Dubai: ADNOC Distribution is creating a new company – E2GO - with Abu Dhabi’s utility giant Taqa to build and operate an EV infrastructure in the emirate and the wider UAE. Demand for EVs in the is projected to see a compound annual growth rate (CAGR) of 30 per cent between 2022-28.
E2GO will play a 'critical role' in creating an estimated 70,000 EV charging points and up to $200 million will be required as capex to 'meet growing demand by 2030'.
ADNOC Distribution already has a ready-made real estate base to develop the planned EV charging stations, with its fuelling stations.
EV sales in the UAE is rated as having had a good run in 2022, with more carmakers offering models to take on Tesla.
"E2GO aims to become the principal provider of EV charging points and associated infrastructure across Abu Dhabi," said an ADNOC statement. "The partnership will include a network of fast chargers at key locations, featuring associated solutions such as parking and tolling services, in addition to related digital platforms to facilitate EV charging, which will enhance customer service and unlock new revenue streams."
EVs are primed for growth
“As electric vehicle adoption grows in the UAE, ADNOC Distribution and Taqa are well placed to meet the evolving needs of EV customers through the creation of the E2GO venture," said Dr. Sultan Ahmed Al Jaber, Group CEO and Managing Director of ADNOC. "ADNOC Distribution will continue to capitalize on energy transition opportunities that make commercial sense, while remaining a reliable supplier of our customers’ energy needs.”
The E2GO JV will have ADNOC Distribution and Taqa entering into detailed arrangements as well as the completion of necessary transaction requirements, including obtaining any relevant third-party and regulatory approvals.
ADNOC Distribution will continue to capitalize on energy transition opportunities that make commercial sense, while remaining a reliable supplier of our customers’ energy needs
ADNOC Distribution currently offers Compressed Natural Gas (CNG) fuel in 31 locations across its UAE service station network, including a dedicated CNG-only service station in Abu Dhabi city. “Decarbonizing transport is an essential part of the UAE’s drive towards achieving its net zero ambitions," said Mohamed Hassan Alsuwaidi, Chairman of Taqa. "The development of EV infrastructure facilitated by the E2GO joint venture will help bridge the gap in delivering clean energy to the wider public."
More to follow...