Adnoc is hastening its decarbonisation strategy by setting up a new low carbon solutions and international growth vertical.
The new vertical will focus on renewable energy, clean hydrogen and carbon capture and storage, as well as international expansion in gas, liquefied natural gas (LNG) and chemicals, the state-owned energy company said on Tuesday.
It will play an “important” role in advancing the company’s continuing transformation, which includes a focus on the decarbonisation of its operations, energy efficiency and a reduction in methane emissions, Adnoc said.
This will “accelerate delivery of our decarbonisation road map and advance our net zero by 2050 ambition”, said Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc chief executive.
“As the UAE prepares to host Cop28 next year, we will continue to focus on practical and positive solutions that drive progress for the climate and the economy.”
Musabbeh Al Kaabi, the chief executive of Mubadala Investment Company’s UAE investments platform, has been named executive director of the new Adnoc vertical. He will take over on January 16.
Adnoc, responsible for most of the UAE’s oil and gas output, has been investing heavily in the production of natural gas and hydrogen as the Arab country looks to reach net-zero emissions by 2050.
The company is already a major producer of hydrogen and ammonia, with more than 300,000 tonnes of hydrogen produced a year at its Ruwais Industrial Complex.
Last week, Adnoc approved a Dh550 billion ($150 billion) budget for the next five years as the company prepares to set up its gas subsidiary and list its shares on the Abu Dhabi Securities Exchange next year.
The company’s board endorsed plans to bring forward the expansion of Adnoc’s production capacity, currently at 5 million barrels per day, to 2027, from the previous target of 2030.
The Emirates plans to invest $160 billion in clean and renewable energy sources over the next three decades.
It is building the five-gigawatt Mohammed bin Rashid Solar Park in Dubai. Abu Dhabi, which is developing a two-gigawatt solar plant in its Al Dhafra region, has set a target of 5.6 gigawatts of solar photovoltaic capacity by 2026.
Last month, the UAE and the US signed a strategic partnership to invest $100 billion to produce 100 gigawatts of clean energy globally by 2035.
“Adnoc is embarking on a new and exciting period of accelerated growth, with a determined focus on sustainability that will help future-proof our business for decades to come”, said Dr Al Jaber.
In September, Adnoc and Abu Dhabi National Energy Company, better known as Taqa, closed their $3.8 billion strategic project to power and decarbonise Adnoc's offshore production operations.
The development is expected to reduce the carbon footprint of Adnoc's offshore operations by more than 30 per cent, replacing existing offshore gas turbine generators with more sustainable power sources from the Abu Dhabi onshore power network.
Adnoc has 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.