ACWA Power, a leading Saudi developer, investor and operator of power generation and desalinated water plants, has signed a Memorandum of Understanding (MoU) with Neutral Fuels, the GCC’s largest biofuel producer, for future collaboration on the supply of its Net Zero Biofuel for Saudi Arabia’s most ambitious regenerative tourism project on the Red Sea coast.

The ACWA Power-led consortium was awarded The Red Sea Development Company’s highest value 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, the ideal alternative energy source. As part of the MOU agreement with ACWA Power, Neutral Fuels biofuel is set to fuel the site’s entire transportation network.

Paddy Padmanathan, President & CEO of ACWA Power, said: "We are delighted to be collaborating with Neutral Fuels, enabling us to accelerate our commitment to support the Kingdom’s ambitions to deliver a tourist destination that limits the environmental impact through the provision of zero-carbon emitting utility services."

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