) into the world’s largest oil field, Ghawar. In Saudi Arabia’s Eastern Region, CO2 is compressed at the Hawiyah natural gas liquids recovery plant and sent 85 kilometers underground for reinjection at the ‘Uthmaniyah gas-oil separation plant No. 7. Every four hours during his work shift, Hawiyah control system operator Ali A. Muyidi checks the pressure and tests the functionality of the CO2 unit. “It is a great privilege to work at an environmentally friendly plant,” said Muyidi. “My work is giving back to people and planet, and knowing this motivates me to be diligent about keeping the system running.” (Photo: Abdulaziz Al-Moaiweed/MPD) rebuilding the center OPEC basket Saudi Aramco of ‘Udhailiyah five-week price trend 2020 by the numbers A fire that burned down the Jebel $ 60.29 57.88 55.18 55.29 53.61 Complex in ‘Udhailiyah in 2015 wasn’t enough to keep the community down. Now, with a rebuilt and revamped center 800,000 — the House of Jasmine — the community tons of carbon dioxide is injected annually into the Ghawar oil field as has a new place to call its center. part of our carbon capture and see page 6 Jan. 31 Feb. 7 Feb. 14 Feb. 21 Feb. 28 reinjection efforts. March 4, 2020 the arabian sun 2 company news global thought leaders, energy officials discuss CCUS and hydrogen integrating the climate change challenge with the circular carbon economy by Janet Pinheiro Riyadh — At a gathering of energy leaders last week, Saudi Arabia called on global cooperation for the rapid scale up of carbon capture utilization and storage (CCUS) to address climate change, and urged the adoption of the “circular carbon economy” concept as an inclusive path for addressing the dual challenge of meeting the world’s growing energy needs while delivering on climate commitments. Ahead of a ministerial panel, which in- cluded ministers from Bahrain, the UAE, Singapore, and the secretary general of OPEC, Saudi Arabia Minister of Ener- gy HRH Prince Abdulaziz bin Salman bin Abdulaziz Al-Saud, reaffirmed the need to move faster on greenhouse gas emission reduction efforts globally. He said it was vital for the world to un- Ahmad O. Al-Khowaiter dertake CCUS, and appealed for the re- at ICCUS: working moval of investment barriers, describing together for solutions CCUS as a “tried and tested technology,” which can have a positive impact on emis- sions reduction, and ripe for large-scale Ahmad O. Al-Khowaiter said carbon capture utilization and storage was essential toward closing the loop in a circular carbon economy, where waste is deployment. eliminated by continually using resources, rather than disposing of them. (Photos: Abdullah Alshammari/MPD) Saudi Aramco president and CEO Amin Nasser participated in a “Thought Leaders Views on the Climate” panel discussion mitigation efforts, Nasser explained that pragmatic and cost-effective approach to central role. moderated by CNN, which included the years of implementing best-in-class tech- achieve ambitious climate goals. Great strides have been made with the CEOs of ADNOC and Schlumberger, and nology and reservoir management practic- “We must adopt the principles of a cost and efficiency of CCUS, and the tech- the deputy secretary general of the Unit- es was behind the company’s leadership in circular carbon economy, emulating the nology can also be applied to industries ed Nations Framework Convention on Cli- low carbon intensity, pointing to efficient balance of nature in its production, use other than oil and gas. mate Change. management of produced water through and reuse of energy and materials,” said CCUS is a proven technology with a Nasser echoed the call for global cooper- inflow control devices as an example. Al-Khowaiter. “This is in contrast to the $2.5 billion market, resulting in the cap- ation saying, “We need to work together “You have to look at it from a full cycle linear economy concept, which results in ture of 32 million tons of CO2 per year. and collaborate to find solutions to reduce basis, otherwise you cannot achieve the a lot of waste and requires significantly More than 2,000 carbon capture plants emissions.” results that we have in terms of low meth- greater resources.” are needed by 2040 to meet global emis- ane and CO2 emissions,” he said. Technology is a key enabler to all four sion reduction targets. Numbers speak for elements — reduce, reuse, recycle, and re- “The concept of the circular economy Saudi Aramco hydrocarbon research support move — of the circular carbon economy, offers a new way of approaching climate Referring to Saudi Aramco’s emissions Nasser said that currently