Decarbonization is both a strategic imperative and a financial commitment for ADNOC Distribution, with greenhouse emissions reduction tied to key performance indicators of its sustainability-linked loan.

Milestone aligns with the UAE’s Net Zero by 2050 strategic initiative by contributing to reducing emissions from the transportation sector.

Abu Dhabi, UAE: ADNOC Distribution (ISIN: AEA006101017) (Symbol: ADNOCDIST), the UAE’s largest fuel and convenience retailer, today announced its UAE heavy vehicle fleet, supplying main fuels, will be powered by B20 biofuel, targeting a 15% reduction in CO2 emissions from the fleet.

The company’s fleet plays a crucial role in supplying fuels and liquefied petroleum gas (LPG) to corporate customers. This initiative is a step forward in ADNOC Distribution’s commitment to reducing its carbon footprint and is in line with ADNOC Group’s efforts to deliver on its accelerated decarbonization plan.

Eng. Bader Saeed Al Lamki, CEO of ADNOC Distribution, said: “We are delivering on our commitment to using biofuel to power our fleet and help reduce our carbon intensity by 25% by 2030. By incorporating B20 biofuel into our operations, ADNOC Distribution is taking a vital step toward securing a more sustainable future. This initiative underscores ADNOC Distribution’s dedication to a future-focused strategy and supports the UAE’s Net Zero by 2050 strategic initiatives.”

Produced from waste cooking oil, the biofuel blending process takes place at a state-of-the-art production facility located in Madinat Zayed, Abu Dhabi. Through this initiative, which reduces carbon emissions associated with transportation, ADNOC Distribution underscores its commitment to take tangible steps that enable sustainable mobility.

In January 2023, ADNOC Distribution converted a $1.5 billion (AED5.5 billion) term loan into a sustainability-linked one, committing to a penalty/incentive approach that ties the loan to sustainability indicators. With a reduction in greenhouse emissions intensity as one of the loan’s two key performance indicators, decarbonization represents both a strategic imperative and a financial commitment for ADNOC Distribution.

As a testament to ADNOC Distribution’s commitment to sustainability, the company is actively working on the development of innovative sustainable mobility solutions, including electric vehicle (EV) charging infrastructure. The company currently operates 38 EV charging points at service stations across the UAE. In addition, ADNOC Distribution has agreed with Abu Dhabi National Energy Company (TAQA) to work together to establish a mobility joint venture, E2GO, to build and operate electric vehicle (EV) infrastructure in Abu Dhabi and the wider UAE.

ADNOC Distribution also continues to provide alternative fuel options, including compressed natural gas (CNG), across its network. Meanwhile, in 2022, the company launched its Voyager Green Series range of lubricants, made from 100% plant-based base oil, aligning with the company’s commitment to expanding and diversifying its sustainable and eco-friendly product offerings in response to the evolving demands of its customers.

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About ADNOC Distribution

ADNOC Distribution is a leading mobility retailer in UAE. The Company has been providing energy for customers’ journeys since 1973. Since this time, the Company has continuously been at the forefront of providing the best in customer service. Today, ADNOC Distribution enables, enhances, and energizes every customer journey thanks to digitally enabled, innovative customer experiences and high-quality non-fuel retail products. The Company operates service stations in all seven emirates in its home country, plus Saudi Arabia, and sells lubricants in 32 countries across the world via distributors. Now in its 50th year, ADNOC Distribution has over 570 service stations, 511 in the UAE and 64 in KSA. As a non-fuel retail leader in the UAE, it operates 351 ADNOC Oasis convenience stores, 33 vehicle inspection centers, and other leading services spanning car wash, lube ADNOC Classification: Public change, and EV charging. The Company is also the leading marketer and distributor of fuels to commercial, industrial, and government customers throughout the UAE. All figures as of 30 June 2023. Additionally, in February 2023 ADNOC Distribution completed its acquisition from TotalEnergies Marketing Afrique SAS of a 50% stake in TotalEnergies Marketing Egypt LLC, marking the Company’s official entry into the Egyptian market. ADNOC Distribution aims to be the global mobility retailer of choice, enabler of sustainable mobility, and provider of exceptional customer experiences. To find out more, visit www.adnocdistribution.ae.