Abu Dhabi National Oil Company (Adnoc) has announced that it has joined hands with Abu Dhabi National Energy Company (Taqa) for the successful financial closing of its $3.8 billion strategic project to power and significantly decarbonise its offshore production operations.
Together with a consortium comprising Korea Electric Power (Kepco), Kyushu Electric Power Company (Kyuden) and Électricité de France (EDF), this is a first-of-its-kind high-voltage direct current (HVDC) sub-sea transmission network in the Mena region.
The innovative project progressed rapidly from concept to development phase, with construction starting in early 2022, underscoring both Adnoc and Taqa's leading positions to drive climate action and support the "UAE Net-Zero by 2050 Strategic Initiative".
The consortium will build, own, operate and transfer the state-of-the-art transmission system alongside Adnoc and Taqa, with the full project returned to Adnoc after 35 years of operation.
On the successful financial closing, 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 ability to successfully structure and close a bold and progressive transaction that will help secure our low-carbon future as we intensify our efforts to decarbonise our operations."
"This innovative and first-of-its-kind project in the region is driving responsible and sustainable value creation into Abu Dhabi, further cementing the UAE's standing as a trusted, go-to investment destination of global capital," he stated.
"As the responsible provider of reliable and low-carbon energy, Adnoc will continue to work with our partners to advance practical and commercially viable solutions as the energy transition partner of choice," 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 sources available on the Abu Dhabi onshore power network, operated by Taqa's wholly owned subsidiary, Abu Dhabi Transmission and Despatch Company (Transco).
Taqa Chairman Mohamed Hassan Alsuwaidi said: "Taqa is taking a progressive role in accelerating the UAE's energy transition by delivering cohesive solutions that enable cleaner sources of power to fuel economic growth. Reaching financial close is an important milestone for this distinctive project, which will see our group providing Adnoc offshore facilities with low-carbon energy securely and efficiently through Transco's power network system."
"Taqa continues to showcase how its expertise can be utilized to decarbonize industry through strategic partnerships and bringing value to its stakeholders," he added.
According to Adnoc, more than 50% of the value of this project will flow back into the UAE's economy under its In-Country Value (ICV) programme.
This landmark transaction also sets another benchmark for large-scale investment into the UAE and Adnoc from leading global energy companies and reinforces Adnoc's focus and role as a catalyst for responsible and sustainable investment and value creation for Abu Dhabi and the UAE.-TradeArabia News Service