Abu Dhabi National Oil Company (Adnoc) has unveiled a $15 billion investment plan as it steps up its drive to decarbonise its operations.
The United Arab Emirates company said on Thursday that the energy transition investment plan follows its “low-carbon growth strategy” and the Adnoc board’s approval of its “net-zero by 2050 ambition”.
“These projects will include investments in clean power, carbon capture and storage (CCS), further electrification of its operations, energy efficiency and new measures to build on Adnoc’s long-standing policy of zero routine gas flaring,” Adnoc said.
The company added that it will apply “a rigorous commercial and sustainability assessment to ensure that each project delivers lasting tangible impact”.
The investments would be executed through “an array of projects across its diversified value chain by 2030,” it stated.
Middle East oil and gas giants are spending billions of dollars to scale up their hydrocarbon production capacities, but are also preparing to invest heavily in energy transition initiatives, primarily led by hydrogen and CCS projects.
Adnoc said that throughout this year, it will announce “a suite of new projects and initiatives, including a first-of-its-kind CCS project, innovative carbon removal technologies, investment in new, cleaner energy solutions and strengthening of international partnerships”.
It said the measures 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”.
The company last month said that it 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.
Adnoc had said 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”.
Chief executive Sultan Ahmed Al Jaber said the company “continues to take significant steps to make today’s energy cleaner while investing in the clean energies and new technologies of tomorrow”.
“Adnoc will fast-track significant investments into landmark clean energy, low-carbon and decarbonisation technology projects,” he added.
Al Reyadah facility
Adnoc said that, building on its Al Reyadah facility, which has the capacity to capture up to 800,000 tonnes per annum of carbon dioxide, the company will announce plans to deploy technologies to capture, store and absorb CO2 , 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 by 2030, the UAE will be firmly established as a worldwide hub for carbon capture expertise and innovation,” the company stated.
Adnoc noted that its CCS expansion plans aim to support the significant scale-up of hydrogen and lower-carbon ammonia production capabilities in Abu Dhabi, as it advances a 1 million tpa blue ammonia production facility at its Taziz facility.
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 tpa by 2030.
“This will be achieved by capturing additional CO2 from its gas processing plants and other sources,” it noted.
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