Abu Dhabi National Oil Company (Adnoc) has set up a new business, Low Carbon Solutions & International Growth, in line with its ambition to achieve net-zero Scope 1 and 2 emissions by 2050.
The Unted Arab Emirates giant said on Tuesday that the new business will “focus on renewable energy, clean hydrogen and carbon capture and storage [CCS], as well as international expansion in gas, liquefied natural gas and chemicals”.
The creation of the new business “builds on the company’s successful track record in responsibly and sustainably supplying energy to the world”, it said.
Adnoc noted the new business will help in the “decarbonisation of its operations, energy efficiency and operational excellence, reductions in methane emissions, advancing carbon capture, utilisation and storage [CCUS] to cut [carbon dioxide] emissions and the use of renewable and other zero-carbon energy sources”.
Net zero goals
Adnoc recently highlighted its ambition to achieve net-zero Scope 1 and 2 emissions by 2050 and is aiming to aggressively scale up investments in low-carbon solutions.
Musabbeh Al Kaabi has been appointed as an executive director of the new business and will begin the role on 16 January.
Al Kaabi is currently chief executive of the UAE Investments platform at Mubadala Investment Company, the Abu Dhabi sovereign investor.
An Adnoc veteran, Al Kaabi has spent 16 years at Adnoc, holding several senior roles.
Within the Mubadala group, Al Kaabi was previously chief executive of Mubadala Petroleum between 2014 and 2017 and later headed its petroleum and petrochemicals platform from 2017 to 2020.
Adnoc chief executive Sultan Ahmed Al Jaber said the new business “will accelerate delivery” of the company’s decarbonisation roadmap and advance its “net zero by 2050” ambition.
“As the UAE prepares to host COP28 next year, we will continue to focus on practical and positive solutions that drive progress for the climate and the economy,” he said.
As a part of its low-carbon initiatives, the company recently set a new upstream methane intensity target of 0.15% by 2025.
Adnoc said it is building on the success of the region’s first commercial-scale CCUS facility to increase its CO2 capture capacity by over 500%, to about 5 million tonnes per annum by 2030.
“This will be achieved by capturing additional CO2 from its gas processing plants and other sources,” it noted.
Middle East oil and gas giants are spending billions of dollars to scale up their production capacities, but are also preparing to invest heavily in energy transition initiatives, primarily led by hydrogen and CCS projects.
Adnoc has said its net zero by 2050 goal “is underpinned by a continued focus on key decarbonisation levers of energy efficiency and operational excellence across the value chain, large scale implementation of CCUS and the use of renewable energy sources”.
The company recently stated that it will be “making significant investments in new technologies” to improve its environmental performance and reduce its methane emissions.
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