Abu Dhabi National Oil Company (ADNOC) and Masdar today unveiled “Al Reyadah” –the Middle East’s first specialized company focused on exploring and developing commercial-scale projects for carbon capture, usage and sequestration (CCUS).
The name and logo of the joint venture – which means ‘leadership’ in Arabic – was revealed at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) by H. E. Abdulla Nasser Al Suwaidi, Director General of ADNOC, Yasir Al-Mazrouei, ADNOC's Deputy Director, Exploration and Production, and Dr. Ahmad Belhoul, CEO of Masdar, Abu Dhabi’s renewable energy company. Al Reyadah is 51 percent owned by ADNOC and 49 percent by Masdar.
Construction of Al Reyadah’s first CCUS project is underway adjacent to the Emirates Steel Industries (ESI) plant in Mussafah. The AED 450 millionfacilityprevents the emission of 800,000 tonnesof CO2 annually and is on target for completion by the second quarter of 2016. The CO2 captured will betransferred via a pipeline and injected into ADNOC oil fields for an Enhanced Oil Recovery (EOR) operation.
The Al Reyadah CCUS project has three core components. First, CO2 will be captured onsite at ESI, the UAE’s largest steelmaker. Then, it will be compressed and transported along a45-km pipeline to oil fields operated by ADNOC, where it will be used to enhance oil recovery and ultimately be stored underground.
H.E. Al Suwaidi said: “As a responsible hydrocarbon producer, ADNOC has always been a leader in applying cutting edge technologies in its fields. Al Reyadah not only sequesters carbon dioxide but also enhances our oil and gas production. CO2 EOR offers a real-world solution with tangible economic and environmental benefits.”
In 2009, ADNOC became the first national oil company in the Middle East to pilot CO2 injection, in collaboration with Masdar.
The UAE has traditionally used hydrocarbon gases in some of the Abu Dhabi fields to enhance oil production. However, with the country’sincreasing energy demand, the Al ReyadahCO2 project is expected toallow the UAE to use natural gas for domestic electricity generationandindustrial requirements.
“Masdar is committed to advancing clean technology solutions,” said Dr. Belhoul. “Al Reyadah has the potential to transform the hydrocarbon sector by both reducing the carbon footprint and enhancing oil recovery. Our partnership with ADNOC is an important step to forge economic opportunities and share our expertise within the region.”
Al Reyadah is the first phase of building an industrial-scale CCUS network planned as part of Abu Dhabi’s commitment to reduce the carbon footprint of the economy and create a low-carbon power generation industry.