Ma’aden, the Saudi mining giant, has announced the signing of an agreement with Gulf Cryo, a Dubai-based company specialising in managing the carbon full circular value chain – from capture to utilisation – for the setting up of a carbon capture plant in the Kingdom.
In accordance with the agreement, Gulf Cryo will construct and operate the mega carbon dioxide capturing plant within Ma’aden’s integrated phosphate complex at Ras Al Khair for a 20-year period, a statement said.
Saudi Arabia’s national mining champion to reach net-zero emissions by 2050
The partnership aims at reducing the carbon emission of the national mining company, while providing a clean CO2 source that will be used in industrial gases applications across the Kingdom, thus creating a domestic circular carbon economy, increasing domestic value creation, and supporting Saudi Vision 2030, which aims to localise industries.
Ma’aden CEO Robert Wilt said: "As the largest multi-commodity mining and metals company in the Middle East, this agreement with Gulf Cryo marks a milestone in our journey to reach net-zero emissions by 2050 and become Saudi Arabia’s national mining champion."
"It is testament to our commitment to fulfil the objectives of the Saudi Green Initiative, in line with our goal to be a role model for sustainable operations in the Kingdom. Carbon capture will further strengthen Ma’aden’s position as major global supplier of Blue Ammonia, a low carbon approach to ammonia production.”
The captured CO2 will be distributed by Gulf Cryo, partly to International Maritime Industries (IMI), Saudi’s giant maritime yard, and the rest will be used in industrial applications such as EOR (Enhanced Oil Recovery) and water desalination, as well as in other industries such as F&B and agriculture, the statement added.
The long-term agreement was signed by Engineer Hassan Al Ali, Executive Vice President – Phosphate of Ma’aden, and Engineer Abdulsalam Al Mazro, Vice Chairman of Gulf Cryo, in the presence of Prince Abdulaziz Bin Salman, Saudi Arabia’s Minister of Energy at the Saudi Green Initiative Forum, which took place on the side-lines of COP 27 in Egypt.
Providing sustainable solutions for the mining sector
This will be one of the biggest carbon projects for the merchant market targeting CO2 utilisation in the region, recovering as much as 300,000 MTPA of CO2 emissions that will be reutilised in various applications, Gulf Cryo added.
Gulf Cryo Chairman Amer Huneidi said: "It is with great pleasure that we sign this partnership with Ma’aden. We will provide the necessary solutions and expertise to support Ma’aden’s sustainability strategy. This agreement is an anchor of our common commitment to decarbonise the region, and to support the Kingdom’s climate goals and localisation objectives by creating a circular carbon economy.”
Al Mazro added that investing in decarbonisation solutions in the Kingdom is a key part of Gulf Cryo’s strategy. He pointed out that Ma’aden is a significant driver of the Kingdom’s economy and that its ability to find a balance between economic and environmental fronts is an example of how to achieve a successful sustainable economy.
"Additionally, we are vigorous in creating a circular carbon economy in which we capture and reuse the recovered CO2 within the kingdom itself. This circularity has direct results not only on the environment and the Kingdom’s localisation plan, but also on shifting mindsets and setting an example for young talents on the importance of changing how we operate in this world to preserve it.”
The first project phase is planned to be operational by 2024 and both parties will explore further expansion of the project, Al Mazro concluded.