ADNOC’s 2025 Carbon Capture Strategy: How Mega-Projects & Global Partnerships Are Scaling CCUS

ADNOC’s Commercial Scale Carbon Capture Projects Mark Strategic Shift in 2025

ADNOC has decisively shifted its carbon capture strategy from foundational pilots and studies to the execution of multi-billion-dollar, commercial-scale projects designed to decarbonize its core operations and build a global carbon management business. This acceleration is marked by a clear transition from exploring a variety of technologies between 2021 and 2024 to deploying proven, large-scale systems and making major international investments in 2025. The company is now focused on integrating Carbon Capture, Utilization, and Storage (CCUS) across its value chain, from natural gas production to creating new low-carbon revenue streams.

• In 2023, ADNOC focused on validating technology through pilots, such as deploying Carbon Clean’s modular CycloneCC technology at a Fertiglobe fertilizer plant. In 2025, this technology has matured, with ADNOC selecting it for broader industrial projects after the pilot successfully completed 4,000 operating hours, proving its viability for larger-scale deployment.
• The company’s ambition in Direct Air Capture (DAC) evolved from an initial 2023 agreement with Occidental to evaluate opportunities to a concrete 2025 plan. ADNOC‘s investment arm, XRG, is now considering a commitment of up to $500 million for a 500,000 tonnes per year DAC facility in South Texas, signaling a move from feasibility studies to tangible international investment.
• While the 2021-2024 period saw innovative R&D like the “carbon-to-rock” mineralization pilot with 44.01, the focus in 2025 has shifted to executing mega-projects with established technology. The $17 billion Final Investment Decision (FID) for the Hail and Ghasha low-carbon gas project, which will use Linde’s HISORP® CC technology, underscores a strategic pivot to immediate, large-scale emissions reduction.
• The “utilization” aspect of CCUS became a commercial reality in 2025 with the deployment of Levidian’s LOOP technology at the Habshan Gas Plant. This project moves beyond simple storage by converting captured methane into clean hydrogen and high-value graphene, creating a new carbon-to-value supply chain.

ADNOC’s Carbon Capture Investment Analysis: A Multi-Billion Dollar Commitment to Decarbonization

ADNOC has underpinned its carbon capture ambitions with a significant and escalating capital allocation, signaling to the market that decarbonization is a core pillar of its long-term financial strategy. The company has moved from an initial pledge to concrete, project-specific, multi-billion-dollar commitments, with the launch of its XRG investment arm creating a dedicated vehicle to deploy this capital internationally.

Table: ADNOC’s Strategic Low-Carbon and CCUS Investments (2023-2025)

ADNOC’s Strategic CCUS Partnerships: Building a Global Carbon Management Ecosystem in 2025

ADNOC is leveraging a web of high-value international partnerships to de-risk technology adoption, access new markets, and build a global carbon management portfolio. These collaborations have evolved from exploratory agreements into concrete joint ventures and equity stakes, demonstrating a clear strategy to build expertise and scale CCUS capabilities far beyond its domestic borders.

Table: ADNOC’s Key Carbon Capture and Low-Carbon Partnerships (2022-2025)

ADNOC’s Global Carbon Capture Footprint: From UAE Mega-Projects to US and Asian Expansion

ADNOC has strategically expanded its carbon capture focus from a purely domestic, operational imperative to an international growth strategy, targeting North America and Southeast Asia for technology access, project investment, and geological storage opportunities. While the UAE remains the center of gravity for its largest CCUS deployments, the company’s activities in 2025 demonstrate a clear ambition to build a global carbon management business.

• Between 2021-2024, ADNOC‘s geographic focus was almost exclusively on the UAE, launching the Habshan CCUS project, a “carbon-to-rock” pilot in Fujairah, and a feasibility study with Occidental for a DAC facility within the emirates. International moves were limited to initial partnerships and an equity stake in UK-based developer Storegga.
• The year 2025 marks a decisive international pivot, with ADNOC actively evaluating a major DAC investment in Texas with Occidental. This move into the U.S. market, a hub for DAC technology and favorable carbon management policies, provides a foothold in a key growth region outside the Middle East.
• Simultaneously, ADNOC is expanding eastward by partnering with PETRONAS and Storegga to evaluate offshore carbon storage sites in Malaysia. This collaboration opens up the vast geological storage potential of Southeast Asia and positions ADNOC as a key player in the region’s decarbonization efforts.
• This international expansion is happening in parallel with the execution of domestic mega-projects, most notably the $17 billion Hail and Ghasha offshore gas development. This dual-front strategy allows ADNOC to use the UAE as a proving ground for large-scale, integrated CCUS while using international partnerships to capture global market share.

