ADNOC has approved a $15 billion next step to reduce the carbon footprint of its hydrocarbon-driven economy.
The plan, which aims to “future-proof” its oil-driven economy, builds on initiatives that have made it a pioneer in carbon capture in the Middle East.
A key part of the next phase of its decarbonisation is a second carbon capture and storage (CCS) project, dubbed a “first of its kind”. ADNOC plans to increase its CO2 The capture capacity reaches 5 million tons per year. Capture and storage will help the country’s carbon-intensive industrial sector remove carbon from its products by going blue.
These steps are significant, but the need for carbon capture and storage in the Middle East and globally is staggering, with the International Energy Agency calling for a 100-fold increase in carbon capture and storage alone.
Currently, the Middle East holds 10% of the world’s catch, with facilities in Abu Dhabi, Saudi Arabia and Qatar, but is a major supplier of hydrocarbon fuels, whose emissions are linked to global warming .
Abu Dhabi’s approach has been aptly described by Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, as “both pro-growth and pro-climate, and ADNOC is taking concrete action to support both goals “
In other words, Middle Eastern companies are struggling to make affordable carbon-reduction investments that allow them to continue to tap into their vast hydrocarbon wealth.
Abu Dhabi holds a fraction of these reserves, so its plans also focus on becoming a carbon-reduction technology hub for the region.
Currently, ADNOC captures only 800,000 tonnes of CO22 One steel mill per year (mtpa), the first system of its kind to remove 90% of CO22 Emissions from steel production facilities in the UAE. CO2 The gas is pumped offshore to maintain pressure and boost production at two offshore fields.
The catch item rewards more than just increased barrels.carbon monoxide2 Injection allows ADNOC to replace the natural gas injected into these fields for this purpose, rather than allowing it to be used for higher value applications such as SPE 207676.
ADNOC announces two more expansion phases that will add 5.0 mtpa of CO22 captured by 2030.Two published sources of CO2 According to a recent report by the Global CCS Institute, what is expected to be the Shah Sour Gas Plant will supply 2.3 mtpa and 1.9 mtpa from the Habshan Gas Processing Plant.
While catches in the MENA region lag behind the Americas, Asia Pacific and Europe, the global CCS report says it has significant potential.
“With current carbon capture facilities, industrial facilities, available natural CO2 GCC sinks and future plans [Gulf Cooperation Council] countries, the GCC countries could become world-class CCS hubs,” the report said.
Announced plan in line with moves by chemical manufacturers around the world to use carbon dioxide2 injections to reduce their carbon footprint.
One of Abu Dhabi’s future sources of captured gas is the ammonia production facility in Ruwais. The ADNOC statement said the company TA’ZIZ plans to become a major producer of blue ammonia, meaning that the natural gas produced as part of the process will be stored underground rather than vented.
The company has sent early samples of the blue ammonia to Europe for testing. Ammonia is being talked about as a possible low-carbon alternative to marine diesel.
This is part of a global trend. The CF Industries facility in Donaldson, Louisiana, has announced an agreement with ExxonMobil to permanently store 2.5 mtpa of carbon. It is the first of many such projects in Louisiana being planned by chemical manufacturers looking to improve their environmental scores.
Another commonality across the world is that these are long-term projects, with actual operations coming online for years to come.
They are echoing pledges from government leaders around the world, including those in Abu Dhabi to become carbon neutral by 2050.
But carbon reduction targets are rarely met, and carbon-neutral products cost more. For example, it costs less than $1.00 to manufacture a kilogram (kg) of ammonia in the Middle East—the lowest cost in the world—while blue hydrogen is estimated to cost closer to $1.50/kg compared to $6.00 using renewable energy and water /Kilogram.
Abu Dhabi’s ammonia makers are looking to go green, while the country is investing in carbon-free renewable and nuclear plants.
“Since January 2022, ADNOC has received 100% of its grid power from nuclear and solar from the Emirates Water and Electricity Corporation (EWEC), making it the first major company in the industry to decarbonise at scale through a Clean Power Agreement of this kind,” said the announcement.
The plan includes a $3.8 billion deal to build subsea power transmission lines to offshore facilities, which it says will cut emissions by 50% as the oil industry there struggles to eliminate flaring.
All of these can provide opportunities for service companies and industrial suppliers around the world.
“ADNOC is working closely with its international partners and stakeholders across the energy value chain to collaborate on technology, best practice and policy to support and advance global decarbonization efforts,” the statement concluded.