Riyadh – Saudi Arabia Refineries Company (SARCO) has signed two non-binding memoranda of understanding (MoUs) with Christof Global Impact Company to carry out renewable energy projects that help to cut carbon emissions.
Under the first MoU, the two companies will build a refinery to produce biodiesel, a carbon negative fuel derived from algae oil, according to a bourse filing on Thursday.
The sustainable fuel platform is expected to be set up near the Red Coast on an area spanning 14 million square metres, with an annual production capacity of 10 million tonnes of biofuels.
The first phase of the project will be executed at a value up to SAR 1 billion.
SARCO elaborated that the annual savings in carbon dioxide will reach around 20 million tonnes when the remaining phases are completed.
In addition, SARCO and Christof Global Impact seek to invest in the technology of slop oil to convert waste oil from wells, shipping ships, fuel tanks, and petroleum products into low carbon raw materials.
The second agreement aims to recycle over 100,000 tonnes of slop oil, which will reduce above 70,000 tonnes of carbon dioxide per year. The first phase of the project will cost nearly SAR 130 million.
Upon receiving approvals of the Ministry of Energy and other government agencies, the two entities will begin working on the project after completing its technical and financial studies within 30 days.
SARCO noted that the financial impact of the projects cannot be determined at the current time, but it will disclose any further details in due course.
In 2021, the Saudi listed firm registered SAR 6.59 million in net profit after Zakat and tax, down 50.73% from SAR 13.38 million in 2020.
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