ADNOC CCUS Expansion, $615 M Petrofac Contract, 10 MTPA Target, and 5+ Key Projects (2021 to 2025)

10 MTPA Target, ADNOC CCUS Project Acceleration

In 2025, Abu Dhabi National Oil Company (ADNOC) transitioned its carbon capture strategy from operating a single foundational asset to executing an aggressive, multi-project expansion aimed at regional market leadership. This shift is defined by a doubling of its capture ambitions and the sanctioning of one of the largest CCUS projects in the Middle East and North Africa (MENA) region. The company’s activities demonstrate a clear intent to use CCUS not only to decarbonize its own operations but also to build a commercial-scale carbon management business.

Foundational Capacity (2021-2024)

Between 2021 and 2024, ADNOC‘s primary operational footprint in CCUS was its pioneering Al-Reyadah facility. This project established ADNOC as an early mover in the region but represented a limited scale relative to its overall emissions profile.

• The Al-Reyadah project, integrated with a steel plant, provided a steady operational baseline, capturing 0.8 million tonnes per annum (mtpa) of CO 2. This facility served as the world’s first commercial-scale CCUS project for the iron and steel industry, primarily using the captured CO 2 for enhanced oil recovery (EOR).
• During this period, ADNOC‘s publicly stated ambition was to reach a capture capacity of 5 mtpa by 2030, a goal aligned with the initial phase of its decarbonization journey.

Aggressive Expansion in 2025

The year 2025 marks a significant inflection point, with ADNOC committing to a portfolio of large-scale projects designed to rapidly increase its capacity and technological scope.

• ADNOC accelerated its corporate net-zero target to 2045 and doubled its CCUS capacity goal to 10 mtpa by 2030, signaling a much more aggressive decarbonization and commercial strategy.
• The company reached a final investment decision (FID) on the Habshan CCUS project. This facility, one of the largest in the MENA region, is designed to capture an additional 1.5 mtpa, more than doubling ADNOC‘s total capacity to 2.3 mtpa once operational.
• Signaling a move beyond domestic, point-source capture, ADNOC is exploring a potential investment of up to $500 million in a Texas-based direct air capture (DAC) plant with partner Occidental Petroleum, targeting 0.5 mtpa of CO₂ removal and providing access to a different technology pathway.

Global CCS Market to Surge to $32B by 2035, Driven by Capture & Storage
The Global Carbon Capture and Sequestration (CCS) market is set for rapid growth, expanding from $6.9 billion in 2025 to a forecasted $32.0 billion by 2035, exhibiting a robust 16.6% CAGR. ‘Capture’ and ‘Storage” components are the primary drivers of this expansion, indicating a focus on foundational infrastructure.

Decarbonization Imperative Fuels Foundational CCS Infrastructure Growth
This aggressive market expansion underscores the accelerating global commitment to industrial decarbonization. The strong growth in ‘Capture’ and ‘Storage” segments highlights a priority shift towards large-scale, verifiable emissions reduction, moving beyond just utilization and signaling increasing regulatory and corporate pressure for tangible climate action.

(Source: market.us — via Carbon Capture and Storage (CCS) Market: Global Industry)

ADNOC $23 B Low-Carbon Funding for CCUS Expansion (2023 to 2025)

ADNOC‘s ambitious CCUS expansion is underpinned by a massive capital allocation dedicated to low-carbon projects, which moved from a high-level pledge to concrete project-level spending in 2025. This financial commitment de-risks near-term project execution and provides a clear signal to partners and the market of the company’s long-term strategic resolve. The scale of investment differentiates ADNOC from many international oil companies, such as Shell and BP, by dedicating a larger portion of capital specifically to decarbonization infrastructure.

The $23 B Low-Carbon Allocation

The cornerstone of ADNOC‘s financial strategy is a dedicated fund for decarbonization initiatives, with CCUS being a primary beneficiary.

• ADNOC has earmarked a substantial $23 billion for a range of low-carbon projects, including electrification, hydrogen, and CCUS. This allocation provides the financial backbone for its accelerated 2045 net-zero target.
• This funding mechanism allows the company to sanction large, capital-intensive projects like Habshan without compromising its core business investments, treating decarbonization as a parallel strategic priority.

