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Abu Dhabi, UAEThursday 15 November 2018

Adnoc Distribution inks pact with Japanese firm to deploy solar power system

The accord capitalises on strong bilateral commercial ties between the UAE and Japan

The PV solar power facility will be installed at the Yas North service station. Photo courtesy of Adnoc
The PV solar power facility will be installed at the Yas North service station. Photo courtesy of Adnoc

Adnoc Distribution - the UAE’s biggest fuel and convenience retailer, signed an agreement with Japan Cooperation Centre Petroleum (JCCP) to supply, install and pilot the use of a photovoltaic solar power system at one of its service stations in Abu Dhabi, as part of the company's commitment to cleaner energy.

“As we transform our business model to become more customer-centric, we continue to invest in upgrading our operations to become more sustainable and environmentally friendly,” said Saeed Rashdi, acting chief executive of Adnoc Distribution.

The renewable energy agreement will see the PV solar power installed at the Yas North service station. The pact with JCCP is an important addition to Adnoc Distributions’ programmes that aim to drive greater efficiency, said Mr Rashdi.

“We have a growing natural gas vehicle operation available at 24 stations, and are actively installing electric vehicle chargers. There is serious momentum to our alternative fuels offering,” he said.

Adnoc Distribution, whose second quarter net profit rose 24.3 per cent, embarked on an ambitious growth and expansion programme in 2017, when it sold a 10 per cent stake in the company in an initial public offering on the Abu Dhabi Securities Exchange in December, the first IPO on the exchange in six years. As part of that programme, the company is reducing costs and expanding its service station footprint. Adnoc also plans to open new stations in Saudi Arabia and Dubai in the coming months.

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JCCP has previously worked with Adnoc on several environmental awareness initiatives to fulfil its objective of promoting mutually beneficial co-operation between oil-producing countries and Japan.

“Solar energy and, more broadly, energy efficiency are areas of particular strength in Japan," said Mr Rashdi, adding the project "aligns well" with the goals of Adnoc Distribution.

JCCP appointed Abu Dhabi company Cosmo Engineering to carry out the PV solar work at the Yas North service station, which will commence operations in December 2018.

Harnessing solar energy to ensure sustainability is a growing trend among the UAE oil companies.

Emirates National Oil Company’s 2020 service station growth plan considers an estimated 31 Gigawatt hours (GWh) of energy generated through PV solar panels, minimising the load on Dubai Electricity and Water Authority.

In 2017, Enoc piloted the first solar-powered service station in the country at its Dubai Internet City facility. The station features PV solar panels on the roof of the canopy with a peak capacity of 120 kilowatt energy on an ideal day, generating approximately 30 per cent more than the average energy required to run the station.

The Adnoc Distribution-JCCP agreement will help promote the utilisation of solar energy use in the UAE, Japan's ambassador to the UAE, Kanji Fujiki said.

“This is a pilot step in a number of initiatives that will help introduce small power generation facilities for business use and households in the UAE in the near future,” he said.