ADNOC has announced a final investment decision to develop a major carbon capture project in the Middle East and North Africa (MENA) region. The Habshan Carbon Capture, Utilization, and Storage (CCUS) project is set to become one of the largest of its kind in MENA, with the capacity to capture and securely store 1.5 million metric tons of carbon annually deep underground within geological formations.
This announcement is a part of ADNOC’s broader carbon management strategy, aimed at creating a platform that connects all emissions sources and sequestration sites. This platform will accelerate the achievement of ADNOC’s and the UAE’s decarbonization objectives. As part of this strategy, ADNOC is actively implementing technology-driven pilot projects such as carbon mineralization and full CO2 sequestration in saline aquifers.
Through this technology, the project will triple ADNOC’s carbon capture capacity to 2.3 million tons per year, or the equivalent to removing more than 500,000 gasoline-powered cars from the road annually. ADNOC Gas will oversee the construction, operation, and maintenance of the project on behalf of ADNOC. The Habshan CCUS project will encompass carbon capture units at the Habshan gas processing plant, pipeline infrastructure, and a network of wells for CO2 injection. The energy and petrochemicals group, which is owned by the Emirate of Abu Dhabi, will permanently store CO2 in underground reservoirs, utilizing closed-loop CO2 capture and reinjection technology at the well site.
This investment aligns with ADNOC’s recently declared commitment to achieve net zero emissions by 2045 and is part of the company’s initial $15 billion investment in low-carbon solutions. The Habshan carbon capture project is scheduled for completion in 2026.
“The Intergovernmental Panel on Climate Change has stated that carbon capture and storage is a critical enabler for the world to achieve net zero by mid-century,” said Musabbeh Al Kaabi, ADNOC Executive Director of Low Carbon Solutions and International Growth. “This landmark project is one of many tangible initiatives that ADNOC is delivering as we accelerate our decarbonization plan to meet our Net Zero by 2045 ambition.”
In addition to decarbonizing its operations, ADNOC is investing in renewables and low-carbon fuels, establishing a global hydrogen value chain, deploying innovative climate technology solutions, and advancing nature-based solutions such as mangrove planting in the United Arab Emirates.
In 2016, ADNOC inaugurated its first carbon capture, transportation, and storage facility at Al Reyadah in Abu Dhabi, capable of processing up to 800,000 tons of CO2 per year captured at Emirates Steel Arkan. The Habshan carbon capture project presents opportunities for enhanced oil recovery with low carbon-intensity barrels and the production of low-carbon feedstocks like hydrogen to assist customers in their decarbonization efforts.
In addition, ADNOC and Occidental are exploring potential investments in carbon capture and storage and direct air capture in both the UAE and the United States.