Project-Specific Capital Deployment

In 2025, this broad allocation translated into specific, high-value contracts and investment agreements that demonstrate tangible progress.

• A $615 million engineering, procurement, and construction (EPC) contract was awarded to Petrofac Emirates for the Habshan CCUS project, moving the project from concept to concrete execution.
• The company is also evaluating a major international investment with a potential commitment of up to $500 million in a US-based DAC facility alongside Occidental Petroleum, marking a significant step in diversifying its technology portfolio and geographic footprint.

Table: Key ADNOC CCUS Investments and Financial Commitments (2023-2025)

Partnership Ecosystem, ADNOC’s CCUS Technology and Execution Model

ADNOC‘s 2025 strategy relies heavily on a multi-layered partnership model to secure best-in-class technology, ensure project execution, and build a comprehensive carbon management value chain. By collaborating with EPC contractors, technology licensors, and international energy partners, the company mitigates risk and accelerates its deployment timeline. This approach contrasts with competitors like Exxon Mobil, which often leans more heavily on in-house technology and project management for its large-scale developments.

Engineering and Supply Chain Alliances

For its domestic mega-projects, ADNOC is partnering with established engineering firms and equipment suppliers to ensure delivery.

• The award of a $615 million EPC contract to Petrofac for the Habshan project secures a Tier-1 contractor with extensive regional experience to construct the gas processing and compression facilities required for capture.
• ADNOC is also collaborating with Flowserve to supply critical components like dry gas seals for CO 2 compression, demonstrating a focus on securing the supply chain for specialized equipment essential for CCUS operations.

Technology and International Collaboration

To advance its capabilities, ADNOC is forging alliances to access next-generation capture technologies and global operational expertise.

• For its Hail and Ghasha sour gas development, ADNOC is working with Linde Engineering and NEXTCHEM to deploy advanced adsorption-based capture technologies like HISORP CC, moving beyond conventional solvent-based systems.
• The company entered into a strategic collaboration with Malaysia’s PETRONAS and UK-based Storegga to jointly explore and develop offshore geological storage solutions, aiming to create cross-border CO 2 transport and sequestration networks.

Table: Key ADNOC CCUS Partnerships and Alliances (2023-2025)

MENA vs. US, ADNOC’s Dual-Front Geographic Strategy

ADNOC‘s geographic strategy for CCUS evolved in 2025 from a purely domestic focus to a dual-pronged approach, simultaneously scaling up its core operations in the UAE while making a strategic entry into the United States. This expansion model allows it to solidify its leadership in the nascent MENA carbon market and, at the same time, access the world’s most mature market for CCUS technology and policy incentives. This positions ADNOC to capture learnings from both regions to accelerate its global ambitions.

• Between 2021 and 2024, ADNOC‘s CCUS activities were entirely concentrated within the UAE. The operation of the Al-Reyadah plant and initial planning for future projects were centered on decarbonizing domestic industrial assets and utilizing CO 2 in local oil fields for EOR.
• The focus in the UAE remains the strategic core, with the sanctioning of the Habshan project and plans for capture at the offshore Hail and Ghasha fields. This domestic build-out is aimed at creating an integrated carbon management ecosystem within Abu Dhabi.
• The major shift in 2025 was the move into the US market through the partnership with Occidental Petroleum. This venture in Texas is not for EOR but for DAC, driven by the technological expertise and financial incentives, like the 45 Q tax credit, available in the US.
• This dual-geography approach allows ADNOC to leverage its domestic advantages of low-cost geology and integrated infrastructure while using its US investment to gain experience with cutting-edge technologies and different business models for carbon removal.

Commercial Scale, ADNOC’s CCUS Technology Portfolio

In 2025, ADNOC began a deliberate maturation of its CCUS technology portfolio, expanding from its proven post-combustion capture process to embrace advanced adsorption systems and direct air capture. This diversification signals a strategy to move beyond capturing CO 2 from single industrial sources and build a more versatile and technologically advanced carbon management platform. The certification of its saline aquifer storage sites further validates the commercial readiness of its end-to-end CCUS value chain.

