UAE’s ADNOC sets ambitious emission target ahead of COP28

ADNOC Group has accelerated its decarbonisation strategy, bringing forward its net zero carbon emissions target by five years to 2045, and to achieve zero methane emissions by 2030.

Sheikh Khaled bin Mohamed bin Zayed, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council approved the company’s decarbonisation plan. Sheikh Khaled bin Mohamed said the ambitious targets mark a new chapter in the state-owned energy giant’s transformational journey to a lower carbon future.

ADNOC’s ambitious emissions target makes it the first in its peer group to accelerate its net zero target to 2045. The company said its upstream carbon intensity was around 7 kilograms of carbon dioxide equivalent per barrel of oil equivalent in 2022, which is among the lowest in the world.

Marking a new chapter in ADNOC’s transformational journey to a lower carbon future, we have brought forward our Net Zero ambition to 2045 and aim to achieve zero methane emissions by 2030.

— ADNOC Group (@ADNOCGroup) July 31, 2023

Previously, ADNOC unveiled plans to cut greenhouse gas (GHG) emission intensity by 25 per cent, as well as boost carbon capture, utilisation and storage capacity by 500 per cent by 2030. However, on Monday the oil major said it aimed to cut carbon intensity by 25 per cent by 2030.

Similarly, its 2022 methane intensity was about 0.07 per cent and its upstream carbon intensity was around 7kg of carbon dioxide equivalent per barrel of oil equivalent. Previously, the Abu Dhabi-based firm had said it is committed to upstream methane intensity of 0.15 per cent by 2025.

The energy firm’s decarbonisation plan covers so-called Scope 1 and Scope 2 emissions, which measure the amount of carbon dioxide that comes directly from the company’s own operations and from the energy it uses to run its business.

ADNOC decarbonisation strategy

Meanwhile, ADNOC’s tougher climate targets together with its first disclosures come nearly a fortnight after the UAE updated its national climate pledge under the Paris Agreement to cut emissions by 40 per cent by 2030, from the previous target of 31 per cent.

The plan is part of a third update of the Emirates’ second Nationally Determined Contribution. Sheikh Khaled bin Mohamed said ADNOC is a key enabler of the country’s revised target.

ADNOC plans to accelerate the global growth of renewable energy and green hydrogen through its shareholding in Masdar. Masdar is targeting a portfolio of more than 100 gigawatts (GW) of renewable capacity and the production of one million tonnes of green hydrogen by 2030.

The company’s decarbonisation plan includes a $3.8bn, first-of-its-kind at-scale project, connecting its offshore operations to clean grid power, which will reduce its offshore carbon footprint by up to 50 per cent.

Recently, ADNOC made an initial allocation of $15bn to expedite the implementation of its key decarbonisation initiatives, including carbon capture and storage, electrification, energy efficiency and nature-based solutions.

The company’s decarbonisation plans include building a one million tonnes per annum low-carbon ammonia production facility to help ADNOC’s customers decarbonise.

Earlier this year, it started two pilot projects to deploy climate technologies to capture and permanently store carbon dioxide as part of its plan to expand its carbon capture capacity to five million tonnes per annum by 2030.

Read: ADNOC to build Middle East’s first high-speed hydrogen refuelling station