Home Industry Energy Abu Dhabi’s ADNOC, Taqa announce $3.6bn project to decarbonise offshore operations The project is expected to reduce the carbon footprint of ADNOC’s offshore operations by more than 30 per cent by Aarti Nagraj December 22, 2021 Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company (Taqa) have announced a $3.6bn project to “significantly” decarbonise ADNOC’s offshore production operations. The project will see the development and operation of a high-voltage, direct current (HVDC-VSC) subsea transmission system in the MENA region, a statement said. The transmission system will have a total installed capacity of 3.2GW and comprise two independent sub-sea HVDC links and converter stations that will connect to Taqa’s onshore electricity grid – operated by its subsidiary, Abu Dhabi Transmission and Despatch Company. The system will power ADNOC’s offshore production operations with “cleaner and more efficient” energy, delivered through the Abu Dhabi onshore power grid. The project will be funded through a special purpose vehicle (SPV) that will be jointly owned by ADNOC and Taqa (30 per cent stake each), and a consortium comprised of Korea Electric Power Corporation (KEPCO), Japan’s Kyushu Electric Power and Électricité de France (EDF). Led by KEPCO, the consortium will hold a combined 40 per cent stake in the project on a build, own, operate and transfer basis. The consortium will develop and operate the transmission system alongside ADNOC and Taqa, with the full project being returned to ADNOC after 35 years of operation. Construction is expected to begin in 2022 with commercial operation commencing in 2025. The project is subject to relevant regulatory approvals. The project is expected to reduce the carbon footprint of ADNOC’s offshore operations by more than 30 per cent, replacing existing offshore gas turbine generators with more sustainable power sources. It is also expected to drive operational efficiencies and improve system reliability of energy supply, while offering the potential for power supply cost optimisation, the statement added. The project also offers the potential for ADNOC to more effectively utilise its gas – currently used to power the offshore facilities – for higher-value purposes, allowing the company to generate additional revenue, the statement said. Yaser Saeed Almazrouei, ADNOC Upstream executive director, said: “This first-of-its-kind project is a further example of how ADNOC is advancing practical and commercially viable solutions to secure a lower carbon future, while driving significant foreign direct investment.” More than 50 per cent of the project value will come back into the UAE’s economy under ADNOC’s In-Country Value (ICV) programme. “Decarbonisation continues to provide social and economic opportunities for collaboration and growth, which Taqa is actively pursuing through its strategic alliances and partnerships in the market,” said Jasim Husain Thabet, Taqa’s group CEO and managing director. A tender for the project was issued in April 2020 resulting in “very strong interest” from international companies. Following a competitive tender process, the consortium was selected. The project follows the recently announced global clean energy venture between Taqa, ADNOC and Mubadala, targeting a total generating capacity of at least 50GW of renewable energy by 2030. ADNOC also signed a clean energy partnership with EWEC, which will see up to 100 per cent of ADNOC’s onshore and more than 90 per cent of its offshore production operations supplied by EWEC’s nuclear and solar clean energy sources. Tags ADNOC Decarbonisation energy Offshore Taqa 0 Comments You might also like ADNOC L&S awards $4.4bn contracts to build 23 supertankers ADNOC awards Dhs720m in manufacturing contracts in the UAE UAE’s ADNOC agrees multi-year LNG supply deal with SEFE ADNOC awards $490m contract to expand world’s largest 3D seismic survey