ADNOC’s 2025 Carbon Capture Gambit: A Deep Dive into its Global CCUS Strategy

From Local Pilots to Global Projects: Analyzing ADNOC’s CCUS Adoption Curve

ADNOC has strategically shifted its Carbon Capture, Utilization, and Storage (CCUS) approach from domestic, operational pilots between 2021 and 2024 to an aggressive global expansion and technology diversification strategy in 2025. This pivot reveals a clear intent to transform CCUS from a license-to-operate tool into a core, future-facing business pillar.

• In the 2021–2024 period, ADNOC focused on building a domestic foundation and testing a portfolio of technologies. This phase was defined by partnerships to explore novel solutions, such as the pilot with 44.01 to mineralize CO2 into rock in Fujairah, the selection of Carbon Clean’s modular CycloneCC technology for a fertilizer plant, and feasibility studies for Direct Air Capture (DAC) with Occidental, all while operating its flagship 0.8 mtpa Al Reyadah facility.
• The year 2025 marked a dramatic acceleration into commercial-scale deployment and international market entry. ADNOC pushed forward on its landmark domestic projects, including the 1.5 Mtpa Habshan CCUS facility and the $17 billion Hail and Ghasha low-carbon gas development. Critically, its ambition expanded globally with the evaluation of a joint venture for a 500,000 tpa DAC facility in Texas and an agreement with PETRONAS and Storegga to explore offshore CCS in Malaysia.
• This evolution from small-scale domestic pilots to multi-billion-dollar international ventures demonstrates a decisive strategic shift. ADNOC is no longer just using CCUS to decarbonize its own assets; it is actively building a global, technology-agnostic carbon management business by investing in both established point-source capture and frontier technologies like DAC and novel utilization pathways.

ADNOC’s Financial Pivot: Analyzing the Multi-Billion Dollar Investment in CCUS

ADNOC’s investment trajectory shows a clear and rapid escalation in financial commitment to its low-carbon and CCUS ambitions. The company moved from an initial broad allocation of $15 billion in 2023 to an increased $23 billion commitment, which is now being channeled into concrete, world-scale projects and strategic international investments. This financial muscle underpins its entire decarbonization strategy, enabling it to pursue multiple capital-intensive projects simultaneously.

Table: ADNOC’s Key Investments in Low-Carbon & CCUS Initiatives (2023–2025)

Strategic Alliances: Mapping ADNOC’s Global CCUS Partnership Ecosystem in 2025

ADNOC’s partnership strategy is a masterclass in building a diversified, global ecosystem to de-risk technology adoption and accelerate market entry. The company has methodically forged alliances with technology providers, international energy majors, and digital giants. These collaborations provide access to a wide range of capture solutions, new geographic markets, and advanced digital tools to optimize complex CCUS projects.

Table: ADNOC’s Key CCUS-Related Partnerships (2021–2025)

From Abu Dhabi to the World: Tracing ADNOC’s Expanding CCUS Geographic Footprint

ADNOC’s CCUS strategy has decisively evolved from a purely domestic focus centered on Abu Dhabi to an ambitious international expansion aimed at establishing a presence in key strategic markets in North America, Europe, and Asia.

• Between 2021 and 2024, ADNOC’s geographic activity was almost exclusively concentrated within the UAE. This period saw the continued operation of the Al Reyadah facility, the development of the onshore Habshan project, planning for the offshore Hail and Ghasha fields, and the carbon mineralization pilot in Fujairah. The only significant international move was a financial one: the acquisition of a strategic equity stake in UK-based Storegga.
• The year 2025 marked a significant global push beyond the UAE’s borders. ADNOC announced its evaluation of a joint venture with Occidental to build a large-scale DAC hub in South Texas, representing a major physical entry into the U.S. market. This was complemented by a joint study agreement with PETRONAS and Storegga to explore offshore CCS development in Malaysia, signaling a clear strategic intent to penetrate the growing Southeast Asian market.
• This geographic diversification is a strategic move to de-risk its portfolio, gain access to different regulatory incentives like the U.S. Inflation Reduction Act, and build the foundations of a global carbon management service. It transforms ADNOC from a national oil company using CCUS for its own compliance into a multinational energy player competing in the global decarbonization market.

From Pilots to Giga-Projects: Analyzing the Technology Maturity of ADNOC’s CCUS Portfolio

ADNOC is executing a sophisticated dual-track technology strategy, aggressively deploying commercially proven CCUS solutions at a massive scale while concurrently investing in and piloting a range of next-generation and frontier carbon management technologies.

