ADNOC, Occidental ink deal to advance direct air capture project in UAE
ADNOC Gas awarded Dh2.26 billion contract for major MENA carbon capture project
Dubai: ADNOC and Occidental have announced an agreement for a joint preliminary engineering study on constructing a megaton-scale direct air capture (DAC) facility outside the US.
This comes after the two companies entered into a strategic collaboration in August to explore carbon capture, utilization, and storage (CCUS) projects in the UAE and the US.
The study will evaluate a proposed one-million-tonnes-per-annum (mtpa) DAC facility linked to ADNOC’s carbon dioxide (CO2) infrastructure, with plans for injection and permanent storage in saline reservoirs not designated for oil and gas production.
Musabbeh Al Kaabi, Executive Director for Low Carbon Solutions and International Growth at ADNOC, said: “This joint investment in the proposed first megaton direct air capture facility in the region exemplifies ADNOC’s commitment to leverage partnerships and promising technology to accelerate our decarbonization journey on the way to net zero by 2045.”
ADNOC is currently testing the world’s first fully sequestered CO2 injection well in Abu Dhabi.
“The speed at which the Oxy and ADNOC teams have developed the feasibility and Pre-FEED plan for a DAC plant in Abu Dhabi underscores the urgency needed to deliver global-scale climate solutions and eliminate greenhouse gas emissions,” said Vicki Hollub, President and CEO of Occidental. “We will continue to leverage our carbon management expertise to deliver value and accelerate our ability to achieve our net-zero targets and help others meet theirs.”
Over 65% of the contract value will flow back into the UAE’s economy through ADNOC’s ICV program, supporting local economic and industrial growth and diversification. The Habshan CCUS project is expected to be comissioned in 2026. CO2 will be injected and placed for permanent storage in ADNOC Onshore’s Bab Far North Field, located approximately 150 miles southwest of Abu Dhabi.