Image Credit: Storegga
In a significant move, the Abu Dhabi National Oil Company (ADNOC), a prominent player in the oil industry, has acquired a substantial 10.1 per cent equity stake in the UK-based carbon capture and hydrogen developer Storegga. This marks a noteworthy development in the carbon capture and storage (CCS) sector.
Storegga, known for its involvement in the Acorn CCS project on the Scottish coast, is set to play a crucial role in permanently storing up to 10 million tonnes of CO2 captured from local industrial sites annually by 2030. Not stopping there, Storegga also aims to produce 'blue' hydrogen using fossil gas, further contributing to the green energy landscape.
This fourth investment round for Storegga has seen participation from existing backers such as Macquarie and Singaporean sovereign wealth fund GIC. While the exact investment amount remains undisclosed, it is earmarked for ongoing project delivery and business development activities across the company, highlighting its commitment to sustainable initiatives.
Storegga's global influence extends beyond the UK, encompassing various carbon capture projects in the United States, including Colorado, Houston, and Louisiana locations. Additionally, they've recently announced the Trudvang CO2 storage project in Norway, demonstrating their international footprint.
Storegga's CEO, Nick Cooper, expressed his enthusiasm: ' Over the past three years, Storegga has transformed from a single-project developer in Scotland into an international force driving global decarbonization efforts.' This funding round will boost the Acorn CCS and Cromarty Hydrogen projects in the UK and accelerate progress in other regions, such as the Trudvang CCS project in Norway and the Harvest Bend CCS project in Louisiana.
ADNOC's investment in Storegga aligns with its $15 billion global low-carbon technology investment plan, reflecting the oil and gas giant's commitment to the emerging CO2 capture and storage sector internationally. COP28 President Sultan Al Jaber's role as CEO of ADNOC further underscores the company's dedication to sustainability.
ADNOC aims to achieve a significant CCS capacity of 10 million tonnes per year by 2030, equivalent to removing emissions from approximately two million fossil fuel cars. Their current investments in CCS projects already target around four million tonnes of CO2 storage capacity, including the world's first commercial-scale project to capture and store carbon emissions from the steel industry, Al Reyadah.
Musabbeh Al Kaabi, ADNOC's executive director for low carbon solutions and international growth, emphasized the strategic importance of this investment, stating, 'Carbon capture is an important tool to reduce carbon emissions and meet global climate goals responsibly, and ADNOC will continue to scale up this technology as we work towards net zero by 2045.'
In a related development, the UK government is reportedly considering substantial funding for energy giant Drax's plan to implement carbon capture technology at its biomass power plant in North Yorkshire. Drax's bioenergy with carbon capture and storage (BECCS) project can make the company 'carbon negative' by removing more CO2 from the atmosphere than is emitted through biomass energy generation.
Despite criticism from environmental activists over biomass sourcing, Drax maintains that its feedstocks are certified as sustainable and contribute significantly to emissions reduction compared to fossil fuel power plants. With CCS technology integration, Drax aims to enhance its positive environmental impact further, potentially paving the way for a more sustainable energy future.