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Aramco, TotalEnergies, SIRC Mull Establishment of Sustainable Aviation Fuel Plant in Saudi Arabia

The collaboration seeks to leverage each company's expertise to develop an SAF plant in the Eastern Province of the Kingdom. SPA
The collaboration seeks to leverage each company's expertise to develop an SAF plant in the Eastern Province of the Kingdom. SPA
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Aramco, TotalEnergies, SIRC Mull Establishment of Sustainable Aviation Fuel Plant in Saudi Arabia

The collaboration seeks to leverage each company's expertise to develop an SAF plant in the Eastern Province of the Kingdom. SPA
The collaboration seeks to leverage each company's expertise to develop an SAF plant in the Eastern Province of the Kingdom. SPA

Saudi Aramco, TotalEnergies, and the Saudi Investment Recycling Company (SIRC) have said they signed a joint development and cost-sharing agreement, aiming at evaluating the potential development of a sustainable aviation fuel (SAF) plant in the Kingdom.
The announcement coincided with French President Emmanuel Macron's official visit to the Kingdom on Tuesday. The collaboration seeks to leverage each company's expertise to develop an SAF plant in the Eastern Province of the Kingdom.
The evaluation phase will focus on utilizing innovative engineering and technological solutions to recycle and process local waste or circular economy by-products, including cooking oils and animal fats, to produce SAF.
President and CEO of Saudi Aramco Amin Hassan Nasser pointed out that addressing aviation emissions through low-carbon alternatives has become imperative in light of the expected growth in air travel demand, highlighting the crucial role of mega global energy companies like Saudi Aramco and TotalEnergies.

"Addressing transportation emissions requires a wide range of approaches, and Aramco is committed to finding innovative solutions and contributing to global efforts to reduce emissions," he said.
Underlying the solid partnership between Saudi Aramco and TotalEnergies, Nasser said: "Our goal is to establish a sustainable aviation fuel plant in the Kingdom with SIRC, benefiting both domestic and international airlines, particularly as the tourism and aviation sectors expand."
Chairman and CEO of TotalEnergies Patrick Pouyanné expressed his enthusiasm for collaborating with Saudi Aramco and SIRC to assess SAF production in the Kingdom. He also stressed the importance of advancing efforts to decarbonize air transport.
SIRC CEO Ziyad Al-Shiha noted that the partnership aligns with the company's commitment to supporting the ambitious sustainability goals of the Saudi Vision 2030 and the Saudi Green Initiative, saying: "We are focusing on increasing waste-to-resource conversion rates, and this new collaboration with Saudi Aramco and TotalEnergies to assess the feasibility of a renewable aviation fuel plant is a significant step toward advancing the circular economy in the Kingdom."

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Lucid Beats Estimates for EV Deliveries

A Lucid Motors facility is pictured in Costa Mesa, California, US, November 1, 2023. (Reuters)
A Lucid Motors facility is pictured in Costa Mesa, California, US, November 1, 2023. (Reuters)
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Lucid Beats Estimates for EV Deliveries

A Lucid Motors facility is pictured in Costa Mesa, California, US, November 1, 2023. (Reuters)
A Lucid Motors facility is pictured in Costa Mesa, California, US, November 1, 2023. (Reuters)

Lucid Group reported record fourth-quarter deliveries on Monday, surpassing Wall Street expectations for quarterly deliveries, as the Saudi Arabia-backed maker of luxury electric vehicles lowered prices and offered cheaper financing to drive demand.

The company’s shares rose 7.6% before trading began on Monday.

The EV maker has lowered prices and offered incentives including cheaper financing to woo customers away from cheaper hybrid vehicles amid high interest rates.

The company handed over 3,099 vehicles in the fourth quarter ended Dec. 31, compared with estimates of 2,637, according to six analysts polled by Visible Alpha.

That represented growth of 11% over the third quarter and 78% higher than the fourth quarter a year earlier.

Production rose about 42% year-over-year to 3,386 vehicles in the reported quarter, surpassing estimates of 2,904 units.

For 2024, production rose 7% to 9,029 vehicles, topping the company's target of 9,000 vehicles. Annual deliveries grew 71% to 10,241 vehicles.

Lucid started taking orders for its Gravity SUV in November, in a bid to enter the lucrative SUV sector and take some market share from Rivian and Tesla.

Rivian on Friday topped analysts' estimates for quarterly deliveries and said its production was no longer constrained by a component shortage.

But Tesla reported its first fall in yearly deliveries, in part due to the company's aging lineup.

Saudi Arabia’s Public Investment Fund (PIF) first invested in Lucid in 2018, and steadily accumulated more shares until it held a majority ownership when the startup went public in 2021 through a combination with a special purpose acquisition company.

Lucid raised $3 billion from an offering of common stock and an investment by PIF announced in May of last year.

The company also raised $1.75 billion in October through a stock sale that CEO Peter Rawlinson believes will provide Lucid with a "cash runway well into 2026".

Lucid is scheduled to report its fourth-quarter results on Feb. 25.