• From 2021 to 2024, ADNOC‘s technology application was limited to the commercial-scale post-combustion amine scrubbing process at the Al-Reyadah steel plant. While effective, this represents a well-established and conventional capture technology.
• The Habshan CCUS project, sanctioned in 2023 and moving into execution in 2025, scales up this proven post-combustion capture technology for natural gas processing, applying a mature solution to a new, larger source.
• A key technological step-up is the planned deployment of Linde and NEXTCHEM‘s HISORP CC technology for the Hail and Ghasha project. This advanced adsorption-based solution offers potential advantages in energy efficiency over traditional solvent-based systems, indicating a push for next-generation technology.
• The most significant leap is the potential investment in Occidental’s DAC plant in Texas. This moves ADNOC into the nascent but critical field of carbon dioxide removal, a technology with a different risk profile and market driver (carbon credits) compared to point-source capture.
• Underpinning this expansion, ADNOC achieved a crucial milestone with DNV‘s certification of its West Aquifer CO₂ storage site. This third-party validation de-risks the storage component of its strategy and confirms the feasibility of large-scale, permanent sequestration in saline aquifers.

SWOT Analysis, ADNOC’s CCUS Strengths and Strategic Risks

ADNOC‘s CCUS strategy leverages its significant financial strength and integrated operational model to build a first-mover advantage in the MENA region. However, its heavy reliance on using captured CO 2 for enhanced oil recovery creates a strategic duality, exposing it to criticism of “greenwashing” and tying its decarbonization efforts to continued fossil fuel production. This approach differs from that of European majors like Equinor and Total Energies, which are focused on dedicated sequestration hubs as a third-party service.

• Strengths in sovereign backing and capital access allow ADNOC to underwrite massive, long-term infrastructure projects that private-sector competitors may find difficult to finance.
• A key Weakness is the high cost of capture technologies, which remains a barrier to profitability without subsidies or a high carbon price, although integration with EOR provides an internal revenue stream.
• The primary Opportunity lies in establishing the UAE as the premier regional hub for carbon management services, attracting international industries seeking sequestration solutions.
• A significant Threat comes from regional competitors like Saudi Aramco, which is also developing a large-scale CCUS hub, and the global debate over the true climate benefit of CCUS when linked to increased oil production.

Table: SWOT Analysis for ADNOC Carbon Capture Initiatives (2021-2025)

ADNOC 2026 Outlook: Habshan Execution and DAC Viability

For 2026, ADNOC‘s credibility and leadership in the CCUS space will be determined by its ability to execute the large-scale Habshan project on schedule and on budget. Simultaneously, its next strategic moves will be informed by the initial outcomes of its international foray into direct air capture with Occidental. These two fronts, domestic execution and international technology diversification, represent the most critical tests of its expanded strategy.

• If this happens: If Petrofac maintains the construction schedule for the Habshan project and ADNOC makes a definitive financial commitment to the Texas DAC plant, it will validate the company’s dual-pronged strategy of scaling proven technology at home while investing in future-facing technology abroad.
• Watch this: Key signals to monitor will be progress reports on the Habshan project’s construction milestones, any official FID announcement regarding the Occidental DAC investment, and announcements of new storage site certifications beyond the West Aquifer to support the full 10 mtpa target.
• These could be happening: Success in these areas could embolden ADNOC to announce another large-scale CCUS project, possibly linked to its downstream or LNG assets, to bridge the remaining gap to its 2030 goal. It may also pursue further cross-border storage agreements similar to the PETRONAS and Storegga MOU to establish the UAE as a central hub for CO 2 sequestration in the Gulf region.

The questions your competitors are already asking

This report covers one angle of ADNOC’s carbon capture expansion. The questions that matter most depend on your work.

• Aramco vs ADNOC carbon capture projects
• Direct air capture project costs and timeline
• Carbon capture project revenue models EOR vs storage
• Habshan carbon capture project construction status

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