ADNOC and the State Oil Company of Azerbaijan Republic (SOCAR) have signed an agreement to collaborate on the potential development of low carbon energy technologies
Under the agreement, ADNOC and SOCAR will explore opportunities to work together to advance blue hydrogen, carbon management and geothermal technologies that can accelerate the decarbonisation of energy systems in the UAE, Azerbaijan and other key markets and support their net zero ambitions. The agreement builds on the strategic bilateral energy cooperation between the UAE and Azerbaijan, including the 30% stake held by ADNOC in the Absheron gas and condensate field in the Azerbaijan sector of the Caspian Sea.
Musabbeh Al Kaabi, ADNOC executive director, Low Carbon Solutions and International Growth, said, “This latest collaboration with SOCAR underscores the importance of our industry working together to advance low-carbon solutions and accelerate decarbonisation. Through this agreement ADNOC and SOCAR will leverage our combined knowledge, experience and expertise to advance promising hydrogen, carbon management and geothermal technologies that could make a tangible difference as the world takes bold steps to decarbonise energy value chains.”
Afgan Isayev, SOCAR vice president for Energy Transition, Environment and Decarbonization, said: “This partnership highlights our unwavering commitment to advancing the energy transition and reinforces the strong bilateral ties between SOCAR and ADNOC. By formalising our commitment through the signing of the Oil & Gas Decarbonization Charter at COP28, we affirm our proactive stance towards eliminating flaring, mitigating methane emissions and achieving net-zero emissions by 2050. This collaboration signifies our collective pursuit of a greener future, leveraging our combined expertise for sustainable energy practices.”
ADNOC has initially allocated US$15 billion (AED55 billion) to advance and accelerate lower-carbon solutions, new energies and decarbonisation technologies as it reduces its carbon intensity by 25% by 2030 and works towards net zero by 2045. ADNOC is also targeting carbon dioxide (CO2) capture capacity of 10 million tonnes per annum (mtpa) by 2030. During COP28, ADNOC announced the successful start-up of geothermal district cooling in Masdar City, in the first project in the Gulf region to harness geothermal energy.