Abu Dhabi National Oil Invests $15B in Decarbonization Projects

Abu Dhabi National Oil Company (ADNOC) committed a $15 billion investment in low-carbon projects to curb operations emissions and meet decarbonization goals.

The United Arab Emirates oil and gas giant has unveiled its multi-year action plan, allocating $15 billion for various low-carbon projects across its diversified value chain by the end of the decade.

The UAE has committed over $165 billion to transition to clean energy. It’s the first Persian Gulf state to aim for 2050 net zero emissions.

Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, said:

“Cementing our strong track record of responsible and reliable energy production, ADNOC will fast-track significant investments into landmark clean energy, low-carbon and decarbonization 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.”

ADNOC Decarbonization Goals

As part of its sustainability goals, ADNOC plans to cut its carbon emissions intensity by 25% by 2030. This will strengthen its position as one of the least carbon-intensive oil and gas companies in the world.

ADNOC ranks in the top 5 lowest emitters in the oil and gas industry. It also has one of the lowest methane intensities (0.01%).

The UAE giant highlighted that its decarbonization goals build on its “strong track record as a leading lower-carbon intensity energy producer”. And that record includes these actions:

use of zero-carbon grid power,
committed to zero flaring as part of routine operations, and
deployed the UAE’s first carbon capture project at scale – Al Reyadah.

Middle East oil and gas firms are investing billions of dollars to scale up their hydrocarbon production capacities. But they’re also preparing to invest heavily in energy transition initiatives such as hydrogen and carbon capture and storage (CCS) projects.

The $15 Billion Projects

ADNOC said that throughout 2023, it will reveal a suite of new projects and initiatives to decarbonize operations. The company’s $15 billion investment includes:

A first-of-its-kind CCS project
Innovative carbon removal technologies
New, cleaner energy solutions (hydrogen and renewables)
Further electrification of operations
Measures to build on its policy of zero routine gas flaring
Strengthening international partnerships

The energy firm also said that it will apply “a rigorous commercial and sustainability assessment to ensure that each project delivers lasting, tangible impact”.

In December last year, ADNOC set up a new business called “Low Carbon Solutions & International Growth“. It’s in line with its goal to reach Scope 1 and 2 net zero emissions by 2050.

The new business will focus on CCS, renewables, and clean hydrogen. It will also help the company expand internationally in gas, liquefied natural gas, and chemicals.

UAE’s CCS Expansion Plan

Building on its Al Reyadah facility, which can capture up to 800,000 tonnes of CO2 annually, ADNOC also plans to deploy technologies to capture, store, and absorb CO2.

The company is also working on its next major decarbonization investment to curb emissions from its Habshan gas processing facility.

With ADNOC’s planned expansion of its CCS capacity to 5 million tonnes per annum by 2030, the UAE will be “firmly established as a worldwide hub for carbon capture expertise and innovation,” the firm stated.

Such CCS expansion represents an over 500% increase in the company’s carbon capture capacity.

ADNOC added that this plan seeks to support the scale-up of hydrogen and lower-carbon ammonia production in Abu Dhabi. They even plan to scale blue ammonia production capacity to 1 million tonnes per year at its Taziz facility.

UAE’s major energy player also confirmed that it has already delivered test cargoes of low-carbon ammonia to Europe and Asia.

The company’s expansion of its new energy portfolio will be possible via its stake in Masdar, the region’s clean energy powerhouse. ADNOC said Masdar is leading the UAE to develop a global position in green hydrogen.