Abu Dhabi National Oil Company (ADNOC) has recently concluded a significant agreement with the Japan Bank for International Cooperation (JBIC) for a $3 billion green financing facility. This initiative aims to strengthen the company’s efforts in decarbonization and energy transition.
The credit facility, under the terms of the agreement, is part of JBIC’s GREEN (Global action for Reconciling Economic growth and ENvironmental preservation) lending program and is supported by Japanese commercial banks. It is important to note that this development follows a heads of agreement (HOA) signed between ADNOC and JBIC in January 2024, highlighting the strength of their longstanding partnership.
Khaled Al Zaabi, ADNOC Group’s Chief Financial Officer, expressed his satisfaction in once again collaborating with JBIC, affirming the pivotal role of the green funding in expediting the company’s decarbonization and energy transition initiatives. He further stated, “Proceeds of this credit facility will enable ADNOC’s strategy to support a just, orderly and equitable global energy transition.”
Emphasizing the broader significance of the deal, Al Zaabi underscored that the agreement signifies a significant stride in the enduring strategic energy relationship between the UAE and Japan. He also expressed the company’s anticipation for continued collaboration with JBIC as ADNOC pursues its ambitious growth strategy.
It is noteworthy that ADNOC has set a target to reduce its carbon intensity by 25% by 2030, coupled with a substantial investment of $23 billion towards decarbonizing its operations and propelling the expansion of future energies such as hydrogen, geothermal, renewables, and carbon capture technologies. Moreover, ADNOC has articulated its ambitious goal of achieving net zero by 2045 and eliminating methane emissions by 2030.
In a related development, ADNOC-owned TA’ZIZ, Fertiglobe, a strategic partnership between ADNOC and OCI Company, Japan’s Mitsui & Co. and South Korea’s GS Energy Corporation, have laid the groundwork to commence construction of a low-carbon ammonia production facility in Al Ruwais, Abu Dhabi, United Arab Emirates (UAE) in June 2024. Notably, Mitsui has also sealed a loan agreement with JBIC to finance the project’s development.
These recent milestones signify ADNOC’s unwavering commitment towards sustainability and present a testament to the company’s proactive approach in aligning with the global agenda of transitioning towards a low-carbon future. The collaboration with JBIC not only fortifies the ties between the UAE and Japan but also underscores the shared vision for a greener and more sustainable energy landscape.