Saudi Arabia E-Fuel Market Overview, 2029

Saudi Arabia's e-fuel sector is undergoing considerable development, driven by the country's desire to diversify its economy away from oil dependence and shift to more sustainable energy sources. Saudi Arabia has long been a pioneer in fossil fuel production, but in recent years it has made a deliberate shift towards renewable energy and the development of e-fuels. This transition is consistent with the Kingdom's Vision 2030 strategy, which seeks to minimise greenhouse gas emissions while promoting sustainable growth. The Saudi government established the Saudi Green Initiative in 2021, with the goal of reducing CO2 emissions by 278 million tonnes per year by 2030. This effort includes investing in e-fuels as a critical component of its energy transition strategy. This is a big breakthrough in the e-fuel sector, with a focus on using carbon capture and renewable energy sources to manufacture hydrogen and other e-fuels. In December 2020, the NEOM project, a $500 billion megacity, revealed plans to build green hydrogen and ammonia production facilities, highlighting Saudi Arabia's commitment to becoming a sustainable energy hub. In 2022, Saudi Aramco and Air Products announced a collaboration to create blue hydrogen and ammonia in an effort to meet domestic and worldwide energy demands while lowering carbon emissions. The agreement is consistent with the global push for hydrogen as a clean fuel and is expected to establish Saudi Arabia as a major player in the hydrogen market.

According to the research report, "Saudi Arabia E-Fuel Market Outlook, 2029," published by Bonafide Research, the Saudi Arabia E-Fuel market is anticipated to add to more than USD 160 Million by 2024–29. Saudi Aramco, NEOM, and ACWA Power are key players in the Saudi e-fuel market. Saudi Aramco, the state-owned oil company, recognises the need of shifting to e-fuels and is aggressively investing in research and development of sustainable technology. The Kingdom is also looking into export potential, particularly for hydrogen and ammonia, as worldwide demand for clean fuels grows. The agreement between Saudi Aramco and Air Products is anticipated to make it easier to export hydrogen to markets in Asia and Europe, where clean energy solutions are in high demand. Collaborations with numerous international stakeholders are also common in Saudi Arabia's e-fuel business. In 2021, the Kingdom inked agreements with numerous countries to encourage cooperative ventures in renewable energy and e-fuels. Partnerships with countries like as Germany and Japan aim to increase knowledge transfer and investment in hydrogen production. These agreements are critical to the Kingdom's ambition to establish itself as a global leader in the e-fuel sector. Public awareness campaigns and incentives for enterprises engaging in sustainable energy technologies are among the promotions and activities aimed at expanding the e-fuel market. The Saudi government has been actively promoting the benefits of e-fuels through numerous venues, emphasising their role in meeting climate targets and improving energy security. In addition, the Kingdom is conducting worldwide conferences and summits to promote its e-fuel breakthroughs and attract foreign investment.

The e-fuel market in Saudi Arabia is quickly increasing, driven by the demand for sustainable energy alternatives in a variety of sectors, including transportation, industrial applications, and power production. In transportation, e-fuels such as e-kerosene and e-diesel are gaining popularity, particularly in aircraft and heavy-duty transport. Companies such as Saudi Aramco are leading moves to create e-kerosene plants, recognising the fuel's potential to meet tough aviation emissions standards. In the industrial sector, e-fuels are being incorporated into manufacturing and logistics. E-methanol is particularly appealing as a chemical feedstock and a fuel for maritime transport, as it aligns with the Kingdom's goals of decarbonising heavy industries. Partnerships with firms such as ACWA Power are looking into e-methanol production to boost decarbonisation efforts in a variety of industrial applications. E-fuels can be combined with natural gas to reduce carbon emissions from current power facilities. This integration contributes to Saudi Arabia's ambitious renewable energy ambitions under the Saudi Green Initiative, which seeks to dramatically increase the proportion of renewables in the energy mix. The advancement of e-fuel technology is also predicted to improve energy storage capacity, making the grid more adaptable and robust. Domestic suppliers and distributors play an important role in the expansion of the e-fuel business. Saudi Aramco, NEOM, and ACWA Power are among the leading companies, investing in the manufacturing of various e-fuels and developing a comprehensive distribution system.


Several types of e-fuels, such as e-kerosene, e-diesel, e-gasoline, and e-methanol, are gaining popularity in Saudi Arabia's growing e-fuel sector. E-kerosene, produced by sustainable technologies such as Fischer-Tropsch synthesis or electrolysis of water followed by CO2 conversion, is especially important in the aviation industry. Given the Kingdom's important location as a major international air travel hub, e-kerosene is regarded as a critical approach to reducing greenhouse gas emissions from aeroplanes. Companies such as Saudi Aramco are making significant investments in the development of e-kerosene production plants to suit domestic and international demand. E-diesel is another important player in the Saudi e-fuel market, particularly for heavy-duty transportation and shipping. Its interoperability with existing diesel engines makes it a more immediate transition for fleet operators aiming to reduce their carbon footprint. This versatility makes e-diesel an appealing choice as the Kingdom strives to modernise its transportation infrastructure while adhering to tougher environmental rules. Major domestic providers, like ACWA Power and Saudi Aramco, are looking at e-diesel production as part of broader efforts to decarbonise the transportation sector. E-gasoline is also gaining popularity, particularly among light-duty cars. While it presently trails e-diesel and e-kerosene in terms of acceptance, continued advancements and investments could transform the scene in the near future. E-methanol is gaining popularity for its adaptability and prospective applications in the transportation and chemical industries.

In Saudi Arabia's developing e-fuel business, numerous major technologies are driving research and production, including hydrogen technology, Fischer-Tropsch synthesis, and the Reverse Water-Gas Shift (RWGS) process. Hydrogen technology is the foundation for manufacturing various e-fuels, particularly green hydrogen produced through electrolysis using renewable energy sources. Saudi Arabia is investing significantly in hydrogen technology as part of its Vision 2030 project, with the goal of becoming a global leader in hydrogen production. Projects like NEOM and relationships with foreign companies like Air Products are critical to establishing the Kingdom as a hub for green hydrogen production, which is required for e-fuel synthesis. Fischer-Tropsch synthesis is another essential method used to transform syngas (hydrogen and carbon monoxide) into liquid hydrocarbons like e-kerosene and e-diesel. This technique has gained popularity in Saudi Arabia, with firms such as Saudi Aramco investigating its possibilities for creating sustainable aviation fuels and diesel alternatives. The Reverse Water-Gas Shift (RWGS) process converts carbon dioxide and hydrogen into carbon monoxide, which is a critical step in Fischer-Tropsch synthesis. This technique is critical for capturing CO2 emissions from industrial operations and using them to generate renewable energy. Currently, hydrogen technology dominates the Saudi e-fuel scene, owing to its foundational position in the production of various e-fuels and the Kingdom's determination to promoting green hydrogen as a vital export commodity.



Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• E-fuels market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By End-use
• Aviation
• Marine
• Industrial
• Railway
• Automotive
• Others

By Application
• Transportation
• Industrial
• Power Generation
• Others

By Type of E-fuel
• E-kerosene (Synthetic Aviation Fuel)
• E-diesel
• E-gasoline
• E-methanol
• Other Hydrocarbons

By Technology
• Hydrogen technology (Electrolysis)
• Fischer-Tropsch
• Reverse-Water-Gas-Shift (RWGS)

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the E-fuels industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.
?