Abu Dhabi National Energy Company (TAQA) and Abu Dhabi National Oil Company (ADNOC) have reached financial close for a high-voltage direct current (HVDC) subsea transmission network project.

The $3.8bn project will be located in the Middle East and North Africa (MENA) region.

It will be developed jointly by a consortium of Korea Electric Power (KEPCO), Kyushu Electric Power Company (Kyuden) and Électricité de France (EDF).

The consortium will collectively own a 40% stake in the project, while ADNOC and TAQA will each hold a 30% ownership.

Claimed to be the first subsea transmission network of its kind in the MENA region, the project will be built, owned and operated by the consortium alongside ADNOC and TAQA.

It will be returned to ADNOC after 35 years of operation.

With an installed capacity of 3.2GW, the transmission system will have two independent subsea HVDC links and converter stations.

The transmission system is expected to enter the commercial operation phase in 2025.

The strategic project aims to power and ‘significantly’ decarbonise ADNOC’s offshore production operations by 30%.

It will also support the United Arab Emirates’ (UAE) Net Zero by 2050 Strategic Initiative.

TAQA chairman Mohamed Hassan Alsuwaidi said: “TAQA is taking a progressive role in accelerating the UAE’s energy transition by delivering cohesive solutions that enable cleaner sources of power to fuel economic growth.

“Reaching financial close is an important milestone for this distinctive project, which will see TAQA providing ADNOC offshore facilities with low-carbon energy securely and efficiently through TRANSCO’s power network system.

“TAQA continues to showcase how its expertise can be utilised to decarbonise industry through strategic partnerships and bringing value to its stakeholders.”

Last November, TAQA and ADNOC reached an agreement to form a joint venture for renewable energy and green hydrogen projects.