ADNOC, TAQA announce $3.6bln project to power, decarbonise offshore operations

ADNOC, TAQA announce $3.6bln project to power, decarbonise offshore operations

Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company (TAQA) announced Wednesday a $3.6 billion (AED13.22 billion) strategic project to significantly decarbonise ADNOC’s offshore production operations, further strengthening their position in driving and leading sustainability efforts and supporting the UAE ‘Net-Zero by 2050 Strategic Initiative’. The innovative project will see the development and operation of a first-of-its-kind high-voltage, direct current (HVDC-VSC) subsea transmission system in the Middle East and North Africa (MENA) region. It will power ADNOC’s offshore production operations with cleaner and more efficient energy, delivered through the Abu Dhabi onshore power grid, owned and operated by TAQA’s transmission and distribution companies. The project will be funded through a special purpose vehicle (SPV) – a dedicated company that will be jointly owned by ADNOC and TAQA (30% stake each), and a consortium comprised of Korea Electric Power Corporation (KEPCO), Japan’s Kyushu Electric Power Co. and Electricité de France (EDF). Led by KEPCO, the consortium will hold a combined 40 percent stake in the project on a build, own, operate and transfer basis. The consortium will develop and operate the state-of-the-art transmission system alongside ADNOC and TAQA, with the full project being returned to ADNOC after 35