ADNOC and Abu Dhabi Future Energy Company (Masdar) have announced the signing of a Strategic Collaboration Agreement (SCA) with Microsoft to pursue various artificial intelligence (AI) and low-carbon initiatives in the UAE and worldwide. This collaboration aims to decarbonize today’s energy system and facilitate a sustainable energy future. The announcement was made at ADIPEC, currently being held in Abu Dhabi.

Source: ADNOC

Under the SCA, the partners will assess opportunities to power Microsoft's data centers with renewable energy sourced from Masdar, in which ADNOC is a shareholder. Additionally, they will investigate the application of AI to enhance carbon capture and storage projects, as well as initiatives related to low-carbon ammonia and hydrogen.

We are at a pivotal moment for human progress driven by three megatrends, the rise of the global south, the accelerated energy transformation, and the rapid growth of AI. AI is an era-defining innovation that is altering the pace of change itself - resetting the boundaries of productivity and the possibilities of progress. It is also creating a power surge that nobody accounted for just 18 months ago. By collaborating to solve AI’s near-term challenges, we can also unlock AI’s long-term benefits across the energy value chain – helping to secure a sustainable and prosperous future for generations to come.

The SCA also aims to accelerate AI deployment within ADNOC’s operations to improve efficiencies, promote methane reduction initiatives in line with the Oil & Gas Decarbonization Charter to achieve near-zero methane emissions by 2030, reduce overall emissions, and enhance biodiversity monitoring for better environmental protection.

This agreement follows the publication of the report "Powering Possible: AI and Energy for a Sustainable Future," co-authored by ADNOC, Masdar, and Microsoft. The report, along with the ENACT Majlis—a gathering of over 70 CEOs from the technology, energy, and investment sectors held before ADIPEC—advocates for increased collaboration to leverage AI in accelerating the energy transition.

This new era calls on us to do two things at once: meet the AI moment while transitioning to a more sustainable economy. In a world that will need more electricity, not less, it's imperative that we generate more carbon-free energy to power AI and use that very same technology to increase capacity, optimize transmission, and expand energy access to communities around the world. This isn’t a journey any of us can take alone. It requires working across technology, energy, science, and policy sectors to find solutions and accelerate our collective progress.

AI solutions are pivotal in supporting ADNOC's ambition for Net Zero by 2045 and its goal of near-zero methane emissions by 2030. Between 2022 and 2023, ADNOC's AI tools successfully reduced carbon dioxide (CO2) emissions by 1 million tonnes and generated $500 million (AED 1.84 billion) in value in 2023.