SARCO inks 2 MoUs for renewable energy projects with Christof Global

Logo of Saudi Arabian Refineries Co.

Saudi Arabian Refineries Co. (SARCO) signed, on June 22, two non-binding memoranda of understanding (MoUs) with Christof Global Impact, according to a bourse statement.

The MoUs were signed during a panel discussion held by the company on renewable energy projects that contribute to reducing carbon emissions.

The first MoU aims to study an investment partnership with Christof Global to build a refinery producing the ‘biodiesel’ biofuel carbon, which is negative fuel derived from algae through “carbon negative algae oil - sustainable fuel platform”.

The refinery is expected to be built near the Red Coast over 14 million square meters (sqm), with an annual production capacity of 10 million tons of biofuels.

The project’s first phase will cost nearly SAR 1 billion, in partnership with Christof Global. The annual carbon dioxide savings will reach about 20 million tons when the project phases are completed.

As for the second MoU, it aims to study the investment, in partnership with Christof Global, in the technology of slop oil to convert waste oil wells, oil from shipping ships, waste of fuel tanks and petroleum materials into low carbon raw materials to reduce carbon emissions.

The project’s first phase will cost about SAR 130 million. The project will recycle more than 100,000 tons of slop oil to reduce over 70,000 tons of carbon dioxide annually.

The implementation of these projects is pending the approval of the Ministry of Energy and the completion of relevant technical and financial studies.

Work will begin after obtaining the approval of the Ministry of Energy and other government approvals, as well as completing the relevant technical and financial studies within 30 days.

The financial impact cannot be determined currently, and any significant developments will be announced in due course.

SARCO aims to convert the non-binding agreements later into an actual partnership for the implementation of projects, but this is pending the approval of the Ministry of Energy on the projects, as well as other governmental approvals and the completion of the relevant technical and financial studies.