Riyadh sets carbon capture and hydrogen targets
17 May 2023
Saudi Arabia aims to establish a carbon capture, utilisation and storage (CCUS) hub with a capacity of 44 metric tonnes of carbon dioxide (Mt CO2) a year by 2035, and to produce 4 million tonnes of clean hydrogen by 2030.
The targets are in line with the kingdom’s Circular Carbon Economy (CCE) National Programme, which now includes CCUS and hydrogen among its six pillars.
The other four CCE pillars are:
- Oil
- Natural gas
- Refining and petrochemicals
- Power, renewables and nuclear energy
“The CCE National Programme is spearheading the Energy Ministry’s efforts to contribute to reaching Saudi Arabia’s target of net-zero greenhouse gas (GHG) emissions by 2060 through the adoption of the CCE framework,” a paper by the King Abdullah Petroleum Studies & Research Centre (Kapsarc) said.
“The CCE approach seeks to address the three pillars of the kingdom’s energy sector, namely energy security, economic growth and climate change.”
The report added that the ministry has identified CCUS and clean hydrogen as playing important roles in achieving the 2060 target.
"Medium-term targets in these areas are developing a CCUS hub with a capacity of 44 Mt CO2 a year by 2035, and producing 4 million tonnes of clean hydrogen a year by 2030," said Kapsarc.
In the longer term, Saudi Arabia expects CCUS, direct air capture (DAC) and hydrogen to contribute approximately one-third of the emission reductions it needs to reach its net-zero target by 2060.
There are about 35 commercial facilities applying CCUS to industrial processes, fuel transformation and power generation, with a total annual capture capacity of almost 45 Mt CO2, according to the France-headquartered International Energy Agency (IEA).
It added that CCUS deployment has been behind expectations in the past, although momentum has grown significantly in recent years, with about 300 projects in various stages of development across the CCUS value chain.
IEA also says 520 million tonnes of hydrogen will be needed to achieve net-zero targets by 2050.
MEED's latest special report on Saudi Arabia includes:
> GIGAPROJECTS: Saudi Arabia under project pressure
> ECONOMY: Riyadh steps up the Vision 2030 tempo
> CONSTRUCTION: Saudi construction project ramp-up accelerates
> UPSTREAM: Aramco slated to escalate upstream spending
> DOWNSTREAM: Petchems ambitions define Saudi downstream
> POWER: Saudi Arabia reinvigorates power sector
> WATER: Saudi water begins next growth phase
> BANKING: Saudi banks bid to keep ahead of the pack
> DATABANK: Riyadh holds its buoyant economic heading
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Dubai seeks consultants for drainage projects6 February 2026
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Egypt contractor secures €58m loan for Hungary power plant6 February 2026
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AD Ports signs Jordan Aqaba port PPP deal6 February 2026
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Chinese firm wins Ceer automotive supplier park deal6 February 2026
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The request for qualifications (RFQs) was issued by the municipality’s Sewerage and Recycled Water Projects Department (SRPD).
The bid submission deadline is 26 February.
The first scheme under the package is TF-16-C1, which involves upgrading and rehabilitating the stormwater system east of the Dubai Canal.
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Modon tenders Ras El-Hekma construction contracts
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Abu Dhabi-based developer Modon Holding has tendered several contracts as part of the first phase of development at Ras El-Hekma, a planned new city on Egypt’s Mediterranean coast.
MEED understands that the tenders were issued in January.
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DP3 assets: covering 146 residential villas, 590 three-bedroom townhouses, 356 four-bedroom townhouses, a mall and other associated works.
Bids due on 23 February.
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DP7 assets: 120 five-bedroom villas, 230 seven-bedroom villas, 284 branded residential units and other infrastructural works.
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Modon has accelerated development works at Ras El-Hekma this year. In January, MEED reported that Modon Holding had awarded a E£15bn ($316m) contract for the construction of a project at Ras El-Hekma.
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The signing ceremony was held at the Aqaba Special Economic Zone Authority headquarters in Aqaba on 5 February.
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The announcement followed AD Ports Group’s signing of a shareholders’ agreement in January 2024 between its digital arm, Maqta Gateway, and Jordan’s Aqaba Development Corporation regarding their existing joint-venture company, Maqta Ayla.
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Chinese firm wins Ceer automotive supplier park deal
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Beijing-headquartered Metallurgical Construction Corporation (MCC) has won a contract to undertake the steel structure works on the Ceer automotive supplier park in King Abdullah Economic City (KAEC).
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