Abu Dhabi National Oil Company (ADNOC) has signed a general agreement with the Japan Bank for International Cooperation (JBIC) for a $3 billion green financing facility, which will support the company’s decarbonization and energy transition initiatives.
The credit facility is part of JBIC’s Global action for Reconciling Economic growth and ENvironmental preservation (GREEN) lending program and is partially supported by Japanese commercial banks.
This deal follows the signing of a heads of agreement (HOA) between ADNOC and JBIC in January 2024 and builds on their long-standing partnership.
Khaled Al Zaabi, ADNOC Group’s Chief Financial Officer, said: “We are very pleased to once again partner with JBIC on ADNOC’s first green funding to accelerate our decarbonization and energy transition initiatives. Proceeds of this credit facility will enable ADNOC’s strategy to support a just, orderly and equitable global energy transition.”
“The agreement also marks the next milestone in the long-standing strategic energy relationship between the UAE and Japan, and we look forward to further collaboration with JBIC as ADNOC delivers against its ambitious growth strategy.”
To note, ADNOC aims to reduce its carbon intensity by 25% by 2030 while investing $23 billion to decarbonize its operations and accelerate the growth of the energies of the future, including hydrogen, geothermal, renewables and carbon capture technologies. The company has also set out its ambition to achieve net zero by 2045 and zero methane emissions by 2030.
In related news, in June 2024, ADNOC-owned TA’ZIZ, Fertiglobe, a strategic partnership between ADNOC and OCI Company, Japan’s Mitsui & Co. and South Korea’s GS Energy Corporation agreed to commence construction of a low-carbon ammonia production facility in Al Ruwais, Abu Dhabi, United Arab Emirates (UAE). In addition, Mitsui has signed a loan agreement with the JBIC to finance the development of the project.