UAE's Adnoc says it cut 6.2 million tonnes in overall greenhouse gas emissions last year

The emissions intensity of upstream operations is among the lowest in the industry, company says

Adnoc Headquarters in Abu Dhabi. Victor Besa / The National

Adnoc reported a reduction of 6.2 million tonnes of carbon dioxide equivalent in scope 1 (direct) and scope 2 (indirect) emissions last year, as the Abu Dhabi-based energy company takes steps to achieve net zero by 2045.

The reduction included 4.8 million tonnes from using clean grid energy from solar and nuclear power, Adnoc said in its 2023 sustainability report on Friday.

Adnoc's greenhouse gas emissions from its upstream operations totalled 24 million tonnes of carbon dioxide equivalent in 2023, slightly down from 24.1 million tonnes in 2022.

Last year, the GHG intensity of the company’s upstream operations was about 7kg of carbon dioxide equivalent per barrel of oil equivalent, a number Adnoc described as "among the lowest in the industry."

“We accelerated our net-zero ambition to 2045 and have several decarbonisation projects underway to meet our target of reducing our greenhouse gas intensity by 25 per cent by 2030,” said Ibrahim Al Zu’bi, Adnoc’s chief sustainability and ESG officer.

“We are expediting the implementation of our key decarbonization levers, including carbon capture and storage, electrification, reducing methane emissions and energy efficiency to help our customers reduce their carbon emissions,” he added.

Adnoc said it achieved a reduction of about 900 kilotonnes of carbon dioxide equivalent last year through its energy efficiency initiatives.

The company has set a goal to improve its energy efficiency by 5 per cent by 2025, using the year 2018 as a baseline.

Despite efforts to reduce flaring by upgrading vapor recovery systems and improving operations and maintenance, the overall flaring volume in 2023 was 8.6 per cent higher than the previous year due to unexpected outages and operational issues, Adnoc said.

Last year, the UAE government approved Adnoc’s plan to reach net-zero emissions by 2045, bringing the deadline forward from its previous target of 2050.

The company also aims to reach zero methane emissions by 2030.

Adnoc's decarbonisation plan includes a $3.8 billion project to connect its offshore operations to clean grid power, which will reduce its offshore carbon footprint by up to 50 per cent. It also includes the construction of a 1 million tonne-per-annum low-carbon ammonia production facility to help its customers decarbonise.

Earlier in January, Adnoc’s board increased its budget allocation for decarbonisation projects, technology, and lower-carbon solutions to $23 billion, up from the previously earmarked amount of $15 billion.

At the Cop28 climate conference in Dubai last year, 50 oil and gas companies, including Adnoc and Saudi Aramco, signed the Oil and Gas Decarbonisation Charter, which calls for net-zero emissions by 2050 or before.

They are also aiming for “near-zero” upstream methane emissions and zero routine flaring by 2030.

“Adnoc plays a pivotal role in helping the UAE achieve its Net Zero 2050 strategy by leading on the energy transition and decarbonisation of its own operations and other industries in the UAE,” said Amna Al Dahak, UAE Minister of Climate Change and Environment.

The Emirates plans to invest up to Dh200 billion ($54 billion) over the next six years in the renewable energy sector as part of an updated energy strategy.

In November, Abu Dhabi inaugurated the two-gigawatt Al Dhafra solar power plant, one of the world's largest solar projects.

It will power 200,000 homes and is expected to reduce the emirate's carbon dioxide emissions by more than 2.4 million tonnes a year, equivalent to removing about 470,000 cars from the road.