Abu Dhabi National Oil Company and Masdar have formed a joint venture company — Al Reyadah — to focus on exploring and developing commercial-scale projects for carbon capture, usage and sequestration.
The name and logo of the joint venture, which means ‘leadership’ in Arabic, was revealed at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec) by Abdulla Nasser Al Suwaidi, director-general of Adnoc; Yasir Al Mazrouei, Adnoc’s deputy director (Exploration and Production); and Dr Ahmad Belhoul, chief executive of Masdar.
Al Reyadah is 51 per cent owned by Adnoc and 49 per cent by Masdar.
Construction of Al Reyadah’s first CCUS project is underway adjacent to the Emirates Steel Industries plant in Mussafah. The Dh450 million ($124 million) facility prevents the emission of 800,000 tons of CO2 annually and is on target for completion by the second quarter of 2016. The CO2 captured will be transferred via a pipeline and injected into Adnoc oil fields for an Enhanced Oil Recovery (EOR) operation.
The project has three core components. First, CO2 will be captured onsite at ESI, the UAE’s largest steelmaker. Then, it will be compressed and transported along a 45km pipeline to oilfields operated by Adnoc, where it will be used to enhance oil recovery, and ultimately be stored underground.