Saudi power developer ACWA Power has signed an agreement with Neutral Fuels, the GCC’s largest biofuel producer, for future collaboration on Saudi Arabia’s ambitious regenerative tourism project on the Red Sea coast.
The ACWA Power-led consortium was awarded The Red Sea Development Company’s highest value contract to design, build, operate and transfer The Red Sea Project’s sustainable utilities infrastructure in November.
Once complete, the destination will become the first project of its scale in the world 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.
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.”
He added: “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.”
The Red Sea Project is expected to prevent an estimated 500,000 tonnes 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.
Paddy Padmanathan (pictured above), president and CEO of ACWA Power, said: “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.
“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.”
Dubai-based Neutral Fuels said it has begun setting up a biorefinery in Saudi Arabia to serve the project.
Upon completion in 2030, The Red Sea Project will comprise 50 resorts, offering up to 8,000 hotel rooms and more than 1,000 residential properties across 22 islands and six inland sites. The destination will also include marinas, championship golf courses, entertainment and leisure facilities.
Neutral Fuels pioneered Net Zero Biofuel in the UAE and is a member of The Neutral Group, an international cleantech organisation which builds sustainability strategies for the logistics, maritime, energy, hospitality and FMCG industries.
ACWA Power’s portfolio includes 64 assets with an investment value of SR253.6 billion ($67.6 billion).
Follow us on
