Adnoc Distribution, the UAE’s largest fuel and convenience retailer, and Abu Dhabi National Energy Company, better known as Taqa, are teaming up to create a joint venture that will build and operate electric vehicle (EV) infrastructure in Abu Dhabi.
The new company, E2GO, aims to become the principal provider of EV charging points and associated infrastructure across the UAE capital, Adnoc Distribution said in a statement on Thursday to the Abu Dhabi Securities Exchange, where its shares are traded.
The partnership will include a network of fast chargers at key locations, with associated solutions such as parking and tolling services, in addition to related digital platforms to boost EV charging.
It will also unlock new revenue streams for the two companies as the UAE focuses on becoming net zero by 2050.
“As electric vehicle adoption grows in the UAE, Adnoc Distribution and Taqa are well placed to meet the evolving needs of EV customers through the creation of the E2GO venture,” said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, chairman of Adnoc Distribution and Cop28 President-designate.
“Adnoc Distribution will continue to capitalise on energy transition opportunities that make commercial sense, while remaining a reliable supplier of our customers’ energy needs.”
Demand for EVs in the UAE continues to rise and is projected to record a compound annual growth rate of 30 per cent between 2022 and 2028, according to the global electric mobility readiness index published in 2022.
An expected 70,000 charging points are required in Abu Dhabi by 2030 to meet growing EV demand with an investment of up to $200 million, the statement said.
“Decarbonising transport is an essential part of the UAE’s drive towards achieving its net zero ambitions,” said Mohamed Al Suwaidi, chairman of Taqa.
“The development of EV infrastructure facilitated by the E2GO joint venture will help bridge the gap in delivering clean energy to the wider public.”
Last year, Abu Dhabi released the regulatory policy for EV charging infrastructure in the emirate.
It includes the principles governing ownership, installation and management of electric vehicle supply equipment, power supply to the charging installations and the pricing mechanism for end customers.
“The partnership between Adnoc Distribution and Taqa envisages both parties entering into detailed joint venture arrangements as well as the completion of necessary transaction requirements, including obtaining any relevant third-party and regulatory approvals,” the companies said.
Adnoc Distribution, which reported a 45 per cent surge in its third quarter profit, operates 481 retail fuel stations and 366 convenience stores in UAE as of September 30.
Taqa is one of the largest integrated utilities companies in the Europe, Middle East and Africa region with operations across 11 countries.
It has significant investments in power and water generation, transmission and distribution assets, as well as upstream and midstream oil and gas operations.
In the UAE, it supplies more than 90 per cent of Abu Dhabi’s power and water needs.