ADNOC and Occidental to assess investment opportunities in CO2 capture and storage hubs

The strategic collaboration agreement aims to develop a carbon management platform to accelerate the net zero goals of both companies. The agreement is expected to catalyse US$100 billion (AED367 billion) in clean energy and carbon management projects, including CCS and direct air capture (DAC), by 2035.

Amos Hochstein, US Special Presidential Coordinator for Global Infrastructure and Energy Security said: “The world is going to need a host of technologies, including DAC and CCUS, to meet our global climate objectives. This important announcement is a great example of what the U.S.-UAE Partnership for Accelerating Clean Energy (PACE) can help enable. I look forward to what this agreement yields.”

Vicki Hollub, President and Chief Executive Officer at Occidental, said, “We look forward to building on our longstanding partnership with ADNOC as we advance our plans to globally deploy DAC technology and engage partners who are committed to developing carbon solutions at climate-relevant scale. Partnerships like this one are essential to helping the world reach its climate goals and ensure it has the resources it needs to thrive through the energy transition. We look forward to working with ADNOC on our shared vision of establishing a global net-zero ecosystem.”

Musabbeh Al Kaabi, Executive Director of Low Carbon Solutions and International Growth at ADNOC, stated, “This agreement highlights how the UAE-US Partnership for Accelerating Clean Energy is driving innovative climate technologies to decarbonise the energy sector. The need to significantly reduce carbon emissions to address climate change is clear and urgent and carbon capture is an important technology that can be scaled up to decarbonise across all industries.

“ADNOC is a pioneer in carbon management, exemplified by our industry leading low-carbon intensity and our operation of Al Reyadah, the region’s first commercial scale carbon capture facility. As we accelerate our net zero ambition to 2045 and decarbonise our operations, partnerships like this offer the potential to transform the systems that will be vital to provide the lower-carbon energy the world needs for the energy transition.”

The companies are also exploring the possibility of jointly developing one or more carbon management hubs in the UAE. These hubs would be equipped to offer carbon capture services and establish the necessary infrastructure to safely transport CO2 from the UAE’s carbon-intensive and hard-to-abate sectors. The aim is to permanently store the captured CO2 in Abu Dhabi’s ideal geological formations.

Additionally, under the SCA, ADNOC will be exploring potential participation in several Direct Air Capture (DAC) and CO2 sequestration hubs in the United States, developed by Occidental’s subsidiary, 1PointFive. Among these hubs is the Stratos DAC project, currently in construction in Texas, with the capacity to capture 500,000 tonnes of CO2 from the atmosphere annually once fully operational.

With a strong commitment to being a responsible global energy pioneer, ADNOC is significantly increasing investments in and strengthening its decarbonisation initiatives. It has allocated an initial sum of US$15 billion to low-carbon solutions. ADNOC is open to collaboration with investors, climate technology providers, and industries across all sectors, inviting partnerships to accelerate and bolster decarbonisation solutions.

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