Abu Dhabi National Oil Company (ADNOC) has announced a significant investment in Storegga, a U.K.-based carbon capture and storage (CCS) project developer. This marks ADNOC’s first international equity investment in carbon management platforms, reinforcing the energy giant’s dedication to low-carbon solutions and decarbonization technologies.
Decarbonization initiative
The acquisition of a 10 percent stake in Storegga is part of ADNOC’s broader initiative which it unveiled last year. ADNOC plans to allocate $15 billion towards low-carbon solutions and decarbonization technologies. For ADNOC, CCS technologies are key investment areas alongside clean power, electrification, and energy efficiency. The company aims to achieve a carbon capture capacity of 10 million tons annually (mtpa) by 2030. It has already announced projects that are pushing its committed investment to almost 4 mtpa.
ADNOC emphasizes the strategic importance of the investment in Storegga, marking it an important milestone for the company’s decarbonization journey. It seeks to work with partners across industries to deliver practical solutions to enable a net zero energy future.
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Carbon ecosystem development
London-based Storegga was founded in 2020 and has rapidly evolved into a key player in the global carbon ecosystem. The company focuses on developing infrastructure for carbon capture, transport, and permanent deep geological storage. Its portfolio includes CCS projects in the U.K., U.S., and Norway. In 2020, Storegga acquired Pale Blue Dot, the lead developer of the Acorn CCS and the Acorn Hydrogen Project in North East Scotland. Those projects are set to store up to 10 million tonnes of CO2 annually by 2030.
According to Storegga, ADNOC’s investment is part of the company’s fourth funding round. Moreover, it will use the proceeds from the investment to deliver ongoing projects and business development activities.
ADNOC’s strategic investment in Storegga signals a pivotal step towards contributing to the achievement of global climate goals. As both entities collaborate to expand carbon capture and storage capabilities, this partnership holds the promise of contributing significantly to the worldwide effort to achieve a net-zero carbon future. With ambitious targets, ADNOC and Storegga exemplify the industry’s commitment to tackling the challenges of climate change head-on.
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