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Adnoc and Taqa strike landmark $3.8 billion clean energy project deal

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The Abu Dhabi National Oil Company (Adnoc) announced that it has partnered with Abu Dhabi National Energy Company (Taqa) to successfully complete the financial close of its US$3.8 billion strategic project to power and significantly divest its offshore production operations. carbon.

Together with a consortium comprising Korea Electric Power (Kepco), Kyushu Electric Power Company (Kyuden) and EDF (EDF), this is the first high-voltage direct current (HVDC) subsea transmission network in the MENA region.

The innovative project has progressed rapidly from concept to development, with construction commencing in early 2022, underscoring Adnoc and Taqa’s leadership in driving climate action and supporting the UAE’s Net Zero 2050 Strategic Initiative.

The consortium will work with Adnoc and Taqa to build, own, operate and transfer the state-of-the-art transmission system, with the entire project returning to Adnoc after 35 years of operation.

Regarding the successful financial close, Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Special Envoy for Climate Change and Adnoc Managing Director and Group CEO, said: “Adnoc has once again demonstrated its success in structuring and closing a bold and progressive transaction that will have Help ensure our low-carbon future as we step up efforts to decarbonize our operations.”

“This innovative project, first in the region, is driving responsible and sustainable value creation in Abu Dhabi, further cementing the UAE’s position as a trusted and preferred investment destination for global capital,” he said.

“As a responsible supplier of reliable and low-carbon energy, Adnoc will continue to work with our partners as the energy transition partner of choice to advance practical and commercially viable solutions,” he added.

The development is expected to reduce the carbon footprint of Adnoc’s offshore operations by more than 30%, replacing existing offshore gas turbine generators with more sustainable power on Abu Dhabi’s onshore power network, which is owned by Taqa’s wholly-owned subsidiary. Company Abu Dhabi Transmission and dispatch company (Transco).

Mohamed Hassan Alsuwaidi, Chairman of Taqa, said: “Taqa is playing an active role in accelerating the UAE’s energy transition by providing cohesive solutions that enable cleaner energy to drive economic growth. Achieving a financial settlement is an important part of this unique project. A milestone that will see our group supply Adnoc offshore facilities with safe, efficient, low-carbon energy through Transco’s electricity network system.”

“Taqa continues to demonstrate how to leverage its expertise to decarbonize industry through strategic partnerships and deliver value to its stakeholders,” he added.

According to Adnoc, more than 50% of the project’s value will flow back into the UAE’s economy under its Domestic Value (ICV) scheme.

This landmark transaction also sets another benchmark for large-scale investments in the UAE and Adnoc by leading global energy companies and strengthens Adnoc’s role as a catalyst for responsible and sustainable investment and value creation in Abu Dhabi and the UAE. focus and role.-TradeArabia News Service

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