“ADNOC” and “TAQA” announce the completion of the financing of a project to establish an undersea electricity transmission network
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The Abu Dhabi National Oil Company “ADNOC” and the Abu Dhabi National Energy Company “TAQA” announced today the completion of the financing of their strategic project, which aims to supply the production operations of “ADNOC” offshore fields with an environmentally friendly energy that contributes to reducing carbon emissions, at a cost of 14 billion dirhams / 3.8 billion dollars. American/.
The innovative project, which is the first of its kind in the Middle East and North Africa region, aims to develop and operate a high-voltage direct electric current transmission system under the sea to supply ADNOC’s offshore production operations with more efficient and environmentally friendly energy by linking it to Abu Dhabi’s onshore electricity network. for the energy company.
The project, which is being jointly developed by ADNOC and TAQA and a consortium of the Korean Electric Power Company (KEPCO), Japan’s Kyushu Electric Power Company, and the French Electricity Company (EDF), has seen rapid progress from planning to To the development stage and the start of construction work in early 2022, which confirms the leading role of ADNOC and TAQA in driving climate action and supporting the UAE’s strategic initiative to achieve climate neutrality by 2050.
The consortium will construct, own, transfer and operate the advanced electricity transmission network in partnership with ADNOC and TAQA, with the entire project returning to ADNOC after 35 years of operation.
On this occasion, His Excellency Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and CEO of the Abu Dhabi National Oil Company “ADNOC” and its group of companies, the UAE’s Special Envoy for Climate Change, said: “In line with the vision and directives of the wise leadership, ADNOC has established itself in a position A pioneer in the application of innovative and cost-effective solutions to clean energy technology and reduce carbon emissions. The completion of the financing of this strategic project underscores ADNOC’s ability to structure and complete innovative and flexible deals that contribute to ensuring a low-carbon future, as part of our ongoing efforts to reduce emissions in the field of operations. This innovative project contributes to advancing the value creation efforts of the Emirate of Abu Dhabi in a responsible and sustainable manner, and establishes the UAE’s position as an attractive and reliable destination for global capital investments.”
He added, “As a responsible and reliable provider of low carbon energy supplies, ADNOC continues to work with its partners to develop practical and commercially viable solutions that reduce carbon emissions.”
The project is expected to contribute to reducing the carbon emissions of ADNOC’s marine operations by more than 30% by replacing the existing electricity generators, which depend on gas turbines, with more sustainable sources through the Abu Dhabi onshore electricity network operated by the wholly owned subsidiary of the Abu Dhabi Transmission and Control Company (TRANSCO). for the energy company.
For his part, His Excellency Mohammed Hassan Al Suwaidi, Chairman of the Board of Directors of Abu Dhabi National Energy Company “TAQA”, said: “TAQA plays a vital and effective role in accelerating the transformation of the energy sector in the UAE by providing an integrated portfolio of solutions that provide clean sources of energy to support Economic Development The completion of the financial closure is a significant milestone in this unique project in which TAQA will provide ADNOC’s offshore facilities with safe and efficient low-carbon energy supplies through TRANSCO’s transmission grid system. Benefiting from its extensive experience in decarbonizing the energy sector, by building strategic partnerships and adding value to stakeholders.” It is worth noting that more than 50% of the total value of the project will be redirected to the local economy through the “ADNOC” program to enhance the local added value, which has achieved great success. This strategic project is a model for the world’s leading companies to invest in the UAE, which confirms ADNOC’s position and pivotal role in driving responsible and sustainable investment in the field of energy, and the efforts to create value for the country.