Saudi Aramco launches sustainability fund

Saudi’s state-owned oil company Aramco announced yesterday the launch of a venture capital fund that will focus on sustainability-related projects. 

What it means: The $1.5 billion fund will "invest in technology that can support a stable and inclusive energy transition.” It will be managed by Aramco’s venture capital arm. The fund will invest in the following, Aramco said in a press release: 

• carbon capture and storage
• greenhouse gas emissions
• energy efficiency
• nature-based climate solutions
• digital sustainability
• hydrogen
• ammonia
• synthetic fuels

Aramco will target projects globally, not just in Saudi Arabia or the Gulf. 

Why it matters: Saudi Arabia is one of the biggest oil producers in the world but is seeking to diversify its economy per the Vision 2030 initiative. The kingdom is investing in an array of green technology projects to this end. 

Saudi entities are already involved in some of the sectors Aramco’s fund will focus on. Earlier this week, a Saudi company signed a green hydrogen agreement with South Africa. The Saudi Public Investment Fund also just created a company that will work to reduce carbon emissions.  In August, a Saudi firm agreed to build a green hydrogen plant in Egypt.

Know more: Other Gulf countries are also interested in alternative fuels. Last month, Qatar’s state energy company announced a blue ammonia project. The Abu Dhabi National Oil Company is also working on carbon capture and storage.