Sheik Mohamed Sets Ambitious Goals for ADNOC

You’ve just been handed a golden opportunity. UAE President Sheikh Mohamed is directing ADNOC to set its sights higher than ever by expanding its renewable energy capacity and reducing emissions.

This builds on the momentum from recent record-breaking IPOs and investments outside the UAE.

ADNOC is being called to prioritize growth and partnerships to future-proof itself amidst the global energy transition. The goals are ambitious, but if achieved, could establish ADNOC as a leader in providing secure, reliable, and responsible energy worldwide. The stakes have been raised. Where ADNOC goes from here could redefine its role in enabling a sustainable future.

Sheik Mohamed Chairs ADNOC Board Meeting, Sets Ambitious Direction

At the recent ADNOC board meeting chaired by His Highness Sheikh Mohamed bin Zayed Al Nahyan, the UAE President set an ambitious course for the company’s future growth and global expansion. As ADNOC continues its journey of transformation, His Highness directed the company to:

• Grow its diversified portfolio through new investments and partnerships, both within the UAE and internationally. This includes tripling ADNOC’s renewable energy capacity and acquiring a majority stake in Fertiglobe, supporting its chemicals strategy.
• Prioritize opportunities that will future-proof the business in a lower carbon world. His Highness emphasized ADNOC’s commitments to reduce emissions intensity by 25% and achieve near-zero methane emissions by 2030.
• Play a leadership role globally in enabling the responsible energy transition. By growing capacity in renewables and low-carbon fuels like green hydrogen and ammonia, ADNOC will support energy security while progressing sustainability.
• Drive additional value for Abu Dhabi and the UAE through transformational growth initiatives. This includes building on the successful IPOs of ADNOC subsidiaries in 2022.

In setting this vision, His Highness has challenged ADNOC to seize new opportunities that will strengthen its contribution, both to the UAE economy and to global decarbonization efforts. Guided by ambitious goals and steadfast leadership, ADNOC seems poised for a new era of sustainable expansion and success.

ADNOC Directed to Grow Diversified Portfolio and Enable Secure, Reliable Energy Transition

As ADNOC continues to transform, decarbonize and future-proof its business, His Highness directed the company to prioritize growth across its diversified portfolio. This will strengthen ADNOC’s ability to provide secure, reliable energy while supporting the global transition.

Specifically, His Highness mandated ADNOC to:

• Triple its renewable energy capacity through Masdar, delivering tangible climate action
• Reduce greenhouse gas intensity by 25% and achieve near-zero methane emissions by 2030
• Pursue transformational growth, partnerships and opportunities globally
• Invest outside the UAE for the first time in 2023 to drive additional value

The planned acquisition of Fertiglobe, a world-leading producer of low-carbon ammonia, aligns with ADNOC’s ambitious chemicals strategy. His Highness noted that low-carbon ammonia will play an vital role as a clean fuel and hydrogen carrier in the evolving energy landscape.

Ultimately, ADNOC’s strategic expansion across the energy value chain, while rapidly decarbonizing, underscores the UAE’s commitment to enabling a sustainable, orderly transition that supports energy security. His Highness emphasized that a balanced approach is essential for a stable, inclusive and just global economy.

ADNOC is charting a course that sustainably delivers value for Abu Dhabi and the UAE, while responsibly providing the reliable energy the world needs today and tomorrow.

ADNOC Tripling Renewable Capacity, Pursuing Decarbonization and Methane Reduction Goals

His Highness directed ADNOC to significantly expand its renewable energy production capacity over the coming years. Specifically, ADNOC aims to triple its renewable power generation through its shareholding in Masdar, a global leader in renewable energy.

This capacity expansion supports ADNOC’s 2030 target to reduce its greenhouse gas (GHG) emissions intensity by 25% and achieve near zero methane emissions from its operations. Expanding renewable power will help ADNOC meet increasing energy demand in a sustainable way while also offsetting some operational emissions.

