Abu Dhabi National Oil Company (ADNOC) is to invest $15bn (AED55bn) decarbonising its operations.
Today’s announcement follows the guidance by ADNOC’s Board of Directors in November 2022 to accelerate delivery of its low-carbon growth strategy and approval of its Net Zero by 2050 ambition.
Project investments to 2030 will cover clean power, carbon capture and storage (CCS), electrification, new carbon dioxide (CO2) absorption technology, energy efficiency and measures to build on ‘zero routine’ gas flaring.
The company said it will apply ‘a rigorous commerical and sustainability assessment’ to ensure that each project delivers lasting tangible impact.
This year a ‘suite’ of new projects and initiatives will be announced, including a 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, the moves will help to reduce carbon intensity by 25% by 2030.
HE Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said ADNOC continues to take significant steps to make today’s energy cleaner while investing in the clean energies and new technologies.
He 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.”
“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.”
Building on ADNOC’s Al Reyadah facility, which has the capacity to capture up to 800,000 tonnes 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 ADNOC’s planned expansion of its carbon capture capacity to 5 million tonnes per annum (mtpa) by 2030, the UAE aims to establish itself as a worldwide hub for carbon capture expertise and innovation.
ADNOC’s expansion of CCS is planned to support the significant scale-up of hydrogen and lower-carbon ammonia production capabilities in Abu Dhabi as it advances a 1mtpa 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.
ADNOC’s expansion of its new energy portfolio will largely be delivered through its recently announced stake in Masdar, whose portfolio covers 20GW 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% of its grid power supply from Emirates Water and Electricity Company’s (EWEC) nuclear and solar energy sources. ADNOC also concluded a $3.8bn deal to build a sub-sea transmission network in the MENA region, connecting ADNOC’s offshore operations to the onshore power network, with the potential to reduce its offshore carbon footprint by up to 50%.