【Ferro-alloys.com】Abu Dhabi National Oil Co. and utilities firm Taqa will undertake a $3.6 billion project to reduce the carbon footprint of the national oil producer's offshore operations by more than 30% starting 2025 as the UAE seeks to implement its net zero emissions pledge by 2050.

The project will develop and operate a high voltage direct current subsea transmission system that will power ADNOC's offshore production operations with cleaner energy, delivered through the Abu Dhabi onshore power grid, owned and operated by Taqa's transmission and distribution companies, ADNOC said in a Dec. 22 statement.

The project will be funded through a special purpose vehicle that will be jointly owned by ADNOC and Taqa -- with each company holding a 30% stake -- and a consortium comprised of Korea Electric Power Corp., Japan's Kyushu Electric Power Co. and Électricité de France. Led by KEPCO, the consortium will hold a combined 40% stake in the project on a build, own, operate and transfer basis.

The development "will replace our existing offshore local power supply with cleaner and more sustainable onshore power sources, significantly reducing our carbon footprint while enabling additional cost savings," Yaser Almazrouei, ADNOC upstream executive director, said in the statement.

The UAE, the first country in the Middle East to announce this year plans to reach net zero emissions by 2050, is undertaking various projects to lower its carbon footprint.

Its 2050 pledge will be followed by Saudi Arabia and Bahrain's commitment to do the same by 2060.

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The KEPCO-led consortium will develop and operate the transmission system alongside ADNOC and Taqa, with the full project being returned to ADNOC after 35 years of operation. The project is subject to regulatory approvals.

Construction of the transmission system, which will have a total installed capacity of 3.2 GW, is expected to begin in 2022 with commercial operations starting in 2025. ADNOC selected the consortium following a tender that was issued in April 2020.

"The project also offers the potential for ADNOC to more effectively utilize its rich gas – currently used to power the offshore facilities – for higher-value purposes, allowing ADNOC to generate additional revenue," the statement added.

The project comes on the heels of the announcement of the formation of a global clean energy venture between Taqa, ADNOC and sovereign wealth fund Mubadala Investment Co., targeting a total generating capacity of at least 50 GW of renewable energy by 2030. ADNOC is also partnering with Abu Dhabi-based EWEC from next year to generate up to 100% of its onshore and more than 90% of its offshore production operations' power supply from nuclear and solar energy sources.

• [Editor:zhaozihao]