Posted on December 13, 2023
Abu Dhabi National Oil Co. (Adnoc) and Mitsubishi Heavy Industries, Ltd. (MHI) have signed a strategic collaboration agreement targeting low carbon energy supply chains and the advancement of carbon neutral solutions across the energy sector.
The agreement builds on the longstanding strategic energy relationship between the United Arab Emirates (UAE) and Japan. Adnoc and MHI aim to create synergies in accelerating the development of the hydrogen and ammonia businesses, as well as carrying out initiatives to support net zero emission efforts globally, the two companies said in separate news releases Friday. They will also explore the deployment of carbon management technologies.
“By matching Mitsubishi Heavy Industries’ related technologies with our assets, we will not only assess opportunities to develop the important hydrogen and ammonia value chains but also explore synergies that have the potential to benefit Adnoc and the broader new energies ecosystem”, Adnoc Executive Director for Low Carbon Solutions and International Growth Musabbeh Al Kaabi said. “Our combined expertise and commitment to advancing carbon neutral technologies offers great potential to help accelerate Adnoc’s journey to net zero by 2045”.
“It is a great honor to collaborate with a leading company in decarbonizing hard-to-abate industry sectors, and in developing a low carbon fuel value chain globally. We are looking forward to contributing to Adnoc’s net zero ambition through our reliable technology in the coming projects under this agreement”, said MHI Senior Executive Vice President Hitoshi Kaguchi, who is responsible for energy transition and the expansion of growth fields for the company.
MHI will act as a technology solution provider to support the decarbonization of oil and gas production sites owned by Adnoc, as well as the development of businesses to produce blue hydrogen and blue ammonia “while creating demand for these resources the world over”, MHI said in its release.
Adnoc has been partnering with a number of companies on clean energy initiatives in the past months, saying that it has “expanded its strategic energy partnerships across the hydrogen value chain and has shipped several demonstration cargoes of low-carbon ammonia to customers in Asia and Germany”.
Last week, Adnoc and the State Oil Company of Azerbaijan Republic (SOCAR) signed an agreement to collaborate on the potential development of low carbon energy technologies. The two companies plan to explore opportunities to work together to advance blue hydrogen, carbon management, and geothermal technologies that can accelerate the decarbonization of energy systems in the UAE, Azerbaijan and other key markets. According to an earlier news release, the agreement builds on the strategic bilateral energy cooperation between the UAE and Azerbaijan, including the 30 percent stake held by Adnoc in the Absheron gas and condensate field in the Azerbaijan sector of the Caspian Sea.
In November, Adnoc and Australia’s Santos Ltd agreed to work together to develop a joint global carbon management platform supporting the decarbonization journey of customers in the Asia-Pacific. The two companies entered into a strategic collaboration agreement to advance carbon capture and storage (CCS) technologies that are necessary to accelerate the decarbonization of industry, they said in separate statements. They also aim to explore the development of a carbon dioxide shipping and transportation infrastructure network to enable heavy-emitting sectors to capture, ship and permanently store the greenhouse gas.
In October, Occidental subsidiary 1PointFive and Adnoc signed an agreement to begin a jointly funded preliminary engineering study for a one-million-ton-per-year direct air capture (DAC) facility in the UAE. The study assesses the feasibility of building the first megaton-scale DAC facility outside the USA using the same carbon dioxide extraction technology to be deployed in the plant 1PointFive is constructing in Ector County, Texas.