Beyond the Barrel: How ADNOC is Building an Energy Storage Empire in 2025

ADNOC’s Pivot from Oil Rigs to Giga-Projects: Scaling Battery and Storage Adoption

ADNOC has fundamentally shifted its energy storage strategy from an internal, operational focus to an aggressive, market-shaping external one, establishing itself as a dominant force in both grid-scale storage and electric mobility. The company’s evolution is marked by a dramatic increase in scale and ambition, moving from projects aimed at optimizing its core oil and gas business to building a comprehensive, vertically integrated energy storage ecosystem. This pivot demonstrates that for ADNOC, batteries are no longer just a decarbonization tool but a central pillar of a new, sustainable global energy business.

• Between 2021 and 2024, ADNOC’s strategy centered on operational decarbonization, exemplified by investments in 16 hybrid drilling rigs with integrated Battery Energy Storage Systems (BESS) to reduce fuel consumption. The focus was on piloting new technologies through low-capital initiatives, such as the $1 million pilot with Revterra for kinetic batteries and a trial using repurposed EV batteries with Power ID.
• From January 2025, the strategy escalated dramatically toward market dominance and giga-scale deployment, headlined by its subsidiary Masdar’s groundbreaking $6 billion project for a 5.2 GW solar plant combined with a colossal 19 GWh BESS. This move signifies a transition from incremental efficiency gains to building foundational infrastructure for 24/7 renewable energy.
• In parallel, ADNOC’s consumer-facing strategy crystallized in 2025, with ADNOC Distribution committing up to $200 million to build a comprehensive EV charging network, targeting 70,000 charging points by 2030. This goes beyond simple chargers to include innovative commercial solutions like battery-swapping stations with Terra Tech, demonstrating an intent to capture the entire mobility value chain.
• The company is now moving toward vertical integration and deep-tech leadership, exploring lithium extraction from its oilfield brine and partnering with the Technology Innovation Institute (TII) on quantum sensing for battery optimization. This signals a long-term ambition to control the value chain from raw materials to advanced grid management, a stark contrast to the earlier focus on deploying third-party technology.

Unpacking the Billions: Analyzing ADNOC’s Investment in Energy Storage

ADNOC’s capital allocation reveals a clear and accelerating financial commitment to becoming an integrated energy provider, with battery and storage initiatives receiving multi-billion-dollar backing. The investments span from a $150 billion five-year corporate plan that enables these ventures to specific, large-scale project financing and targeted capital for building out new business lines like EV charging.

Table: ADNOC’s Key Investments in Energy Storage and Related Ventures (2023-2025)

Building an Ecosystem: ADNOC’s Strategic Partnerships in Energy Storage

ADNOC has strategically assembled a diverse network of partners to accelerate its entry into every segment of the battery value chain, from raw material and technology development to commercial deployment and global market access. These collaborations underscore a shift from using partners to de-risk technology pilots to forging alliances that build entire business ecosystems.

Table: ADNOC’s Key Energy Storage Partnerships and Collaborations (2022-2025)

From Local Operations to Global Markets: ADNOC’s Geographic Expansion in Energy Storage

ADNOC’s geographic strategy for energy storage has aggressively expanded from a purely domestic, operationally focused footprint to a global investment powerhouse targeting high-growth international markets. While the UAE remains the center for its most ambitious giga-projects and technology pilots, its subsidiary Masdar has become the vehicle for establishing a significant presence in North America and Europe. This two-pronged approach allows ADNOC to build a world-leading domestic ecosystem while simultaneously capturing value in mature overseas renewables markets.

• Between 2021 and 2024, ADNOC’s activities were almost exclusively concentrated in the UAE, focused on decarbonizing its own oil and gas assets. This included deploying hybrid rigs across its fields and launching domestic pilot projects in Abu Dhabi, such as the repurposed battery trial and the establishment of the UAE’s first Battery Center of Excellence.
• The international push began in earnest through Masdar’s acquisitions, starting with the UK’s Arlington Energy in 2022 (over 3 GWh pipeline) and the Big Beau project in the US (160 MWh) in 2023. These were strategic entries into key markets.
• This global expansion accelerated significantly in 2024 and 2025. Masdar’s acquisition of a 50% stake in Terra-Gen’s 5.1 GWh US portfolio and its partnership with Endesa for 0.5 GW of BESS in Spain marked a move from acquiring single assets to securing large-scale portfolios and development pipelines.
• Simultaneously, in 2025, ADNOC doubled down on its home market by launching the world’s largest solar-plus-storage project in Abu Dhabi (19 GWh BESS). This demonstrates a strategy of using the UAE as a hub for record-breaking innovation while leveraging international partnerships to achieve global scale and market penetration.

From Pilots to Giga-Scale: The Maturing of ADNOC’s Energy Storage Technology Strategy

ADNOC’s technology strategy has rapidly matured from cautious, small-scale piloting of diverse solutions to confident, giga-scale deployment of proven technologies, underpinned by a long-term commitment to deep-tech R&D. While the 2021-2024 period was defined by exploration and operational application, the period from 2025 has been characterized by commercial execution at an unprecedented scale. This dual strategy allows ADNOC to de-risk its massive investments with mature technology while simultaneously scouting for the next generation of competitive advantages.

