The energy transition will become essential for the United Arab Emirates (UAE) as their dependence on hydrocarbons is so great. For this, the country intends to support and accompany the energy policy of the national giant, theAbu Dhabi National Oil Company (ADNOC) owned by Sultan Al-Jaber.
Energy transition in the UAE through ADNOC
The UAE’s energy transition will not be easy as its revenues are based on hydrocarbons. A member of OPEC, the country is also the seventh largest oil producer in the world. Its domestic oil consumption accounted for 40% of fossil energy consumption in 2018, behind natural gas (59%).
By 2030, the ADNOC oil company aims to reach a production of 5 million barrels. Since 2016, the company has been multiplying contracts by relying on new partners such as Russia and India. It is still linked to its Western partners, the United States and the French company Total.
A new governance for clean energy
The UAE still retains sufficient oil reserves to ensure the country’s energy independence for future generations. Since the arrival of the new Crown Prince Mohammed Ben Zahed, the country has made a shift in its energy policy. The political authorities are thus pushing the oil companies to diversify their energy sources.
Under the leadership of its CEO, Sultan Al-Jaber, ADNOC is now turning to cleaner energy. To do this, it sells oil concessions to other companies. In 2018, 35% ofADNOC Refining shares were sold to Italy’s ENI and Austria’s OMV.
The oil company has also divested itself of pipelines and gas pipelines to invest in petrochemicals and hydrogen. It wishes to reduce by 25% the greenhouse gases (GHG) caused by oil exploitation. It also seeks to increase the amount of CO2 stored sixfold by 2030.
An energy transition driven by a political duo
The energy transition is being driven primarily by two men: Abu Dhabi Crown Prince Mohammed bin Zahed and ADNOC CEO Sultan al-Jaber.
It was in 2016 that Sultan al-Jaber became the CEO of ADNOC. In 2020, he was appointed Minister of Industry and Technology and special envoy for climate change. He is a strong advocate of sustainable development and founder of the renewable energy company Masdar.
50% clean energy by 2050
The UAE was the first in the Arabian Peninsula to grasp the urgency of rethinking its energy model. Since coming to power in 2016, the Crown Prince of Abu Dhabi has been strongly committed to the fight against climate change. In 2017, it thus introduced the “Energy Strategy 2050” for 50% clean energy by 2050.
The ADNOC oil company has understood the importance of adapting to the challenges of the 21st century. This will have a positive impact not only on the climate, but also on the economic and tourist attractiveness, which are essential areas for the emirate.