Saudi state-controlled Aramco aims to reduce its upstream carbon intensity — or the carbon emission rate of its upstream operations — by at least 15pc by 2035, from a 2018 baseline, the company said today.
It aims to reduce carbon intensity rates from 10.2kg CO2 e/boe in 2018 to 8.7kgCO2 e/boe by 2035. This target "accounts for anticipated increases in oil production and maximum sustainable capacity," Aramco said. Saudi Arabia intends to raise its crude capacity from 12mn b/d at present to 13mn b/d by 2027, excluding progresses in the Neutral Zone shared with neighbouring Kuwait.
Saudi Arabia has previously outlined intentions to achieve net-zero CO2 emissions by 2060, with Aramco seeking to reach as net-zero Scope 1 and Scope 2 greenhouse gas (GHG) emission across its wholly-owned and operated assets by 2050. The company currently sees its GHG emissions picking up from 68mn t to 119mn t by 2035, which it said it hopes to mitigate with a 52mn t reduction.
Aramco reported no information on its Scope 3 emissions, which come from Aramco's supply chain and from customer consumption of the company's products.
The company plans to develop its carbon capture, utilisation and storage (CCUS) capacity to capture up to 11mn t CO2 equivalent by 2035 — an initiative that will depend on financial support from the Saudi government.
In its hydrogen business, Aramco plans the production of 11mn t/yr of blue ammonia — derived from nitrogen and the blue hydrogen that results from natural gas and CCUS — by 2030. It sees Japan and South Korea as the countries where the first hydrogen trading markets will take off. Aramco undertook the first shipment of blue ammonia in 2020 with a delivery to Japan.
