ADNOC Announces Pioneering Investment in MENA's Largest Carbon Capture Project

6th September 2023 - Abu Dhabi, UAE: Abu Dhabi National Oil Company (ADNOC) has unveiled a major commitment to sustainability with its final investment decision (FID) to embark on one of the most ambitious carbon capture projects in the Middle East and North Africa (MENA) region. This visionary project, known as the Habshan Carbon Capture, Utilisation, and Storage (CCUS) initiative, is poised to redefine the landscape of carbon emissions reduction in the region.

ADNOC's strategic pursuit of the Habshan CCUS project is a cornerstone of its accelerated decarbonisation plan, impeccably aligned with its steadfast commitment to achieving Net Zero emissions by the year 2045. This pioneering undertaking shall witness the capture and permanent storage of a substantial 1.5 million tonnes per annum (mtpa) of carbon dioxide (CO2) within deep geological formations.

The Habshan project epitomises a pivotal facet of ADNOC's extensive carbon management strategy, designed to construct a comprehensive platform interlinking emission sources and sequestration sites. This overarching strategy is meticulously engineered to expedite the United Arab Emirates' (UAE) and ADNOC's decarbonisation objectives, encompassing innovative technologies such as CO2 mineralisation and carbon sequestration in saline aquifers.

Deploying state-of-the-art technology, this venture shall effectively triple ADNOC's carbon capture capacity, amassing an impressive 2.3 mtpa. This remarkable feat is commensurate with eliminating over 500,000 gasoline-powered vehicles from the roads on an annual basis, a testament to the monumental influence of this enterprise on the reduction of carbon emissions.

The Habshan CCUS project entails several pivotal components, inclusive of carbon capture units at the Habshan gas processing plant, an intricate network of pipelines, and an array of wells designed for CO2 injection. Of paramount significance, the implementation of closed-loop CO2 capture and reinjection technology shall permanently sequester CO2 in sub-surface reservoirs. This decisive step impeccably aligns with ADNOC's Net Zero by 2045 commitment, constituting an integral facet of the company's inaugural $15 billion (AED55 billion) investment in low carbon solutions.

Commenting on this monumental initiative, Musabbeh Al Kaabi, ADNOC's Executive Director of Low Carbon Solutions and International Growth, underscored the pivotal role of carbon capture and storage in addressing the pressing global climate imperatives. He noted, "This landmark project is but one of several tangible initiatives ADNOC is delivering as we expedite our decarbonisation plan in pursuit of our Net Zero by 2045 ambition."

ADNOC has prominently placed sustainability at the nucleus of its long-term strategy. In addition to the decarbonisation of its operations, the company is actively investing in renewable and low-carbon energy sources, forging a global hydrogen value chain, and deploying innovative climate technology solutions. Notably, ADNOC is advancing nature-based solutions, exemplified by its notable efforts in mangrove afforestation within the UAE.

ADNOC's commitment to carbon management is by no means nascent. In 2016, the company inaugurated its inaugural carbon capture, transportation, and storage facility at Al Reyadah in Abu Dhabi. This state-of-the-art facility has the capacity to process up to 800,000 tons of CO2 annually, laying the foundation for broader decarbonisation pursuits.

ADNOC is diligently collaborating with Occidental to explore potential investment opportunities, spanning both the UAE and the United States. The focus of these collaborations extends to the realms of carbon capture and storage, alongside direct air capture technologies.

As part of its long-standing decarbonisation drive, ADNOC now acquires 100% of its grid power from nuclear and solar sources. This remarkable achievement positions ADNOC as the world's inaugural major oil and gas enterprise to decarbonise its power supply at this scale.

Concomitant with its audacious carbon capture plans, ADNOC is actively progressing a $3.8 billion (AED14 billion) sub-sea transmission network project. Upon fruition, this project is anticipated to reduce ADNOC's offshore carbon intensity by up to 50%, marking a momentous stride toward environmental stewardship.

In advancing these pioneering moves towards decarbonisation, ADNOC emerges as a beacon in the global effort to confront climate change. The Habshan CCUS project, in particular, stands as a pioneering model for carbon reduction initiatives worldwide, reiterating ADNOC's unwavering commitment to environmental responsibility and a sustainable future.