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Occidental and ADNOC reveal plans to explore potential of US and UAE-based carbon management projects

by | Aug 7, 2023

Both Occidental and ADNOC have announced that the pair intend to work collaboratively to evaluate the investment potential of Direct Air Capture (DAC) projects and CO2 sequestration hubs located in the USA and the United Arab Emirates.

The potential projects aim to use a combination of CCS and DAC to capture CO2 at the emissions source while also filtering it from the air using dedicated plants that can generate carbon removal credits.

“We look forward to building on our longstanding partnership with ADNOC as we advance our plans to globally deploy DAC technology and engage partners who are committed to developing carbon solutions at climate-relevant scale,” commented Vicki Hollub, president and CEO, Occidental. “Partnerships like this one are essential to helping the world reach its climate goals and ensure it has the resources it needs to thrive through the energy transition. We look forward to working with ADNOC on our shared vision of establishing a global net-zero ecosystem.”

Under the MoU signed between the companies, ADNOC has the option of reviewing the opportunities for joining the development of DAC plants – being developed by Oxy subsidiary 1PointFive – in addition to carbon sequestration hubs in the USA. Additionally, Occidental will have the opportunity in the UAE with a DAC plant capable of capturing 1 million tons of CO2 per year.

“ADNOC’s is a pioneer in carbon management, exemplified by our industry leading low-carbon intensity and our operation of Al Reyadah, the region’s first commercial scale carbon capture facility,” said Musabbeh Al Kaabi, Executive Director of Low Carbon Solutions and International Growth at ADNOC. “As ADNOC accelerates its net zero ambition to 2045 and decarbonizes our operations, partnerships like this offer the potential to transform the systems that will be vital to provide the lower-carbon energy the world needs for the energy transition.”

A foundation of the agreement is the UAE-US Partnership for Accelerating Clean Energy which began in November 2022. This could result in U$100bn in clean energy and carbon management projects by 2035.

Amos Hochstein, White House senior advisor to the President for Energy and Investment added, “The world is going to need a host of technologies, including DAC and CCUS, to meet our global climate objectives. This important announcement is a great example of what the US- UAE Partnership for Accelerating Clean Energy can help enable. I look forward to what this agreement yields.”

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