Argus Media Limited

09/07/2021 | News release | Distributed by Public on 09/07/2021 07:51

Mubadala to work with Eni on H2, carbon capture

Abu Dhabi's Mubadala Petroleum has signed an agreement with Italian energy firm Eni to identify opportunities for co-operation in the energy transition, including hydrogen and carbon capture. The companies have not provided details on specific projects.

Mubadala Petroleum, which currently produces around 360,000 b/d of oil equivalent (boe/d) in 10 countries, is switching its focus away from oil to natural gas and hydrogen. Alongside state-owned Adnoc, it will play a critical role in Abu Dhabi's ambition to become a global hydrogen producer.

'We are committed to playing our part in the energy transition,' chief executive Mansoor al-Hamed said. 'This includes pursuing a gas-weighted portfolio as a key bridge to renewables. It also includes investing in innovation and technology to advance decarbonisation and support the industry's evolution.'

Eni, whose preparations for the energy transition include a target to be carbon neutral by 2050, is already a key investor in the UAE. It has stakes in upstream and downstream projects in Abu Dhabi and has exploration assets in the emirates of Sharjah and Ras Al Khaimah.

'Eni will leverage all its proprietary technologies, focused on energy transition. We will work with a strategic partner like Mubadala Petroleum to find ways of reaching common decarbonisation targets worldwide,' said Eni's chief executive Claudio Descalzi.

Mubadala Petroleum is a subsidiary of Abu Dhabi's sovereign investment fund Mubadala Investment, which manages more than $230bn of assets for the emirate and is using its financial clout to push diversification of the UAE's economy. The UAE is Opec's third-largest oil producer but it relies mainly on gas for power generation. It is looking to increase the share of renewables in its power generation mix to 44pc by 2050.

By Adal Mirza