Dubai: The Board of Directors at UAE energy giant ADNOC has endorsed the goal to drive $48.5 billion (Dh178 billion) back into the UAE economy over the next 5 years.
ADNOC’s budget allocation for 'landmark' decarbonization projects, technologies and lower-carbon solutions has also been increased to $23 billion (Dh84.4 billion). The increased allocation will include investments to 'grow the company’s domestic and international carbon management platforms', and support the 'decarbonization journeys of both ADNOC and its customers'.
The UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan presided over the annual meeting of the ADNOC Board in his capacity as its Chairman.
This will be built on the $11.2 billion (Dh41 billion) generated through ADNOC's In-Country Value (ICV) program in 2023. Since 2022, ADNOC has entered local manufacturing agreements worth $16.9 billion (Dh62 billion), and 'accelerating progress' against its target to locally manufacture $19 billion (Dh70 billion) worth of products in its procurement pipeline by 2027.
ADNOC also created 6,500 jobs for UAE nationals in the private sector in 2023 through the program, in partnership with the Emirati Talent Competitiveness Council (Nafis).
These achievements bring the total value driven back into the UAE economy to $51 billion (Dh187 billion), with 11,500 UAE nationals employed in the private sector since the program was launched in 2018.
As ADNOC decarbonizes and future-proof its business, Sheikh Mohamed 'noted that the company is tripling its renewable energy capacity through its shareholding in Masdar while delivering tangible actions towards its interim targets of reducing its greenhouse gas intensity by 25 per cent and achieving near-zero methane emissions by 2030'.
ADNOC decarbonization projects - to meet the planned 25 per cent reduction in carbon intensity by 2030 - include using clean energy to provide 100 per cent of its onshore grid electricity needs since the start of 2022 and connecting its offshore operations to the grid through a $3.8 billion (Dh14 billion) project that, upon completion, can reduce its offshore carbon footprint by up to 50 per cent.
10 million tonnes per annumADNOC's target for its carbon capture and storage (CCS) capacity by 2030. This is the equivalent of removing over 2 million gasoline-powered cars from public highways.
IPO strategy is paying off
ADNOC had two IPOs - ADNOC Gas and ADNOC L&S - last year and invested in one of the largest carbon capture projects in the Middle East and North Africa at Habshan. It also announced the final investment decision for the Hail and Ghasha Offshore Development - the world’s first project that aims to operate with net zero emissions.
And then there was the plan to acquire a 30 per cent shareholding in the Absheron gas field in Azerbeijan.
“By prioritizing transformational growth, partnerships and international opportunities, we are well positioned to grow our operations and unlock additional value, as we strive to make today’s energy cleaner, invest in the clean energies of tomorrow and continue to provide secure and sustainable energy to meet growing global demand.
Delivering on this mandate reinforces our ambitious net zero pathway and our critical role as the catalyst for the UAE’s economic and industrial growth.”