ADNOC, Masdar, Microsoft to drive AI, low-carbon initiatives

At ADIPEC 2024 in Abu Dhabi, ADNOC, Masdar, and Microsoft unveiled a strategic collaboration agreement (SCA) focused on advancing artificial intelligence (AI) and low-carbon technologies to decarbonise the global energy system and enable a sustainable future.

The collaboration aligns with the UAE’s growing leadership in the energy transition and positions AI as a transformative tool to drive emission reductions, efficiency improvements, and environmental stewardship.

The agreement outlines a plan to explore renewable energy solutions for Microsoft’s data centres, potentially powered by Masdar, where ADNOC holds a share.

Additionally, the SCA targets the integration of AI into critical projects for carbon capture, storage, and low-carbon hydrogen and ammonia — key components of a sustainable energy future.

ADNOC’s strategic vision for AI and decarbonisation

Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC MD and group CEO, and Masdar chairman, highlighted the transformative impact of AI on the energy landscape. “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.”

Dr Al Jaber also emphasised the power of collaboration in maximising AI’s benefits across the energy sector to support a sustainable future.

The initiative also aligns with ADNOC’s Net Zero by 2045 strategy, including a goal to achieve near-zero methane emissions by 2030.

ADNOC’s existing AI capabilities have already abated one million tonnes of CO₂ and generated $500m (Dhs1.84bn) in value between 2022 and 2023, underscoring the significant role of AI in sustainable operations.

Driving industry-wide collaboration

The agreement builds on insights from the recent Powering Possible: AI and Energy for a Sustainable Future report, co-authored by ADNOC, Masdar, and Microsoft.

Released in conjunction with the ENACT Majlis — a gathering of over 70 CEOs from the technology, energy, and investment sectors on the eve of ADIPEC — the report highlights the necessity for cross-sector collaboration to leverage AI for a successful energy transition.

Brad Smith, Microsoft’s vice chair and president, underscored the dual goals of embracing AI while advancing sustainable energy. He said: “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, we must generate more carbon-free energy to power AI and use that very same technology to increase capacity, optimise transmission, and expand energy access to communities around the world.”

Smith highlighted that this journey requires unified efforts across sectors.

AI as a catalyst for clean energy

Masdar CEO Mohamed Jameel Al Ramahi also expressed optimism for AI’s role in the energy transition, stating, “AI will play a key role in accelerating the energy transition. We look forward to working with ADNOC, Microsoft, and other key partners to help AI achieve its potential by delivering clean energy to the data centres that will power the AI future.”

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