UAE’s ADNOC and US shale giant Occidental have signed an agreement to evaluate potential investment opportunities in carbon capture and storage (CCS) hubs in the UAE and the US, aiming to accelerate their net zero goals.
The agreement is part of the UAE-US Partnership for Accelerating Clean Energy (PACE), which was launched in November 2022 and is expected to inject $100 billion into clean energy and carbon management projects, including CCS and direct air capture (DAC), by 2035.
As part of the agreement, ADNOC and Occidental are evaluating the development of DAC facilities in the UAE, including what could be the first megaton DAC project constructed outside of the US.
ADNOC to Set Up Carbon Capture Hubs in the UAE
Both companies will also assess the joint development of one or more carbon management hubs in the UAE. The hubs would be able to offer carbon capture services and provide the necessary infrastructure to safely transport CO2 from the UAE’s carbon-intensive and hard-to-abate sectors and permanently store it in Abu Dhabi’s ideal geological formations.
Occidental’s Stratos DAC project is currently under construction in Texas, and it is expected to capture 500,000 tonnes of CO2 from the atmosphere per year when fully operational.
Under the agreement, ADNOC will also explore its participation in a number of DAC and CO2 sequestration hubs in the US that are under development by Occidental’s subsidiary, 1PointFive. Its Stratos DAC project, currently under construction in Texas, is one such hub, and it is expected to capture 500,000 tonnes of CO2 from the atmosphere per year when fully operational.
ADNOC is set to increase investments and double down on its decarbonization efforts, backed by an initial $15 billion allocation to low-carbon solutions. The company has also extended an open invitation to investors, climate technology providers, and industries across all sectors to partner on its journey to supercharge and accelerate decarbonization solutions.
