ADNOC accelerates net zero and decarbonisation plan, reports 2022 emissions performance

ADNOC is accelerating its decarbonisation plan to bring forward its net zero ambition to 2045, from its previous target of 2050, and to achieve zero methane emissions by 2030. ADNOC is the first company in its peer group to accelerate its net zero target to 2045.

These new targets mark a new chapter in ADNOC’s transformational journey to a lower-carbon future. The company has placed sustainability at the heart of its long-term strategy, including investing in renewables, building a global hydrogen value chain, deploying innovative climate technology solutions, and advancing nature-based solutions such as planting mangroves in the UAE.

Building on its legacy as a responsible global energy pioneer, ADNOC is set to increase investments in and double down on its decarbonisation efforts, backed by an initial $15 billion allocation to low-carbon solutions. The company extends an open invitation to investors, climate technology providers and industry across all sectors to partner on its journey to supercharge and accelerate decarbonisation solutions.

In 2022, ADNOC’s upstream carbon intensity performance was ~7 kgCO2e/boe as it responsibly contributed to meeting growing global energy demand. Furthermore, its industry leading methane intensity was ~0.07%, and the company was awarded the Gold Standard Pathway by the Oil and Gas Methane Partnership 2.0.

Additionally, in 2022 ADNOC achieved greenhouse gas (GHG) emissions reductions of ~4mt by using grid energy from solar and nuclear power to supply 100% of its onshore operations as well as ~1mt from energy efficiency and flaring reduction projects. These results, independently assured by DNV*, place ADNOC in the top tier of lowest carbon intensity oil and gas producers in the world.

ADNOC is a key enabler of the UAE’s updated Nationally Determined Contribution (NDC), which raises the ambition of the UAE’s nationwide emissions reduction ambition to 40% by 2030. The company is also playing an important role in supporting the UAE’s recently updated Energy Strategy 2050, its new National Hydrogen Strategy and Abu Dhabi’s Climate Change Strategy.

ADNOC’s commitment to sustainability and decarbonisation dates back to the company’s founding. Building on billions of dollars of investments in decarbonisation and sustainability projects since its inception, ADNOC recently made an initial allocation of $15 billion to expedite the implementation of its key decarbonisation initiatives, including carbon capture and storage, electrification, energy efficiency and nature-based solutions. Over the coming months, ADNOC will announce further investments and associated projects that will enable it to meet its updated ambitious decarbonisation targets.

ADNOC will drive the global growth of renewable energy and green hydrogen through its shareholding in the Abu Dhabi Future Energy Company (Masdar). Masdar is a leading renewable energy company, targeting a portfolio of more than 100 GW of renewable capacity and the production of 1 million tonnes of green hydrogen by 2030.

ADNOC’s decarbonisation plan includes a $3.8 billion, first-of-its-kind at scale, project connecting its offshore operations to clean grid power, which will reduce its offshore carbon footprint by up to 50%. It also includes building a 1 million tonnes per annum low-carbon ammonia production facility to help ADNOC’s customers decarbonize.

This year, ADNOC started two pilot projects to deploy leading climate technologies to capture and permanently store carbon dioxide (CO2) as part of its plan to expand its carbon capture capacity to 5 million tonnes per annum by 2030.

The innovative pilots build on ADNOC’s industry leading carbon capture and storage facility, Al Reyadah, which became the world’s first commercial scale operation to capture emissions from the steel industry when it was completed in 2016. The facility, with the capacity to capture 800,000 tonnes of CO2, has played a pivotal role in advancing carbon capture technology and reducing emissions from industry.

For over 50 years, ADNOC has led the industry in eliminating routine flaring and has deployed leading technologies, advanced monitoring and industry-leading practices to substantially reduce methane emissions across its operations.

ADNOC is delivering on its plan to plant 10 million mangroves by 2030. In 2022, the Company planted 200,000 mangrove seeds using drone technology with the aim to aerially plant a total of 2.5 million mangrove seeds over three years. To date, ADNOC has planted more than two million mangrove seedlings across Abu Dhabi. The company’s efforts support the UAE’s aim to plant 100 million mangroves by 2030.

Last year, ADNOC established a Low Carbon Solutions and International Growth Directorate to identify opportunities and drive forward its decarbonisation plans, building off the company’s successful track record of responsibly and reliably supplying energy to the world.