UAE energy company Adnoc has reached FID on the Habshan CCUS project, one of the largest of its type in the MENA region, as part of its $15b decarbonisation investment programme.
At full scale, the project will have an underground storage capacity of 1.5mt/yr. This represents a tripling of Adnoc’s total storage capacity to 2.3mt/yr.
Habshan could provide for enhanced oil recovery as well as the production of low-carbon feedstocks, including hydrogen.
“The Intergovernmental Panel on Climate Change has stated that carbon capture and storage is a critical enabler for the world to achieve net zero by mid-century,” said Musabbeh al-Kaabi, Adnoc’s executive director of low-carbon solutions and international growth. “This landmark project is one of many tangible initiatives that Adnoc is delivering as we accelerate our decarbonisation plan to meet our net zero by 2045 ambition.”
The project will include carbon capture units at the Habshan gas processing plant, pipeline infrastructure, and a network of wells for CO₂ injection. Storage will be in reservoirs deep in the subsurface and will use closed-loop CO₂ capture and reinjection technology.
Adnoc is expanding its carbon management portfolio on several fronts. It recently signed a strategic collaboration agreement with US energy firm Occidental to evaluate potential investment opportunities in CCS hubs and in direct air capture (DAC) projects in both countries.
As part of the agreement, the two companies are evaluating the development of DAC facilities in the UAE, including what could be the first megaton project constructed outside of the US.
They will also assess the joint development of one or more carbon management hubs in the UAE, while Adnoc will explore participation in DAC and CO₂ sequestration hubs in the US that are under development by Occidental’s subsidiary, 1PointFive, including the Stratos DAC project in Texas.