• The 2021-2024 phase focused on assessing a range of technologies at the pilot or early commercial stage. This included integrating conventional BESS into hybrid drilling rigs, testing novel kinetic batteries with Revterra, and exploring the circular economy with repurposed EV batteries from Power ID.
• The year 2025 marked a definitive shift toward deploying mature, bankable technology at massive scale, validated by Masdar’s $6 billion solar-plus-storage project featuring a 19 GWh lithium-ion BESS, likely in partnership with a Tier-1 supplier like CATL. This demonstrates confidence in the commercial viability and reliability of lithium-ion for grid-scale applications.
• While scaling proven tech, ADNOC continues to invest in the future. The 2025 pilot of a kinetic battery for EV charging and the new R&D partnership on quantum sensing for battery optimization show that the company is still actively building a diversified technology portfolio to avoid over-reliance on a single chemistry or system.
• This progression from operational tool to a full-fledged technology portfolio—spanning mature lithium-ion, alternative mechanical storage, innovative business models like battery-swapping, and futuristic quantum R&D—confirms that ADNOC is treating energy storage as a multi-layered, strategic business unit.

ADNOC’s Energy Storage SWOT Analysis: A Tale of Two Timelines

ADNOC’s strategic evolution in the energy storage sector shows a clear progression from addressing internal operational needs to building external market power. This SWOT analysis contrasts the company’s position in the early phase (2021-2023) with its more aggressive and mature stance in 2024-2025, highlighting how it has systematically addressed weaknesses and capitalized on emerging opportunities.

Table: ADNOC’s SWOT Analysis for Energy Storage (2021-2025)

What’s Next for ADNOC: From Giga-Projects to Commercial Reality

ADNOC’s next critical test is to translate its monumental investments and strategic ambitions into commercially successful, operational realities that redefine its role in the global energy market. The focus will shift from announcements to execution, with the world watching to see if the company can deliver on its giga-scale promises and successfully commercialize its upstream and deep-tech ventures. The coming years will determine whether ADNOC can complete its transformation into a fully integrated, technology-driven energy provider.

• All eyes will be on the 2027 completion date for Masdar’s world-leading 5.2 GW / 19 GWh solar-plus-storage project. Delivering this project on time and budget will be the ultimate validation of ADNOC’s capability to execute at an unprecedented scale and will serve as a global benchmark for 24/7 clean power.
• Progress on its ambitious EV infrastructure goals will be a key indicator of its success in the consumer market. Meeting the targets of 500 high-power chargers by 2028 and 70,000 charging points by 2030 is crucial for capturing the UAE’s rapidly growing electric mobility sector.
• The outcomes of its technology pilots are now more critical than ever. Positive results from the Revterra kinetic battery pilot could open a new, non-lithium commercial pathway, while any success in extracting lithium from brine could transform ADNOC into a key supplier for the global battery industry.
• Breakthroughs from the R&D partnership with TII and ASPIRE on quantum sensing for battery optimization could provide ADNOC with a proprietary technological edge, enhancing the efficiency and lifespan of its massive storage assets and creating a unique competitive advantage.

Frequently Asked Questions

What is the main shift in ADNOC’s energy storage strategy?
The main shift, occurring around 2025, has been from an internal, operational focus to an external, market-shaping one. ADNOC moved from using batteries to decarbonize its own oil rigs to building giga-scale projects and a global energy storage business, making batteries a central pillar of its future revenue streams, not just a cost-saving tool.

What are ADNOC’s most significant investments in energy storage mentioned in the report?
ADNOC’s most significant investments, part of a larger $150 billion corporate plan, include: 1. A $6 billion project via its subsidiary Masdar for a 5.2 GW solar plant with a world-leading 19 GWh BESS. 2. A commitment of up to $200 million for its ‘E2GO’ initiative to build a network of 70,000 EV charging points by 2030. 3. A $23 billion allocation for decarbonization, which funds initiatives like battery systems on its offshore rigs.

How is ADNOC expanding its energy storage business globally?
ADNOC is expanding internationally primarily through its clean energy subsidiary, Masdar. Masdar has made strategic acquisitions and formed partnerships to enter key overseas markets. This includes acquiring UK-based Arlington Energy (3 GWh pipeline), taking a 50% stake in US-based Terra-Gen (5.1 GWh portfolio), and partnering with Spain’s Endesa to develop 0.5 GW of battery capacity.

Is ADNOC only using one type of battery technology like lithium-ion?
No, ADNOC is pursuing a dual-technology strategy. While deploying proven lithium-ion technology at a massive scale for its grid projects (like the 19 GWh BESS), it is also actively piloting alternative and next-generation technologies. This includes testing kinetic batteries with Revterra for EV charging and piloting a system using repurposed EV batteries with Power ID.

What is ADNOC’s long-term goal beyond just building battery projects?
ADNOC’s long-term goal is to achieve vertical integration and technology leadership across the battery value chain. This ambition is demonstrated by its moves to explore lithium extraction from its own oilfield brine (raw materials) and its R&D partnership to use quantum sensing for battery optimization (deep-tech), signaling a plan to control the supply chain from materials to advanced grid management.