Abu Dhabi energy giants plan 30 GW of renewable energy
17 November 2021
Agreement announced at ADIPEC
Two of Abu Dhabi’s energy giants plan to create a clean energy powerhouse, with a total generating capacity of at least 30 GW of renewable energy by 2030.
The pact between Abu Dhabi National Oil Co. (ADNOC) and Abu Dhabi National Energy Co. PJSC (TAQA) will position Abu Dhabi and the United Arab Emirates (UAE) at the forefront of the energy transition and further advance its global leadership role in green hydrogen, the companies said. The new strategic partnership will focus on domestic and international renewable energy and waste-to-energy projects as well as the production, processing and storage of green hydrogen and ancillary activities. The new partnership will leverage ADNOC’s energy and hydrogen capabilities and TAQA’s renewables expertise, with aspirations for significant local and international growth.
The agreement was signed in the presence of H.H. Sheikh Khaled bin Mohamed bin Zayed, by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, and His Excellency Mohamed Hassan Alsuwaidi, Chairman of TAQA at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).
“Today’s strategic partnership between two Abu Dhabi energy giants future-proofs ADNOC’s business model, creating compelling business and commercial opportunities, as we fully embrace the energy transition,” said H.E. Dr. Al Jaber. “This innovative and collaborative venture is a bold new initiative, as it combines both companies’ respective areas of expertise and paves the way for our viable entry into the clean energy space. This platform will enable ADNOC to capitalize on the many renewable energy and hydrogen opportunities, both locally and globally. Building on ADNOC’s highly successful partnership and growth model, we invite other partners to join this promising new venture on its exciting journey.”
The clean energy partnership brings ADNOC and TAQA’s green hydrogen development projects together by combining TAQA’s expertise in the development and optimization of renewable power, in particular low-cost solar power and ADNOC’s ongoing efforts to create domestic and international hydrogen value chains.
“TAQA has set out to become a champion for low carbon power and water and is already a world leader in solar power,” said H.E. Mohamed Hassan Alsuwaidi. “This partnership between TAQA and ADNOC will be a powerful catalyst to unlock significant potential for accelerating the green hydrogen market and rapidly expanding renewable energy. TAQA is supporting Abu Dhabi’s aim to be a green hydrogen hub using our expertise in low-cost solar PV and desalinated water: two critical elements for green hydrogen.”
The UAE offers several strategic advantages that provide a robust platform to enable this partnership, including being home to some of the largest and lowest-cost solar plants in the world. This partnership will also benefit from the availability of low-cost renewable energy in the UAE and the country’s proximity to significant future demand centers for hydrogen and its carrier fuels.
In October, H.H. Sheikh Khaled bin Mohamed bin Zayed launched a new clean energy partnership between ADNOC and Emirates Water and Electricity Company (EWEC), which will see up to 100% of the ADNOC’s grid power supplied by EWEC’s nuclear and solar clean energy sources.
The partnership between ADNOC and TAQA envisages both parties entering into detailed joint venture arrangements as well as the completion of necessary transaction requirements, including obtaining relevant third-party and regulatory approvals.
Moelis & Company is acting as exclusive financial advisor to ADNOC, with Citi acting as exclusive financial advisor to TAQA.