Abu Dhabi National Oil Co. (Adnoc) and Abu Dhabi National Energy Co. PJSC (TAQA) have reached a $2.2 billion financial close for a project that will enable sustainable water supply delivery for Adnoc’s onshore operations.

This investment entails developing and operating facilities to sustainably treat and supply seawater for Adnoc’s operations at the Bab and Bu Hasa fields in Abu Dhabi, Adnoc said in a press release. The company said it is in line with its efforts to decarbonize and future-proof its business.

A consortium comprised of Orascom Construction and Metito will construct a centralized world-class seawater treatment facility and transportation and distribution network, according to Adnoc.

Adnoc and TAQA own a 51 percent majority stake (25.5 percent each) while the consortium holds the remaining 49 percent stake in the project company that will develop the water project under a build, own, operate and transfer model. Adnoc said it will get full ownership of the project after 30 years of operation.

According to the news release, the project will be financed by a group of nine local and international banks, including First Abu Dhabi Bank, Gulf International Bank, Natixis, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Commercial Bank of Dubai, Emirates NBD, Emirates Development Bank and Warba Bank through a combination of commercial and Islamic finance facilities.

“The collaboration of industry leaders TAQA and ADNOC allows us to deliver a world-class sustainable water project that not only reduces energy consumption but also bolsters energy security”, TAQA Group Chief Executive Officer and Managing Director Jasim Husain Thabet said. “As a low carbon power and water champion, and a fully integrated utility company, TAQA is a partner of choice for industrial players seeking to decarbonize their operations through the provision of sustainable water and power solutions and investment in the critical infrastructure needed to enable net zero”.

Replacing the current high-salinity, deep aquifer water systems at the fields, the project is expected to reduce water injection-related energy consumption by up to 30 percent. Connected to the grid, the project is expected to receive 100 percent of its power from clean energy sources, Adnoc said.

The financial close for the water supply project follows Adnoc’s final investment decision for what it said is one of the largest carbon capture projects in the Middle East and North Africa region. The carbon capture, utilization and storage project will have a capacity of 1.5 million metric tons per annum. The captured carbon dioxide will be stored in geological formations deep underground, Adnoc said.