Sharjah24 – WAM: Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company (TAQA) on Wednesday announced a strategic $ 3.6 billion (AED 13.22 billion) project aimed at significantly decarbonizing oil operations. ADNOC’s offshore production, thereby strengthening their position in leading and leadership sustainability efforts and supporting the UAE’s Net-Zero by 2050 strategic initiative.
The innovative project will see the development and operation of a unique high voltage direct current (HVDC-VSC) submarine transmission system in the Middle East and North Africa (MENA) region. . It will power ADNOC’s offshore production operations with cleaner and more efficient energy, delivered through Abu Dhabi’s onshore power grid, owned and operated by TAQA’s transmission and distribution companies.
The project will be funded through a Special Purpose Vehicle (SPV) – a dedicated company that will be jointly owned by ADNOC and TAQA (30% stake each), and a consortium made up of Korea Electric Power Corporation (KEPCO), from the Japanese company Kyushu Electric Power. Cie and Electricité de France (EDF). Led by KEPCO, the consortium will hold a combined 40% interest in the project on a build, own, operate and transfer basis.
The consortium will develop and operate the state-of-the-art transmission system alongside ADNOC and TAQA, with the full project returned to ADNOC after 35 years of operation. The project is subject to relevant regulatory approvals.
The development is expected to reduce the carbon footprint of ADNOC’s offshore operations by more than 30%, replacing existing offshore gas turbine generators with more sustainable energy sources available on Abu Dhabi’s onshore power grid. This phased and collaborative approach will also promote operational efficiency and improve the reliability of the power supply system, while offering the potential for power cost optimization.
Yaser Saeed Almazrouei, Executive Director of ADNOC Upstream, said: “ADNOC is delighted to collaborate once again with TAQA, as we jointly welcome world-class industry leaders in another landmark transaction that will see ADNOC take a step forward. a significant step forward in our current decarbonisation journey. As ADNOC embraces the energy transition, this bold and incremental project will replace our existing local offshore power supply with cleaner and more sustainable onshore energy sources, dramatically reducing our carbon footprint while enabling additional cost savings. is another example of how ADNOC offers practical and commercially viable solutions to secure a low carbon future, while stimulating significant foreign direct investment and, in return, consolidating the position of Abu Dhabi and the Emirates. United Arab Emirates as a trusted global investment destination. “
Over 50% of the value of the project will be reinjected into the economy of the United Arab Emirates through ADNOC’s In-Country Value (ICV) program, which underpins ADNOC and TAQA’s commitment to foster responsible and sustained investments and to create value for Abu Dhabi and the United Arab Emirates.
Jasim Husain Thabet, CEO and Managing Director of TAQA Group, said: “As a recognized champion of low carbon electricity and water in Abu Dhabi and one of the top 5 utilities in the EMEA region in terms of market value, TAQA is delighted to partner again with ADNOC on such a project. an important project that will contribute to the decarbonization of Abu Dhabi’s energy industry in such an impactful way. This one-of-a-kind project shows how the UAE continues to demonstrate its strong leadership and innovation in the global energy transition by bringing together key players to strengthen sustainability benchmarks and maximize the use of the diverse and efficient energy mix. from Abu Dhabi. Decarbonization continues to offer social and economic opportunities for collaboration and growth, which TAQA actively pursues through its alliances and strategic partnerships in the market. “