Saudi Aramco Offshore Wind Initiatives for 2025: Key Projects, Strategies and Partnerships

Saudi Aramco’s Wind Energy Pivot: From Domestic Ambition to Global Execution

A Strategic Shift from Foundational Planning to GW-Scale Deployment

Saudi Aramco’s engagement with wind energy has undergone a significant strategic evolution, shifting from foundational planning between 2021 and 2024 to aggressive, large-scale commercial deployment in 2025. In the earlier period, Aramco’s strategy was characterized by signaling intent and building domestic capabilities. This was highlighted by plans for a 500 MW floating offshore wind farm with Saipem and a pivotal 2024 joint venture with Envision Energy to establish a wind turbine factory within Saudi Arabia. These moves were aimed at localizing technology and supply chains in line with the Kingdom’s Vision 2030 goal of generating 50% of its electricity from renewables.

The period since January 2025 marks a distinct inflection point, defined by massive capital allocation and the execution of tangible projects, albeit with a notable pivot in technological focus. While early ambitions included advanced floating offshore technology, 2025 has seen a pragmatic focus on mature, commercial-scale onshore wind. This is evidenced by a 700 MW Power Purchase Agreement for the Yanbu onshore project and a staggering $8.3 billion consortium investment that includes 3 GW of onshore wind farms. This variety—spanning domestic manufacturing, onshore project execution, and international offshore exploration—reveals a dual-track strategy. The primary track focuses on rapidly deploying proven onshore technology to meet near-term domestic targets. A secondary, more opportunistic track, signaled by discussions for a 3.5 GW offshore project in Azerbaijan, shows Aramco is leveraging its capital to pursue international growth, potentially leapfrogging the domestic learning curve for offshore wind by entering foreign markets first. This shift presents an opportunity to become a global renewables player but also introduces the threat of managing complex international partnerships and geopolitical risks, all while its CEO calls for a broader “rethink” of global energy transition plans.

Investment: Capitalizing on the Energy Transition

Aramco’s financial strategy has visibly accelerated, moving from long-term targets to substantial, near-term capital deployment. The investments in 2025 demonstrate a clear commitment to building out its renewable portfolio at an industrial scale, leveraging its financial might to underwrite some of the region’s largest clean energy projects. While broader infrastructure investments like the Jafurah gas project underscore its capacity for megaprojects, the specific multi-billion-dollar allocation to wind and solar signals that renewables are now a core pillar of its capital expenditure strategy.

Table: Saudi Aramco Renewable and Strategic Energy Investments

Partnerships: Building a Wind Energy Ecosystem

Aramco’s partnership strategy has evolved from foundational collaborations to a multi-pronged approach involving technology suppliers, project developers, and international governments. The early-period partnerships with Saipem and Envision were about acquiring technical know-how and localizing the supply chain. In 2025, the partnerships have scaled dramatically, focusing on project execution and market entry. Collaborations with consortiums led by ACWA Power and international players like Marubeni are designed to deliver gigawatts of power to the Saudi grid, while the turbine supply deal with Windey secures the hardware for this rapid expansion.

Table: Saudi Aramco Key Wind Energy and Strategic Partnerships

Geography: A “Home and Away” Strategy Emerges

Between 2021 and 2024, Aramco’s wind energy activities were exclusively focused on building a domestic ecosystem within Saudi Arabia. The planned Envision Energy turbine factory and the proposed Saipem floating wind project were clear indicators of a strategy centered on satisfying the domestic renewable energy demand stipulated by Vision 2030. The primary goal was to create a self-sufficient industrial base for wind energy.

From 2025, this geographic focus has expanded into a dual “home-and-away” strategy. The domestic front has intensified, with massive onshore wind farms like the Yanbu project cementing its presence in Saudi Arabia’s energy landscape. Simultaneously, Aramco is now looking abroad. The discussions with Azerbaijan for a 3.5 GW offshore wind project in the Caspian Sea represent a major strategic expansion. This move suggests that Saudi Arabia, through Aramco, is not just aiming to be a regional renewables leader but a global one. By entering the Azerbaijani market, Aramco can build large-scale offshore wind expertise and deploy its immense capital internationally, potentially generating new revenue streams and establishing a foothold in the global clean energy supply chain. This emerging international focus is a critical development, positioning Aramco as a potential exporter of energy capital beyond hydrocarbons.

