Abu Dhabi National Oil Company (ADNOC) and the State Oil Company of Azerbaijan Republic (SOCAR) have inked a Strategic Collaboration Agreement (SCA). The agreement outlines their joint commitment to explore and develop low carbon energy technologies, marking a significant stride in aligning with global decarbonization goals.
The primary goal of this strategic collaboration is to pool the expertise of ADNOC and SOCAR in advancing green technologies. The agreement comes on the heels of both companies becoming founding signatories of the Oil and Gas Decarbonization Charter at COP28. The shared targets set by the charter include the elimination of routine flaring, zeroing out methane emissions by 2030, and achieving net-zero emissions by 2050.
Under the SCA, ADNOC and SOCAR will jointly explore and develop technologies related to blue hydrogen, carbon management, and geothermal solutions. These technologies are expected to play a pivotal role in decarbonizing energy systems not only in the United Arab Emirates (UAE) and Azerbaijan but also in other key markets. The emphasis is on leveraging innovation to support the net-zero ambitions of both companies.
The collaboration signifies a proactive approach to address climate challenges by advancing low-carbon solutions. ADNOC, with an initial allocation of $15 billion for lower-carbon solutions, aims to reduce its carbon intensity by 25% by 2030 and achieve net-zero status by 2045. The agreement extends the commitment to a sustainable future by exploring technologies that can make a tangible difference in decarbonizing energy value chains.