Opening remarks by Ahmad O. Al-Khowaiter at the 2025 STS forum

Ohayo Gozaimasu and As salamu alaykum

Good morning your excellencies and distinguished guests. 

I am delighted to be back in Kyoto attending the STS Forum. I want to thank Komiyama-san for his Chairmanship of what is sure to be another outstanding event. And thank you Deborah for chairing this panel to discuss the topic of sustainability.

It is a special year for the Saudi-Japan relationship, as we mark the 70th year of diplomatic relations between our two countries. Japan and Saudi Arabia are two countries focused on a zero carbon future. This was made clear in 2023, when our two countries established the Lighthouse Initiative for Clean Energy Cooperation. 

And this year, we in Saudi Arabia were greatly honored by His Majesty the Emperor awarding the Japan Prize to Professor Carlos Duarte from the King Abdullah University of Science and Technology, in the field of sustainability, and specifically the topic of blue carbon.  

In the energy industry, when we talk about zero carbon and sustainability, it is nearly always in the context of the energy transition. What is the appropriate energy mix and how fast can we get there? 

But at Aramco, we think about this question another way – what is the ideal mix of energy in the future, and what is the practical mix that is needed now to get us there? 

It is not just the ultimate destination, but understanding that the path must be both affordable and secure without sacrificing sustainability. 

Today, many countries are facing sky-high electricity rates, and coal demand globally, believe it or not, is at record highs.  

At Aramco, we have been calling for a pragmatic approach to the transition that takes a dual track – one, delivering affordable, sustainable and secure conventional energy, but with lower emissions, as well as investing and scaling up renewables, new energies and materials that are required for the long-term goal.

Given the scale of the global energy system, both the new energies as well as conventional energy sources are going to be required for many decades to come.

Trillions of dollars have already been invested in alternatives, yet still today about 80% of energy in the global mix comes from oil, gas and coal – very similar to what it was 20 years ago.

When determining how to address climate goals and long-term lower emissions, it is imperative that we apply a full life-cycle, technology-inclusive approach to drive policy. If it does not, we face the risk of creating more emissions, not less.

That is why we work diligently to develop and scale-up low carbon solutions. We’re investing in carbon capture and storage, and we’re building one of the world’s largest carbon capture and storage hubs on the East Coast of Saudi Arabia.

We’re also investing in new carbon capture technologies and advanced capture materials, and we’re implementing AI-driven efficiency improvements to reduce overall emissions across the value chain.

In the mobility sector, we partner with automakers here in Japan and globally on new energy vehicle technology, to help improve efficiency. This is a critical area where we’ve seen tremendous improvement in hybrid engines.

Only a few short years ago, 41% break thermal efficiency of hybrid engines was the gold standard. Today, thanks to investment in advanced engine technology, that number is approaching 46%, and rising ultimately to 50% perhaps.

This alone represents some of the lowest-cost, most impactful reductions of emissions, in transport or even globally, because of the scale of the impact.

On the New Energies side, we’re investing in lower carbon fuels, hydrogen, energy storage, as well as advanced carbon rule technologies like direct air capture.

We have already established a $1.5 billion sustainability venture capital fund a few years ago. Already, we have invested in more than 40 companies globally and in Saudi Arabia that are focused on technologies such as carbon capture,, lower carbon fuels, new energies, advanced materials and other disruptive technologies.

For example, we are investing in an innovative startup in Saudi Arabia called Terraxy, that converts waste biomass into a soil enhancing biochar that improves plant growth and water retention while also removing carbon dioxide from the atmosphere and storing it durably for hundreds of years.

When it comes to new and renewable energy like solar and wind, we’re invested there too. Just this year, Aramco signed agreements to invest in 12 gigawatts of solar and wind projects, along with other key players in Saudi Arabia, as highlighted by His Excellency Dr. Munir.

And we continue develop new sources of lower emissions energy such as natural gas for low emissions power generation as we work to bring the cost of renewable energy storage down. To this end, we are actively investing in energy storage solutions, a critical barrier to adoption of renewables. 

Earlier this year, we achieved a world-first in deploying an Iron-Vanadium flow battery as a backup solar power source for our operations in harsh environments. We also invest in many long-duration storage energy technologies, such as nickel hydrogen and thermal energy storage.

In all of these advancements, partnerships matter. And we are always looking to engage in more around the world. The technologies I have talked about, and many others, will play a critical role in what will ultimately become a future sustainable energy mix.

And all this requires strong collaboration between policymakers, academia, industry, technology developers, startups, investors and financial institutions, many of which are gathered here for the STS Forum.

Finally, governments must seek to strengthen the interdependence and trust that ensures energy security, whether that be oil, lithium ion batteries, or even access to AI.

Investments cannot succeed without trust. Investment in sustainability technology solutions will be the thread that weaves together the present and the future.

And we will experience the path to zero carbon as something that not only seems possible, but inevitable.

Thank you and Arigato Gozaimasu. 

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