Saudi Aramco CCUS Strategy 2025: Analyzing Commercial Projects and Investments
Aramco’s Commercial CCUS Projects Signal a Strategic Shift in 2025
Saudi Aramco is aggressively scaling its Carbon Capture, Utilization, and Storage (CCUS) activities from pilot and enhanced oil recovery (EOR) applications to large-scale industrial decarbonization hubs, a strategic shift crystallized by major contract awards and new partnerships in 2025. This transition demonstrates a clear corporate mandate to use CCUS for decarbonizing its own gas processing operations and to enable a new commercial pathway for blue hydrogen production. The company’s approach now combines commercially ready point-source capture with nascent direct air capture (DAC) research, indicating a dual strategy of immediate operational decarbonization and long-term technology hedging.
- Prior to 2025, Aramco’s primary operational CCUS project was the Uthmaniyah CO₂-EOR demonstration, which captures 0.75 MTPA to boost oil production. In contrast, events in 2025 centered on the Jubail CCUS Hub, a project designed to capture 9 MTPA of CO₂ from industrial gas plants by 2027, signifying a more than tenfold increase in scale and a shift in purpose from utilization for oil recovery to large-scale sequestration.
- The variety of applications expanded in 2025 with the launch of the Kingdom’s first Direct Air Capture (DAC) pilot in collaboration with Siemens Energy. While its capacity is a minimal 12 tons per year, its existence alongside the megaproject at Jubail shows Aramco is simultaneously pursuing industrial-scale capture and investing in future atmospheric carbon removal technologies.
- The commercial driver for this scale-up became explicit in March 2025 with Aramco’s acquisition of a 50% stake in Air Products Qudra’s blue hydrogen subsidiary. This move directly links the Jubail hub’s carbon storage capability to the commercial production of lower-carbon energy products, confirming that CCUS is a core enabler of Aramco’s future product portfolio.
Aramco’s Capital Allocation for CCUS Cements Project Viability in 2025
Saudi Aramco translated its strategic CCUS ambitions into tangible financial commitments in 2025, deploying over $1.7 billion in contracts for its flagship Jubail project and continuing venture investments in next-generation technologies. The period between 2021 and 2024 was characterized by planning and ambition-setting, such as a corporate goal to develop 11 MTPA of CCUS capacity by 2035. The year 2025 marks the transition to execution, with major capital expenditures de-risking the project timeline and signaling a firm commitment to building a world-scale carbon management infrastructure.
- The most significant financial move in 2025 was the award of a $1.5 billion Engineering, Procurement, and Construction (EPC) contract to Larsen & Toubro. This contract provides the capital to build the core CO₂ processing and compression facilities for the Jubail hub, moving the project from the drawing board to the construction phase.
- Infrastructure investment was further solidified with a $243 million contract to Saudi Steel Pipe Company in February 2025. This expenditure is dedicated to the critical pipeline network needed to transport captured CO₂ from industrial sources to the sequestration site, underscoring the comprehensive build-out of the entire CCUS value chain.
- Aramco continued its strategy of investing in future technologies through its venture arm, participating in a seed funding round for German DAC startup UcaneoinMarch 2025. This follows its 2024investment inCarbon Capture Inc., showing a consistent pattern of using venture capital to gain early access to potentially disruptive, lower-cost carbon removal technologies.
Table: Saudi Aramco Key CCUS Investments (2024 – 2025)
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Aramco Ventures Investment in Ucaneo | March 2025 | Participated in a seed funding round for a German DAC startup developing a novel, solvent-free capture technology. This reflects a strategy to invest in early-stage technologies to lower future DAC costs. | Aramco Ventures Joins Ucaneo’s Seed Funding Round… |
| Jubail CCS Hub EPC Contract | February 2025 | Awarded a $1.5 billion EPC contract to Larsen & Toubro for the construction of CO₂ processing, dehydration, and compression facilities, a critical step toward the 9 MTPA Phase 1 operational target. | Saudi Aramco Awards $1.5 B Contract For CCS Project |
| Jubail CCS Hub Pipeline Contract | February 2025 | Secured a $243 million order with Saudi Steel Pipe Company for the supply of pipes for CO₂ transportation, representing a key investment in midstream infrastructure for the project. | Saudi Steel Pipe Company Secures $243 Mn Order for … |
| Aramco Ventures Investment in Carbon Capture Inc. | March 2024 | Participated in an $80 million Series A funding round for a U.S.-based DAC company, signaling strategic interest in scalable atmospheric carbon removal solutions. | US-based Carbon Capture raises $80 mln from Saudi … |
Aramco’s Partnership Ecosystem Matures from MOUs to Joint Ventures in 2025
Saudi Aramco’s CCUS partnership strategy matured significantly between 2022 and 2025, evolving from exploratory Memorandums of Understanding (Mo Us) to definitive joint ventures and technology-specific collaborations. In the earlier period (2022-2023), Aramco focused on establishing frameworks with potential partners likeAker Carbon Capture. By 2025, these have solidified into concrete agreements with clear roles and objectives, such as the JV withLindeandSLBfor theJubailhub and targeted technology pilots with companies likeSiemens Energy.
