Aramco DAC Strategy, $1.5 B L&T Contract for Jubail Hub, 9 M Tonne Target with Linde and SLB (2021 to 2025)

Aramco DAC Projects, the 12-Ton Siemens Pilot, and the 9 M Tonne Jubail Hub

In 2025, Saudi Aramco executed a significant strategic shift from theoretical carbon management exploration to a dual-track infrastructure deployment model, simultaneously launching a small-scale Direct Air Capture (DAC) pilot for technology validation and committing to a massive Carbon Capture, Utilization, and Storage (CCUS) hub for immediate industrial decarbonization.

• Prior to 2025, Aramco’s activities in advanced carbon removal were largely in the research and planning stages. The period from 2021 to 2024 focused on establishing foundational goals and initial partnerships without significant capital deployment into new physical DAC assets.
• The strategy materialized on March 20, 2025, with the launch of Saudi Arabia’s first DAC test unit in Dhahran. Developed with Siemens Energy, the 12-ton-per-year facility is not for climate impact but is a critical R&D platform to test sorbent materials in the region’s high-heat, high-humidity climate.
• In parallel, Aramco advanced one of the world’s largest CCUS projects at the Jubail industrial zone. This project, which targets capturing 9 million tonnes of CO₂ annually by 2027 from existing industrial facilities, represents the company’s commitment to using mature, at-scale technology for near-term emissions reduction.
• This dual approach allows Aramco to de-risk its long-term strategy by achieving tangible decarbonization results with proven CCUS technology while cultivating the operational expertise and cost reductions needed for a future where DAC becomes a core component of its carbon management portfolio.

$1.5 B Jubail Contract, Aramco Investment in DAC Startups Ucaneo and Spiritus

Aramco’s capital allocation in 2025 became highly targeted, blending a multi-billion-dollar direct infrastructure contract with smaller, strategic venture investments to secure both near-term capacity and long-term technological options.

• The most significant financial commitment was the award of a $1.5 billion contract to Larsen & Toubro in February 2025 for the engineering, procurement, and construction of the gas processing facilities for the Jubail CCUS hub, signaling a firm move from planning to execution.
• Through its venture arm, Aramco Ventures, the company made strategic investments in the global DAC innovation ecosystem. In March 2025, it joined the seed funding round for German startup Ucaneo to help build a DAC demonstration plant scheduled for commissioning in 2026.
• Another key venture investment was in Spiritus, a US-based startup developing a passive DAC technology. This collaboration aims to scale a novel sorbent and air-contacting method that targets a breakthrough cost of below $100 per ton of CO₂, providing Aramco with access to a potentially disruptive, lower-energy capture pathway.
• These investments show a clear hedging strategy: deploying large capital on proven technology for immediate scale while using venture funding to scout and secure access to next-generation technologies that promise to lower the cost curve for atmospheric carbon removal.

Table: Saudi Aramco 2025 Carbon Capture Investments

Aramco’s 4 Key Carbon Capture Partnerships with Siemens, Linde, SLB, and L&T (2025)

In 2025, Saudi Aramco formalized its carbon management ecosystem by securing distinct partnerships with global industry leaders, strategically segmenting roles between technology development, large-scale infrastructure operation, and construction execution.

Partnerships Execute Full CCUS Value Chain

This diagram illustrates the complete CCUS value chain (capture, transport, storage) that Aramco’s specific partnerships are designed to manage and execute.

(Source: Oil and Gas Climate Initiative)

• The partnership with Siemens Energy is focused on technology R&D, centered on the co-development of the Dhahran DAC pilot. This collaboration leverages Siemens‘ engineering expertise to test and validate next-generation sorbent materials for DAC.
• For the massive Jubail hub, Aramco signed a definitive shareholders’ agreement with industrial gas leader Linde and technology giant SLB. This joint venture will develop and operate the CCUS infrastructure, combining operational expertise with subsurface storage knowledge.
• To build the physical assets for the Jubail hub, Aramco brought in Larsen & Toubro as the primary EPC contractor with a $1.5 billion contract, ensuring a clear path for project execution and delivery by the 2027 target date.
• An exploratory partnership was also announced with Rondo and SAMSUNG E&A to evaluate using Rondo Heat Battery technology to power future CCS and DAC projects in the Kingdom, indicating a forward-looking strategy to integrate clean heat into carbon capture processes.

Table: Saudi Aramco 2025 Carbon Capture Partnerships

Saudi Arabia vs. Global, Aramco’s DAC and CCUS Geographic Strategy

While Saudi Aramco’s physical infrastructure investments in 2025 are concentrated in Saudi Arabia’s Eastern Province, its technology-sourcing and venture investment strategy is deliberately global, spanning Europe and North America to import and adapt innovation.

High National Emissions Drive Saudi-Focused Strategy

The chart shows Saudi Arabia’s high historical per-capita emissions, providing the national context for why Aramco’s geographic strategy for physical assets is focused within the Kingdom.

