Adnoc has allocated $15 billion to invest in a range of projects by 2030, which will help it accelerate its low-carbon growth strategy.
The state-owned energy company will invest in clean power, carbon capture and storage, further electrification of operations, energy efficiency and new measures to build on its policy of zero routine gas flaring, the company said in a statement on Thursday.
“Adnoc continues to take significant steps to make today’s energy cleaner while investing in the clean energies and new technologies of tomorrow,” Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc group chief executive, said.
“Now, more than ever, the world needs a practical and responsible approach to the energy transition that is both pro-growth and pro-climate, and Adnoc is delivering tangible actions in support of both these goals.”
Adnoc is preparing for a “major” investment to capture emissions at its Habshan gas processing facility. It forms part of its plan to increase its carbon capture capacity to five million tonnes per annum by the end of the decade, the company said.
Adnoc also said it aims to deploy new technologies to capture and store carbon dioxide by leveraging the UAE’s geological properties.
The company’s Al Reyadah carbon capture plant, which was completed in 2016, has a capacity of 800,000 tonnes per year.
“Cementing our strong track record of responsible and reliable energy production, Adnoc will fast-track significant investments into landmark clean energy, low-carbon and decarbonisation technology projects,” said Dr Al Jaber.
“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.”
Adnoc will apply a “rigorous” commercial and sustainability assessment to ensure that each project delivers “lasting tangible impact”, the company said.
Last month, Adnoc said it was setting up a new low-carbon solutions and international growth vertical, which will focus on renewable energy, clean hydrogen and carbon capture and storage, as well as international expansion in gas, liquefied natural gas and chemicals.
The company, 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.
Adnoc 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 year, 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 five million barrels per day, to 2027, from the previous target of 2030.
Adnoc said the expansion of its new energy portfolio will largely be delivered through its stake in Abu Dhabi's clean energy company Masdar, which plans to increase its capacity to 100 gigawatts by 2030, from 20 gigawatts currently.
In December, Abu Dhabi National Energy Company, better known as Taqa, Mubadala Investment Company and Adnoc completed a deal to become shareholders in Masdar.
Established by Mubadala in 2006, Masdar took a leadership role in the global energy sector and also helped to drive the nation’s economic diversification and climate action agenda.
Masdar currently operates in 40 countries and has a total investment of about $20 billion.
Adnoc also said it had been meeting 100 per cent of its power requirements from solar and nuclear since January 2022, following an agreement with the Emirates Water and Electricity Company.
In September, Adnoc and Taqa closed a $3.8 billion strategic project to power and decarbonise Adnoc's offshore production operations.
A consortium comprising Korea Electric Power (Kepco), Kyushu Electric Power Company (Kyuden) and Electricite de France (EDF), will build and operate a sub-sea transmission system alongside Adnoc and Taqa.
The development is expected to reduce the carbon footprint of Adnoc's offshore operations by up to 50 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 company aims to have the “Middle East’s lowest” methane intensity target of 0.15 per cent by 2025.
The UAE 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 Al Maktoum 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.