ADNOC’s CCUS Technology Status: From Pilot to Commercial Scale Deployment

ADNOC‘s CCUS technology portfolio has rapidly matured from piloting and validating novel solutions to deploying commercially proven, large-scale systems at its flagship projects. The company’s strategy involves a two-pronged approach: executing on available, at-scale technologies for immediate impact while simultaneously investing in and advancing next-generation solutions like Direct Air Capture and methane pyrolysis to secure future leadership.

• The 2021-2024 period was defined by technology validation. This included piloting Carbon Clean’s compact, modular CycloneCC technology, exploring innovative mineralization with 44.01, and beginning a feasibility study for a megaton-scale DAC facility with Occidental.
• In 2025, the focus has shifted to large-scale deployment of mature technologies. Linde Engineering’s proven HISORP® CC technology was selected for the massive 1.5 mtpa carbon capture component of the Hail and Ghasha project, demonstrating a commitment to bankable, commercial-scale solutions.
• Technologies that were in pilot phase have now graduated to commercial application. Following its successful test, CycloneCC is being adopted for other industrial projects, and Levidian’s LOOP methane pyrolysis technology has seen its first global deployment at an ADNOC Gas site, moving it from the lab to the field.
• ADNOC‘s commitment to advancing the technology frontier is evident in its continued pursuit of DAC. The potential $500 million JV investment in a Texas DAC hub with Occidental shows a clear path to move this next-generation technology from the study phase to a commercial-scale carbon removal asset.

SWOT Analysis: ADNOC’s Carbon Capture Strategy Evolution

Table: SWOT Analysis of ADNOC’s CCUS Strategy (2021-2025)

Future Outlook for ADNOC’s CCUS Ambitions: What to Watch in 2025 and Beyond

The critical forward-looking action for ADNOC is to translate its massive capital commitments and global partnerships into operational, cash-generating carbon management assets, with the execution of the Hail and Ghasha project and a final investment decision on the Texas DAC hub serving as key near-term proof points.

• Monitor progress toward the company’s upgraded target of 10 mtpa of CCS capacity by 2030. The on-time, on-budget delivery of the Hail and Ghasha and Habshan carbon capture facilities will be the primary indicator of its ability to execute on this goal.
• Watch for the first major international acquisition or investment by the new $80 billion+ XRG platform. A significant move in U.S. CCS infrastructure or another DAC project would confirm its role as ADNOC‘s primary vehicle for global low-carbon expansion.
• Track the commercialization of carbon-to-value technologies. The success of the initial Levidian LOOP deployment in producing hydrogen and high-quality graphene could trigger further investments to scale this “utilization” pathway across ADNOC‘s operations.
• Observe the development of the Ruwais LNG project. Its success in securing long-term offtake agreements by marketing itself as a “lower-carbon” fuel source provides a commercial blueprint for how ADNOC will monetize its other major decarbonization investments.

Frequently Asked Questions

What is the main change in ADNOC’s carbon capture strategy for 2025?
The main change is a decisive shift from foundational pilots and studies (2021-2024) to the execution of multi-billion-dollar, commercial-scale CCUS projects. Instead of just validating technology, ADNOC is now deploying proven systems like Linde’s HISORP® CC for its $17 billion Hail and Ghasha project and making major international investments, such as a potential $500 million for a DAC hub in Texas.

How much capital has ADNOC committed to its low-carbon initiatives?
ADNOC has significantly increased its financial commitment, boosting its allocation for lower-carbon projects to $23 billion through 2030. This is part of a wider $150 billion five-year CAPEX plan (2026-2030) that earmarks significant funds for low-carbon solutions, including CCUS. This is further supported by the launch of its $80 billion+ investment arm, XRG, to deploy capital internationally.

Is ADNOC’s carbon capture strategy focused only on the UAE?
No, in 2025 ADNOC has expanded its strategy to become a global player. While executing mega-projects like Hail and Ghasha in the UAE, it is also actively expanding into North America with a potential DAC investment in Texas with Occidental, and into Southeast Asia by evaluating offshore storage sites with PETRONAS and Storegga.

What are some key technologies ADNOC is deploying in 2025?
In 2025, ADNOC is deploying commercially mature technologies for immediate impact, such as Linde’s HISORP® CC for the massive Hail and Ghasha project. It is also commercializing technologies from successful pilots, like Carbon Clean’s CycloneCC, and pioneering new carbon ‘utilization’ pathways with Levidian’s LOOP technology, which converts methane into hydrogen and graphene.

Who are some of ADNOC’s key international partners for its CCUS goals?
ADNOC has built a network of strategic international partners. Key partners mentioned for 2025 include Occidental (for Direct Air Capture in the U.S.), PETRONAS and Storegga (for CCS in Southeast Asia), ExxonMobil (for low-carbon hydrogen and CCS), and technology providers like Carbon Clean and Levidian.