ADNOC, Masdar, and Microsoft join forces to drive AI and Low-Carbon initiatives for a sustainable energy future at ADIPEC 2024

At ADIPEC 2024 in Abu Dhabi, ADNOC, Masdar, and Microsoft signed a Strategic Collaboration Agreement (SCA) to advance artificial intelligence and low-carbon initiatives aimed at reshaping the energy landscape. The collaboration, which combines expertise in energy and technology, is set to support environmental and economic goals through renewable energy, carbon capture, and efficiency projects that reduce emissions and enable a sustainable future.

Under the SCA, the companies will evaluate the potential to power Microsoft’s data centers with renewable energy sourced through Masdar, a key ADNOC stakeholder. In addition, they will explore using AI for carbon capture, low-carbon ammonia, and hydrogen projects that reduce the carbon footprint of existing energy systems. A core focus will also be accelerating AI deployment across ADNOC’s operations to enhance efficiency, cut methane emissions in line with the Oil & Gas Decarbonization Charter, and improve biodiversity monitoring for environmental protection.

Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, and Masdar Chairman, spoke on the transformative impact of the collaboration. “We are at a pivotal moment, driven by the rise of the Global South, the rapid energy transition, and the exponential growth of AI,” he said. “AI is redefining productivity and progress, creating new opportunities and challenges. By collaborating on AI’s immediate challenges, we can unlock long-term benefits across the energy value chain, securing a sustainable future for generations to come.”

The announcement follows the recent release of the Powering Possible: AI and Energy for a Sustainable Future report, co-authored by ADNOC, Masdar, and Microsoft. Presented ahead of ADIPEC, the report highlights AI’s potential to optimize energy systems, reduce emissions, and drive innovation for a carbon-neutral future.

Microsoft’s Vice Chair and President, Brad Smith, emphasized the need for a balanced approach. “This new era calls on us to meet the AI moment while transitioning to a sustainable economy,” said Smith. “In a world where electricity demand is increasing, we need more carbon-free energy to power AI while also using AI to optimize energy capacity and access worldwide. It’s a journey that requires joint efforts across technology, energy, science, and policy to accelerate progress.”

Masdar’s CEO, Mohamed Jameel Al Ramahi, added that AI’s role in the energy transition is critical. “We look forward to working with ADNOC, Microsoft, and other key partners to help AI deliver clean energy for the data centers that will power an AI-driven future,” he stated.

As ADNOC advances its Net Zero by 2045 ambition and aims for near-zero methane emissions by 2030, AI continues to play a pivotal role. Between 2022 and 2023, ADNOC’s AI tools helped abate one million tonnes of CO₂, generating over $500 million (AED 1.84 billion) in value in 2023 alone.

This agreement at ADIPEC marks a significant step towards using AI to accelerate the transition to sustainable energy, leveraging the combined strengths of ADNOC, Masdar, and Microsoft to build a cleaner, more resilient future.