UAE’s largest fuel distributor and convenience store retailer, ADNOC Distribution, the has agreed with Abu Dhabi National Energy Company (TAQA), the largest listed integrated utility companies in the region, to establish a mobility joint venture, E2GO, to build and operate electric vehicle (EV) infrastructure in Abu Dhabi and the wider UAE.
An agreement for creating the joint venture was signed by Eng Bader Saeed Al Lamki, CEO of ADNOC Distribution and Jasim Husain Thabet, group CEO and MD of TAQA during the Abu Dhabi Sustainability Week (ADSW 2023), the fuel distributor major wrote in a statement.
Demand for EVs in the UAE market has witnessed a steady rise over the past few 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 statement noted.
According to an estimate Abu Dhabi will need around 70,000 charging points by 2030 to meet growing EV demand. To support this demand, an investment of up to $200 million of CAPEX will be needed for this critical infrastructure, the statement revealed.
“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 ADNOC group company said.
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, it said while adding the project aligns with the UAE’s Net Zero by 2050 objectives by contributing to a reduction in emissions from transport.
The new venture is supported by a new regulatory policy for electric vehicle charging infrastructure in Abu Dhabi that the Abu Dhabi department of energy recently launched, in a significant step forward to provide the right policy framework to support a circular carbon economy as the UAE advances its plans to achieve the net zero ambition.
Commenting on the development, H E Dr. Sultan Ahmed Al Jaber, chairman of ADNOC Distribution said, “As electric vehicle adoption grows in the UAE, ADNOC Distribution and TAQA are well placed to meet the evolving needs of EV customers through the creation of the E2GO venture.”