RIYADH, Saudi Arabia — ACWA Power signed a memorandum of understanding with Neutral Fuels for future collaboration on the supply of Net Zero Biofuel.
The ACWA Power-led consortium was awarded The Red Sea Development Co.’s highest value contract to design, build, operate, and transfer The Red Sea Project’s sustainable utilities infrastructure in November 2020. Once complete, the destination will become the first project of its scale to be entirely powered by a range of renewable and sustainable energy sources, including biofuel. As part of the agreement with ACWA Power, Neutral Fuels biofuel is set to fuel the site’s entire transportation network.
“This was a hugely significant moment in the story of climate change,” said Karl Feilder, CEO of Natural Fuels. “The scale of the project is impressive but the real news here is the massive scale of the commitment that the Kingdom of Saudi Arabia is making to renewable energy. They’re not just minimizing harm, they are actively reducing their dependence on fossil fuel and enhancing the environment as they contribute to sustaining and regenerating it for years to come.”
“As the world seeks to satisfy the rising demand for affordable power and water, ACWA Power remains committed to being at the forefront of the energy transition and providing transformative solutions, including the early adoption of emerging energy solutions like biofuels, to deliver power responsibly,” said Paddy Padmanathan, president and CEO of ACWA Power. “We are delighted to be collaborating with Neutral Fuels, enabling us to accelerate our commitment to support the Kingdom’s ambitions to deliver a tourist destination that limits the environmental impact through the provision of zero-carbon emitting utility services.”
The Red Sea Project is expected to prevent an estimated 550,000 tons of CO2 emissions each year by using renewable energy and has already surpassed significant construction milestones. Work remains on track to welcome its first guests by the end of 2022, when the international airport and first hotels are due to open.
Neutral Fuels has begun setting up a biorefinery in Saudi Arabia to serve the project. The site will quickly begin to resemble a city, dovetailing with the Neutral Fuels city-scale local/local/local business model in which biofuel is made from local used vegetable cooking oil in a local facility for use by local customers.