ADNOC earmarks $15bn for low-carbon solutions and decarbonisation tech ADNOC earmarks $15bn for low-carbon solutions and decarbonisation tech
Now Reading
ADNOC earmarks $15bn for low-carbon solutions and decarbonisation tech

ADNOC earmarks $15bn for low-carbon solutions and decarbonisation tech

The company will launch projects involving carbon capture, electrification and new CO2 absorption technology, and also enhance investments in hydrogen and renewables 

Neesha Salian
ADNOC allocates 1$5M towards low carbon solutions

ADNOC has taken on an ambitious new strategy to expand the world-scale decarbonisation of its operations.

The announcement follows the guidance of ADNOC’s Board of Directors in November last year to speed up the delivery of its low-carbon growth strategy and approval of its ‘Net Zero by 2050’ goals.

ADNOC has allocated $15bn (Dhs55bn) to advance many projects across its diversified value chain by 2030.

These projects will include investments in clean power, carbon capture and storage (CCS), further electrification of its operations, energy efficiency and new measures to build on ADNOC’s long-standing policy of zero routine gas flaring.

The company has said it will ensure a rigorous commerical and sustainability assessment to ensure that each project delivers lasting tangible impact.

Throughout 2023, new projects and initiatives will be announced, including a first-of-its-kind CCS project, innovative carbon removal technologies, investment in new, cleaner energy solutions and strengthening of international partnerships.

Together with the recent formation of the ADNOC’s new Low Carbon Solutions and International Growth Directorate, these represent tangible and concrete action as the company reduces its carbon intensity by 25 per cent by 2030 and moves towards its Net Zero by 2050 ambition.

Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC MD and group CEO, said: “Now, more than ever, the world needs a practical and responsible approach to the energy transition that is both pro-growth and pro-climate, and ADNOC is delivering tangible actions in support of both these goals.

“Cementing our strong track record of responsible and reliable energy production, ADNOC will fast-track significant investments into landmark clean energy, low-carbon and decarbonisation technology projects. As we continue to future-proof our business, we invite technology and industry leaders to partner with us, to collectively drive real and meaningful action that embraces the energy transition. This strategic, multi-billion-dollar initiative underscores ADNOC’s industry leadership as a leading global provider of lower-carbon energy.”

Taking the right steps

Building on ADNOC’s Al Reyadah facility, which has the capacity to capture up to 800,000 tons of CO2 per year, the company will announce plans to deploy technologies to capture, store and absorb CO2 by leveraging the UAE’s geological properties while preparing for its next major investment to capture emissions from its Habshan gas processing facility. Combined with its planned expansion of its carbon capture capacity to 5 million tons per annum (mtpa) by 2030, the UAE will raise its profile as a worldwide hub for carbon capture expertise and innovation.

The expansion of CCS is planned to support the significant scale-up of hydrogen and lower-carbon ammonia production capabilities in Abu Dhabi as ADNOC progresses a world-scale 1 million tons per annum (mtpa) blue ammonia production facility at TA’ZIZ, the industrial services and logistics ecosystem that is enabling the expansion of the Al Ruways Industrial City, as well as Abu Dhabi’s wider chemicals, manufacturing and industrial sectors. To-date, ADNOC has already delivered test cargoes of low-carbon ammonia to Europe and Asia.

The expansion of its new energy portfolio will largely be delivered through its stake in Masdar, the UAE’s clean energy powerhouse with over 20 gigawatts (GW) of clean energy today and plans to increase its capacity to 100 GW by 2030. Masdar is also spearheading the UAE’s drive to develop a leading position in green hydrogen.

Since January 2022, ADNOC has received 100 per cent of its grid power supply from Emirates Water and Electricity Company’s nuclear and solar energy sources, making it the first major company in the industry to decarbonise its power at scale through a clean power agreement of this kind.

The company has also concluded a $3.8bn deal to build a first-of-its-kind, sub-sea transmission network in the MENA region, connecting ADNOC’s offshore operations to the onshore power network, with the potential to reduce ADNOC’s offshore carbon footprint by up to 50 per cent.

In recent news, ADNOC and Mubadala announced a transaction involving OMV AG, a global energy and chemicals group, headquartered and listed in Vienna, Austria.

Read: Abu Dhabi’s ADNOC acquires 24.9% stake in OMV

You might also like

© 2021 MOTIVATE MEDIA GROUP. ALL RIGHTS RESERVED.

Scroll To Top