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29 March 2024

Adnoc, Masdar launch carbon capture venture

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Published
By Wam

Abu Dhabi National Oil Company (Adnoc) and Masdar have signed a joint venture agreement on exploring and developing commercial-scale projects for carbon capture, usage and storage (CCUS).

The parties jointly awarded a Dh450m engineering, procurement and construction (EPC) contract to Dodsal Group to build a carbon dioxide (CO2) compression facility and a 50km pipeline. The joint venture is 51 per cent owned by Adnoc and 49 per cent by Masdar.

Located in Abu Dhabi, the joint venture’s first CCUS project consists of three core components.

First, CO2 will be captured onsite at Emirates Steel, Second, the CO2 will be compressed and transported along the 50 km pipeline to oil fields operated by Adnoc. Third, Adnoc will inject the CO2 into oil fields to enhance oil recovery, while storing the injected CO2 underground. The project will sequester up to 800,000 tonnes of CO2 annually. Completion is set for 2016.

Dr. Sultan Ahmed Al Jaber, CEO of Masdar, Abu Dhabi’s renewable energy company, said: “The implementation of this technology is a demonstration of Masdar and Adnoc’s commitment to decarbonising the UAE’s growing economy.

“We are proud to be pioneering the use of CCUS technology in the region, a critical strategy to reduce global carbon emissions," he said, adding that "we hope this project will serve as a proof of concept and encourage other hydrocarbon-rich nations to adopt similar technologies to reduce their carbon emissions.”

Dr. Al Jaber said: "With energy demands surging to unprecedented levels, along with greenhouse gas emissions, the Middle East must adopt clean technologies, renewable energy and carbon mitigation solutions.

“Through collaboration between Adnoc and Masdar, the UAE is developing a blueprint for how to incubate and establish a low-carbon, new-energy industry in the region.”

Abdulla Nasser Al Suwaidi, Director General of Adnoc, said: “The UAE is a responsible hydrocarbon producer, we believe CCUS has tremendous potential to both reduce our carbon footprint and enhance our oil and gas production. We are committed to finding and adopting real-world solutions that have economic and environmental returns.”

In 2009, Adnoc became the first national oil company in the region to pilot CO2 injection in collaboration with Masdar.

The joint venture is the first phase of an industrial-scale CCUS network planned as part of Abu Dhabi’s commitment to decarbonise its economy and create a low-carbon power generation industry. It will also collaborate with Adnoc’s Petroleum Institute and Masdar’s Institute of Science and Technology in developing leading edge technologies to optimize CO2 management in Abu Dhabi.