CCS Strategic Importance
Carbon capture and storage (CCS) occupies a central position in the UAE’s decarbonization strategy, serving as the primary technology pathway for reducing emissions from oil and gas operations, industrial processes, and blue hydrogen production while maintaining hydrocarbon economic activity. The UAE operates the Middle East’s most advanced CCS infrastructure, with ADNOC as the principal developer and operator.
The strategic logic is straightforward: CCS allows the UAE to continue monetizing its hydrocarbon reserves – the economic foundation of the federation – while meeting climate commitments. This is not a substitute for renewable energy deployment but a complementary tool for sectors where direct electrification is technically impractical or prohibitively expensive.
Operational CCS Capacity
| Facility | Operator | Capture Capacity (MTPA) | Operational Since | CO2 Destination |
|---|---|---|---|---|
| Al Reyadah (Phase 1) | ADNOC | 0.8 | 2016 | Enhanced Oil Recovery (EOR) |
| Al Reyadah (Phase 2) | ADNOC | 0.5 | 2023 | EOR and geological storage |
| Shah Gas Processing | Al Hosn Gas | 0.6 | 2015 | EOR at ADNOC onshore fields |
| Habshan Gas Processing | ADNOC | 0.4 | 2024 | Geological storage |
| Total Operational | – | 2.3 | – | – |
Al Reyadah, located at Emirates Steel Arkan’s facility in Abu Dhabi’s Mussafah industrial area, was the first commercial-scale CCS project in the Middle East when it launched in 2016. It captures CO2 from steelmaking flue gas and transports it via pipeline to ADNOC’s oil fields for enhanced oil recovery, simultaneously reducing industrial emissions and increasing oil output from mature reservoirs.
Expansion Pipeline
| Project | Target Capacity (MTPA) | Expected Operation | Investment ($ bn) |
|---|---|---|---|
| Ruwais CCS Hub | 5.0 | 2027 | 3.5 |
| Hail & Ghasha Integrated CCS | 1.5 | 2027 | Included in field development |
| Dalma Gas CCS | 0.8 | 2028 | 0.9 |
| Industrial CCS Network (multi-site) | 2.0 | 2028-2030 | 2.2 |
| Total Pipeline | 9.3 | – | 6.6+ |
ADNOC has announced a target of 10 MTPA of CCS capacity by 2030, which would make the UAE one of the world’s largest CCS operators. The Ruwais CCS Hub is the centerpiece of this expansion, capturing CO2 from refining, petrochemicals, and blue hydrogen production at the Ruwais Industrial Complex and injecting it into deep geological formations.
CO2 Transport and Storage Infrastructure
ADNOC is building a dedicated CO2 pipeline network linking industrial emission sources to geological storage sites:
- Pipeline network: Over 350 km of CO2 trunk lines planned, connecting Abu Dhabi’s industrial corridor from Mussafah to Ruwais
- Storage formations: Saline aquifers and depleted oil reservoirs in Abu Dhabi’s subsurface provide estimated storage capacity exceeding 15 billion tonnes of CO2
- Monitoring: Subsurface monitoring using seismic imaging and wellbore sensors to verify long-term CO2 containment integrity
- EOR utilization: Approximately 40% of captured CO2 is expected to be used for enhanced oil recovery, with the remainder going to permanent geological storage
Cost Economics
| CCS Application | Current Cost ($/tonne CO2) | 2030 Target ($/tonne) | Key Cost Factor |
|---|---|---|---|
| Gas Processing (high-purity) | 25 - 35 | 20 - 28 | Compression and transport |
| Industrial (steel, cement) | 55 - 75 | 40 - 55 | Capture technology |
| Power Generation (post-combustion) | 65 - 90 | 50 - 70 | Low CO2 concentration |
| Direct Air Capture | 400 - 600 | 200 - 300 | Energy-intensive process |
CCS costs vary dramatically by application. High-purity CO2 streams from gas processing are cheapest to capture, which explains why the UAE’s initial CCS deployment concentrated in this sector. Industrial applications are the growth frontier, with cost reductions dependent on next-generation solvent and membrane capture technologies.
Policy and Regulatory Framework
- Abu Dhabi CCS Regulatory Framework: Established in 2022, governing CO2 injection, storage site permitting, long-term liability, and monitoring requirements
- National CCS Roadmap: Federal strategy document aligning CCS deployment targets with NDC commitments
- Article 6 Carbon Markets: The UAE is positioning CCS-generated carbon credits for trade under Paris Agreement Article 6 mechanisms, potentially generating revenue from verified emission reductions
- CCS Certification: ADNOC is pursuing independent third-party verification of captured and stored CO2 volumes to build credibility in international carbon markets
EOR vs. Permanent Storage Debate
A tension exists within the CCS discourse regarding enhanced oil recovery. Critics argue that using captured CO2 to extract additional oil partially negates the climate benefit. The UAE’s position is that EOR-linked CCS delivers net emissions reductions when lifecycle analysis accounts for the CO2 permanently sequestered underground during the recovery process. As the CCS network scales, ADNOC has committed to increasing the share of CO2 directed to dedicated geological storage rather than EOR applications.
Outlook
The UAE’s CCS infrastructure is among the most operationally mature outside North America and Northern Europe. The pathway to 10 MTPA by 2030 is technically feasible given ADNOC’s subsurface expertise and available storage geology. The critical uncertainties are capital allocation discipline – CCS competes for investment with other ADNOC priorities – and the development of a carbon pricing or credit framework that provides sustained economic incentive beyond corporate climate commitments. If the UAE successfully scales its CCS network, it will have built a template for hydrocarbon-producing nations seeking to reconcile fossil fuel production with climate obligations.