(Source: CarbonCredits.com)

• Between 2021 and 2024, Aramco‘s interest in DAC was geographically diffuse, focused on monitoring global developments. The year 2025 marked a geographic consolidation of physical assets into the Kingdom.
• The operational center of gravity is now firmly in Saudi Arabia’s industrial heartland. The DAC pilot is in Dhahran, and the large-scale CCUS hub is in Jubail, both located in the Eastern Province and positioned to serve a dense corridor of industrial emitters and gas plants.
• In contrast, Aramco’s technology-scouting activities are global. Venture investments were made in Ucaneo in Germany and Spiritus in the United States, indicating a strategy to access leading DAC innovation hubs and import that expertise to a Saudi Arabian context.
• This “local deployment, global innovation” model allows Aramco to leverage its unique domestic advantages, such as vast land for solar deployment and geological storage, while accessing a competitive global market for next-generation carbon capture technology.

DAC Pilot vs. CCUS Scale, Aramco’s Technology Readiness Assessment

In 2025, Saudi Aramco executed a bifurcated technology strategy, deploying mature, commercial-scale point-source CCUS for immediate impact while simultaneously investing in a pilot-stage DAC project to accelerate the maturation curve of this nascent technology.

• The Jubail CCUS hub, which targets 9 million tonnes of CO₂ annually, relies on established post-combustion capture technologies (Technology Readiness Level 8-9) that are proven at an industrial scale, minimizing technical risk for its flagship decarbonization project.
• In stark contrast, the 12-ton-per-year Dhahran DAC plant with Siemens Energy is explicitly a pilot project (TRL 5-6). Its purpose is not large-scale removal but to de-risk a less mature technology by testing new sorbents and processes to drive down operational costs, currently estimated at $400 to $700 per ton.
• This dual-track approach was a notable shift from the 2021-2024 period, which lacked a tangible, company-operated DAC asset. The launch of the pilot provides Aramco with a real-world laboratory to develop its own operational knowledge base.
• The venture investment in passive DAC company Spiritus further demonstrates a portfolio approach, giving Aramco visibility into even earlier-stage technologies (TRL 4-5) that could offer a different, lower-energy pathway to cost-effective carbon removal in the long term.

SWOT Analysis, Aramco’s DAC Strengths and Commercialization Hurdles

Saudi Aramco’s 2025 entry into Direct Air Capture is defined by its immense financial strength and access to sequestration sites, but it faces threats from high initial costs and a dependency on external technology partners for innovation.

• The company’s primary strengths include its vast capital reserves for funding large-scale projects and its unique access to ideal geological formations for permanent CO₂ sequestration in proximity to its industrial facilities.
• However, its main weakness is the current high cost of DAC technology and a nascent internal skill set in operating this specific type of chemical processing plant, creating a reliance on partners like Siemens Energy.
• The opportunity is to leverage its scale and low-cost energy potential to become a global leader in engineered carbon removal, creating a new business line that complements its traditional energy operations.
• A significant external threat is the rapid pace of innovation from competing DAC companies and project developers worldwide, which could erode Aramco‘s potential technology lead if its own R&D efforts do not yield significant cost reductions.

Table: SWOT Analysis for Saudi Aramco DAC Initiatives

Aramco’s DAC Future, Watch for a Kiloton-Scale Pilot and Jubail Hub Progress

The success of Saudi Aramco’s 2025 DAC initiatives will be validated by its ability to announce a scaled-up, kiloton-capacity pilot project within the next 18 to 24 months, based on performance data and cost-reduction learnings from the Dhahran unit.

Fossil Fuel Reliance Drives Future CCUS Need

This chart’s data on heavy fossil fuel dependency in power generation highlights the critical importance of the future DAC and Jubail Hub progress discussed in the section.

(Source: Policies & action | Climate Action Tracker)

• If the Siemens Energy pilot successfully identifies and validates efficient sorbent materials for the local climate, watch for a follow-on announcement for a larger, kiloton-scale demonstration plant. This is the explicit next step outlined in the company’s stated scale-up plan.
• Monitor the construction progress of the Jubail CCUS hub. The successful execution of the $1.5 billion contract with Larsen & Toubro and adherence to the 2027 operational start date will be the primary signal of Aramco‘s ability to deliver complex, large-scale decarbonization infrastructure.
• Pay close attention to any official announcements regarding the cost-per-ton of CO₂ captured at the Dhahran pilot. A validated reduction from the current $400-$700/ton range would be the most significant indicator of the commercial viability of Aramco‘s DAC strategy.
• The progress of portfolio companies like Ucaneo, whose German plant is set for commissioning in H 1 2026, will also be a key external validator. Success in these ventures could provide Aramco with a ready-to-deploy, lower-cost technology option.

The questions your competitors are already asking

This report covers one angle of Saudi Aramco’s carbon capture deployment strategy. The questions that matter most depend on your work.

• Aramco investments and funding. Is the Jubail CCUS hub on track to meet its 9 million tonne target by 2027?
• Aramco activities in direct air capture. Is the Siemens partnership progressing from the 12-ton pilot to a larger deployment?
• Who are Saudi Aramco’s key partners and suppliers for its large-scale CCUS and pilot DAC initiatives?

This report does not answer these. Enki Brief Pro does.

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