Adnoc has taken a 10.1 per cent equity stake in Storegga to become a lead investor in the UK-based company that focuses on the development of global carbon capture and storage (CCS) projects.

The strategic transaction represents Adnoc’s first international equity investment in carbon management and supports the company’s strategy to leverage carbon management partnerships and technology to advance global carbon capture and storage projects that can accelerate decarbonisation.

The investment is enabled by Adnoc’s initial allocation of $15 billion (AED55 billion) to low-carbon solutions and decarbonisation technologies.

Adnoc is targeting a carbon capture capacity of 10 million tonnes per annum (mtpa) by 2030, equivalent to taking over 2 million internal combustion vehicles off the road.

Musabbeh Al Kaabi, Adnoc Executive Director for Low Carbon Solutions and International Growth, said: "This strategic investment marks an important milestone in Adnoc’s decarbonisation journey and highlights our commitment to work with partners across industries to deliver practical solutions to enable a net zero energy future. Carbon capture is an important tool to responsibly reduce carbon emissions and meet global climate goals and Adnoc will continue to scale-up this technology as we work towards net zero by 2045."

Adnoc’s carbon management 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.

Nick Cooper, CEO, Storegga, said, "Strategic collaborations are crucial for a pragmatic, prompt and affordable transition to a low-carbon future. Storegga is therefore ready to stand alongside traditional energy suppliers to accelerate decarbonisation by deploying cost-effective CCS globally.

"Over the past three years we have transformed from a single-project developer in Scotland to an international force driving global decarbonisation efforts. We are excited to now see Adnoc join our shareholder group. Storegga is fortunate to be backed by investors with the necessary vision and ambition for the rapid deployment of CCS and carbon removal technologies that are imperative for meeting the global net zero objectives."