Abu Dhabi National Oil Company (ADNOC) recently announced the signing of a $3 billion green financing facility with Japan Bank for International Cooperation (JBIC). This significant development follows a Heads of Agreement (HOA) signed between ADNOC and JBIC earlier this year and serves to further strengthen the existing commercial relations between the UAE and Japan.
The credit facility forms a crucial part of JBIC’s Global action for Reconciling Economic growth and Environmental preservation (GREEN) lending programme, and is being partly supported by Japanese commercial banks. Khaled Al Zaabi, ADNOC Group Chief Financial Officer, emphasized that this initial green funding deal will play a pivotal role in accelerating the company’s decarbonisation and energy transition initiatives.
ADNOC has set ambitious targets, aiming to reduce its carbon intensity by 25% by the year 2030. In line with its commitment, the company is planning to invest a substantial sum of $23 billion (AED84.4 billion) towards decarbonising its operations. This investment will focus on technologies such as hydrogen, geothermal, renewables, and carbon capture, as well as striving for zero methane emissions by 2030 and reaching Net Zero by the year 2045.
In an important milestone, ADNOC has successfully executed the world’s first certified bulk commercial shipment of low-carbon ammonia, made possible by carbon capture and storage (CCS), to Mitsui & Co. The ammonia is intended for use in clean-power generation in Japan and marks a significant step towards sustainable energy solutions. Additionally, a 1 Mtpa low-carbon ammonia plant is currently underway in Al Ruwais Industrial City, geared to meet the rising demand for low-carbon ammonia as a carrier fuel for clean hydrogen. Construction of the facility is scheduled to commence in the third quarter of this year, with operations expected to kick off in 2027.
The collaboration between ADNOC and JBIC through this green financing deal not only underscores a commitment to sustainable practices but also paves the way for innovative solutions in the energy sector. This partnership aligns with global efforts to address climate change and promote environmentally responsible growth.
In conclusion, ADNOC’s collaboration with JBIC in securing this green financing deal serves as a testament to the company’s dedication to environmental preservation and sustainable economic growth. The ambitious goals set by ADNOC, coupled with its proactive approach in investment and innovation, highlight the company’s commitment to leading the charge towards a greener and more sustainable future.