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Asharq Al-Awsat
Asharq Al-Awsat
Business
Abu Dhabi - Asharq Al-Awsat

UAE, US Reach Deal for $100 Billion in Clean Energy Projects

In the presence of Sheikh Mohamed bin Zayed Al Nahyan, the partnership was signed by Dr. Sultan Al Jaber and Amos Hochstein (WAM)

The United Arab Emirates and the United States have reached an agreement to spend $100 billion on clean energy projects with a goal of adding 100 gigawatts globally by 2035.

The UAE and US reaffirmed their shared commitment to enhancing climate ambition and climate action, in line with their net-zero 2050 goals.

The statement said the partnership would "assemble and stimulate" private and public sector funding and support for clean energy innovation, carbon and methane management, advanced reactors including small modular reactors, and industrial and transport decarbonization.

The Partnership for Accelerating Clean Energy (PACE) aims to unlock joint investment and opportunities in emerging economies.

As part of the initiative, the two nations will seek to provide technical, project management, and funding assistance for commercially and environmentally sustainable energy projects in third counties.

“Building on our close strategic ties with the United States, I was delighted to witness the launch of the Partnership for Accelerating Clean Energy which aims to ensure energy security, support climate action, and drive sustainable development for our two nations and the world,” UAE President Sheikh Mohamed bin Zayed Al Nahyan said on the sidelines of signing the agreement.

"The energy transition needs a realistic, practical and economically viable plan to deliver climate progress together with energy security and inclusive economic growth," Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Special Envoy for Climate Change, said in a statement.

UAE Ambassador to Washington Yousef Al Otaiba noted, “Strengthened by decades of close security, economic and energy cooperation, the UAE-US partnership on climate action and the energy transition is now a significant facet of our overall relationship.”

As for US energy envoy Amos Hochstein, he said that the US-UAE strategic alliance “will now join forces to accelerate the global energy transition to a cleaner and more sustainable future.”

The partnership is a testament “to the deep commitment our countries share to urgently address the climate crisis – as quickly as possible,” Hochstein added.

Moreover, Adnoc has awarded three framework agreements valued at $4 billion (14.68 billion dirhams) to support its goal of boosting crude oil production capacity amid growing global demand.

The framework agreements will enable investment in local manufacturing of equipment and facilities, including in Liquid Mud Plants and a Waste Management Facility, as well as key commodity chemicals.

Adnoc Drilling’s scope of the framework agreements is valued at up to $1.6 billion (5.87 billion dirhams).

Since November 2021, Adnoc has awarded over $16 billion (58.72 billion dirhams) in agreements for drilling-related equipment and services.

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