TODAY: PIF-backed Nesma & Partners fully acquires Dubai-based energy firm Kent

Good morning, friends. We’re sliding into the weekend on a very quiet note both regionally and internationally as the news cycle slows down.

OUR TOP STORY TODAY- Saudi-based contractor Nesma & Partners is fully acquiring Dubai-based energy services provider Kent. Nesma has implemented industrial and infrastructure projects for both the Saudi government and firms including Saudi Aramco and Neom.

^^ We have more details on this story and more in the news well, below.

THE BIG CLIMATE STORY OUTSIDE THE REGION- With no single climate story dominating the international press, everyone is denying they are the climate bad apple. This includes China, which said yesterday that reports that it hindered talks on climate change at G20 meetings in India last week are “completely inconsistent with the facts,” Reuters reports, citing a statement by the country’s Foreign Ministry. A European delegation said China and top fossil fuel producing nation Saudi Arabia walked away from making commitments at the meetings. China said it “regrets” the lack of consensus at the meetings, arguing that the impasse was caused by “geopolitical issues” brought up by other countries “for no reason,” the statement reads.

REMEMBER- The meeting of G20 energy ministers failed to reach consensus last week on a fossil fuel phasedown as several major producing nations, led by Saudi Arabia, blocked the move. Talks held in the coastal province of Goa in India were intended to set the tone on energy transition ahead of the G20 meeting next September and the COP28 in December, but the resulting deadlock could be the latest sign of trouble on the use of fossil fuels ahead of a decisive COP28 later this year in the UAE.

ALSO ON THE DEFENSE FRONT- British Prime Minister Rishi Sunak defended his country’s climate record, shrugging off criticism over his fossil fuel plans, Reuters reported yesterday, citing an interview with LBC Radio. “We should not take any lectures from anybody about our record. Our record is fantastic. It's better than everyone else’s,” he said. Sunak had recently announced his government would provide 100 new oil and gas extraction licenses in the North Sea. He argued that even when his country reaches net zero by 2050, a quarter of its energy will come from fossil fuels, which should be sourced at home. “If I have to get that energy from halfway around the world and ship it here, it will come with three or four times the carbon emissions,” he said.

WATCH THIS SPACE #1- More solar coming to Morocco soon? Morocco is close to awarding the contract for its 400 MW Noor Midelt II solar plant in the Atlas Mountains, Hespress reports. The news comes a few weeks after six consortiums were pre-qualified by the country’s renewable energy agency Masen. Those include Spain’s Cobra Servicios, Comunicaciones y Energia, Iberdrola, France’s EDF Renewables, Italy’s Enel Green Power, Belgium’s International Power, and Saudi Arabia’s Acwa Power.

BACKGROUND- The Noor Midelt II solar plant is part of the Morocco’s second concentrated solar power (CSP) technology complex Noor Midelt, which consists of two solar plants combining thermosolar and PV technology to produce 800 MW of renewable energy with a storage capacity of five hours, according to Masen.

WATCH THIS SPACE #2- GCC wants to list carbon credits regionally: Qatar-based Global Carbon Council (GCC) is in talks with several regional exchange markets to list carbon credits in Egypt, Saudi Arabia, and the UAE, GCC COO Kishor Rajhansa told The National. The council has inked an agreement with the EGX and is currently negotiating with Saudi sovereign wealth fund the Public Investment Fund to list its carbon offsets, Rajhansa told the news outlet.

A new GCC finance facility? The GCC is also exploring the possibility of setting up a carbon finance facility in 2024. The facility — which will be independently operated by carbon credit buyers — aims to ensure a fair market price for project owners and allow more margin retention, according to Rajhansa.

ICYMI- We spoke with Rajhansa last month about the credits GCC offers, projects in the pipeline, expansion plans, partnerships with MENA’s private and public sectors, and what GCC’s involvement in COP28 will look like.

WATCH THIS SPACE #3- The UAE is pushing forward with its national hydrogen strategy: The UAE’s Energy and Infrastructure Ministry (MOEI) is partnering with German research organization Fraunhofer Society and engineering, architecture, and construction solutions firm GHD on developing the country’s national hydrogen strategy, according to a statement. Fraunhofer is contributing to the strategy by providing its technical expertise in hydrogen production and its knowledge of the global hydrogen market. Fraunhofer's Global Hydrogen Potential Atlas project, which provides data on the potential for hydrogen production in different countries, was incorporated into the strategy to ensure the UAE’s targets are feasible. After finalizing the roadmap, the UAE will work on developing its low carbon hydrogen policy, the statement notes.

