Page 4 - MEOG Week 02 2023

MEOG COMMENTARY MEOG

ADNOC prepares low-

carbon war chest

The Emirati state oil giant has promised to plough $15bn into low-carbon
energies as part of efforts to achieve its long-term Net Zero target

UAE THE Abu Dhabi National Oil Co. (ADNOC) division, which is tasked with leading the
last week announced that it has earmarked company’s energy transition across new ener-
$15bn for projects to decarbonise its opera- gies, gas, LNG and chemicals with Musabbeh
WHAT: tions and the Emirates’ energy landscape by Al Kaabi, currently CEO of the Mubadala
CCUS and new 2030. Investment Co. set to assume the role of exec-
technologies will likely The move follows the announcement utive director on January 16.
account for the bulk of in late November that the company would In November, HE Dr. Sultan Ahmed
investment, but indirect “pursue a Net Zero by 2050 ambition” while Al Jaber, Emirati Minister of Industry and
renewables spending supporting the UAE’s strategic initiative that Advanced Technology and ADNOC manag-
through its Masdar targets the same date. ing director and CEO, said: “The Low Carbon
affiliate will also ramp up The formal announcement of the com- Solutions & International Growth vertical will
quickly. pany’s target uncharacteristically lagged its accelerate delivery of our decarbonization
regional peers but aligns with Saudi Aramco roadmap and advance our Net Zero by 2050
WHY: with the goal applying only to Scope 1 and ambition. As the UAE prepares to host COP28
ADNOC recently set a 2 greenhouse gas (GHG) emissions, effec- next year, we will continue to focus on practi-
target of reaching Net tively meaning that by minimising flaring cal and positive solutions that drive progress
Zero Scope 1 and 2 GHG and reducing the carbon intensity of up- and for the climate and the economy.”
emissions by 2050 while downstream operations, end user emissions This week, he added: “Now, more than ever,
rapidly decarbonising its will be given a ‘pass’. Carbon intensity is seen the world needs a practical and responsible
operations. being reduced by 25% by 2030. approach to the energy transition that is both
pro-growth and pro-climate, and ADNOC is
WHAT NEXT: Low-carbon war chest delivering tangible actions in support of both
Project investments On January 5, ADNOC said that it would these goals.”
are expected to be invest in clean power, carbon capture and “As we continue to future-proof our busi-
announced throughout storage (CCS), the further electrification of its ness, we invite technology and industry lead-
the year. operations, energy efficiency as well as “new ers to partner with us, to collectively drive
measures to build on ADNOC’s long-standing real and meaningful action that embraces the
policy of zero routine gas flaring”. energy transition. This strategic, multi-bil-
It intends to “apply a rigorous commercial lion-dollar initiative underscores ADNOC’s
and sustainability assessment to ensure that industry leadership as a leading global pro-
each project delivers lasting tangible impact”. vider of lower-carbon energy,” he said.
A range of projects and initiatives are to be
announced during 2023, with ADNOC high- Carbon plans
lighting CCS and carbon removal efforts. ADNOC has already established the Al Reya-
When announcing its Net Zero target in dah facility, the first commercial-scale car-
November, ADNOC also launched its Low bon capture, utilisation and storage (CCUS)
Carbon Solutions & International Growth facility in the Middle East. This has capacity to

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