With ADNOC’s chief legal counsel, Salem Mohammed Al Darei (pictured) at the helm of its legal department, Abu Dhabi National Oil Company (ADNOC) and Occidental have signed a strategic collaboration agreement (SCA) to explore potential investment opportunities in carbon dioxide (CO2) capture and storage (CCS) hubs. The scope of this collaboration extends to both the United Arab Emirates (UAE) and the United States (US), seeking to establish a cutting-edge carbon management platform that aligns with the companies’ shared sustainability goals.
The collaboration is a significant outcome of the UAE-US Partnership for Accelerating Clean Energy (PACE), which was launched in November 2022. PACE aims to catalyse a remarkable USD100 billion (AED367 billion) in clean energy and carbon management projects, encompassing CCS and direct air capture (DAC), by the year 2035.
Recognizing the vital role of investments in CCS and DAC to mitigate climate change, ADNOC and Occidental are actively exploring the development of DAC facilities in the UAE. This includes the potential realization of what could become the first megaton DAC project constructed outside the US.
Furthermore, the companies are diligently assessing the joint development of carbon management hubs within the UAE. These cutting-edge hubs would offer essential carbon capture services and establish the necessary infrastructure to safely transport CO2 from the UAE’s carbon-intensive and hard-to-abate sectors. The captured CO2 will then be securely stored in Abu Dhabi’s optimal geological formations.
Under the terms of the agreement, ADNOC is also exploring the possibility of participating in various DAC and CO2 sequestration hubs in the US. Occidental’s subsidiary, 1PointFive, is actively developing such hubs, with the Stratos DAC project in Texas as a prime example. Once fully operational, this ambitious project is projected to capture an astounding 500,000 tonnes of CO2 from the atmosphere annually.
As a responsible global energy pioneer, ADNOC is steadfastly committed to bolstering its decarbonization efforts. To this end, the company has earmarked an initial allocation of $15 billion for investments in low-carbon solutions. In line with this commitment, ADNOC warmly invites investors, climate technology providers, and industries from all sectors to join hands in accelerating decarbonization solutions.
With ADNOC and Occidental joining forces through this strategic collaboration, the future of carbon management and sustainable energy in the UAE and the US looks ever more promising. As they set their sights on a greener and more sustainable future, their combined efforts are set to leave a lasting impact on the global fight against climate change.