Adnoc, Occidental to advance direct air capture project in UAE

Adnoc and Occidental announced today an agreement to undertake a joint preliminary engineering study for the construction of the first megaton-scale direct air capture (DAC) facility outside the United States (US).

The agreement is the first project to reach the technical feasibility stage since the two companies signed a strategic collaboration agreement in 2023 to explore carbon capture, utilisation and storage (CCUS) projects in the UAE and the US.

The study will assess the proposed one million tonnes per annum (mtpa) DAC facility to be connected to Adnoc’s carbon dioxide (CO2) infrastructure for injection and permanent storage into saline reservoirs not used for oil and gas production. Adnoc is in the testing phase of the world’s first full sequestered CO2 injection well in a carbonate saline aquifer in Abu Dhabi.

Musabbeh Al Kaabi, Executive Director for Low Carbon Solutions and International Growth at Adnoc, said, “Today’s announcement represents continued positive momentum in our partnership with Occidental to significantly scale up promising carbon management technologies.”

He added that 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 decarbonisation journey on the way to net zero by 2045.

In August, Adnoc and Occidental signed a strategic collaboration agreement (SCA) to evaluate potential investment opportunities in CO2 capture and storage hubs in the UAE and the US and to incorporate climate technologies in energy projects such as emissions-free power and sustainable fuels.

Vicki Hollub, President and CEO of Occidental, said, “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. 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.”

Recently, as part of its carbon management strategy, Adnoc announced a final investment decision to proceed with one of the largest carbon capture projects in the Middle East and North Africa (MENA) region at Habshan, with the capacity to capture up to 1.5 million tonnes per annum (mtpa) for permanent storage in Abu Dhabi’s onshore reservoirs.

This strategy aligns with the Intergovernmental Panel on Climate Change’s (IPCC) view that carbon capture and storage is a critical global enabler to achieve net zero by mid-century.

Adnoc Gas awards contract: Adnoc Gas announced on Tuesday that it has awarded a $615 million (Dhs2.26 billion) Engineering, Procurement and Construction (EPC) contract to Petrofac Emirates for constructing carbon capture units, pipeline infrastructure and a network of wells for carbon dioxide (CO2) injection at the Habshan gas processing plant, as part of Adnoc’s accelerated decarbonisation plan.

The Habshan Carbon Capture, Utilisation and Storage (CCUS) project is one of the largest carbon capture projects in the Middle East and North Africa (Mena) region and will have the capacity to capture and permanently store 1.5 million tonnes per annum (mtpa) of CO2 within geological structures deep underground, as Adnoc builds a unique platform to connect sources of emissions and sequestration sites.

Adnoc Gas will be responsible for building, operating and maintaining the project on behalf of Adnoc.

Ahmed Mohamed Alebri, Chief Executive Officer of Adnoc Gas, said: “Integrated carbon capture projects, such as the Habshan CCUS project, are essential building blocks for Adnoc Gas to achieve its decarbonisation goals.

This project represents our commitment to significantly reduce greenhouse gas emissions while unlocking new and attractive commercial opportunities for delivering sustainable, lower-carbon growth for the Company.

“This large-scale project reaffirms our steadfast commitment to maximising energy output while minimising our emissions, steering us toward a more sustainable and environmentally responsible future.” CCUS projects are recognised by the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA) as critical decarbonisation enablers in achieving global climate goals.

Over 65% of the contract value will flow back into the UAE’s economy through ADNOC’s In-Country Value (ICV) programme, 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.