Japan Bank for International Cooperation (JBIC) has signed two project loan agreements with Abu Dhabi National Oil Company (Adnoc), based on a credit line set up in July.

The loans are co-financed with Mizuho Bank, Sumitomo Mitsui Banking Corporation, MUFG Bank, and HSBC (Tokyo Branch). JBIC is providing US$341 million out of US$569 million for the first loan, and US$130 million out of US$217 million on the second.

The loans are extended under JBIC’s GREEN operations, supporting Adnoc’s initiatives for decarbonization around the world, and creating opportunities for collaborations between Japanese companies and Adnoc and its subsidiaries, by strengthening JBIC’s relationships with the United Arab Emirates, Abu Dhabi, and Adnoc.

They are intended to provide the funds necessary for Adnoc to implement projects contributing towards the supply of renewable and next-generation energy, as well as projects related to energy-efficient power generation and heat supply, contributing to decarbonization and energy transition in the UAE.

On July 4th JBIC signed a general agreement with Adnoc to provide a credit line of up to US$3 billion, of which JBIC's portion is US$1.8 billion.

Abu Dhabi is a strategic partner for Japan's energy resource strategy. In addition, the emirate has high potential in the sector of decarbonization and energy transition, as it has abundant resources for renewable energy and subterranean structures that are suitable for carbon capture and storage (CCS). The CCS technology separates and captures carbon dioxide that would otherwise become a greenhouse gas and stores it in deep waterbeds or geological formations.

Adnoc, wholly owned by the Emirate of Abu Dhabi, aims to achieve net-zero emissions by 2045, promoting renewable energy, developing hydrogen and ammonia, CCS, and other green energy initiatives.