ADNOC has bought a 10.1% equity stake in Storegga to become a lead investor in the UK-based company that focuses on the development of global carbon capture and storage (CCS) projects.
The transaction represents ADNOC’s first international equity investment in carbon management and supports the company’s strategy to leverage carbon management partnerships and technology to advance global CCS projects that can accelerate decarbonisation.
Alongside new investment from ADNOC – under its $15bn allocation in low-carbon and decarbonisation technologies, as it targets carbon capture capacity of 10Mtpa by 2030 – Storegga received further investment from existing shareholders, including GIC and Macquarie, as it closed its fourth funding round.
Musabbeh Al Kaabi, ADNOC Executive Director for Low Carbon Solutions and International Growth, said: “This strategic investment marks an important milestone in ADNOC’s decarbonisation journey and highlights our commitment to work with partners across industries to deliver practical solutions to enable a net zero energy future.
“Carbon capture is an important tool to responsibly reduce carbon emissions and meet global climate goals and ADNOC will continue to scale-up this technology as we work towards Net Zero by 2045.”
ADNOC’s carbon management strategy aligns with the Intergovernmental Panel on Climate Change’s (IPCC) view that carbon capture and storage is a critical enabler for the world to achieve net zero by mid-century.
Nick Cooper, CEO, Storegga, said, “Strategic collaborations are crucial for a pragmatic, prompt and affordable transition to a low-carbon future. Storegga is therefore ready to stand alongside traditional energy suppliers to accelerate decarboniaation by deploying cost-effective CCS globally.”
Storegga has a portfolio of carbon capture projects in the UK, US and Norway. In the UK, it is leading the development of the Acorn CCS project, which is poised to store up to 10 million tonnes of CO2 per annum by 2030.
The company was recently awarded a license, with partners, to develop the Trudavang CCS project in Norway and is developing a number of CCS opportunities in the US, the most advanced of which is the Harvest Bend CCS project in Louisiana.
ADNOC operates Al Reyadah, the world’s first commercial scale operation to capture and store CO2 from the steel industry, with a capacity of 800,000 tonnes of CO2 per year.
Recently, ADNOC announced major carbon capture projects, taking its committed investment for carbon capture capacity to almost 4Mtpa.
Last month ADNOC signed a 15-year Heads of Agreement with ENN LNG (Singapore), a wholly-owned subsidiary of ENN Natural Gas Co, for the delivery of at least 1mmtpa of LNG.
The LNG will primarily be sourced from ADNOC’s low-carbon Ruwais LNG project, currently under development in Al Ruwais Industrial City, Abu Dhabi. Deliveries are expected to start in 2028.
ADNOC is one of 50 founding signatories of the Oil and Gas Decarbonisation Charter (OGDC), which was launched during COP28 in Dubai, where nations committed to ‘transitioning away’ from fossil fuels.
The 52 signatories of the Charter commit to Net Zero operations by 2050 ‘at the latest’ and ending routine flaring by 2030 and near-zero upstream methane emissions.
source: gasworld.com
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