It was announced by "ADNOC" and "TAQA" in partnership with a Korean-Japanese-French consortium

A project to supply ADNOC Marine with electricity and reduce its carbon emissions at a cost of 13.22 billion dirhams

The project attracts foreign direct investment and enhances the UAE's position as a global investment destination.

From the source

The Abu Dhabi National Oil Company (ADNOC) and the Abu Dhabi National Energy Company (TAQA) announced yesterday the development of a strategic project at a cost of 13.22 billion dirhams ($3.6 billion), aimed at reducing carbon emissions from ADNOC's offshore field operations.

The innovative project, which is the first of its kind in the Middle East and North Africa region, will witness the development and operation of a high-voltage direct current transmission system, under the sea, to supply ADNOC's offshore production operations with more efficient and environmentally friendly energy by linking it to Abu Dhabi's onshore electricity grid. Affiliated with Energy.

This project will be financed through a company created specifically for this purpose and jointly owned by ADNOC and TAQA with a 30% stake each, and a consortium that includes the Korean Electric Power Company (KEPCO), Japan's Kyushu Electric Power Company, and the Japanese Kyushu Electric Power Company. French Electricity "EDF" with a share of 40%.

power grid

The consortium will develop and operate the advanced electricity transmission network in partnership with ADNOC and TAQA, with the entire project being returned to ADNOC after 35 years of operation.

The project is subject to completing the necessary procedures and obtaining the approvals of the relevant regulatory authorities.

The project will contribute to consolidating the position of ADNOC and TAQA and enhancing their efforts in the field of sustainability, in addition to supporting the UAE strategic initiative, in pursuit of climate neutrality by 2050, as the project will contribute to reducing carbon emissions from ADNOC's marine operations by more than 30% through Replacing the current electricity generators that depend on gas turbines with more sustainable sources of electric power generation.

This joint venture will also increase operational efficiency, enhance the reliability of the power supply system, and potentially reduce electrical energy costs.

innovative project

Yasser Saeed Al Mazrouei, CEO of ADNOC’s Exploration, Development and Production Department, said: “We are pleased to cooperate with (TAQA) on an innovative project that attracts global partners in the global energy sector and helps us achieve a new important achievement in our ongoing path to reducing carbon emissions.

As (ADNOC) seeks to keep pace with the transformation in the energy sector and ensure the continuity of its business, this advanced and distinguished project will replace electric power generators in offshore fields with more sustainable and environmentally friendly electric energy sources, which will contribute to a significant reduction in carbon emissions, in addition to saving costs and enhancing operations efficiency.” .

He added: "This first-of-its-kind project reinforces ADNOC's continuous efforts to develop practical and commercially viable solutions that contribute to reducing carbon emissions, while at the same time attracting large foreign direct investments, which enhances the position of the UAE and Abu Dhabi as a global and reliable investment center."

local economy

More than 50% of the total value of the project will be redirected to the local economy through the “ADNOC” program to enhance the local added value, which confirms the commitment of “ADNOC” and “TAQA” to continue their efforts to promote sustainable investment and create value for the UAE and Abu Dhabi and drive growth and development of the local economy .

Jassim Hussain Thabet, Group CEO and Managing Director of Abu Dhabi National Energy Company (TAQA), said: “(TAQA) is the leading low-carbon utility company in Abu Dhabi, and one of the top five integrated utilities companies in the Europe, North Africa and Middle East region in terms of market value, and we are pleased to enter into a new partnership with the Abu Dhabi National Oil Company (ADNOC) through this important project, which will contribute to decarbonizing the energy sector in the Emirate of Abu Dhabi in an efficient manner.”

He added: “This project is the first of its kind and demonstrates that the UAE continues to play its leading leadership role and embrace innovation in the global march towards energy transformation, by uniting the efforts of the key players in the energy sector to promote sustainability and achieve maximum benefit in the use of the energy mix in The Emirate of Abu Dhabi, which is characterized by diversity and high efficiency. The process of decarbonization provides opportunities for cooperation and growth on the social and economic levels, which is what TAQA seeks through its alliances and strategic partnerships in the market.”

In turn, CEO of the Korean Electric Power Company (KEPCO), Seong Il Cheung, said: “We are honored to participate in this strategic project with (ADNOC). While the Barakah Nuclear Energy Project has become a symbol of the long friendship and joint cooperation between the UAE and Korea, KEPCO will strive to successfully complete this project and contribute to the UAE’s strategic initiative to achieve climate neutrality by 2050.”

Kazuhiro Ikebe, President and CEO of Kyushu Electric Power Company, added: “The Kyoden Group is honored to have been chosen as a business partner and contributor to the implementation of this project, which helps reduce carbon dioxide emissions in ADNOC’s oil production facilities by more than 30%.

The Keoden Group recently announced a carbon neutral action plan, and we intend to contribute to advancing the efforts of energy companies that have projects and practical plans to reduce carbon emissions worldwide.

We hope to contribute to the success of this project by benefiting from the knowledge and experience we have gained in the electric power sector in Japan and abroad.”

successful coalition

Jean-Bernard Levy, Chairman and CEO of EDF, said: “We are pleased to award (ADNOC) and (TAQA) the project contract to a successful consortium that includes (EDF) and to benefit from its expertise in the field of electric power transmission networks. .

We at EDF are proud to participate in this innovative project, which contributes significantly to reducing carbon emissions from ADNOC’s operations.”

The total installed capacity of the electricity transmission system will be 3.2 GW, and it will include (two transmission links) under the sea and two independent high-voltage direct current transfer stations, all connected to the onshore electricity network of the Abu Dhabi National Energy Company “TAQA”, which is managed by the Abu Dhabi Transmission and Control Company (TRANSCO) subsidiary. for "energy".

It is expected that construction work will start in 2022, and commercial operation of the project will start in 2025.

The project links ADNOC's offshore fields to the TAQA network to reduce emissions and save costs.

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