Saudi’s ACWA Power inks agreement with Neutral Fuels for Red Sea project

Saudi Arabia’s ACWA Power has signed a Memorandum of Understanding (MoU) with biofuel producer Neutral Fuels for future collaboration on the supply of its Net Zero Biofuel for the kingdom’s regenerative tourism project on the Red Sea coast.

The ACWA Power-led consortium was awarded The Red Sea Development Company’s 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 worldwide to be entirely powered by a range of renewable and sustainable energy sources, including biofuel. According to the agreement with ACWA Power, Neutral Fuels biofuel is set to power the site’s entire transportation network.

Karl W Feilder, CEO of Neutral Fuels, said: “The scale of the project is impressive but the real news here is the massive scale of the commitment that Saudi Arabia is making to renewable energy. They’re not just minimising 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.”

“Net zero biofuel is a very easy and clean plug-in replacement for the fossil fuels that are causing so much trouble to the environment. Any transportation fleet can make the switch overnight. I hope The Red Sea Project proves to be an inspiration for other companies to follow suit,” he said.

Paddy Padmanathan, president and CEO of ACWA Power, said, “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 500,000 tonnes of CO2 emissions annually by using renewable energy. It is set to welcome its first guests by the end of 2022, when the international airport and first hotels are due to open. Meanwhile, Neutral Fuels has begun setting up a biorefinery in Saudi Arabia to serve the project.

Also read: Exclusive interview: John Pagano, CEO of The Red Sea Development Company and Amaala