ADNOC Gas has granted a $615M ($2.26B) contract for the Habshan carbon capture and storage project, which is a key component of the Abu Dhabi-based energy company’s broader decarbonisation strategy.
The Habshan carbon capture, utilization, and storage (CCUS) initiative ranks among the Middle East’s most substantial CCUS projects and is designed to accommodate the storage of 1.5 million tonnes per year (mtpa) of CO2, according to ADNOC Gas’s disclosure in the stock market.
The engineering, procurement, and construction agreement has been awarded to Petrofac Emirates.
ADNOC Gas Drives Integrated Carbon Management Initiative
ADNOC Gas will assume responsibility for constructing, operating, and maintaining the project on behalf of ADNOC Group. This undertaking aligns with the state-owned energy behemoth’s efforts to establish an integrated platform linking emission sources with carbon sequestration sites.
“This project represents our commitment to significantly reduce greenhouse gas emissions while unlocking new and attractive commercial opportunities for delivering sustainable, lower-carbon growth for the company,” said Ahmed Mohamed Alebri, CEO of ADNOC Gas.
“This large-scale project reaffirms our steadfast commitment to maximising energy output while minimising our emissions, steering us toward a more sustainable and environmentally responsible future.”
The Habshan carbon capture and storage project will significantly increase ADNOC’s carbon capture capacity to 2.3 million tonnes per annum, equivalent to the annual removal of over 500,000 gasoline-powered cars from the road. It is scheduled for commissioning in 2026.
More than 65% of the contract’s value is expected to benefit the UAE economy, aligning with ADNOC Group’s In-Country Value program, according to Gulf Business.
CCUS projects are recognized as crucial decarbonization tools by the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA) to achieve global climate objectives.
ADNOC’s Commitment to Sustainable Decarbonization
ADNOC Gas is accelerating its decarbonization efforts as part of ADNOC’s sustainability-focused long-term strategy. They are investing in renewables, low-carbon fuels, and developing a global hydrogen value chain.
The Habshan CCUS project is anticipated to support enhanced oil recovery and the production of low-carbon feedstocks like hydrogen. It builds upon ADNOC’s existing carbon capture facility, Al Reyadah. The captured carbon dioxide will be injected into an oil field to enhance oil recovery.
In August, ADNOC partnered with Occidental Petroleum to explore CCUS investment opportunities in the UAE and the US, aiming to create a carbon management platform to expedite their net-zero objectives.
They are also considering the development of direct air capture (DAC) facilities, potentially including the first megaton DAC project outside the US.
ADNOC recently brought forward its net-zero carbon emissions target to 2045 and aims to achieve zero methane emissions by 2030.
