UAE’s ADNOC to allocate EUR 14 billion to decarbonisation projects

In 2022, the government of the United Arab Emirates (UAE) unveiled its national strategy to achieve Net Zero emissions by 2050.  In support of this objective, several major Emirati banks have issued green bonds to help to accelerate environmentally friendly initiatives.  A significant development has come with the Abu Dhabi National Oil Company (ADNOC) announcement this month that it would allocate no fewer than EUR 14 billion to decarbonisation projects by 2030.   

ADNOC has been building a strong reputation in decarbonisation initiatives, notably by becoming the MENA region’s first company to deploy carbon capture infrastructure at scale, by using zero-carbon grid power, and by acting as a lower-carbon intensity energy provider. Going forward ADNOC’s investments will include a variety of areas across its value chain, including clean power, carbon capture and storage (CCS), further electrification of its operations as well as energy efficiency. The company is also set to establish an evaluation system that will rigorously assess each project to ensure they align with its requirements and deliver the best standards in terms of quality and efficiency. 

ADNOC’s initiative also encompasses investments in the development of new, clean energy solutions as well as advanced carbon removal technologies, which is expected to help the company to achieve its 25% carbon-reduction target by 2030. 

In welcoming the new efforts, Dr Sultan Ahmed Al Jaber, the UAE’s Minister of Industry and Advanced Technology and ADNOC’s Managing Director and Group CEO, said, "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."

The UAE is emerging as a global hub for carbon capture expertise and innovation.  An example is ADNOC's Al Reyadah facility, the first commercial-scale Carbon Capture, Utilisation, and Storage (CCUS) facility in the MENA region and the world’s first fully commercial CO2 facility for the iron and steel industry. Founded in 2016, Al Reyadah has the capacity to capture up to 800,000 tonnes of CO2 annually and ADNOC plans to expand its carbon capture capacity to 5 million tonnes by the end of the decade.

ADNOC's investments are also meant to help the company significantly increase its hydrogen and lower-carbon ammonia production capabilities. Test cargoes transporting low-carbon ammonia have been delivered to Europe and Asia, and more are on their way.  This is extremely significant given the current energy crisis facing the wider world and these efforts are furthering the already extensive cooperation between the Gulf and EU in addressing energy and climate security.