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December 22, 2021updated 28 Dec 2021 9:58am

Abu Dhabi’s ADNOC launches $3.6bn electrification plan

The collaboration, between ADNOC and utilities firm TAQA, will target decarbonising operations at huge offshore oil and gas fields in the region.

By Scarlett Evans

Abu Dhabi’s state oil and gas company has announced the launch of a $3.6bn (£2.7bn) electrification project as the United Arab Emirates (UAE) embarks on its journey to net-zero by 2050.

The Abu Dhabi National Oil Company (ADNOC), in partnership with utilities firm TAQA, plans to construct a subsea transmission cable to replace natural gas at its offshore operations with cleaner energy. The companies hope that the move will curb carbon emissions from these offshore sites by more than 30% by 2025, with ADNOC saying its decarbonisation plan is to act in service of the UAE’s net zero targets.

The national oil producer will be connecting its oil and gas fields to TAQA’s green onshore energy grid, with a total installed capacity of 3.2GW. The companies aim to begin construction in 2022, with commercial operations expected to commence in 2025.

Jasim Husain Thabet, TAQA’s group CEO and managing director, said in a statement: “This first-of-its-kind project shows how the UAE continues to demonstrate its strong leadership and innovation in the global energy transition by bringing together critical players to boost sustainability credentials and maximizing the utilization of Abu Dhabi’s diverse and efficient energy mix.

“Decarbonisation continues to provide social and economic opportunities for collaboration and growth, which TAQA is actively pursuing through its strategic alliances and partnerships in the market.”

A consortium, made up of Korea Electric Power, Japan’s Kyushu Electric Power, and French major EDF, will also be assisting with the project’s development and operation. This consortium is set to operate the site for 35 years, before returning it to ADNOC.

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On the project, Yaser Saeed Almazrouei, ADNOC upstream executive director said: “As ADNOC embraces the energy transition, this bold and progressive project will replace our existing offshore local power supply with cleaner and more sustainable onshore power sources, significantly reducing our carbon footprint while enabling additional cost savings.

“This first-of-its-kind project is a further example of how ADNOC is advancing practical and commercially viable solutions to secure a lower carbon future, while driving significant foreign direct investment, and, in turn, cementing Abu Dhabi and the UAE’s position as a trusted global investment destination.”

The announcement is only the latest in a series of green pushes from ADONC, with the group also set to join forces with Abu Dhabi-based EWEC next year to bring solar and nuclear power to its operations, both onshore and offshore.

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