Amidst the ongoing energy transition debate, Aramco has announced the creation of a $1.5 billion Sustainability Fund that will support investments in technology that can accelerate energy transition to meet the world’s growing energy demand with lower greenhouse gas emissions.

The fund is among the largest sustainability-focused venture capital funds globally and will be managed by Aramco Ventures, the venture capital arm of Aramco.

The investment in technologies will support the company’s net-zero 2050 initiatives incorporating its entire operational assets, as well as the development of new lower-carbon fuels.  Also read: Gap in Global Collaboration Can Delay Green Transition by Decades, Notes IEA

Carbon capture and storage, greenhouse gas emissions, energy efficiency, nature-based climate solutions, digital sustainability, hydrogen, ammonia and synthetic fuels are among the target areas that the fund will focus on initially.

In addition, Aramco’s wholly-owned subsidiary, Aramco Trading Company, has participated in the first voluntary carbon credits auction organized by the Public Investment Fund (PIF).

Commenting on the development, Aramco Chairman, H.E. Yasir O. Al-Rumayyan, said, “Climate change is a critical issue, which is why sustainability is well-integrated in Aramco’s strategy and investment decisions.”

Meanwhile, Aramco President and CEO, Amin H. Nasser, said, “The Sustainability Fund reinforces our commitment to leverage innovative technologies that will make a difference in addressing the dual challenge of achieving greater energy security and sustainability, and show how these two great imperatives can and must co-exist.“

Aramco aims to achieve net-zero Scope 1 and Scope 2 greenhouse gas (GHG) emissions across its wholly-owned operated assets by 2050. In June, the company also announced a set of interim targets for 2035 intended to reduce or mitigate net Scope 1 and Scope 2 GHG emissions across its wholly-owned operated assets by more than 50 million metric tons of CO2e annually when compared to the business-as-usual forecast. Also read:  Balancing Decarbonization and Energy Security

The company is developing its blue ammonia and hydrogen business, with the aim of producing up to 11 million metric tons of blue ammonia per year by 2030 — this to support hard-to-decarbonize sectors such as heavy-duty transport, heating and industrial applications.

Also read: Divesting From Hydrocarbons Too Soon Will Undermine Energy Security