Adnoc invests in UK carbon capture firm
Petchem firm Adnoc has announced it has taken a 10.1% equity stake in Storegga to become a lead investor in the UK-based company that focuses on the development of global carbon capture and storage (CCS) projects.
The strategic transaction represents Adnoc’s first international equity investment in carbon management and supports the company’s strategy to leverage carbon management partnerships and technology to advance global carbon capture and storage projects that can accelerate decarbonisation.
The investment is enabled by Adnoc’s initial allocation of US$15 billion to low-carbon solutions and decarbonisation technologies.
Adnoc adds it is targeting a carbon capture capacity of 10 million tonnes/year by 2030, equivalent to taking over 2 million internal combustion vehicles off the road.
Musabbeh Al Kaabi, ADNOC Executive Director for Low Carbon Solutions and International Growth, said: “This strategic investment marks an important milestone in Adnoc’s decarbonisation journey and highlights our commitment to work with partners across industries to deliver practical solutions to enable a net zero energy future. Carbon capture is an important tool to responsibly reduce carbon emissions and meet global climate goals and Adnoc will continue to scale-up this technology as we work towards net zero by 2045.”
Adnoc’s carbon management strategy aligns with the Intergovernmental Panel on Climate Change’s (IPCC) view that carbon capture and storage is a critical enabler for the world to achieve net zero by mid-century.
Nick Cooper, CEO, Storegga, said, “Strategic collaborations are crucial for a pragmatic, prompt and affordable transition to a low-carbon future. Storegga is therefore ready to stand alongside traditional energy suppliers to accelerate decarbonisation by deploying cost-effective CCS globally.”
Storegga has a portfolio of carbon capture projects in the UK, US and Norway. In the UK, Storegga is leading the development of the Acorn CCS project, which is poised to store up to 10 million tonnes of CO2 per annum by 2030. The company was recently awarded a license, with partners, to develop the Trudavang CCS project in Norway and is developing a number of CCS opportunities in the United States, the most advanced of which is the Harvest Bend CCS project in Louisiana.
Adnoc operates Al Reyadah, the world’s first commercial scale operation to capture and store CO2 from the steel industry, with a capacity of 800,000 tonnes of CO2 per year.
Recently, Adnoc announced major carbon capture projects, taking its committed investment for carbon capture capacity to almost 4 million tonnes/year.
