ADNOC plans $23 billion low-carbon initiative amidst international expansion

(Bloomberg) – The United Arab Emirates will boost spending by more than 50% on energy projects that limit or mitigate carbon dioxide emissions as Abu Dhabi’s government-owned oil producer targets international expansion.

Abu Dhabi National Oil Co. will spend $23 billion on low-carbon projects, the company said in a statement. That’s an increase from the previous budget of $15 billion that ADNOC pledged for such investments through 2030 when it first announced the plan a year ago. The firm didn’t specify the time period for the upgraded investment or give additional specifics on the type of new projects it will target.

ADNOC is developing projects that will capture carbon emissions at its natural gas processing plants and is working to develop a trading desk for credits that can offset emissions.

The UAE, which hosted the UN’s annual climate summit in Dubai last month, is working to produce and market its oil and natural gas before the world moves away from hydrocarbon use. ADNOC and other energy producers pitch gas as a cleaner-burning fuel that can replace dirtier sources like coal in growing economies. ADNOC is spending $150 billion over five years to expand hydrocarbon production capacity and to bolster its global presence by building up international gas and chemicals businesses.

ADNOC is “prioritizing transformational growth, partnerships, and international opportunities,” Chief Executive Officer Sultan Al Jaber said in the statement. It’s pursuing deals, including the merger of two of its chemical holdings into a $30 billion producer as well as buying international gas assets.