Abu Dhabi’s ADNOC, TAQA form global green energy joint venture

A new global renewable energy and green hydrogen venture has been launched between Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company (TAQA).

Both companies will create a clean energy giant, with a total generating capacity of at least 30 gigawatts (GW) of renewable energy by 2030, that will further the UAE’s role in green hydrogen.

The strategic partnership will focus on domestic and international renewable energy and waste-to-energy projects as well as the production, processing and storage of green hydrogen and ancillary activities.

It will also leverage ADNOC’s energy and hydrogen capabilities and TAQA’s renewables expertise, a statement said. This partnership is expected to benefit from the availability of low-cost renewable energy in the UAE.

Both parties are expected to enter into detailed joint venture arrangements as well as complete necessary transaction requirements, including obtaining relevant third-party and regulatory approvals. Moelis & Company and Citi are acting as exclusive financial advisors to ADNOC and TAQA respectively.

Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Member of the Abu Dhabi Executive Council, chairman of the Abu Dhabi Executive Office, and chairman of the Executive Committee of the Board of Directors of ADNOC, who launched the venture, emphasised on how the UAE is keen to secure a lower carbon future.

Khaled bin Mohamed bin Zayed has launched a new global green energy joint venture between ADNOC and TAQA. The renewable energy and green hydrogen giant will have a total generating capacity of 30GW of renewable energy by 2030. pic.twitter.com/hRtGVkF6Ut

— مكتب أبوظبي الإعلامي (@admediaoffice) November 17, 2021

Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC managing director and group CEO, said: “Today’s strategic partnership between two Abu Dhabi energy giants future-proofs ADNOC’s business model, creating compelling business and commercial opportunities. This innovative and collaborative venture is a bold new initiative, as it combines both companies’ respective areas of expertise and paves the way for our viable entry into the clean energy space.

“As the UAE looks ahead to hosting COP28 in 2023, our nation pledges an inclusive energy ecosystem, enabling sustainable future economic growth, for the benefit of Abu Dhabi and the UAE.”

Mohamed Hassan Alsuwaidi, chairman of TAQA, said: “TAQA has set out to become a champion for low carbon power and water and is already a world leader in solar power. This partnership between TAQA and ADNOC will be a powerful catalyst to unlock significant potential for accelerating the green hydrogen market and rapidly expanding renewable energy. TAQA is supporting Abu Dhabi’s aim to be a green hydrogen hub using our expertise in low-cost solar PV and desalinated water: two critical elements for green hydrogen.”

In October, Sheikh Khaled launched a new clean energy partnership between ADNOC and Emirates Water and Electricity Company (EWEC), which will see up to 100 per cent of the ADNOC’s grid power supplied by EWEC’s nuclear and solar clean energy sources.

Read: Sheikh Khaled bin Mohamed launches clean energy partnership between ADNOC, EWEC

ADNOC has made considerable strides in pursuing low-carbon energy options. In August, it announced that it will send blue ammonia to Japan’s Itochu Corp. for use in fertilizer production.

Read more: UAE’s ADNOC sells trial cargo of blue ammonia to Japan firm

Meanwhile, ADNOC, Mubadala and ADQ, signed an MoU in January this year to establish the Abu Dhabi Hydrogen Alliance.

Read: Mubadala, ADNOC and ADQ form alliance to grow green hydrogen economy in the UAE

ADNOC also joined over 100 companies from around the world in the global Hydrogen Council this year.

Read: Abu Dhabi’s ADNOC joins global Hydrogen Council