|Introduction||Saudi Arabian Refineries Company “SARCO” announces the signing of two non-binding memoranda of understanding with Christof Global Impact, which took place yesterday evening, Wednesday, Wednesday, during a panel discussion held by the company on renewable energy projects that contribute to reducing carbon emissions.|
|Memorandum Signing Date||2022-06-22 Corresponding to 1443-11-23|
|Counterparty||Christof Global Impact company|
|Memorandum Subject||The details of the two notes are as follows:
1- A non-binding memorandum of understanding to study investment in partnership with Christof Global Impact in building a refinery to produce biofuel “Biodiesel” carbon negative fuel derived from algae Carbon Negative Algae Oil – Sustainable Fuel Platform, which is expected to be built near the Red Coast on an area of 14 million square meters, bearing in mind that this project will reach a production capacity of 10 million tons of biofuels annually, with an investment in its first phase with a value of up to one billion riyals in partnership with Christof Global Impact, and the annual savings in carbon dioxide will reach about 20 million tons when Project phases completed.
2- A non-binding memorandum of understanding to study the investment, in partnership with Christof Global Impact, in the technology of slop oil to convert waste oil wells, oil from shipping ships, waste of fuel tanks and petroleum materials into low carbon raw materials (reducing carbon emissions). The cost of the first phase of the project is an estimated total amount By about 130 million riyals, it amounts to recycling more than 100,000 tons of Slop Oil and permanently reducing more than 70,000 tons of carbon dioxide annually.
The implementation of these projects is linked to the approval of the Ministry of Energy and the completion of the technical and financial studies of the project.
|Memorandum Duration||Work begins after obtaining the approval of the Ministry of Energy on projects and other government approvals, and completing the technical and financial studies of the project within 30 days.|
|Financial Impact||The financial impact cannot be determined at this stage, and any significant developments will be announced in due course.|
|Additional Information||Saudi Arabian Refineries Company would like to later convert the non-binding agreements into an actual partnership for the implementation of projects, but this is linked to the approval of the Ministry of Energy on projects and other governmental approvals and the completion of the technical and financial studies of the project.|