In a bold move towards sustainability, ADNOC Group’s board of directors has set aside a whopping $23 billion budget for its decarbonization agenda.
With this unprecedented budget allocation, Abu Dhabi-based ADNOC is poised to play a leading role in the transition towards cleaner energy in its sector. The marked increase from the previous $15 billion allocation reflects the company’s commitment to addressing environmental concerns and embracing lower-carbon solutions.
The state-owned giant plans to utilize this budget to invest in decarbonization projects, technologies, and carbon management platforms both domestically and internationally.
Additionally, a significant portion of the budget will be dedicated to supporting the decarbonization efforts of ADNOC and its customers.
In July 2023, ADNOC amplified its decarbonization plans, moving up the deadline for achieving net-zero emissions to 2045 and aiming to eliminate methane emissions by 2030. The energy company strives to have the capacity to capture 10 million metric tons of carbon per year by 2030, which is equivalent to removing over 2 million cars from the road.
As part of their climate-forward deals, they partnered with Occidental Petroleum to investigate investment opportunities in carbon capture and storage (CCS) in the UAE and the US, aiming to establish a platform for carbon management. ADNOC is also in discussions with ExxonMobil to work together on technologies that produce fewer carbon emissions.
The company, which revealed the new investment during the yearly board meeting overseen by President Sheikh Mohamed bin Zayed Al Nahyan, stated that Sheikh Mohammed “directed ADNOC to grow its diversified portfolio and provide secure, reliable, and responsible energy to support the delivery of a just, orderly and equitable global energy transition.”
The board also highlighted ADNOC’s importance in driving the economic and industrial growth of the UAE and its support for the objective of reinvesting $48.5 billion into the country’s economy over the next five years.