ADNOC Allocates $15 Billion To Low- Carbon Solution & States New Strategy

According to the report, the announcement follows the guidance provided by ADNOC’s Board of Directors in November 2022 to accelerate the delivery of its low-carbon growth strategy and the approval of its Net Zero by 2050 ambition.

This builds on ADNOC’s strong track record as a leading lower-carbon intensity energy producer, which includes its use of zero-carbon grid power, a commitment to zero flaring as part of routine operations, and the deployment of the region’s first carbon capture project at scale.

Following the Board’s guidance, ADNOC has allocated $15 billion (AED55 billion) to advance an array of projects across its diversified value chain by 2030, stated the report.

According to the report, these projects will include investments in clean power, carbon capture and storage (CCS), further electrification of its operations, energy efficiency, and new steps to build on ADNOC's long-standing policy of not routinely flaring gas.

To ensure that each project delivers a lasting, tangible impact, ADNOC will apply an extremely careful commercial and sustainability assessment.

Reporters emphasise the statement from the project, which states that a suite of new projects and initiatives will be announced throughout 2023, 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 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% by 2030 and moves towards its Net Zero by 2050 ambition,"  said the report.

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.

By combining with ADNOC’s planned expansion of its carbon capture capacity to 5 million tonnes per annum (mtpa) by 2030, the UAE will be firmly established as a worldwide hub for carbon capture expertise and innovation.

The report mentioned that "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 ADNOC advances a world-scale 1 million tonnes per annum (mtpa) blue ammonia production facility at TA'ZIZ."

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 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.

The report further highlights that 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, making it the first major company in the industry to decarbonize its power at scale through a clean power agreement of this kind.

ADNOC also concluded a $3.8 billion 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%.

The report concludes that, while raising multibillion-dollar capital investments in decarbonization projects, ADNOC is collaborating with international partners and stakeholders across the energy value chain on technology, best practices, and policy to support and drive global decarbonization efforts.

By Sumita Pawar