Occidental (NYSE: OXY) has announced that its subsidiary, 1PointFive, and ADNOC have signed an agreement to commence a jointly funded preliminary engineering study for a one million ton per year Direct Air Capture (DAC) facility in the United Arab Emirates.
The study will assess the feasibility of building the first megaton-scale DAC facility outside the U.S. using the same carbon dioxide extraction technology to be deployed in the plant 1PointFive is constructing in Ector County, Texas, Oxy noted in a statement posted on its website.
The Texas facility, named Stratos, is designed to include DAC technology developed by Canada-based Carbon Engineering and is expected to capture up to 500,000 tons of CO2 from the atmosphere each year when fully operational, Oxy highlighted.
If the UAE project is approved, CO2 extracted at the DAC facility is expected to be connected to ADNOC’s CO2 infrastructure in Abu Dhabi for injection and permanent storage into saline reservoirs not used for oil and gas production, Oxy said in the statement.
The joint study agreement for the DAC facility, which was signed at the ADIPEC conference in Abu Dhabi, is the first project announced since the companies signed a deal on August 1 to jointly explore carbon capture, utilization, and storage projects in the U.S. and the UAE, Oxy outlined.
The memorandum of understanding was enabled by the UAE-U.S. Partnership for Accelerating Clean Energy (PACE), which was launched in November 2022 and is expected to mobilize $100 billion in clean energy and carbon management projects, including CCS and DAC by 2035, Oxy noted in its statement.
In a statement posted on its site, ADNOC confirmed the agreement with Oxy to undertake a joint preliminary engineering study for the construction of the megaton-scale DAC. That statement highlighted that the deal represents the first project to reach the technical feasibility stage since the two companies signed a strategic collaboration agreement this year.
ADNOC also pointed out in its statement that it is in the testing phase of the world’s first full sequestered CO2 injection well in a carbonate saline aquifer in Abu Dhabi.
In addition, ADNOC noted in its statement that, as part of its carbon management strategy, the company announced a final investment decision to proceed with “one of the largest carbon capture projects in the Middle East and North Africa (MENA) region at Habshan, with the capacity to capture up to 1.5 million tons per annum for permanent storage in Abu Dhabi’s onshore reservoirs”.
“This strategy aligns with the Intergovernmental Panel on Climate Change’s (IPCC) view that carbon capture and storage is a critical enabler for the world to achieve net zero by mid-century,” ADNOC said in its statement.
“This agreement demonstrates how Oxy and ADNOC are committed to advancing direct air capture technology in the UAE and underscores the necessary urgency needed to deliver global-scale climate solutions,” Vicki Hollub, Oxy President and CEO, said in a company statement.
“We will continue leveraging our carbon management expertise to deliver value, engage committed partners and accelerate our ability to achieve our net-zero targets and help others meet theirs,” Hollub added.
Musabbeh Al Kaabi, the Executive Director for Low Carbon Solutions and International Growth at ADNOC, said, “[this] announcement represents continued positive momentum in our partnership with Occidental to significantly scale up promising carbon management technologies”.
“This joint investment in the proposed first megaton direct air capture facility in the region exemplifies ADNOC’s commitment to leverage partnerships and promising technology to accelerate our decarbonization journey on the way to net zero by 2045,” Al Kaabi added.
Oxy-ADNOC DAC Collaboration
Back in August, Oxy announced that it and ADNOC will evaluate investment opportunities in DAC facilities and carbon dioxide sequestration hubs in the U.S. and the UAE as a pathway toward the development of carbon management platforms to accelerate the net-zero goals of both companies.
The strategic collaboration between Oxy and ADNOC demonstrates how the companies can work together on the potential deployment of carbon capture, utilization, and sequestration technology at scale in the U.S. and the Middle East and to help hard-to-abate industries achieve their net-zero targets through the purchase of carbon dioxide removal credits alongside emissions reduction programs, Oxy said in a statement posted on its site at the time.
