ADNOC and Abu Dhabi Future Energy Company (Masdar) have announced the signing of a Strategic Collaboration Agreement (SCA) with Microsoft to pursue a range of artificial intelligence (AI) and low-carbon initiatives in the UAE and globally, aimed at decarbonizing the current energy system and enabling a sustainable energy future.
The announcement was made during the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), currently underway in Abu Dhabi.
Under the SCA, the companies will explore opportunities to power Microsoft’s data centers with renewable energy through Masdar, of which ADNOC is a shareholder. They will also investigate the use of AI to enhance carbon capture and storage projects, as well as low-carbon ammonia and hydrogen initiatives.
Additionally, the SCA will assess ways to accelerate AI deployment across ADNOC’s operations, aiming to improve efficiency, drive methane reduction initiatives aligned with the Oil & Gas Decarbonisation Charter, achieve near-zero methane emissions by 2030, minimize emissions, and strengthen biodiversity monitoring to better protect the environment.
Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, ADNOC Managing Director, Group CEO, and Chairman of Masdar, stated, “We are at a pivotal moment for human progress driven by three megatrends: the rise of the global south, accelerated energy transformation, and 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.”
He added, “By collaborating to address AI’s near-term challenges, we can unlock its long-term benefits across the energy value chain—helping to secure a sustainable and prosperous future for generations to come.”
This agreement follows the release of the report titled “Powering Possible: AI and Energy for a Sustainable Future,” co-authored by ADNOC, Masdar, and Microsoft. This report, alongside the ENACT Majlis—a gathering of over 70 world leaders in technology, energy, and investment held on the eve of ADIPEC—calls for greater collaboration between the technology and energy sectors to harness AI’s power in accelerating the energy transition.
Brad Smith, Vice Chair and President of Microsoft, remarked, “This new era requires us to accomplish two objectives simultaneously: embrace the AI moment while transitioning to a more sustainable economy. In a world that will need more electricity, we must generate more carbon-free energy to power AI and utilize that technology to increase capacity, optimize transmission, and expand energy access globally. This is a journey that requires collaboration across technology, energy, science, and policy sectors to find solutions and accelerate our collective progress.”
Mohamed Jameel Al Ramahi, CEO of Masdar, added, “AI will play a crucial role in accelerating the energy transition. We look forward to collaborating with ADNOC, Microsoft, and other key partners to help AI reach its potential by delivering clean energy to the data centers that will power the AI future.”
AI solutions are integral to ADNOC’s ambition for Net Zero by 2045 and its goal of achieving near-zero methane emissions by 2030. Between 2022 and 2023, ADNOC’s AI tools abated 1 million tonnes of carbon dioxide (CO2) and generated $500 million (AED1.84 billion) in value in 2023.
