ADNOC invests in Storegga to focus on carbon management

ADNOC announced it has taken a 10.1% equity stake in Storegga to become a lead investor in the UK-based company that focuses on the development of global carbon capture and storage (CCS) projects.

The strategic transaction represents ADNOC’s first international equity investment in carbon management and supports the company’s strategy to leverage carbon management partnerships and technology to advance global carbon capture and storage projects that can accelerate decarbonization. The investment is enabled by ADNOC’s initial allocation of $15 billion (AED55 billion) to low-carbon solutions and decarbonization technologies.

ADNOC is targeting a carbon capture capacity of 10 million tonnes per annum (mtpa) by 2030, equivalent to taking over 2 million internal combustion vehicles off the road.

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

Storegga has a portfolio of carbon capture projects in the UK, US and Norway. In the UK, Storegga is leading the development of the Acorn CCS project, which is poised to store up to 10 million tonnes of CO2 per annum  by 2030. The company was recently awarded a license, with partners, to develop the Trudavang CCS project in Norway and is developing a number of CCS opportunities in the United States, the most advanced of which is the Harvest Bend CCS project in Louisiana.

ADNOC operates Al Reyadah, the world’s first commercial scale operation to capture and store CO2 from the steel industry, with a capacity of 800,000 tonnes of CO2 per year. Recently, ADNOC announced major carbon capture projects, taking its committed investment for carbon capture capacity to almost 4 mtpa. ADNOC is also one of 50 founding signatories of the Oil and Gas Decarbonization Charter (OGDC). Launched during COP28 in Dubai, the OGDC is a global commitment to speed up climate action across the industry.