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As countries and companies are pledging to net zero by 2050, carbon capture, utilization, and storage (CCUS) offers solutions for many sectors, such as aviation, energy and construction from fossil fuels. The global CCUS market is projected to reach $7.0 billion by 2030.
Recently, UAE’s ADNOC and American company Occidental signed an agreement to evaluate potential investment opportunities in the UAE and the US carbon capture and storage (CCS) hubs.
The collaboration aims at developing a carbon management platform to accelerate the net zero goals of both companies, particularly ADNOC’s plan to achieve net zero emissions by 2045.
This step is enabled by the UAE and the US’ Partnership for Accelerating Clean Energy (PACE), launched in 2022 and expected to catalyze $100 billion in carbon management and clean energy projects, including CCS and direct air capture (DAC), by 2035.
As part of the agreement, ADNOC and Occidental are exploring the possibility of building direct air capture (DAC) facilities in the UAE, including one that could be the first megaton DAC project outside the US.
The companies will also assess the possibility of jointly developing carbon management hubs in the UAE to provide carbon capture services and the necessary infrastructure to safely transport and store CO2 in Abu Dhabi’s ideal geological formations.
An expert body was formed for PACE in January 2023. The group is co-chaired by HE Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, and Amos Hochstein, White House Senior Advisor to the President for Energy and Investment.
“The world is going to need a host of technologies, including DAC and CCUS, to meet our global climate objectives. This important announcement is a great example of what the U.S.-UAE Partnership for Accelerating Clean Energy (PACE) can help enable. I look forward to what this agreement yields,” Hochstein said.
Vicki Hollub, President and Chief Executive Officer at Occidental, said Partnerships like this are essential to helping the world reach its climate goals and ensure it has the resources it needs to thrive through the energy transition.