Occidental and ADNOC to Evaluate Carbon Management Projects in the United States and United Arab Emirates to Accelerate Net Zero Goals

Source Press Release
Company ADNOCOccidental Petroleum Corporation 
Tags Corporate Deals, Deals, Carbon Capture (CCS/CCUS)
Date August 01, 2023

Occidental (NYSE: OXY) and ADNOC today announced that they will evaluate investment opportunities in Direct Air Capture (DAC) facilities and carbon dioxide (CO2) sequestration hubs in the United States and the United Arab Emirates (UAE) as a pathway toward the development of carbon management platforms to accelerate the net-zero goals of both companies.

The strategic collaboration between global energy leaders Occidental and ADNOC demonstrates how the companies can work together on the potential deployment of carbon capture, utilization and sequestration technology at scale in the United States and the Middle East and to help hard-to-abate industries achieve their net-zero targets through the purchase of carbon dioxide removal credits alongside emissions reduction programs.

Under the terms of the Memorandum of Understanding (MOU), ADNOC may evaluate participation in DAC plants and CO2 sequestration hubs under development in the United States by Occidental subsidiary, 1PointFive. Occidental and  ADNOC and may also evaluate jointly developing one or more UAE-located CO2 sequestration hubs and consider commencing feasibility and pre-front-end engineering and design studies for a 1 million tonne-per-year DAC plant, which together would provide emissions reduction solutions for carbon-intensive industrial emitters and other hard-to-abate sectors within the UAE, including aviation and maritime operations.

Through the collaboration, the companies will also consider opportunities to incorporate innovative CO2-based technologies into the UAE. This includes technologies in which Occidental has made investments, such as emissions-free power and sustainable fuels.

“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,” said Vicki Hollub, Occidental President and CEO. “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.”

The agreement is enabled by the UAE-U.S. Partnership for Accelerating Clean Energy (PACE), which was launched in November 2022 and is expected to mobilize $100 billion in clean energy and carbon management projects, including CCS and DAC by 2035.

Amos Hochstein, White House Senior Advisor to the President for Energy and Investment said: “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 U.S.- UAE Partnership for Accelerating Clean Energy (PACE) can help enable. I look forward to what this agreement yields.”

In January 2023, an expert body was formed to govern PACE, co-chaired by His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, and Amos Hochstein, White House Senior Advisor to the President for Energy and Investment.

Musabbeh Al Kaabi, Executive Director of Low Carbon Solutions and International Growth at ADNOC said: “This agreement highlights how the UAE-U.S. Partnership for Accelerating Clean Energy is driving innovative climate technologies to decarbonize the energy sector. The need to significantly reduce carbon emissions to address climate change is clear and urgent and carbon capture is an important technology that can be scaled up to decarbonize across all industries.

"ADNOC 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. 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.”

1PointFive is currently constructing what is expected to be the world’s largest DAC plant, named STRATOS, in Texas. The facility, which will use technology provided by Canada-based Carbon Engineering, is designed to capture up to 500,000 tonnes of CO2 from the atmosphere each year when fully operational. The DAC plant being evaluated by the companies in the UAE, if built, would use the same technology and could be the first megaton-scale facility of its kind outside of the United States.

Source: EvaluateEnergy® ©2024 EvaluateEnergy Ltd