- The foundational partnership for theJubailhub, a joint development agreement withLindeandSLB, was first announced in November 2022. By December 2024/January 2025, this evolved into a formal shareholders’ agreement, locking in the partners to co-develop and operate the facility, combining Aramco’s industrial scale withLinde’sCO₂ processing expertise andSLB’ssubsurface storage knowledge.
- In 2023, Aramco signed an Mo U withAker Carbon Captureto explore modular CCUS solutions. By 2025, its focus shifted to executing specific technology tests, exemplified by the collaboration withSiemens Energyto launch the Kingdom’s first DAC pilot plant in March 2025, moving from general exploration to targeted R&D.
- Aramco’s partnership strategy in 2025 also became directly integrated with its commercial goals through a major acquisition. In March 2025, it acquired a 50% stake inBlue Hydrogen Industrial Gases CompanyfromAir Products Qudra, creating a direct offtake pathway for its CCUS infrastructure by linking it to blue hydrogen production.
Table: Saudi Aramco Key CCUS Partnerships (2024 – 2025)
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Linde & SLB | Dec 2024 – Jan 2025 | Formalized a shareholders’ agreement to create a joint venture for the development and operation of the Jubail CCS hub, combining industrial, CO₂ capture, and subsurface expertise. | Aramco, Linde, and SLB Collaborate… |
| Air Products Qudra | March 2025 | Completed the acquisition of a 50% stake in a blue hydrogen subsidiary, creating a direct commercial link between Aramco’s CCUS infrastructure and low-carbon fuel production. | Aramco completes acquisition of 50% stake in Blue … |
| Siemens Energy | March 2025 | Launched Saudi Arabia’s first DAC test unit to pilot the technology in local climate conditions, with a focus on R&D for cost reduction and material testing rather than immediate scale. | Aramco and Siemens Energy Launch First CO 2 Direct Air … |
| Carbon Clean & SAMSUNG E&A | December 2024 | Signed a collaboration to test Carbon Clean’s Cyclone CC technology, which aims to reduce the footprint and cost of capture systems by up to 50%, indicating a focus on next-generation, lower-cost solutions. | Aramco, Carbon Clean and SAMSUNG E&A Partner on … |
Saudi Aramco Centers CCUS Operations in Saudi Arabia While Sourcing Global Technology
Saudi Aramco’s CCUS strategy is geographically anchored in Saudi Arabia’s industrial heartlands, but its technology sourcing and investment footprint became increasingly global in 2024 and 2025. While all major physical projects, including the operationalHawiyahfacility and the under-constructionJubailhub, are located domestically to decarbonize core assets, Aramco has systematically reached into international technology hubs in the US and Europe to secure innovation and expertise.
- The physical epicenter of Aramco’s CCUS activity is the Eastern Province of Saudi Arabia. Projects from 2021-2024 like theHawiyahNGL plant and the plannedJubailhub are concentrated here to serve Aramco’s vast industrial infrastructure, a focus that was reinforced in 2025 with major construction contracts for Jubail.
- Beginning in 2024 and continuing in 2025, Aramco’s venture capital arm expanded its geographic reach to secure future technologies. It invested in US-basedCarbon Capture Inc.in March 2024 and German startup Ucaneo in March 2025, demonstrating a strategy to tap into leading North American and European DAC innovation clusters.
