ADNOC Makes Strategic Investment in Storegga, Broadening its Carbon Management Portfolio
ADNOC takes 10.1% equity stake in UK-based Storegga which focuses on the development of global carbon capture and storage projects
Strategic transaction represents ADNOC’s first international equity investment in carbon management platforms
Deal with Storegga supports ADNOC’s strategy to leverage carbon management partnerships and technology to accelerate decarbonization
Abu Dhabi, UAE – January 8, 2023: ADNOC today 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 decarbonization. The investment is enabled by ADNOC’s initial allocation of $15 billion (AED55 billion) to low-carbon solutions and decarbonization technologies.
ADNOC is targeting a carbon capture capacity of 10 million tonnes per annum (mtpa) 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 decarbonization 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 decarbonization by deploying cost-effective CCS globally.
“Over the past three years we have transformed from a single-project developer in Scotland to an international force driving global decarbonization efforts. We are excited to now see ADNOC join our shareholder group. Storegga is fortunate to be backed by investors with the necessary vision and ambition for the rapid deployment of CCS and carbon removal technologies that are imperative for meeting the global net zero objectives.”
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 mtpa. ADNOC is also one of 50 founding signatories of the Oil and Gas Decarbonization Charter (OGDC). Launched during COP28 in Dubai, the OGDC is a global commitment to speed up climate action across the industry.
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