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Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company PJSC (TAQA) have completed the financial settlement of what is said to be the first subsea transmission network in the MENA region.
The $3.8 billion strategic project will power and significantly decarbonize ADNOC’s offshore production operations and support the UAE’s Net Zero 2050 strategic initiative.
A consortium comprising Korea Electric Power Company (KEPCO), Kyushu Electric Power Company (Kyuden) and EDF (EDF) will build, own, operate and transfer the transmission system together with ADNOC and TAQA, with the entire project to be returned to ADNOC after 35 years Years of operation.
expected development Reducing the carbon footprint of ADNOC’s offshore operations Over 30%, replacing existing offshore gas turbine generators with more sustainable power on Abu Dhabi’s onshore electricity network operated by Abu Dhabi Transmission and Dispatching Company (TRANSCO), a wholly-owned subsidiary of TAQA.
The project developers believe that more than half of the project’s value will flow back to the UAE economy under ADNOC’s Domestic Value (ICV) scheme.
“ADNOC has once again demonstrated its ability to successfully structure and close a bold and progressive deal that will help secure our low carbon future as we intensify efforts to decarbonize our business,” Say PhD.sultan aljabirUAE Minister of Industry and Advanced Technology, Special Envoy for Climate Change and Managing Director and Group CEO of ADNOC.
“First-of-its-kind innovative projects in the region are driving responsible and sustainable value creation into Abu Dhabi, further cementing the UAE’s position as a trusted and preferred investment destination for global capital.”
Joint investments from consortia, commercial lenders and export credit agencies have resulted in Over $3 billion in foreign direct investment.
Total project cost of $3.8 billion instead of $3.6 billion given higher interest rates at financial close Announced in December 2021.
The total installed capacity of the transmission system is 3.2 GW and will include two independent subsea HVDC transmission lines and converter stations.
Commercial operations are expected to begin in 2025, when the project will be the most robust shore power solution in the MENA region to date, and the first HVDC shore power solution outside Norwegian waters.
A consortium led by KEPCO jointly holds a 40% stake in the project on a Build, Own, Operate and Transfer (BOOT) basis, with ADNOC and TAQA each holding a 30% stake.
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