The project will be financed by a group of nine local and international banks, including First Abu Dhabi Bank, Gulf International Bank, Natixis, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Commercial Bank of Dubai, Emirates NBD, Emirates Development Bank and Warba Bank, through a combination of commercial and Islamic finance facilities.

The balance of the project cost will be provided by sponsors in accordance with their equity shares, Adnoc and Taqa said in a statement on Monday to the Abu Dhabi Securities Exchange.

The project, announced in May, involves developing and operating facilities to sustainably treat and supply seawater for Adnoc’s operations at the Bab and Bu Hasa fields in Abu Dhabi.

A consortium, comprising Orascom Construction and Metito, will construct a centralised seawater treatment facility and transportation and distribution network.

It will develop the project under a build, own, operate and transfer model, with the full project being transferred to Adnoc after 30 years of operation.

Adnoc and Taqa own a joint 51 per cent majority stake (25.5 per cent each) in the project company, with the consortium owning the remaining 49 per cent.

“This strategic sustainable investment is a further example of how Adnoc is transforming, decarbonising and future-proofing our operations as we fully embrace the energy transition,” said Abdulmunim Al Kindy, executive director of Adnoc Upstream.

“As we accelerate our transformational journey to a lower-carbon future, this innovative project will equip our onshore operations with energy-efficient water supply, significantly reducing our carbon footprint.”

Adnoc, which plans to reach net-zero emissions by 2045, said in January that it would invest $15 billion in decarbonisation projects by 2030, which will help it to hasten its low-carbon growth strategy.

Elements include clean power, carbon capture usage and storage, further electrification of operations, carbon dioxide absorption technology and energy efficiency.

Earlier this month, the company announced plans to develop one of the largest carbon capture projects in the Mena region.

The Habshan carbon capture, utilisation and storage project will be able to capture and permanently store up to 1.5 million tonnes a year of carbon dioxide within geological formations deep underground, it said.

In September last year, Adnoc and Taqa also closed a $3.8 billion strategic project to power and decarbonise Adnoc’s offshore production operations.

The development is expected to reduce the carbon footprint of Adnoc’s offshore operations by more than 30 per cent, replacing existing offshore gas turbine generators with more sustainable power sources from the Abu Dhabi onshore power network.

The new water supply project, which will replace the current high-salinity, deep aquifer water systems at the fields, is expected to reduce water injection-related energy consumption by up to 30 per cent, Adnoc and Taqa said.

Connected to the grid, the project is expected to receive 100 per cent of its power from clean energy sources.

It will deliver more than 500 million litres per day of nano filtered seawater through 75 kilometres of transportation and more than 230km of distribution pipelines and two pumping stations, to supply Adnoc’s onshore operations.

In line with Adnoc’s in-country value programme, more than 60 per cent of the value of the project is expected to flow back into the UAE’s economy.

The water supply project has “progressed rapidly since its inception”, said Jasim Thabet, group chief executive and managing director at Taqa.

It will not only reduce energy consumption but also bolster energy security, he added.