ADNOC in Landmark Clean Energy Partnership

ADNOC in Landmark Clean Energy Partnership
The collaboration is said to be the largest of its kind in the oil and gas industry.

The Abu Dhabi National Oil Company (ADNOC) has announced a “landmark” clean energy partnership with the Emirates Water and Electricity Company (EWEC).

The collaboration, which is said to be the largest of its kind in the oil and gas industry, will see up to 100 percent of ADNOC’s grid power supplied by EWEC’s nuclear and solar clean energy sources, ADNOC revealed. This would make ADNOC the first major oil and gas company to decarbonize its power at scale through a clean power agreement, ADNOC highlighted.

ADNOC outlined that this approach supports the United Arab Emirates (UAE) Net Zero by 2050 Strategic Initiative and enhances ADNOC’s pathway to decarbonization while enabling sustainable future growth. The company added that the new clean energy partnership will accelerate ADNOC’s sustainability goal of decreasing its greenhouse gas emissions intensity by 25 percent by 2030 and offers the potential for additional value and operational efficiencies. 

“The Clean Energy Partnership between ADNOC and EWEC brings together two major UAE entities to unlock mutual value as they harness the nation’s energy resources to drive economic progress, in support of the UAE’s ‘Principles of the 50’ outlined by the leadership to chart a strategic roadmap for the nation’s new era of economic and social growth over the next 50 years,” said Khaled bin Mohamed bin Zayed Al Nahyan - a member of the Abu Dhabi executive council, the chairman of the Abu Dhabi executive office and the chairman of the executive committee of ADNOC’s board of directors.

“This pioneering partnership highlights ADNOC’s vital role in investing in transformative innovations, advancing decarbonization efforts, and supporting the diversification of the UAE's energy portfolio,” he added in the statement.

“It also marks a major moment in the activation of a strategic, long term plan to further decarbonize ADNOC’s operations sustainably. We commend ADNOC for its innovative actions and its global industry leadership,” he went on to say.

Commenting on the deal, Ahmed Al Jaber, the UAE Minister of Industry and Advanced Technology and managing director and group CEO of ADNOC, said, “ADNOC is committed to responsibly providing the world’s energy needs with a determined focus on decarbonizing our operations, lowering our carbon intensity and strengthening our environmental stewardship and economic performance, in line with the leadership’s wise directives, the Paris Climate Accords and our energy transition strategy”.

“This landmark clean energy partnership with EWEC will make ADNOC the first major oil and gas company to decarbonize its power at scale through a clean power partnership of this kind. It also directly supports our goal to remain one of the lowest carbon intensity operators in the oil and gas industry, and underscores how hydrocarbons, clean energy and advanced energy sources can complement each other in the energy transition,” he added.

Mohamed Hassan Alsuwaidi, the CEO of ADQ and chairman of EWEC, said, “this long-term clean energy supply agreement is a testament to the targeted investment EWEC has placed in developing world leading renewable projects, and the UAE’s vision in developing the first nuclear energy plant in the Arab world”. 

“Through this agreement, we are providing a platform that will advance ADNOC’s clean energy goals and enable EWEC’s continued investment in new renewable and clean energy projects to advance the diversification of Abu Dhabi’s energy mix,” he added.

“We look forward to working closely with ADNOC and many other organizations in collectively taking action on climate change through partnerships with EWEC,” Alsuwaidi went on to say.

ADNOC describes itself as one of the world’s leading energy producers and a primary catalyst for the growth and diversification of the Abu Dhabi economy. The business has a production capacity of more than 3.5 million barrels of oil per day and 10.5 billion cubic feet of natural gas per day, according to its website, which highlights that the company has a network of fully integrated businesses for exploration, production, storage, refining and trading, as well as the development of a wide range of petrochemical products.

Under the banner of its 2030 sustainability agenda, ADNOC highlights on its website that it is reinforcing its long-standing commitment to environmental stewardship across six sustainability pillars. This includes decreasing its greenhouse gas emissions intensity by 25 percent by 2030, expanding its CCUS capacity by 500 percent, limiting freshwater consumption to below 0.5 percent of its total water use and strengthening collaboration in environmental protection, conservation and sustainable development.

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