In the United Arab Emirates (UAE), the Abu Dhabi National Oil Company P.J.S.C. (ADNOC) has announced it has taken a 10.1 percent equity stake in Storegga Ltd to become a lead investor in the UK-based company that focuses on the development of global carbon capture and storage (CCS) projects.
According to a statement, the strategic 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 carbon capture and storage projects that can accelerate decarbonization.
The investment is enabled by ADNOC’s initial allocation of US$15 billion (AED55 billion) to low-carbon solutions and decarbonization technologies.
This strategic investment marks an important milestone in ADNOC’s decarbonization journey and highlights our commitment to working 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, said Musabbeh Al Kaabi, Executive Director for Low Carbon Solutions and International Growth at ADNOC.
Targeting 10 million tonnes by 2030
ADNOC is targeting a carbon capture capacity of 10 million tonnes per annum by 2030.
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.
ADNOC operates Al Reyadah, one of the world’s first commercial-scale operations 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 4 million tonnes per annum.
ADNOC is also one of the 50 founding signatories of the Oil and Gas Decarbonization Charter (OGDC). Launched during COP28 in Dubai, the OGDC is a global commitment to speed up climate action across the industry.
Strategic collaboration
Storegga has a portfolio of carbon capture projects in the United Kingdom (UK), the United States (US), and Norway.
In the UK, Storegga is leading the development of the Acorn CCS project – a joint venture with four partner companies, Storegga, Shell UK, Harbour Energy, and North Sea Midstream Partners, which is poised to store up to 10 million tonnes of CO2 per annum by 2030.
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 decarbonization by deploying cost-effective CCS globally, said Nick Cooper, CEO of Storegga.
The company is developing decarbonization projects in Scotland, the company was recently awarded a license, with partners, to develop the Trudavang CCS project in Norway and is developing several CCS opportunities in the United States, the most advanced of which is the Harvest Bend CCS project in Louisiana.
Over the past three years, we have transformed from a single-project developer in Scotland to an international force driving global decarbonization efforts. We are excited to now see ADNOC join our shareholder group. Storegga is fortunate to be backed by investors with the necessary vision and ambition for the rapid deployment of CCS and carbon removal technologies that are imperative for meeting the global net zero objectives, ended Nick Cooper.
