ADNOC, Oxy in preliminary engineering study for DAC plant
Abu Dhabi National Oil Company (ADNOC) and US major Occidental said October 3 they would undertake a joint preliminary engineering study for the construction of a megaton-scale direct air capture (DAC) facility in the Middle East and North Africa (MENA) region, the first outside the US.
The agreement is the first project to reach the technical feasibility stage since the two signed a strategic collaboration agreement in August to explore carbon capture, utilisation and storage (CCUS) opportunities in the UAE and the US.
“Today’s announcement represents continued positive momentum in our partnership with Occidental to significantly scale up promising carbon management technologies,” said Musabbeh Al Kaabi, ADNOC’s executive director for low carbon solutions and international growth. “This joint investment in the proposed first megaton direct air capture facility in the region exemplifies ADNOC’s commitment to leverage partnerships and promising technology to accelerate our decarbonisation journey on the way to net zero by 2045.”
Earlier this year, ADNOC allocated $15bn for decarbonisation projects by 2030, including carbon capture, electrification, new CO2 absorption technology, hydrogen and renewables. Recently, it sanctioned one of the largest carbon capture projects in the MENA region at Habshan, which will capture and sequester about 1.5mn tonnes/year of CO2.
Oxy, meanwhile, has started construction on its Stratos project, a DAC facility in Texas that will capture 500,000 tonnes/year of CO2 from the atmosphere using technology developed by Canada’s Carbon Engineering (CE). In August, Oxy struck a definitive agreement to acquire CE for about $1.1bn.
“The speed at which the Oxy and ADNOC teams have developed the feasibility and Pre-FEED plan for a DAC plant in Abu Dhabi underscores the urgency needed to deliver global-scale climate solutions and eliminate greenhouse gas emissions,” Oxy CEO Vicki Hollub said. “We will continue to leverage our carbon management expertise to deliver value and accelerate our ability to achieve our net-zero targets and help others meet theirs.”