Technology Maturity: A Pragmatic Pivot to Commercial Scale

Aramco’s approach to wind technology has matured from exploration to large-scale execution. During the 2021-2024 period, the company was exploring the technological frontier. Its plan with Saipem for a 500 MW floating offshore wind farm targeted a technology that is still in a pre-commercial, demonstration phase globally. This, coupled with the move to establish a local turbine factory with Envision, indicated a strategy focused on acquiring and developing next-generation and foundational manufacturing technologies.

In 2025, there has been a decisive shift toward deploying mature, bankable technology at scale. The company’s multi-gigawatt investments are in onshore wind, a proven and cost-effective technology. Projects like the 700 MW Yanbu farm and the 3 GW commitment with the ACWA Power-led consortium are firmly in the commercial scaling phase. The earlier ambition in floating offshore wind appears to have been placed on a longer-term development track, superseded by the immediate need to add renewable capacity to the grid using proven solutions. The 3.5 GW offshore wind discussion with Azerbaijan, while significant, likely pertains to conventional fixed-bottom technology, which is commercially mature for large-scale deployment. This pragmatic pivot demonstrates Aramco’s focus on execution and achieving its 12 GW renewable target by 2030 through the most reliable technological pathways available today.

SWOT Analysis: Aramco’s Evolving Position in Wind Energy

Table: SWOT Analysis of Aramco’s Wind Strategy

Forward-Looking Insights: What to Expect in the Year Ahead

The data from 2025 signals that Saudi Aramco has entered a new phase of pragmatic acceleration in its wind energy strategy. The focus has sharpened on deploying capital into bankable onshore projects to meet near-term goals, while nurturing long-term offshore ambitions through international ventures. Looking ahead, market actors should watch for key signals that will validate the trajectory and seriousness of this pivot.

The most critical signal will be a final investment decision on the 3.5 GW offshore wind project with Azerbaijan. This will be the ultimate proof point of its international ambitions and its ability to execute complex projects abroad. Domestically, the operational launch of the Envision Energy turbine factory will be a major milestone, indicating a maturing local supply chain. Furthermore, the outcome of decisions on “multiple Aramco offshore projects”, expected in late 2025, will reveal whether domestic offshore wind is being re-prioritized. Onshore wind is clearly gaining traction as the company’s workhorse for the energy transition. In contrast, ambitious domestic floating offshore projects appear to have lost steam, at least for the immediate future. Aramco’s path forward is one of dual priorities: maximizing its legacy business while aggressively, and pragmatically, building a global-scale renewables portfolio.

Frequently Asked Questions

What is the biggest change in Aramco’s wind energy strategy in 2025?
The biggest change is the shift from foundational planning (2021-2024) to aggressive, large-scale execution. In 2025, Aramco began deploying massive capital, evidenced by an $8.3 billion consortium investment for renewable projects and a focus on building gigawatt-scale onshore wind farms, moving beyond earlier plans and joint ventures into tangible project delivery.

Is Aramco only building wind projects in Saudi Arabia?
No. While Aramco is heavily investing in domestic projects like the Yanbu onshore farm to meet Vision 2030 goals, it has adopted a “home-and-away” strategy. The company is now expanding internationally, highlighted by its discussions for a major 3.5 GW offshore wind project in Azerbaijan, signaling its ambition to become a global renewables player.

Has Aramco abandoned its ambitions for offshore wind?
Aramco has pivoted its approach, not abandoned it. While its earlier domestic plans for advanced *floating* offshore wind seem to be on a longer-term track, it is now pursuing large-scale offshore wind internationally, such as the 3.5 GW project in Azerbaijan. This suggests a strategy of building offshore expertise in foreign markets with mature technology before potentially re-engaging with more complex projects at home.

How is Aramco building its supply chain for wind energy?
Aramco is using a dual approach. It is securing the immediate supply chain for its projects through large-scale procurement deals, like the 1.1 GW turbine supply agreement with Windey. Simultaneously, it is building a long-term, local supply chain through strategic partnerships, most notably the 2024 joint venture with Envision Energy to establish a wind turbine manufacturing facility within Saudi Arabia.

What are the main risks facing Aramco’s wind energy push?
According to the analysis, the primary risks have evolved from a lack of experience to more concrete challenges. These include execution risk on highly complex, multi-billion-dollar projects, geopolitical risks associated with its international expansion into new markets like Azerbaijan, and a potential strategic conflict between its massive investments in renewables and its simultaneous expansion of its core hydrocarbon business.

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