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The Abu Dhabi National Oil Company (ADNOC) has signed a clean energy partnership with the Emirates Water and Electricity Company (EWEC), which will see up to 100 percent of the oil giant's grid power supplied by EWEC’s nuclear and solar energy projects.
The strategic partnership will make ADNOC the first major oil and gas company to decarbonise its power at scale through a clean power agreement and strengthening the company’s position as one of the world’s least carbon-intensive oil and gas producers, the company said in a statement.
EWEC is expected to benefit from long-term electricity offtake for its current and future renewable and clean power sources, enabling continued investment in transformative innovations to decarbonise the energy sector, the statement said.
Commenting on the agreement, Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, said: “The Clean Energy Partnership between ADNOC and EWEC brings together two major UAE entities to unlock mutual value as they harness the nation’s energy resources to drive economic progress, in support of the UAE’s Principles of the 50."
Sheikh Khaled is the member of the Abu Dhabi Executive Council, Chairman of the Abu Dhabi Executive Office and Chairman of the Executive Committee of ADNOC’s Board of Directors.
"This pioneering partnership highlights ADNOC’s vital role in investing in transformative innovations, advancing decarbonisation efforts, and supporting the diversification of the UAE's energy portfolio. It also marks a major moment in the activation of a strategic, long-term plan to further decarbonise ADNOC’s operations sustainably," he added.
“This landmark clean energy partnership with EWEC, will make ADNOC the first major oil and gas company to decarbonise its power at scale through a clean power partnership of this kind. It also directly supports our goal to remain one of the lowest carbon intensity operators in the oil and gas industry," Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, said.
The clean energy partnership reinforces ADNOC’s role as a leading global supplier of lower carbon oil and gas products. "Murban, ADNOC’s flagship crude grade, already has a carbon intensity that is less than half the industry average, a figure that will be further improved as a result of this agreement," the statement said.
Mohamed Hassan Alsuwaidi, Chief Executive Officer of ADQ and Chairman of Emirates Water and Electricity Company, said: "Through this agreement, we are providing a platform that will advance ADNOC’s clean energy goals and enable EWEC’s continued investment in new renewable and clean energy projects to advance the diversification of Abu Dhabi’s energy mix."
As part of the partnership, the clean energy supplied to ADNOC will be validated via I-REC Clean Energy Certificates registered by EWEC.
(Writing by Seban Scaria ; editing by Anoop Menon)
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© ZAWYA 2021