- Partnerships for the flagship Jubail hub also reflect a globalized approach. While the project is in Saudi Arabia, its development relies on a joint venture with German industrial gas giant Linde and US-based energy technology firm SLB, confirming that execution depends on international expertise.
Saudi Aramco’s CCUS Technology Advances to Commercial Construction in 2025
In 2025, Saudi Aramco’s CCUS technology portfolio demonstrated a clear progression, with established point-source capture technology moving into commercial-scale construction while emerging technologies like Direct Air Capture (DAC) entered the formal pilot stage. Between 2021 and 2024, the company’s efforts were split between operating its mature EOR project and evaluating next-generation solutions. The year 2025 marks a validation point, where large-scale point-source capture is deemed commercially ready for deployment, and DAC is validated as a strategic R&D priority requiring in-field testing.
Post-Combustion Technology Dominates CCUS Market Growth
The global carbon capture market is forecast for significant expansion, with post-combustion technology holding the largest share. This reflects the industry’s focus on retrofitting existing industrial and power generation assets.
(Source: Global Market Insights)
- Point-source capture technology has advanced from operational-but-limited scale (0.8 MTPA at Hawiyah for EOR) to commercial-scale deployment readiness. The $1.5 billion EPC contract awarded in February 2025 for the Jubail hub signifies that the technology is considered mature enough for a project aiming for 9 MTPA of capture.
- Direct Air Capture technology transitioned from a conceptual interest to a physical pilot project in March 2025. The launch of the 12-ton-per-year test unit with Siemens Energy in Dhahran represents its first tangible step in evaluating DAC performance in the region’s climate, a critical milestone for a technology that is still in its early stages globally.
- Mobile Carbon Capture (MCC) remains in the advanced development and demonstration phase. In 2023, Aramco demonstrated up to40%capture efficiency on a heavy-duty truck. Activities in 2025 have continued this developmental track, positioning MCC as a promising but not yet commercially deployed technology for the transport sector.
SWOT Analysis of Saudi Aramco’s CCUS Strategy in 2025
Saudi Aramco’s CCUS strategy has rapidly evolved, leveraging its immense capital and operational scale while exposing a clear focus on decarbonizing its own production over addressing end-use emissions. The transition from 2021 to 2025 shows a company moving from ambition to execution, solidifying partnerships, and making concrete investments. This has sharpened its strengths in project delivery and created new opportunities in blue hydrogen, but it has also highlighted the persistent threat of its unaddressed Scope 3 emissions and a strategic imbalance between mature and nascent technologies.
Global Carbon Capture Pipeline Shifts to Execution
The global portfolio of carbon capture projects reveals a significant shift from development to execution, with capacity under construction surging. This trend validates the industry’s move from strategic ambition to tangible project delivery.
(Source: Trellis Group)
Table: SWOT Analysis for Saudi Aramco
| SWOT Category | 2021 – 2023 | 2024 – 2025 | What Changed / Resolved / Validated |
|---|---|---|---|
| Strengths | Operational experience in CCU via the 0.8 MTPAHawiyahEOR project. Significant in-house R&D capabilities and a large patent portfolio. | Demonstrated ability to execute mega-projects by awarding a $1.5 billion EPC contract for theJubailhub. Formalized a powerful JV with global leaders Linde and SLB. | The company validated its strength in project execution, moving from operating a small-scale project to financing and building one of the world’s largest CCUS hubs. |
| Weaknesses | CCUS ambitions were large but lacked concrete, large-scale investment decisions. Scale was limited to EOR applications. | A huge capability gap exists between point-source capture (9 MTPA target) and DAC (12 tons/year pilot). The high cost of DAC remains a major barrier to scaled deployment. | The 2025 moves clarified that Aramco’s current strength is in industrial capture, while its atmospheric removal capability is negligible and purely experimental for now. |
| Opportunities | The potential to leverage CCUS to produce and export blue hydrogen and blue ammonia was a stated long-term goal. | The acquisition of a 50% stake inAir Products Qudra’sblue hydrogen company in March 2025 directly commercialized the blue hydrogen opportunity. A “carbon capture-as-a-service” model emerged as a potential new revenue stream. | The opportunity shifted from a theoretical concept to a concrete business strategy, with theJubailhub directly enabling a new lower-carbon product line. |
| Threats | Global policy and investor pressure focused on total lifecycle emissions, including Scope 3 (end-use), which CCUS on its own operations does not address. | The CCUS strategy solidified its focus on Scope 1 & 2 emissions, effectively externalizing the Scope 3 challenge to customers. This reinforces a reliance on fossil fuels, a risk if global demand shifts faster than expected. | The threat became more defined. Aramco’s strategy doubles down on making fossil fuels lower-carbon at the source, which may not be sufficient if global policy prioritizes phasing them out entirely. |
Future Outlook: Jubail Hub Execution is Aramco’s Critical 2025-2027 Test
The foremost indicator of Saudi Aramco’s CCUS success in the near term is the execution of theJubailhub, with its 2027 commissioning date serving as the critical milestone. The significant capital allocated and partnerships formed in 2025 have set the stage, and the market will now watch for tangible construction progress and a final investment decision on subsequent phases. The outcomes of its nascent technology pilots will determine the long-term diversification of its carbon management portfolio.
