ADNOC Distribution and Abu Dhabi National Energy Company (TAQA) agreed to work together to establish a mobility joint venture, E2GO, to build and operate electric vehicle (EV) infrastructure in Abu Dhabi and the wider UAE.
An agreement to pave the way for creating the joint venture was signed by CEO of ADNOC Distribution Bader Saeed Al Lamki, and Group CEO and MD of TAQA Jasim Husain Thabet and was unveiled during the Abu Dhabi Sustainability Week (ADSW 2023).
Demand for EVs in the UAE market has witnessed a steady rise over the past years and is projected to see a compound annual growth rate (CAGR) of 30% between 2022 and 2028 according to the global electric mobility readiness index published in 2022.
E2GO comes at an opportune time in the development of the UAE’s EV market, with an expected 70,000 charging points considered to be required in Abu Dhabi by 2030 to meet growing EV demand. To support this demand, an investment of up to US$200 million of CAPEX will be needed for this critical infrastructure.
Backed by two Abu Dhabi national energy champions, E2GO aims to become the principal provider of EV charging points and associated infrastructure across the Emirate of Abu Dhabi.
Read: UAE’s ADNOC allocates USD15 bn to fund decarbonization projects
The partnership will include a network of fast chargers at key locations, featuring associated solutions such as parking and tolling services, in addition to related digital platforms to facilitate EV charging, which will enhance customer service and unlock new revenue streams. The project aligns with the UAE’s Net Zero by 2050 objectives by contributing to a reduction in emissions from transport.
The new venture is supported by a new regulatory Policy for Electric Vehicle Charging Infrastructure in Abu Dhabi that the Abu Dhabi Department of Energy recently launched, in a significant step forward to provide the right policy framework to support a circular carbon economy as the UAE advances its plans to achieve the net zero ambition.
Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Chairman of ADNOC Distribution, said, “As electric vehicle adoption grows in the UAE, ADNOC Distribution and TAQA are well placed to meet the evolving needs of EV customers through the creation of the E2GO venture. ADNOC Distribution will continue to capitalize on energy transition opportunities that make commercial sense while remaining a reliable supplier of our customer’s energy needs.”
Eng. Awaidha Murshed Al Marar, Chairman of the Abu Dhabi Department of Energy (DoE), said, “We welcome the ADNOC Distribution – TAQA partnership, an important initiative aimed at supporting EV charging infrastructure development in the emirate. The Abu Dhabi Department of Energy is committed to realizing the UAE’s leadership vision and taking decisive actions to promote all necessary policies, such as sustainable transport, as the critical route to drive the energy transition and achieve the emirate’s decarbonization goals, as part of the UAE’s Net Zero 2050 agenda.”
Falah Al Ahbabi, Chairman of the Department of Municipalities and Transport (DMT), said, “This new partnership aligns with one of the most important priorities of DMT, which is to support the sustainable mobility goals that the Abu Dhabi government seeks to achieve. We aim to provide a sustainable infrastructure that reflects the department’s commitment to implementing our policy to reduce carbon emissions in line with the UAE’s strategic initiative to strive to achieve climate neutrality by 2050.”
Mohamed Hassan Alsuwaidi, Chairman of TAQA, said, “Decarbonising transport is an essential part of the UAE’s drive towards achieving its net zero ambitions. The development of EV infrastructure facilitated by the E2GO joint venture will help bridge the gap in delivering clean energy to the wider public. As a low-carbon power and water champion, we continuously explore unique opportunities to expand our footprint into emerging growth areas, and we believe this partnership marks a major step towards integrating TAQA to a wider customer base, while further strengthening our alignment with the nation’s sustainability agenda.”
ADNOC Distribution has pioneered in providing alternative fuels for many years, and it currently offers Compressed Natural Gas (CNG) fuel in 31 locations across its UAE service stations network, including a dedicated CNG-only service station in Abu Dhabi city.
TAQA is a low-carbon power and water champion and one of the largest integrated utilities companies in the EMEA region with operations across 11 countries. In the UAE, it supplies more than 90% of Abu Dhabi’s power and water needs through its fleet of generation assets as well as owning the transmission and distribution network in the emirate.
The partnership between ADNOC Distribution and TAQA envisages both parties entering into detailed joint venture arrangements as well as the completion of necessary transaction requirements, including obtaining any relevant third-party and regulatory approvals.
The name, E2GO (pronounced E to Go), embodies innovation and harnessing the power of technology to pioneer modern sustainable mobility solutions.
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