Abu Dhabi, UAE, January 18, 2012: The two organisations have made sufficient progress on the commercial principles and have now commenced drafting Head of Terms (HoT) to govern future detailed delivery agreements.
The carbon capture facility is part of the collaboration between Masdar and ADNOC to explore feasibility of joint projects to reduce the carbon footprint of the emirate and make available CO2 for potential enhanced oil recovery (EOR) operations in the future.
The Emirates Steel project, the first in an ambitious long-term CCUS program, is the result of concerted efforts from both the organizations in laying the ground for kick-starting and taking the carbon capture initiative forward in Abu Dhabi. A CO2 injection pilot project on enhanced oil recovery (EOR) at an onshore field completed two years last November and the wealth of data collected over the period has encouraged the two partners to go ahead with the Emirates Steel project.
Bader Al Lamki, Director, Masdar Carbon, said: “We are excited with the progress achieved so far. Masdar and ADNOC have worked diligently to set the right foundation to begin work on the first CSS project. The close collaboration between Masdar Carbon and ADNOC will ensure steady progress and the project will take us another step closer to implementing measures for the reduction of carbon emissions and contributing to Abu Dhabi’s clean energy initiatives. It will also decisively affirm our global status as a major developer of carbon abatement projects and technologies.”
In the next stage, Masdar intends to issue requests for proposal (RFP) for the carbon capture usage and storage facility that will capture nearly 800,000 tonnes per annum CO2-rich stream, prior to emission from the Emirates Steel Phase 1 and Phase 2 lines.
The CO2 feed stream from the Emirates Steel plant, containing 90% CO2, will be transferred to a common compression and dehydration facility at the project site in Mussafah. The feed stream will be compressed into dense phase; delivering a CO2 stream of over 98% purity, through 50km of the pipeline network, to be injected in an onshore field, operated by Abu Dhabi Company for Onshore Oil Operations (ADCO).
Mohamed Butti Al Qubaisi, E&P Director, ADNOC, said: “We are equally excited to be working on this key initiative and maintaining regional leadership in CO2piloting for enhanced oil recovery. This carbon capture usage and storage project, can have upside potential and bring additional benefits to the emirate of Abu Dhabi in the long term, if the CO2 pilot proves to be successful as an EOR mechanism. We are keen to move ahead to better realize the mechanisms of CO2 injection and production in our fields.”
Ahmed Al Dhaheri, Vice President of Projects from Emirates Steel, said: “The Mussafah facility is part of Emirates Steel’s partnership with Masdar, the emirate's clean-energy company, to become the first major global steel producer to produce steel with lower carbon footprint through capturing carbon dioxide on a mass scale. We believe this venture with Masdar Carbon makes us a partner in supporting Abu Dhabi’s clean energy drive.”
Successful carbon capture projects are anticipated to have a positive long-term economic impact on Abu Dhabi including economic growth, job creation and the development and export of CCS-related technology know-how.
Mandated to drive clean fossil fuel energy and energy efficiency at an industrial level and monetize emission reductions, Masdar Carbon provides technical assistance, project management, carbon finance and emissions trading expertise to asset owners primarily in the oil and gas and power sectors in the Middle East, Africa and Asia. It also aims to remain a frontrunner in developing global advancements in technology, value chain applications, policy and deployment strategies for clean energy and CCS.