REMEMBER- The UAE’s new energy strategy supports green hydrogen: The UAE government approved its updated National Energy Strategy last month, committing to increasing the country’s 2030 renewable capacity goal to 14 GW from 9.2 GW. The new goal represents triple the currently installed renewable energy capacity and will require AED 150-200 bn (around USD 41-55 bn) in funding. As of October 2022,the UAE had signed USD 10.3 bn worth of agreements for green hydrogen and ammonia, while a 2022 summary report found that the UAE has signed a total of 10 preliminary low-carbon hydrogen agreements. The UAE plans to snap up a quarter of the global hydrogen market by 2030.

THE DANGER ZONE- Most of the oil on the decaying FSO Safer supertanker has been removed: Over half the oil aboard the rusting 47-year-old supertanker FSO Safer off the coast of Yemen has been transferred to a new vessel, UN Resident Coordinator for Yemen David Gressly said. Last week, the UN launched a USD 143 mn, 19-day operation to transfer 1.14 mn barrels of light crude off of the tanker. The Safer has been at risk of breaking apart or exploding for years, and could cause an environmental catastrophe if it causes a major spill in the Red Sea. A clean up operation for a potential spill from the tanker would cost c. USD 20 bn, according to the UN, racking up several more USD bns in damages on a daily basis due to shipping route disruptions and impacts on surrounding ecosystems and coastal fishing communities.

CIRCLE YOUR CALENDARS- The Enterprise Finance Forum is taking place on 18-19 September at the St. Regis Hotel in Cairo. This flagship forum is the latest in our must-attend series of invitation-only, C-suite-level gatherings that allow senior members of our community to openly and frankly discuss critical issues in key sectors of the economy.

TAP OR CLICK HERE if you want to express interest in attending. We’ll be sending out the first batch of invitations soon.

Do you want to become a commercial partner? Ping a note to Moustafa Taalab, our head of commercial, or fill out this form and we’ll be in touch.

DID YOU MISS THE ENTERPRISE EXPORTS AND FDI FORUM? Tune in to the Enterprise Podcast and listen for yourself: The Enterprise Podcast is back with another installment of our forum series, where we bring you audio recordings of what was said on stage at the Enterprise Exports and FDI Forum, which took place in May.

WANT TO LISTEN? Head to: Apple Podcast | Spotify | Google Podcast | Anghami. We’re releasing a new episode every Sunday morning.

IN THIS WEEK’S EPISODE- We look at whether industrial clusters — which have been used to great effect elsewhere — can be a way for SMEs to be part of a potential export-oriented economy. Our speakers shed light on where industrial zones are working for us already, how Egypt can leverage clusters to get a bigger slice of that cross-border trade, and how industrial clusters can bring together SMEs to work with larger firms. We were joined on that panel by Shady Williams, managing director of IDG, Mohamed ElGebely, team leader at USAID Trade, and Nada El Ahwal, CSO of Transmar.

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CIRCLE YOUR CALENDAR-

Sweden will host World Water Week from Sunday, 20 August to Wednesday, 24 August in Stockholm. Organized by the Stockholm International Water Institute, the event will bring together policy makers, NGOs, and private sector players to discuss innovative solutions to managing water and how to tackle food security, biodiversity, and climate change.

The US will host the International Conference on Recycling and Waste Management and the International Conference on Environmental Sustainability and Climate Change

from Monday, 21 August till Tuesday, 22 August in Philadelphia. The waste management conference will gather environmental engineers, and recycling, wastewater treatment, and climate researchers to discuss trends and innovations in plastics recycling, wastewater treatment, and renewable energy. The sustainability and climate change conference will bring together researchers and industry leaders to spotlight innovations in environmental science, climatology, renewable energy, and pollution control.

The Dominican Republic will host the COP27 Transitional Committeefrom Tuesday, 29 August to Friday, 1 September. The meeting aims to establish institutional arrangements, modalities, governance structures, and terms of reference for the landmark Loss and Damage Fund. It also wants to expand sources for climate funding under the program.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.