Adnoc and Siemens Energy to jointly develop blockchain-based technology

The two companies will explore the digital certification of low-carbon Murban crude, ammonia and aviation fuels

Adnoc and Siemens Energy on Wednesday unveiled plans to pilot blockchain technology to certify the carbon intensity of a range of products. Photo: Adnoc
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Adnoc and Siemens Energy plan to jointly develop blockchain-based technology to certify the carbon intensity of a range of products produced by the state oil company.

As part of the collaboration, the two companies will explore digital certification of Adnoc’s low-carbon Murban crude, ammonia and aviation fuels.

The information will be automatically recorded on a decentralised blockchain ledger, Adnoc said on Wednesday.

Specialists from both companies will also jointly create technology to hasten the pace of decarbonisation and the transition to clean energy.

“Such transparency will allow independent regulators to certify the carbon intensity of products. It will also give customers greater confidence and clarity over the carbon footprint of their purchases,” Adnoc said.

The latest initiative comes at a time when Adnoc is planning to lower its greenhouse gas emissions intensity by 25 per cent by 2030 as it adopts new sustainability goals.

In 2020, the company was among the five lowest greenhouse gas emitters in the oil and gas industry, with a methane intensity of 0.01 per cent.

This week, the company also set a new methane emissions target for its upstream unit as part of its efforts to reduce its overall greenhouse gas emissions. The state-owned oil company is aiming for the “Middle East’s lowest” methane intensity target of 0.15 per cent by 2025.

“People typically associate blockchain technology with cryptocurrencies but the use of decentralised ledgers has significant implications for the energy industry,” said Abdulmunim Al Kindy, executive director of people, technology and corporate support directorate at Adnoc.

“This pilot promises to shine a digital spotlight into our manufacturing processes. It will show the world why energy supplied by Adnoc is among the least carbon-intensive in the oil and gas industry.”

Other areas under joint development between the two companies include electrification and “Power-to-X” technology used to produce green hydrogen and its derivatives, including synthetic carbon dioxide-derived products.

The companies will also collaborate on Adnoc’s state-of-the art innovation centre in Abu Dhabi.

“Siemens Energy will work with Adnoc to develop solutions for the benefit of the energy industry,” said Dr Fahad Al Yafei, chief technology officer of Siemens Energy Middle East.

“Investing in innovation and the co-creation of technologies are vital tools for reducing emissions and meeting net-zero targets.”

The agreement, signed at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec), will come into effect by the end of this year, according to the companies.

The UAE continues to focus on developing new projects as it aims to become carbon neutral by 2050. The country is investing Dh600 billion ($163.5bn) in clean and renewable energy projects.

The Emirates is building the world’s largest solar plant with a capacity of two gigawatts in Abu Dhabi's Al Dhafra region. The plant is expected to be ready next year.

It is also developing the Mohammed bin Rashid Solar Park in Dubai that is being built in phases and will have a total capacity of 5 gigawatts by 2030.

The Arab world’s second-largest economy also launched the 5,600-megawatt Barakah nuclear energy plant, where the third reactor went online recently.

Siemens Energy is also partnering with the Abu Dhabi Investment Office (Adio) to set up its Middle East Innovation Centre in Abu Dhabi.

The Innovation Centre, one of only four that Siemens Energy has established globally, will focus on developing technology incorporating digital decarbonisation solutions, green fuels, fuel cells and the electrification of heat and industrial processes.

Updated: November 02, 2022, 10:48 AM