ADNOC, TAQA unveils $3.6bn project to cut offshore carbon emission

ADNOC, TAQA unveils $3.6bn project to cut offshore carbon emission

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UAE state-owned oil company, Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company (TAQA) have unveiled a $3.6 billion strategic project to decarbonize ADNOC’s offshore production operations.

The innovative project also aims to strengthen ADNOC and TAQA’s position in driving and leading sustainability efforts and supporting the UAE’s ‘Net-Zero by 2050 Strategic Initiative’.

As part of the project, a first-of-its-kind high-voltage, direct current (HVDC-VSC) subsea transmission system will be developed and operated in the Middle East and North Africa (MENA) region. This will power ADNOC’s offshore production operations with cleaner energy, which will be delivered through TAQA-owned Abu Dhabi onshore power grid.

The development is expected to reduce the carbon footprint of ADNOC’s offshore operations by over 30 percent, replacing existing offshore gas turbine generators with more sustainable power sources available on the Abu Dhabi onshore power network. 

The project will be funded through a special purpose vehicle (SPV), a dedicated company that will be jointly owned by ADNOC and TAQA, with each holding 30 percent stake, and a consortium comprised of Korea Electric Power Corporation (KEPCO), Japan’s Kyushu Electric Power Co. and Electricite de France (EDF). Led by KEPCO, the consortium will hold a combined 40 percent stake in