logo
menu

ACWA Power signs MoU with Neutral Fuels to power Red Sea project

news item image
ACWA Power has signed a Memorandum of Understanding (MoU) with Neutral Fuels for future collaboration on the supply of its net zero biofuel for Saudi Arabia’s ambitious regenerative tourism project on the Red Sea coast.
The ACWA Power-led consortium, a leading Saudi developer, investor and operator of power generation and desalinated water plants, was awarded the Red Sea Development Company’s contract to design, build, operate and transfer The Red Sea Project’s sustainable utilities infrastructure in November 2020.
Once complete, the destination will become the first project of its scale in the world to be entirely powered by a range of renewable and sustainable energy sources, including biofuel.
As part of the MoU agreement with ACWA Power, Neutral Fuels biofuel will fuel the site’s entire transportation network.
Karl W Feilder, CEO of Neutral Fuels, said: “Net zero biofuel is a very easy and clean plug-in replacement for the fossil fuels that are causing so much trouble to the environment. Any transportation fleet can make the switch overnight. I hope The Red Sea Project proves to be an inspiration for other companies to follow suit.”
Paddy Padmanathan, President and CEO of ACWA Power, added: “The Red Sea Project is expected to prevent an estimated 500,000 tonnes of CO2 emissions each year by using renewable energy and has already surpassed significant construction milestones. Work remains on track to welcome its first guests by the end of 2022, when the international airport and first hotels are due to open.”
Neutral Fuels has begun setting up a biorefinery in Saudi Arabia to serve the project. The site will resemble a city, where biofuel will be made from local used vegetable cooking oil in a local facility for use by local customers.