Red Sea Global to Use Sustainable Fuel for its Fleet

Red Sea Global self-driving vehicles for sustainable transportation (Red Sea Global)
Red Sea Global self-driving vehicles for sustainable transportation (Red Sea Global)
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Red Sea Global to Use Sustainable Fuel for its Fleet

Red Sea Global self-driving vehicles for sustainable transportation (Red Sea Global)
Red Sea Global self-driving vehicles for sustainable transportation (Red Sea Global)

Red Sea Global (RSG) announced using low-carbon biofuel in all its delivery trucks.

According to a press statement, RSG's entire fleet of land vehicles now runs on electricity or biofuels, making it the first Saudi company to operate such an eco-conscious supply chain.

The company, wholly owned by the Public Investment Fund (PIF), currently operates a fleet of six 8-ton refrigerated trucks and three 3.5-ton refrigerated trucks running on biofuel.

The vehicles serve many facilities and are active in the long-range supply chain network. It ensures a smooth transportation of goods to all the company's projects and facilities in the implementation of Red Sea Global's vision for a greener future.

The biofuel is produced from used cooking oil sourced within Saudi Arabia.

The type of fuel RSG has adopted emits only 0.17 kilograms of carbon dioxide equivalent per liter, compared with 2.7kg CO2e per liter from regular diesel usage.

Sustainable biofuel operates all cargo delivery trucks to the company's four destination hotels: Turtle Bay, Six Senses, Southern Dunes, St. Regis Red Sea Resort, and Nujuma, a Ritz-Carlton Reserve.

The transition from using conventional to biofuels reduces carbon emissions and increases the life of vehicle engines, bringing environmental and operational benefits.

RSG's Supply Chain and Logistics Leader, Michael Stockdale, explained that by using sustainable biofuel produced from locally sourced cooking oil, the company is significantly reducing carbon emissions and contributing to the circular economy.

Stockdale pointed out that this is the first step towards a fully sustainable logistics network, saying the company is already looking at new technology and innovations that can further reduce the impact of its supply chain.

Red Sea Global launched advanced technologies equipping each vehicle with a chip measuring the amount of biofuel used daily.

The data allows fleet managers to analyze and optimize fuel consumption, which enhances the sustainability of the company's operations to preserve the environment.

Red Sea Global already uses electricity sourced 100 percent from solar energy to operate its electric vehicles. The company's land transportation fleet emits only a minimal amount of carbon.

The recent announcement also aligns with RSG's long-term strategy to transition to green hydrogen throughout its mobility sector.

By 2030, RSG aims to have between 700 and 800 vehicles in its sustainable fleet, which will create a qualitative shift in how goods are transported in the Kingdom and set a new standard for sustainable supply chains.

Notably, Red Sea Global is one of Vision 2030 pillars and contributes a pivotal role in the Kingdom's transformation process towards anticipating new economic horizons and enhancing the country's rich environmental and cultural heritage.



Oil Prices Edge up as Market Assesses Trump's Tariff Plans

FILE PHOTO: A ship is moored near storage tanks at an oil refinery off the coast of Singapore October 17, 2008. REUTERS/Vivek Prakash/File Photo
FILE PHOTO: A ship is moored near storage tanks at an oil refinery off the coast of Singapore October 17, 2008. REUTERS/Vivek Prakash/File Photo
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Oil Prices Edge up as Market Assesses Trump's Tariff Plans

FILE PHOTO: A ship is moored near storage tanks at an oil refinery off the coast of Singapore October 17, 2008. REUTERS/Vivek Prakash/File Photo
FILE PHOTO: A ship is moored near storage tanks at an oil refinery off the coast of Singapore October 17, 2008. REUTERS/Vivek Prakash/File Photo

Oil prices picked up on Tuesday, after the previous session's sell-off, as the market assessed US President-elect Donald Trump's planned trade tariffs on Mexico and Canada and his aim to increase US crude production.

Oil prices had fallen more than $2 a barrel on Monday after multiple reports that Israel and Lebanon had agreed to the terms of a ceasefire in the Israel-Hezbollah conflict. A senior Israeli official said Israel looks set to approve a US plan for a ceasefire on Tuesday, but some analysts said Monday's sell-off in oil prices had been overdone.

Brent crude futures were up 43 cents, or 0.6%, at $73.44 a barrel as of 1414 GMT. US West Texas Intermediate crude futures were at $69.38 a barrel, up 44 cents, or 0.6%.

Brent crude futures fluctuated between $73.30 and $73.80 a barrel in afternoon trading.

"Today’s intra-day fluctuations are probably more of the function of assessing Trump’s overnight pledge to impose tariffs on Mexico, Canada and China," PVM analyst Tamas Varga said.

On Monday, Trump said he would impose a 25% tariff on all products coming into the US from Mexico and Canada.

The vast majority of Canada's 4 million bpd of crude exports go to the US Analysts have said it is unlikely Trump would impose tariffs on Canadian oil, which cannot be easily replaced since it differs from grades that the US produces.

On Monday, Reuters reported that Trump's team is also preparing an energy package to roll out within days of his taking office that would increase oil drilling.

A senior executive at Exxon Mobil said on Tuesday that US oil and gas producers are unlikely to "radically increase'' production.

OPEC+ MEETING

Market reaction on Monday to the Israel-Lebanon ceasefire news was "over the top" as the broader Middle East conflict has "never actually disrupted supplies significantly to induce war premiums" this year, said senior market analyst Priyanka Sachdeva at Phillip Nova.

Elsewhere, OPEC+ at its next meeting on Sunday may consider leaving its current oil output cuts in place from Jan. 1. The producer group is already postponing hikes amid global demand worries.