A carbon capture and storage (CCS) project is being delayed due to some pricing and scheduling issues according to an official document. Abu Dhabi green energy company Masdar had earlier predicted delay in the project, a 60-40 hydrogen power venture with BP.
Abu Dhabi Water & Electricity Company (ADWEC) is expected to get some 2,000 gigawatt (GW) hours of power per year while the Abu Dhabi Company for Onshore Oil Operations (ADCO) would get 1.7 million tonnes of CO2 per year from the total production of the project.
A bond prospectus from Masdar parent company Mubadala, seen by Reuters, said, "The project is expected to cost $2.5 billion but until Masdar can obtain certainty, both in relation to the pricing for and the scheduling of, the off take of the CO2, further development of this project has been put on hold."
Mubadala, an Abu Dhabi investment vehicle hoped that its $280 million CCS project will be approved by the second quarter of 2011. The project is primarily meant for capturing 0.8 million tonnes of CO2 per year from an Emirates Steel Industries plant in Abu Dhabi and transporting it through a pipeline network.