ADNOC Distribution, the UAE's largest fuel distributor and convenience store retailer, has agreed to establish a mobility joint venture, E2GO, with Abu Dhabi National Energy Company (TAQA), one of the largest listed integrated utility companies in the EMEA region, to build and operate electric vehicle (EV) infrastructure in Abu Dhabi and the wider UAE.
Bader Saeed Al Lamki, CEO of ADNOC Distribution, and Jasim Husain Thabet, Group CEO and MD of TAQA, inked an agreement to pave the way for the joint venture, which was revealed during Abu Dhabi Sustainability Week (ADSW 2023).
According to the global electric mobility readiness index issued in 2022, demand for EVs in the UAE market has steadily increased over the previous years and is expected to expand at a compound annual growth rate (CAGR) of 30% between 2022 and 2028.
E2GO arrives at an ideal time in the growth of the UAE's EV sector, with an estimated 70,000 charging outlets needed in Abu Dhabi by 2030 to fulfil rising EV demand.
To meet this demand, a capital expenditure CAPEX investment of up to $200 million would be required for this important infrastructure. E2GO wants to become the primary provider of EV charging points and associated infrastructure throughout the Emirate of Abu Dhabi, backed by two Abu Dhabi national energy champions.
The collaboration will comprise a network of fast chargers in strategic places, as well as accompanying solutions such as parking and tolling, as well as connected digital platforms to assist EV charging, which will improve customer experience and open up new income sources. The initiative contributes to the UAE's Net Zero by 2050 goals by reducing emissions from transportation.
"As electric vehicle usage develops in the UAE, ADNOC Distribution and TAQA are ideally poised to satisfy the increasing demands of EV consumers through the development of the E2GO partnership," stated Dr. Sultan Ahmed Al Jaber, Chairman of ADNOC Distribution.
"We applaud the ADNOC Distribution - TAQA agreement, an essential initiative aimed at boosting EV charging infrastructure development in the emirate," stated Awaidha Murshed Al Marar, Chairman of the Abu Dhabi Department of Energy (DoE).
"This new relationship corresponds with one of DMT's most significant aims, which is to assist the sustainable mobility goals that the Abu Dhabi government intends to achieve," said Falah Al Ahbabi, Chairman of the Department of Municipalities and Transport (DMT).
"Decarbonising transport is a crucial aspect of the UAE's effort towards reaching its net zero aspirations," stated TAQA Chairman Mohamed Hassan Alsuwaidi.
For many years, ADNOC Distribution has been a pioneer in offering alternative fuels, and it now provides Compressed Natural Gas (CNG) fuel at 31 sites across its UAE service station network, including a dedicated CNG-only service station in Abu Dhabi city.
With operations in 11 countries, TAQA is a low-carbon power and water champion as well as one of the largest integrated utilities firms in the EMEA area.