Utilities Middle East

TAQA, ADNOC announce $3.6bn sub-sea power transmissi­on project

First-of-its-kind sub-sea transmissi­on network in the MENA region to connect ADNOC’s offshore operations to TAQA’s clean onshore power network, unlocking cost-savings and environmen­tal benefits alike

- Www.utilities-me.com

Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company PJSC (TAQA) announced a $3.6bn strategic project to significan­tly decarboniz­e ADNOC’s offshore production operations, further strengthen­ing ADNOC and TAQA’s position in driving and leading sustainabi­lity efforts and supporting the United Arab Emirates (UAE) ‘Net-Zero by 2050 Strategic Initiative’.

The innovative project will see the developmen­t and operation of a first-of-its-kind high-voltage, direct current (HVDC-VSC) subsea transmissi­on system in the Middle East and North Africa (MENA) region. It will power ADNOC’s offshore production operations with cleaner and more efficient energy, delivered through the Abu Dhabi onshore power grid, owned and operated by TAQA’s transmissi­on and distributi­on companies.

The project will be funded through a special purpose vehicle (SPV) – a dedicated company that will be jointly owned by ADNOC and TAQA (30% stake each), and a consortium comprised of Korea Electric Power Corporatio­n (KEPCO), Japan’s Kyushu Electric Power Co. and Électricit­é de France (EDF). Led by KEPCO, the consortium will hold a combined 40% stake in the project on a build, own, operate and transfer basis.

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

The developmen­t is expected to reduce the carbon footprint of ADNOC’s offshore operations by more than 30%, replacing existing offshore gas turbine generators with more sustainabl­e power sources available on the Abu Dhabi onshore power network.

This progressiv­e and collaborat­ive approach will also drive operationa­l efficienci­es and improve system reliabilit­y of energy supply, while offering the potential for power supply cost optimizati­on.

“ADNOC is delighted to be collaborat­ing again with TAQA, as we jointly welcome worldclass industry leaders in yet another landmark transactio­n that will see ADNOC make a significan­t step forward in our ongoing decarboniz­ation journey,” said Yaser Saeed Almazrouei, ADNOC Upstream Executive Director.

“As ADNOC embraces the energy transition, this bold and progressiv­e project 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. This first-of-itskind project is a further example of how ADNOC is advancing practical and commercial­ly viable solutions to secure a lower carbon future, while driving significan­t foreign direct investment, and, in turn, cementing Abu Dhabi and the UAE’s position as a trusted global investment destinatio­n.”

More than 50% of the project value will flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) program, underpinni­ng ADNOC and TAQA’s commitment to driving responsibl­e and sustained investment and value creation for Abu Dhabi and the UAE.

Jasim Husain Thabet, TAQA’s Group CEO and Managing Director, said: “As the recognized low carbon power and water champion of Abu Dhabi and one of the top 5 utilities in EMEA by market value, TAQA is pleased to again partner with ADNOC on such an important project that will contribute to the decarboniz­ation of Abu Dhabi’s energy industry in such an impactful way. This first-ofits-kind project shows how the UAE continues to demonstrat­e its strong leadership and innovation in the global energy transition by bringing together critical players to boost sustainabi­lity credential­s and maximizing the utilizatio­n of Abu Dhabi’s diverse and efficient energy mix. Decarboniz­ation continues to provide social and economic opportunit­ies for collaborat­ion and growth, which TAQA is actively pursuing through its strategic alliances and partnershi­ps in the market.”

Seung-il Cheong, President and CEO of KEPCO, said: “It is truly an honour to participat­e in this strategic project with ADNOC. As the Barakah Nuclear Power Project has become a token of long friendship and cooperatio­n between the UAE and Korea, KEPCO will strive for the successful completion of this Project and contribute to the ‘2050 Net-Zero Initiative’ of the UAE.”

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