To hit its emissions goals, ADNOC is:

• Investing in solar, wind, waste-to-energy and other renewable technologies
• Electrifying oil and gas operations
• Improving energy efficiency
• Capturing and storing carbon emissions

Pursuing renewable energy and emissions reductions keeps ADNOC aligned with global climate goals and the UAE’s commitment to sustainable development. As the world transitions to a lower-carbon future, ADNOC aims to remain a reliable energy provider while also doing its part to mitigate emissions.

This balanced approach shows how ADNOC is adapting and future-proofing its business for the long term. Under the leadership of His Highness, the company will continue taking bold steps to promote sustainability alongside energy security.

ADNOC Updating on Record-Breaking IPOs and First International Investments

Over the past year, ADNOC has made major strides in advancing its strategic growth plans both within the UAE and increasingly, overseas as well.

Driving Value Through IPOs

• In 2022, ADNOC conducted two record-shattering initial public offerings (IPOs) for ADNOC Drilling and Borouge plc on the Abu Dhabi Securities Exchange.
• These offerings raised over $7.5 billion combined, making them the largest IPOs in the exchange’s history.
• They attracted strong global investor interest, demonstrating confidence in ADNOC’s commerciality and future growth outlook.

Expanding Horizons With International Investments

• In a milestone for ADNOC, the company announced its first investments outside the UAE will take place in 2023.
• One key move is the planned acquisition of a majority stake in Egypt’s state-owned chemicals company Cheiron Petrochemicals Corporation.
• This supports ADNOC’s chemicals growth strategy to develop a global industrial chemicals platform, starting in the attractive Egyptian market.
• ADNOC also signed an agreement to acquire the majority shareholding of Fertiglobe plc, a leading producer of fertilizers and clean ammonia.
• Fertiglobe is jointly owned by OCI N.V. and Abu Dhabi Developmental Holding Company.
• This furthers ADNOC’s efforts to expand production of low-carbon ammonia for export markets.

As ADNOC stretches its wings beyond the UAE, it continues to invest in domestic energy assets as well. The company was directed to balance international ambitions with maintaining reliable, responsible energy for the nation.

Sheik Mohamed Mandates ADNOC to Prioritize Growth, Partnerships and Global Opportunities

With ambitious goals set by Sheik Mohamed, ADNOC has a clear mandate to transform and expand over the coming years. This will position the company for long-term success in a changing energy landscape.

• His Highness directed ADNOC to diversify its portfolio beyond oil and gas. This likely means investments in renewables like solar and wind as well as hydrogen production.
• Partnerships will also be key, both domestically and internationally. Joining forces with major energy players can provide funding, technical expertise and access to new markets.
• Overseas investments will expand ADNOC’s global footprint. The recent agreement to acquire a stake in Fertiglobe is an initial step, but more acquisitions abroad are expected.
• Future-proofing the business will require reducing emissions intensity and adopting advanced technologies around carbon capture, clean fuels and efficiency.

While ADNOC has supplied oil and gas to the UAE for over 50 years, Sheik Mohamed has made it clear the company must evolve to remain successful. This means being agile, thinking long-term and leveraging innovation.

The UAE’s wise leadership recognizes the global energy transition is multifaceted and will take time. As the world still relies heavily on oil and gas, ADNOC plays a vital role in providing secure, reliable energy. At the same time, the company has been mandated to develop cleaner energy sources for the future.

As Sheikh Mohamed sets his sights high for ADNOC with ambitious goals to grow, diversify, and decarbonize, you feel energized by the visionary leadership steering this vital company into the future. With ADNOC’s record-breaking IPOs, first international investments, and commitment to renewable energy and sustainability, you gain confidence that ADNOC will remain an innovative, responsible provider of energy security while enabling a cleaner, more equitable world. Though obstacles will arise, you believe that with continued transformation guided by strategic priorities, ADNOC and the UAE stand ready to take advantage of new opportunities on the global stage. By further leveraging partnerships, ADNOC can spread positive impacts worldwide. As things rapidly change, you take comfort knowing this vital company is in the steady hands of visionary leaders who will nimbly adapt to future challenges.