ADNOC invests in UK carbon capture firm Storegga

The Abu Dhabi National Oil Company (ADNOC) has acquired a 10.1% stake in London, UK-based Storegga, a developer of global carbon capture and storage projects, during the company’s fourth round of funding.

The USD15 billion allocation enabling the deal supports ADNOC’s plans to scale up carbon capture technology to cut emissions. By 2030, the company aims for 10 million metric tons per year capacity – equal to more than 2 million fewer gasoline-powered cars.

Storegga focuses on cost-effective industrial carbon capture projects to accelerate the transition to net zero. ADNOC’s investment reportedly marks its first international equity purchase into the carbon management space.

In a statement, ADNOC Executive Director for Low Carbon Solutions And International Growth Musabbeh Al Kaabi called the deal “an important milestone in ADNOC’s decarbonisation journey.”

Al Kaabi added that carbon capture is a “critical enabler” for achieving global climate goals, aligning with the Intergovernmental Panel on Climate Change (IPCC) guidance on reaching net zero emissions by mid-century.

Besides stakes in U.K. and Norwegian CCS projects, Storegga is developing Gulf Coast offerings via its Harvest Bend proposal in Louisiana.

Storegga CEO Nick Cooper said teaming with traditional energy players can enable “pragmatic, prompt and affordable” emissions cuts industry-wide. ADNOC joins the company’s roster of shareholders prioritising rapid carbon capture and removal deployment.

ADNOC currently runs the Al Reyadah plant, capturing up to 800,000 metric tons yearly of carbon dioxide from Emirati steel facilities. Its slate of committed investments is expected to finance almost 4 million metric tons of annual capacity.

The announcement comes on the heels of ADNOC signing the Oil and Gas Decarbonisation Charter with around 50 industry peers during November’s COP28 climate summit in Dubai, United Arab Emirates.