UAE’s ADNOC to double renewable energy portfolio in next 10 years

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ADNOC will also reduce greenhouse gas intensity by an additional 25 percent. (Reuters)
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Widodo witnessed the signing of the deals with Abu Dhabi Crown Prince Sheikh Mohammed Bin Zayed over the weekend during an official visit to Abu Dhabi. (WAM)
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Updated 13 January 2020

UAE’s ADNOC to double renewable energy portfolio in next 10 years

  • ADNOC will also reduce greenhouse gas intensity by an additional 25 percent
  • Indonesia signed 11 business deals with the UAE worth $23 billion

ABU DHABI: Abu Dhabi National Oil Co. (ADNOC) grew its renewable energy portfolio by more than 400 percent in the last 10 years, and is on track to double that again in the coming decade, chief executive Sultan Al-Jaber said on Monday.

“We will increase our carbon capture utilization and storage program by 500 percent … to capture the same amount of C02 as 5 million acres of forest,” Jaber told a sustainable energy event in the United Arab Emirates capital Abu Dhabi.

ADNOC will also reduce greenhouse gas intensity by an additional 25 percent and limit fresh water consumption to below 0.5 percent of total water use.

Indonesia signed 11 business deals with the United Arab Emirates worth a combined 314.9 trillion rupiah ($23 billion) covering investment in energy and other sectors, Indonesian President Joko Widodo said via his Twitter account on Monday.

Widodo witnessed the signing of the deals with Abu Dhabi Crown Prince Sheikh Mohammed Bin Zayed over the weekend during an official visit to Abu Dhabi, his tweet said.

President Widodo, who began his second term in office in October, is keen to boost foreign investment to help create jobs and boost growth in Southeast Asia’s biggest economy where economic growth has been stuck at around 5% for several years.

In the petrochemical and gas sectors, ADNOC signed deals with Indonesian companies PT Pertamina and PT Chandra Asri Petrochemicals , UAE state news agency WAM reported.

They included an agreement for ADNOC to supply 528,000 tons of liquid petroleum gas (LPG) to Pertamina by the end of 2020, WAM said.

Prior to the visit, Indonesian ministers had outlined some of the deals, including an agreement between Pertamina and ADNOC to upgrade a refinery in Balongan, West Java.

Widodo said five agreements were also signed between the governments. Agreements covered education, health, agriculture and counter-terrorism, Indonesian Foreign Minister Retno Marsudi said in a statement.

Widodo and the crown prince also discussed a plan to establish a sovereign wealth fund, Indonesia’s Coordinating Minister for Maritime and Investment Affairs Luhut Pandjaitan said.

Japan’s Softbank and the US International Development Finance Corp. (IDFC) were also interested in taking part in the fund, Pandjaitan said in a statement.

The UAE would be able to use the fund to invest in the development of Indonesia’s proposed new capital in East Kalimantan province on Borneo Island.

It is also interested in investing in a property development in Aceh province on Indonesia’s Sumatra island, Pandjaitan said.


Big oil feels the heat on climate as industry leader promises: ‘We will be different’

Updated 22 January 2020

Big oil feels the heat on climate as industry leader promises: ‘We will be different’

  • Trump singles out ‘prophets of doom’ for attack
  • Greenpeace told the Davos gathering that the world’s largest banks, funds and insurance companies had invested $1.4 trillion in fossil fuel companies since the Paris climate deal

LONDON: Teenage environmental activist Greta Thunberg slammed inaction over climate change as the global oil industry found itself under intense scrutiny on the opening day of the World Economic Forum in Davos.

The teenage campaigner went head to head with US President Donald Trump, who dismissed climate “prophets of doom” in his speech.
She in turn shrugged off the US president’s pledge to join the economic forum’s initiative to plant 1 trillion trees to help capture carbon dioxide.
“Planting trees is good, of course, but it’s nowhere near enough,” Thunberg said. “It cannot replace mitigation. We need to start listening to the science and treat this crisis with the importance it deserves,” the 17-year-old said.
The 50th meeting of the World Economic Forum was dominated by the global threat posed by climate change and the carbon economy.
The environmental focus of Davos 2020 caps a year when carbon emissions from fossil fuels hit a record high, and the devastating effects of bushfires in Australia and other climate disasters dominated the news.
Oil company executives from the Gulf and elsewhere are in the spotlight at this year’s Davos meeting as they come under increased pressure to demonstrate how they are reducing their carbon footprint.
“We are not only fighting for our industry’s life but fighting for people to understand the things that we are doing,” said Vicki Hollub, CEO of Occidental, the US-based oil giant with extensive oil operations in the Gulf. “As an industry when we could be different — we will be different.”

‘Planting trees is good, but nowhere near enough,’ activist Greta Thunberg told Davos. (Shutterstock)

She said the company was getting close to being able to sequester significant volumes of CO2 in the US Permian Basin, the heartland of the American shale oil industry which is increasingly in competition with the conventional oil producers of the Arabian Gulf.
“The Permian Basin has the capacity to store 150 gigatons of CO2. That would be 28 years of emissions in the US. That’s the prize for us and that’s the opportunity. People say if you’re sequestering in an oil reservoir then you are producing more oil, but the reality is that it takes more CO2 to inject into a reservoir than the barrel of oil that it makes come out,” Hollub said.
The challenge Occidental and other oil companies face is to make investors understand what is happening in this area of carbon sequesteration, she added.
The investment community at Davos is also looking hard at the oil industry in the face of mounting investor concerns.
Greenpeace told the Davos gathering that the world’s largest banks, funds and insurance companies had invested $1.4 trillion in fossil fuel companies since the Paris climate deal. It accused some of these groups of failing to live up to the World Economic Forum goal of “improving the state of the world.”