ADNOC expands its carbon management footprint by investing in Storegga
UAE’s energy giant Abu Dhabi National Oil Company (ADNOC) has made its first international equity investment foray in carbon management by becoming a lead investor in Storegga, a UK-based company focused on the development of global carbon capture and storage (CCS) projects.
ADNOC’s acquisition of a 10.1% equity stake in Storegga, which supports the UAE player’s strategy to leverage carbon management partnerships and technology to accelerate decarbonization, is backed by its initial $15 billion decarbonization investment in low-carbon solutions. Recently, ADNOC brought forward its net-zero ambition to 2045 from 2050 and its aspiration to reach zero methane emissions by 2030.
Musabbeh Al Kaabi, ADNOC Executive Director for Low Carbon Solutions and International Growth, commented: “This strategic investment marks an important milestone in ADNOC’s decarbonization journey and highlights our commitment to work with partners across industries to deliver practical solutions to enable a net zero energy future.
“Carbon capture is an important tool to responsibly reduce carbon emissions and meet global climate goals and ADNOC will continue to scale up this technology as we work towards net zero by 2045.”
The company is targeting a carbon capture capacity of 10 million tons per annum (mtpa) by 2030, which is equivalent to taking over 2 million internal combustion vehicles off the road. According to the UAE giant, its carbon management strategy is aligned with the Intergovernmental Panel on Climate Change’s (IPCC) view on carbon capture and storage, which paints CCS as “a critical enabler” for the world to reach net zero by 2050.
Nick Cooper, CEO of Storegga, remarked: “Strategic collaborations are crucial for a pragmatic, prompt and affordable transition to a low-carbon future. Storegga is therefore ready to stand alongside traditional energy suppliers to accelerate decarbonization by deploying cost-effective CCS globally. Over the past three years we have transformed from a single-project developer in Scotland to an international force driving global decarbonization efforts.
“We are excited to now see ADNOC join our shareholder group. Storegga is fortunate to be backed by investors with the necessary vision and ambition for the rapid deployment of CCS and carbon removal technologies that are imperative for meeting the global net zero objectives.”
Furthermore, Storegga’s portfolio of carbon capture projects entails assets in the UK, U.S., and Norway. The company is leading the development of the Acorn CCS project in the UK, which is poised to store up to 10 million tons of CO2 per annum by 2030.
Recently, the firm, together with its partners, got its hands on a license to develop the Trudavang CCS project in Norway. In addition, Storegga is developing several CCS opportunities in the United States, the most advanced of which is the Harvest Bend CCS project in Louisiana.
On the other hand, ADNOC operates Al Reyadah, which is said to be the world’s first commercial-scale operation to capture and store CO2 from the steel industry, with a capacity of 800,000 tons of CO2 per year.
The UAE player also announced a final investment decision (FID) for a carbon capture project, known as the Habshan CCUS project, and another one at its Hail and Ghasha offshore development, taking its committed investment for carbon capture capacity to almost 4 mtpa.
Moreover, ADNOC is one of the 50 founding signatories of the Oil and Gas Decarbonization Charter (OGDC), which was launched during COP28 in Dubai. This is a global commitment to step up climate action across the industry.
In November 2023, ADNOC and Santos teamed up to pursue a pathway towards the potential development of a joint global carbon management platform in a bid to support the decarbonization journey throughout Asia-Pacific and accelerate net zero goals.