• The 2021-2024 period served as a “test and learn” phase focused on validating a diverse technology portfolio. ADNOC moved forward with mature, amine-based systems by selecting Shell’s Cansolv technology for its large-scale Habshan project. Simultaneously, it initiated pilots for innovative technologies like Carbon Clean’s compact CycloneCC and 44.01’s novel carbon mineralization process, alongside launching a feasibility study for a 1 mtpa DAC facility.
• In 2025, the strategy pivoted towards commercial-scale execution and the creation of new value streams. The final investment decisions for the multi-billion-dollar Habshan and Hail and Ghasha projects demonstrated confidence in deploying established capture technologies from partners like Shell and Linde. A significant evolution was the focus on carbon utilization, highlighted by the deployment of Levidian’s LOOP technology to convert captured methane into valuable hydrogen and graphene.
• The maturity of ADNOC’s strategy is validated by its willingness to commit massive capital to giga-projects. The progression from a 10 tonnes-per-day CycloneCC pilot to 1.5 Mtpa projects like Habshan confirms the commercial readiness of its core capture technology. The next critical step is validating the commercial viability of its frontier bets, particularly the DAC hub in Texas and the graphene production model.

SWOT Analysis: ADNOC’s Carbon Capture Strategy Evolution

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

What’s Next for ADNOC’s CCUS Strategy? Key Catalysts to Watch in 2026

The most critical challenge for ADNOC is to translate its massive financial commitments and strategic partnerships into operational reality, with the final investment decision on its international Direct Air Capture (DAC) venture serving as the ultimate test of its global ambitions.

• The Final Investment Decision (FID) on the South Texas DAC Hub with Occidental is the single most important forward-looking catalyst. A “go” decision, backed by a potential $500 million investment, would solidify ADNOC’s transformation from an oil major mitigating its emissions to a global player in the atmospheric carbon removal market.
• The successful commissioning and ramp-up of the 1.5 Mtpa Habshan CCUS project will be a crucial near-term execution milestone. Achieving its operational targets will be a powerful proof point of ADNOC’s ability to deliver on its large-scale domestic decarbonization promises and will more than double its current carbon capture capacity.
• The results from the Levidian LOOP technology pilot at the Habshan plant will be a key indicator of ADNOC’s carbon utilization strategy. A decision to scale up the technology would validate a pathway to creating a profitable, product-based business from decarbonization by turning captured carbon into high-value graphene and hydrogen.
• Continued progress on the ~$17 billion Hail and Ghasha development will serve as a global barometer for the feasibility of integrating net-zero CCUS infrastructure into new, large-scale hydrocarbon projects from inception, setting a potential new standard for the industry.

Frequently Asked Questions

What is the biggest change in ADNOC’s CCUS strategy in 2025?
The biggest change is the shift from a domestic, pilot-focused approach (2021-2024) to an aggressive global expansion and commercial-scale deployment strategy in 2025. ADNOC is moving beyond just decarbonizing its own assets to actively building a global carbon management business, evidenced by its ventures in the US (Direct Air Capture) and Malaysia (offshore CCS).

How much is ADNOC investing in its low-carbon and CCUS initiatives?
ADNOC has confirmed an initial allocation of $23 billion for its portfolio of decarbonization technologies, with CCUS being a primary focus. This is an increase from an earlier $15 billion commitment and is part of a larger $150 billion capital expenditure plan for 2026-2030, which also earmarks a significant portion for low-carbon solutions.

Is ADNOC only using traditional carbon capture technology?
No, ADNOC is pursuing a diverse technology strategy. Alongside established technologies for large-scale projects like Habshan, it is investing in frontier technologies. This includes Direct Air Capture (DAC) through a proposed venture in Texas, carbon mineralization with 44.01, and a novel utilization pathway with Levidian’s LOOP technology to convert captured methane into hydrogen and high-value graphene.

Where is ADNOC expanding its CCUS operations outside of the UAE?
ADNOC is expanding its geographic footprint to North America, Europe, and Asia. Key international moves include evaluating a joint venture for a large-scale Direct Air Capture (DAC) hub in South Texas, USA; acquiring an equity stake in UK-based CCS developer Storegga to gain a foothold in Europe; and signing an agreement to explore offshore CCS projects in Malaysia.

What is the next major catalyst to watch for ADNOC’s global CCUS strategy?
The single most important upcoming catalyst is the Final Investment Decision (FID) on the South Texas Direct Air Capture (DAC) Hub with Occidental. A positive decision would represent ADNOC’s first major international carbon removal project and solidify its ambition to become a global player in the atmospheric carbon removal market, not just a user of CCUS for its own emissions.