most govern- with CCUS being the most mature and im- goals that implicitly values all options and ment support globally was directed toward pactful technology. encourages all efforts to mitigate carbon renewables, whereas hydrocarbons will re- accumulation in the atmosphere,” said main a part of the energy mix for a long CCUS $. billion market Al-Khowaiter, adding that truly closing the time, therefore, regulators should incentiv- The United Nations Intergovernmen- emissions loop requires CCUS in addition ize investments into CCUS technologies to tal Panel on Climate Change has ad- to other technologies. help reduce emissions from hydrocarbon vised that the global climate goals will “To achieve the desired impact CCUS sources. not be achieved without CCUS playing a will need a 40% to 50% annual growth Adding that Saudi Aramco has been working with the auto industry to design more efficient engines, and to enable What is carbon carbon capture on trucks, he said: “We capture utilization have the responsibility to provide cost-ef- fective energy in a world where nearly 3 and storage? billion people do not have access to clean cooking, a third of vaccines in Africa are stopping excessive CO2 becoming a greenhouse gas wasted due to a lack of cooling, and half the people have never traveled on an air- Carbon capture utilization and plane.” storage (CCUS) is a collection of processes and technologies that circular carbon economy seperate CO2 from other gases, then In a world needing to decrease its green- convert it into useful products such as house gases, there is a dual challenge chemicals, polymers, and materials or globally to deliver more energy with fewer store it safely under ground. emissions. The basis of the technology has been More energy is needed for the nearly 1 in the refining industry for decades — billion people with no electricity access, when you use natural gas for energy, plus growing energy demand from the the CO2 has been removed from the world’s increasing population. gas. The conference emphasized the concept CCUS can be used to de-carbonize of the circular carbon economy, an ap- large parts of the world, and is widely proach designed to reduce, reuse, recycle, regarded as a primary way to achieve and remove carbon. long-term mitigation of greenhouse Conference chairman and Saudi Ar- amco chief technology officer Ahmad gases, as well as being a key enabler of Included in Saudi Aramco’s display of its many activities in energy efficiency, greenhouse gas emissions management, methane leak detection and repair, and flare the circular carbon economy. O. Al-Khowaiter explained a circular car- minimization programs, was a model of the region’s most advanced carbon dioxide (CO2) capturing project, operated by the company to capture and inject large bon economy model was a sustainable, amounts of CO2 in the ground. the arabian sun March 4, 2020 company news 3 Amin Nasser at ICCUS: ‘Numbers speak for themselves’ Energy leaders, gathered in the Kingdom’s capital last week, were urged by Amin Nasser to rapidly deploy carbon capture use and storage as a high-impact solution toward meeting the goals of the Paris Agreement on climate change, and progressing toward a circular carbon economy. Saudi Aramco’s display booth presented the company’s concrete research, which Amin Greenhouse gases Nasser noted involved injecting carbon dioxide The primary greenhouse gases into ready-mix bricks and precast structures to in the Earth’s atmosphere are strengthen the products — and was about to be water vapor (H2O), carbon piloted with a Saudi Arabian cement product dioxide (CO ), methane (CH ), manufacturer. 2 4 nitrous oxide (N2O), and ozone (O ). circular carbon 3 What is CO2? economy CO2 is a colorless gas essential continual use of resources for life, occurring naturally, or produced through combustion rather than disposal processes. All humans and animals exhale CO when they The “Circular Carbon Economy” 2 breathe, and plants absorb it model is a key enabler for achieving during a process called photosyn- deep greenhouse gas emissions thesis. reductions in hard to decarbonize rate until 2030 to get to 1 billion tons of added benefit of hydrogen sectors such as heavy-duty transport, Why is CO a problem? CO captured per year,” he said. Bashir M. Dabbousi, Saudi Aramco’s aviation, and industry. 2 2 Since the start of industrializa- “We have done this before, with solar director of Technology Strategy and Plan- Inspired by how our planet’s circle tion, CO , along with CH and and wind energy.
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