Adnoc and Taqa have teamed up on a global renewable energy and green hydrogen venture that will have a generating capacity of 30 gigawatts by 2030.
The partnership was unveiled by Sheikh Khaled bin Mohamed, a member of the Abu Dhabi Executive Council, chairman of the Abu Dhabi Executive Office and chairman of the Executive Committee of the board of directors of Adnoc.
The two companies will partner on domestic and international renewable energy and waste-to-energy projects, as well as the production, processing and storage of green hydrogen.
Green hydrogen uses renewable energy to power electrolysis, which splits water molecules into hydrogen and oxygen.
The venture will tap into Adnoc's energy and hydrogen capabilities and Taqa's expertise in renewable development.
The partnership between the two entities has "future-proofed" Adnoc's business model by "creating compelling business and commercial opportunities" on the path to net-zero, said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and managing director and group chief executive of Adnoc.
"This platform will enable Adnoc to capitalise on the many renewable energy and hydrogen opportunities, both locally and globally. Building on Adnoc's highly successful partnership and growth model, we invite other partners to join this promising new venture on its exciting journey," he said.
The partnership comes after the UAE's commitment to achieve net zero emissions by the middle of the century, as part of its nationally determined contributions tabled before the Cop26 climate summit held in Glasgow, Scotland, earlier this month.
The UAE will also host Cop28 in 2023 as it aims to take the lead in energy transition in the region.
"As the UAE looks ahead to hosting Cop28 in 2023, our nation pledges an inclusive energy ecosystem, enabling sustainable future economic growth, for the benefit of Abu Dhabi and the UAE," Dr Al Jaber said.
In line with its net zero initiatives, the UAE plans to invest $160bn over the next three decades to hasten renewable energy development.
Hydrogen has been earmarked for further development in the UAE and Saudi Arabia as a viable clean fuel.
Adnoc, holding company ADQ and investment company Mubadala entered into an alliance earlier this year to develop a hydrogen economy in the UAE.
The Abu Dhabi National Energy Company, better known as Taqa, is looking to increase the share of renewable energy in its mix.
Earlier this year, the company signed an agreement to supply Emirates Steel with green hydrogen, a move that could bolster the UAE's efforts to lower the emissions of its energy-intensive industrial activities.
Hydrogen is used as a reducing agent in steel production, replacing the more polluting coal, which countries around the world are seeking to phase out.
Taqa will support the partnership with Adnoc through its expertise in "low-cost solar PV [photovoltaic] and desalinated water – two critical elements for green hydrogen", said Mohamed Alsuwaidi, chairman of Taqa.
"This partnership between Taqa and Adnoc will be a powerful catalyst to unlock significant potential for accelerating the green hydrogen market and rapidly expanding renewable energy," he said.
"Taqa has set out to become a champion for low carbon power and water and is already a world leader in solar power."
The joint venture is subject to regulatory approvals. Moelis & Company acted as the financial adviser to Adnoc while Citi advised Taqa on the transaction.
Adnoc at work - in pictures
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Adnoc Drilling is one of the largest drilling companies in the Middle East. Photo: Adnoc -
An Adnoc Drilling rig. The company began operations in 1972 and currently operates 107 onshore, offshore and island rigs, of which 11 are rented. Photo: Adnoc -
An old drill head at Adnoc's headquarters in Abu Dhabi. Khushnum Bhandari / The National -
Adnoc Drilling has expanded its fleet of rigs, adding 67 since 2010, in line with the growth in oil and gas production capacity at its parent company. Khushnum Bhandari / The National -
An Adnoc drilling rig. The company has achieved $2 billion in savings over the past five years through the use of technology. Photo: Adnoc -
Drilling equipment on an artificial Adnoc Drilling island. Photo: Adnoc -
An Adnoc employee uses a training simulator used to enhance workplace safety. Photo: Adnoc -
An Adnoc artificial drilling island. The state oil company plans to raise production capacity to 5 million barrels per day by 2030. Photo: Adnoc -
Adnoc Drilling made $281.6 million in net profit in the first half of 2021, with revenue hitting $1.12 billion. Photo: Adnoc -
Adnoc Drilling will offer a fixed dividend of $325m for the second half of 2021. Photo: Adnoc -
Equipment inspection at an Adnoc Drilling site. The company expects to increase its dividend by 5 per cent annually over the next five years, from $650m. Photo: Adnoc -
Adnoc Drilling operates more than 9,600 wells across an area of 19,960 square kilometres. Photo: Adnoc
