ADNOC Commits $23 Billion to Decarbonization, Lower Carbon Solutions
The Abu Dhabi National Oil Company (ADNOC) announced a significant increase in its planned emissions reduction investments, growing its allocation to decarbonization projects and technologies and lower-carbon solutions to $23 billion, compared to its prior target of $15 billion by 2030.
The increased allocation, mandated at the annual meeting of the ADNOC Board of Directors, follows the company’s announcement last year of an accelerated target to achieve net zero operational emissions by 2045, compared to its prior 2050 goal, as well as a commitment to reach zero methane emissions by 2030. The company has also set a goal to reduce greenhouse gas intensity by 25% by 2030.
Measures highlighted by the company to achieve its emissions reduction goals include using clean energy to provide 100% of its onshore grid electricity needs, and connecting its offshore operations to the grid through a $3.8 billion that ADNOC said can reduce its offshore carbon footprint by up to 50%, in addition to nature-based solutions including a plan to plant 10 million mangroves by 2030.
ADNOC announced its initial $15 billion allocation at its annual meeting last year, outlining plans to invest in areas including clean power, carbon capture and storage (CCS), electrification of its operations, energy efficiency, and measures to support its policy of zero routine gas flaring.
With the increased allocation, ADNOC said that it plans to grow its domestic and international carbon management platforms, supporting decarbonization at the company and at customers. ADNOC announced its first international carbon management equity investment earlier this month, acquiring a 10% stake in UK-based carbon capture and storage project developer Storegga. The company has set an ambition to double its carbon capture and storage (CCS) capacity target to 10 million tonnes per annum (mtpa) by 2030.
Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said:
“By prioritizing transformational growth, partnerships, and international opportunities, we are well positioned to grow our operations and unlock additional value, as we strive to make today’s energy cleaner, invest in the clean energies of tomorrow and continue to provide secure and sustainable energy to meet growing global demand. Delivering on this mandate reinforces our ambitious net zero pathway and our critical role as the catalyst for the UAE’s economic and industrial growth.”