ADNOC boosts decarbonisation budget to $23bn

ADNOC, the state-owned oil company of UAE, on January 22 announced an increase in its allocation for decarbonisation and lower-carbon projects. The allocation has been raised from the previous target of $15bn to a new total of $23bn.

This decision was disclosed during the annual meeting of the ADNOC board of directors, chaired by UAE president Sheikh Mohammed bin Zayed Al Nahyan.

The expanded budget will be utilised for investments in both domestic and international carbon management platforms. ADNOC has set interim targets to reduce its greenhouse gas intensity by 25% and achieve near-zero methane emissions by the year 2030. Additionally, the company aims to double its carbon capture and storage capacity target to 10mn tonnes/year by 2030.

To meet its 25% reduction in carbon intensity by 2030, ADNOC has initiated various decarbonisation projects. These include the utilisation of clean energy to meet 100% of its onshore grid electricity needs since the beginning of 2022. Furthermore, the company is working on connecting its offshore operations to the grid through a $3.8bn project. Upon completion, this project is expected to reduce the offshore carbon footprint by up to 50%, ADNOC said.