UAE Announces Project to Decarbonise ADNOC’s Offshore Production Operation

UAE Announces Project to Decarbonise ADNOC’s Offshore Production Operation

UAE announced a $3.6 billion strategic project to significantly decarbonize the offshore production operations of Abu Dhabi National Oil Company (ADNOC).

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 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 Abu Dhabi National Energy Company (TAQA) transmission and distribution companies.

The project will be funded through a special purpose vehicle (SPV), a dedicated company that ADNOC and TAQA will jointly own with a 30 percent stake each.

It also includes a consortium comprised of Korea Electric Power Corporation (KEPCO), Japan's Kyushu Electric Power Co., and Électricité 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 project will strengthen the position of ADNOC and TAQA in driving and leading sustainability efforts and supporting the UAE' Net-Zero by 2050 Strategic Initiative'.

The development is expected to reduce the carbon footprint of ADNOC's offshore operations by more than 30 percent, replacing existing offshore gas turbine generators with more sustainable power sources available