Adnoc Distribution said it has reached an agreement with Abu Dhabi National Energy Company (Taqa) to work together on setting up a mobility joint venture, E2GO, for building and operation of electric vehicle (EV) infrastructure in Abu Dhabi and the wider UAE.
An agreement to pave the way for creating the joint venture was signed by CEO of Adnoc Distribution Bader Saeed Al Lamki, and Group CEO and MD of Taqa Jasim Husain Thabet and was unveiled during the Abu Dhabi Sustainability Week (ADSW 2023).
The name, E2GO (pronounced E to Go), embodies innovation and harnessing the power of technology to pioneer modern sustainable mobility solutions.
E2GO comes at an opportune time in the development of the UAE’s EV market, with an expected 70,000 charging points considered to be required in Abu Dhabi by 2030 to meet growing EV demand, said Adnoc Distribution in a statement.
To support this demand, an investment of up to $200 million of Capex will be needed for this critical infrastructure, it stated.
Demand for EVs in the UAE market has witnessed a steady rise over the past years and is projected to see a compound annual growth rate (CAGR) of 30% between 2022 and 2028 according to the global electric mobility readiness index published in 2022.
The project aligns with the UAE’s Net Zero by 2050 objectives by contributing to a reduction in emissions from transport.
Backed by two Abu Dhabi national energy champions, E2GO aims to become the principal provider of EV charging points and associated infrastructure across the Emirate of Abu Dhabi.
The partnership will include a network of fast chargers at key locations, featuring associated solutions such as parking and tolling services, in addition to related digital platforms to facilitate EV charging, which will enhance customer service and unlock new revenue streams.
Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Chairman of Adnoc Distribution, said: "As electric vehicle adoption grows in the UAE, we both are well placed to meet the evolving needs of EV customers through the creation of the E2GO venture. Adnoc Distribution will continue to capitalise on energy transition opportunities that make commercial sense, while remaining a reliable supplier of our customers’ energy needs."
Engineer Awaidha Murshed Al Marar, Chairman of Abu Dhabi Department of Energy (DoE), lauded the Adnoc Distribution-Taqa partnership, calling it an important initiative aimed at supporting EV charging infrastructure development in the emirate.
"DoE is committed to realise the UAE’s leadership vision and take decisive actions to promote all necessary policies, such as sustainable transport, as the critical route to drive the energy transition and achieve the emirate’s decarbonisation goals, as part of the UAE’s Net Zero 2050 agenda," he noted.
Taqa Chairman Mohamed Hassan Alsuwaidi said: "Decarbonising transport is an essential part of the UAE’s drive towards achieving its net zero ambitions. The development of EV infrastructure facilitated by the E2GO joint venture will help bridge the gap in delivering clean energy to the wider public."
"As a low-carbon power and water champion, we continuously explore unique opportunities to expand our footprint into emerging growth areas, and we believe this partnership marks a major step towards integrating Taqa to a wider customer base, while further strengthening our alignment with the nation's sustainability agenda," he added.-TradeArabia News Service