ADNOC and Occidental to advance DAC project in the UAE

ADNOC and Occidental have initiated a joint preliminary engineering study for the development of the first megaton-scale direct air capture (DAC) facility outside the United States. The agreement represents the first project to progress to the technical feasibility stage since the two companies entered into a strategic collaboration agreement in 2023, focusing on exploring carbon capture, utilisation, and storage (CCUS) initiatives both in the UAE and the US.

The study will evaluate the feasibility of a proposed one million tonnes per annum (mtpa) DAC facility, which will be integrated into ADNOC’s carbon dioxide (CO2) infrastructure for injection and long-term storage in saline reservoirs not utilised for oil and gas production. It’s worth noting that ADNOC is currently in the testing phase of the world’s inaugural fully sequestered CO2 injection well, located in a carbonate saline aquifer in Abu Dhabi.

Musabbeh Al Kaabi, Executive Director for Low Carbon Solutions and International Growth at ADNOC, said: “Today’s announcement represents continued positive momentum in our partnership with Occidental to significantly scale up promising carbon management technologies. 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.”

Vicki Hollub, President and CEO of Occidental, said: “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. 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.”

As a significant stride in its carbon management strategy, ADNOC has recently confirmed its final investment decision to move forward with one of the most substantial carbon capture projects in the Middle East and North Africa (MENA) region, located in Habshan. This project is designed to have the capability to capture and store up to 1.5 million tonnes per annum (mtpa) of carbon emissions in Abu Dhabi’s onshore reservoirs. This strategic move is in alignment with the Intergovernmental Panel on Climate Change’s (IPCC) recognition that carbon capture and storage are essential components in achieving global net-zero emissions by the middle of the century.

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