In that statement, Oxy highlighted that, under the terms of a memorandum of understanding, ADNOC may evaluate participation in DAC plants and CO2 sequestration hubs under development in the U.S. by Occidental subsidiary 1PointFive. Oxy and ADNOC may also evaluate jointly developing one or more UAE-located CO2 sequestration hubs and consider commencing feasibility and pre-front-end engineering and design studies for a one million ton per year DAC plant, which together would provide emissions reduction solutions for carbon-intensive industrial emitters and other hard-to-abate sectors within the UAE, including aviation and maritime operations, Oxy added in that statement.
“We look forward to building on our longstanding partnership with ADNOC as we advance our plans to globally deploy DAC technology and engage partners who are committed to developing carbon solutions at climate-relevant scale,” Hollub said in a company statement back in August.
“Partnerships like this one are essential to helping the world reach its climate goals and ensure it has the resources it needs to thrive through the energy transition. We look forward to working with ADNOC on our shared vision of establishing a global net-zero ecosystem,” Hollub added.
In a statement posted on its site in August on the strategic collaboration agreement with Oxy, Al Kaabi, said, “this agreement highlights how the UAE-U.S. Partnership for Accelerating Clean Energy is driving innovative climate technologies to decarbonize the energy sector”.
“The need to significantly reduce carbon emissions to address climate change is clear and urgent and carbon capture is an important technology that can be scaled up to decarbonize across all industries,” Al Kaabi added.
“ADNOC’s is a pioneer in carbon management, exemplified by our industry leading low-carbon intensity and our operation of Al Reyadah, the region’s first commercial scale carbon capture facility. As we accelerate our net zero ambition to 2045 and decarbonizes operations, partnerships like this offer the potential to transform the systems that will be vital to provide the lower-carbon energy the world needs for the energy transition,” Al Kaabi continued.
A fact sheet published on the White House website on November 1, 2022, announced that the U.S. and the UAE signed a “major new clean energy framework” in Abu Dhabi.
“Today President Biden again demonstrated his deep commitment to ensuring a global clean energy future and long-term energy security as the United States and United Arab Emirates announced a robust partnership to ensure the swift and smooth transition toward clean energy and away from unabated fossil fuels,” the fact sheet noted.
“The U.S.-UAE Partnership for Accelerating Clean Energy (PACE) is set to catalyze $100 billion in financing, investment, and other support and to deploy globally 100 gigawatts of clean energy by 2035 to advance the energy transition and maximize climate benefits,” it added.
“PACE’s ambitious plan is built upon four pillars: 1) Clean Energy Innovation, Deployment and Supply Chains, 2) Carbon and Methane Management, 3) Nuclear Energy, and 4) Industrial and Transport Decarbonization,” it went on to state.
The fact sheet outlined that the U.S. and the UAE would set up an expert group to identify priority projects, remove potential hurdles, and measure PACE’s progress in achieving its goal of catalyzing $100 billion in financing, investment, and other support and deploying globally 100 gigawatts of clean energy.
In a statement on PACE posted on the White House site on the same day, White House Press Secretary Karine Jean-Pierre said, “today the United States joined with the United Arab Emirates in taking a bold step toward the resilient, affordable clean energy future the world needs”.
“Our new Partnership for Accelerating Clean Energy (PACE) will catalyze $100 billion in clean energy financing in both countries, as well as robust commercial investment and other support for the emerging economies whose clean development is both underfunded and essential to the global climate effort,” Jean-Pierre added.
“The president thanks His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, for his leadership in advancing this initiative and for hosting COP28 in 2023. The president appreciates the hard work by both countries to negotiate this important framework,” the Press Secretary continued.
“This is just the latest demonstration of the deep strategic relationship our countries share, and of the broader U.S. commitment to promoting economic prosperity, security, and stability in the Middle East region,” Jean-Pierre went on to state.
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