Abu Dhabi National Oil Company (ADNOC) has acquired a 10.1% equity stake in UK-based carbon capture and storage (CCS) projects developer Storegga, to become its lead investor.
Storegga secured the new investment from ADNOC as part of its fourth funding round and has also received additional investments from existing shareholders, including GIC and Macquarie.
The UK-based company intends to use the proceeds from the funding round to support its ongoing projects and business development activities.
The transaction represents ADNOC’s first international equity investment in carbon management and supports its strategy to support carbon capture and storage projects.
ADNOC has initially allocated $15bn to low-carbon solutions and decarbonisation technologies and targets 10 million tonnes per annum (mtpa) carbon capture by 2030.
ADNOC low carbon solutions and international growth executive director Musabbeh Al Kaabi said: “This strategic investment marks an important milestone in ADNOC’s decarbonization 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.”
Storegga has a growing portfolio of decarbonisation projects in the UK and the US, and a recently announced Trudvang CO2 storage project in Norway.
The company is leading the development of the Acorn CCS project in the UK, which is expected to store up to 10 million tonnes of CO2 per annum by 2030.
Together with its partners, Storegga was recently awarded a license to develop the Trudavang CCS project in Norway and is developing several other CCS projects in the US.
Through the CCS and hydrogen projects, Storegga is advancing industrial decarbonisation in sectors such as manufacturing, power generation, distilling, chemicals and others.
Storegga CEO Nick Cooper 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 decarbonization 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 decarbonization 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.”
