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ADNOC aims to decarbonize operations with solar, nuclear power supply deal

Highlights

EWEC to supply clean energy to ADNOC from January

ADNOC crudes, jet fuel would decrease in carbon intensity

Positions ADNOC to better compete on emissions

Abu Dhabi National Oil Co. aims to use nuclear and solar energy to completely power its operations, announcing a supply agreement with Emirates Water and Electricity Co. for clean electricity.

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The deal, which calls for up to 100% of ADNOC's grid power to be supplied by EWEC's nuclear and solar power starting January, makes ADNOC the first major oil and gas company to decarbonize its power at scale, the company said Oct. 26, and would bolster its claims to pumping some of the world's least carbon-intensive crudes.

In particular, ADNOC said its flagship crude grade Murban, with a futures contract now trading on ICE Futures Abu Dhabi, will have an even lower carbon intensity once the clean electricity agreement is implemented, making it more attractive to refineries seeking to lower their own carbon footprints.

Murban is ADNOC's largest crude by volume, with a production capacity of about 2 million b/d, out of the company's total capacity of around 4 million b/d, and is produced from 2,000 onshore wells.

ADNOC also said the aviation fuel its refineries make will also be enhanced as one of the lowest carbon intensity Jet-A1 fuels.

"ADNOC is committed to responsibly providing the world's energy needs with a determined focus on decarbonizing our operations, lowering our carbon intensity and strengthening our environmental stewardship and economic performance," CEO Sultan al-Jaber, who also serves as the UAE's minister of industry and advanced technology, said in a statement.

The deal will support ADNOC's goal of decreasing its greenhouse-gas emissions intensity by 25% by 2030.

For EWEC, the agreement will give it a long-term offtake agreement that will enable it to continue investing in clean power generation, the companies said.

EWEC's portfolio includes Noor Abu Dhabi, the world's largest single-site solar power plant, with production capacity of about 1.2 GW. It is also developing the Al-Dhafra Solar PV IPP project, which will overtake Noor Abu Dhabi as the largest solar plant when complete.

EWEC is also supporting the integration of the 1.4 GW Barakah-1 nuclear power plant, which began commercial operation April 6. Three more 1.4 GW reactors are planned at Barakah.

Once fully operational, the four units will contribute up to 25% of the UAE's power generation needs, displacing the natural gas that the country now mostly uses for electricity.