Mubadala Petroleum, the wholly-owned subsidiary of Abu Dhabi’s sovereign wealth fund, and the Italian energy company, Eni have signed an agreement to look at joint investment opportunities in the energy transition field as part of UAE’s plans to cut carbon footprints.
In a joint statement, the two groups said that they had signed a memorandum of understanding (MoU) to cooperate to explore opportunities in areas like hydrogen and carbon capture utilization and storage in the Middle East, North Africa, South East Asia, Europe and other regions of mutual interest.
Commenting on the MoU, Mubadala Petroleum said that the agreement was part of its “proactive approach to Environmental, Social & Governance (ESG) considerations and its energy transition goals.”
Currently, the UAE is planning to boost the share of clean energy to 44 percent by 2050 and it is looking to invest $163.3 billion by mid-century to expand its renewable energy capacity.
Abu Dhabi, which accounts for a bulk of the UAE’s oil production, is also developing more renewable energy projects. The emirate is building the world’s largest solar plant at Al Dhafra with a total capacity of 2 gigawatts, as part of the UAE’s efforts to increase clean energy capacity.
Mubadala Petroleum is developing a portfolio that is heavily weighted towards gas, which is seen as a transitional fuel in the Middle East. The company’s portfolio accounts for two-thirds of natural gas. Mubadala Petroleum has also lowered its greenhouse gas emissions by 25 percent in the last three years.
“We will work with a strategic partner like Mubadala Petroleum to find ways of reaching common decarbonization targets worldwide,” Eni CEO Mr. Claudio Descalzi said. The energy firm has pledged to be carbon neutral by 2050 as it seeks to keep pace in an industry under mounting investor pressure to curb emissions. It has built extensive interests in the UAE and has said it is keen to work in the region on developing clean energy businesses.