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ADNOC, TAQA Conclude $3.8b Deal on Clean Energy, Decarbonization

ADNOC, TAQA Conclude $3.8b Deal on Clean Energy, Decarbonization

Friday, 23 September, 2022 - 09:00
General view of Abu Dhabi, United Arab Emirates, January 3, 2019. REUTERS/ Hamad I Mohammed/File Photo/File Photo

Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company PJSC (TAQA) revealed concluding a $3.8 billion strategic project to power and decarbonize ADNOC's offshore production operations.

Together with a consortium comprised of Korea Electric Power (KEPCO), Kyushu Electric Power Company (Kyuden) and Électricité de France (EDF) (the Consortium), this is a first-of-its-kind high-voltage direct current (HVDC) sub-sea transmission network in the MENA region.

A consortium comprising Korea Electric Power (Kepco), Kyushu Electric Power Company (Kyuden) and Electricite de France (EDF) 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.

In this regard, UAE Minister of Industry and Advanced Technology, Special Envoy for Climate Change and Managing Director and Group CEO of ADNOC Dr. Sultan Al Jaber 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 decarbonize our operations."

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), state news agency WAM reported.

For his part, 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."

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