- Progress on the Jubail hub’s Phase 1 is the primary event to monitor. Achieving the 9 MTPA capacity by the 2027 target is essential to validate Aramco’s ability to deliver on its mega-project promises and establish Saudi Arabia as a global CCUS leader.
- The results from the Siemens Energy DAC pilot will be a key signal for Aramco’s future strategy. Announcements on cost reduction, material performance, and energy efficiency will indicate whether DAC can eventually become a scalable commercial solution for the company or if it will remain a small-scale R&D initiative.
- The development of a commercial “carbon capture-as-a-service” model is a strategic shift to watch. Any move to offer CO₂ transport and storage to third-party industrial players would signal Aramco’s intent to create a new revenue stream from its CCUS infrastructure, beyond decarbonizing its own assets.
- Following the 2025 acquisition related to blue hydrogen, further integration between CCUS projects and low-carbon fuel production is expected. Announcements linking new gas developments to CCUS infrastructure will confirm the centrality of this strategy.
Frequently Asked Questions
What is the most significant change in Saudi Aramco’s CCUS strategy in 2025?
The most significant change in 2025 is the strategic shift from small-scale CCUS for enhanced oil recovery (EOR) to developing large-scale industrial decarbonization hubs. This is highlighted by the focus on the Jubail CCUS Hub, which aims to capture 9 million tonnes per annum (MTPA) by 2027, a more than tenfold increase in scale compared to the previous 0.75 MTPA Uthmaniyah EOR project.
How is Aramco’s Jubail CCUS Hub connected to its blue hydrogen ambitions?
The Jubail hub is the core enabler of Aramco’s blue hydrogen strategy. The carbon capture and storage infrastructure at Jubail is designed to manage the CO₂ produced during the blue hydrogen manufacturing process. This link was solidified in March 2025 when Aramco acquired a 50% stake in Air Products Qudra’s blue hydrogen subsidiary, creating a direct commercial use for the captured carbon and a pathway for producing lower-carbon fuels.
How much has Aramco invested in the Jubail CCUS project in 2025?
In 2025, Saudi Aramco made significant financial commitments to the Jubail project, awarding over $1.7 billion in contracts. This includes a $1.5 billion Engineering, Procurement, and Construction (EPC) contract to Larsen & Toubro for the CO₂ processing facilities and a $243 million contract to Saudi Steel Pipe Company for the pipeline network.
Is Aramco only focused on capturing CO₂ from industrial plants?
No, Aramco is pursuing a dual strategy. While its main commercial focus is on large-scale point-source capture from industrial plants like the Jubail hub, it is also investing in future technologies for atmospheric carbon removal. This is demonstrated by the launch of its first Direct Air Capture (DAC) pilot project with Siemens Energy in March 2025 and its venture capital investments in DAC startups like Ucaneo and Carbon Capture Inc.
Who are the main partners collaborating with Aramco on its CCUS initiatives?
Aramco has built a partnership ecosystem with global leaders. For the Jubail hub, it formed a joint venture with Germany’s Linde (for CO₂ processing) and the US firm SLB (for subsurface storage). For construction, it contracted India’s Larsen & Toubro. It is also collaborating with Siemens Energy on a DAC pilot and has a commercial blue hydrogen partnership with Air Products Qudra.
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