TODAY: Abu Dhabi is getting a renewable energy industrial complex

Good morning, nice people. We have a brisk issue for you this morning with green hydrogen leading the show, and a few tidbits on renewables targets achieved and adjusted.

THE BIG CLIMATE STORY- The Abu Dhabi Department of Economic Development and UK-based net zero asset management company Hycap Group will develop a green hydrogen-focused renewable energy industrial complex in Abu Dhabi.

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

THE BIG CLIMATE STORY OUTSIDE THE REGION- A ‘world class’ copper deposit discovery in Zambia: California-based AI-driven mining startup KoBold Metals, backed by tech tycoons Bill Gates and Jeff Bezos, has discovered large copper reserves at is Mingomba deposit in Zambia. The Mingomba project is expected to have a USD 2 bn investment ticket, and has potential to be one of the world’s biggest high-grade large copper mines, with initial surveys yielding copper ore grades of around 5%. Kobold earmarked USD 150 mn to expand mineral explorations in Zambia back in September and says it is open to partnerships to fast-track production and begin mine development from 2027.

The story made headlines in the international press:Reuters | Bloomberg | The Financial Times | CNBC

WATCH THIS SPACE-

#1- Jordan’s cabinet has approved a draft law to establish frameworks to facilitate the power purchase of renewable power generated by households and businesses, according to a statement. The proposed bill aims to specify under law the different renewable energy systems and equipment in operation domestically, as well as rationalize energy consumption on imported energy exempt from custom duties and general sales tax.

REMEMBER- Jordan is an advocate for decentralized power production: The government signed an agreement with the Agricultural Credit Corporation and the Jordan Renewable Energy and Energy Efficiency Fund back in October to support a USD 1.6 mn program that equips and installs solar panels for local farmers. Last year, Secretary General of Jordan’s Energy and Mineral Resources Ministry Amani Azzam said the country would unveil its new long-term energy strategy in 2024.

Jordan wants to source 50% of its electricity demands from renewables by 2030 — up from the current 29% — and plans to leverage modern energy storage systems, smart meters, and improve power transmission infrastructure to facilitate energy transfer with its neighbors. The country aims to slash 31% of its carbon output by 2030 compared to 2012 levels.

#2- Egypt + Italy interconnection project in the works: Italian energy consultancy CESI, the UAE's energy conglomerate K&K group, Germany’s Siemens Energy and Italy’s electrical cable manufacturing firm Prysmian Group are carrying out a detailed feasibility study for the development of a high voltage direct current (HVDC) electric interconnection project between Egypt and Italy, CESI's CEO Domenico Villani told Al Ahram in an interview. Once the study is complete, the two countries will move forward signing an MoU to move forward with the project.

About the project: The two sides are assessing the potential to build a 3 GW, 2.8k km, HVDC cable that would connect Egypt's West Sohag region to Italy's Dolo Substation in the northern Mestre Industrial Area. The corridor is set to meet 5% of Italy's peak electricity demand, and could expand to include an interconnection with the Gulf, Villani said at the time.

And more for Egypt: Egypt has a planned 3 GW interconnector project with Greece which would see Egypt export its renewables surplus to mainland Greece. The country also inked an agreement with Belgian firm Jan De Nul in October to conduct feasibility studies on the possibility of building a Mediterranean 2 GW subsea powerline to export renewable electricity to Europe.

#3- Oman’s Authority for Public Services Regulation has set a target to have 31% of its national grid powered by renewables by 2029 — up from the current 5%, Muscat Daily reports. It is unclear whether the sultanate will subsequently update its 2030 and 2040 goals to reach 30% and and 39% renewables share of the energy mix, respectively.

How are they going to do it? The sultanate’s planned 1 GW Manah I and Manah II PV farms — due to launch operations next year — would almost triple renewables production to reach 8% of the national power mix by 2026 while bringing down gas reliance by 5% in the same period. Oman is also encouraging the use of solar panels in residential areas, Muscat Daily writes, citing comments made by the Chairman of APSR Mansour Al Hinai. Over 260 homeowners have set up grid-connected PV stations so far, the news outlet added.

#4- KSA + Turkey eye Nigeria’s mining sector: Saudi Arabia, Turkey, China, France, and the UK are reportedly looking to pour a combined USD 20 bn into Nigerian mineral exploration agreements as part of plans to shore up supplies of lithium, CEO of mining firm Daroo Nigerian Limited Alhaji Liman told Nigerian press earlier this week. Liman — who is acting as an intermediary on behalf of KSA’s Industry and Mineral Resources Ministry — said that Nigerian miners looking to partner with Saudi counterparts will have to first submit applications to Nigeria’s Federal Ministry of Solid Minerals Development with onward review in Riyadh.

Nigeria has big lithium reserves: Nigeria recently discovered enormous reserves of lithium, and international developers are flocking to the market to capitalize on its newfound deposits, including China’s Ganfeng Lithium Industry, which is building a lithium ore processing plant with an 18k ton daily capacity in the African country.

#5- ExxonMobil clashes continues with shareholders:ExxonMobil will not rescind the lawsuitit filed against activist investors Arjuna Capital and Follow This in retaliation to their call to hold a shareholder vote for tighter emissions targets, Reuters reports, citing an emailed statement. Exxon had filed a motion to skip the groups’ vote due its “extreme agenda” which it said jeopardizes investor interest and seeks compensation for legal fees, as well as “other and further relief” the court may deem fit, the news outlet notes.

REFRESHER- Follow This and Arjuna were pushing for Exxon to set scope 3 emissions: Dutch group Follow This and US-based investment firm Arjuna Capital’s proposal aimed to expand the company’s emissions slashing strategy, compelling Exxon to set scope 3 reduction targets. The oil firm — the world’s second largest oil and gas company by market cap — has only announced scope 1 and 2 targets, and is one of five oil companies in the West who have failed to establish scope 3 targets.

Scare tactics? Exxon’s persistence — labeled a tactic of bullying and intimidation by Arjuna CIO Natasha Lamb — is being closely monitored by activist investors, who are concerned the move could trigger more legal blockades on climate action shareholder petitions rather than the usual process of appealing to regulators, according to Reuters.

DANGER ZONE-

IEA downgrades hydrogen-dedicated renewables forecasts: The International Energy Agency (IEA) has lowered projections for renewable power allocations toward clean hydrogen projects to 45 GW — representing a 35% drop from 2023 estimates — on the back of uncertaindemand outlooks and unclear regulatory frameworks, it notes in its latest Renewables report (pdf). The agency attributes the decreased projection to a lack of sufficient demand-side incentives to lessen the cost gap between green and gray hydrogen, a lack of hydrogen transport infrastructure to end-users for exporting markets, and high inflation which contributed to developers’ inability to reach financial close on their projects last year. Only 3% (12 GW) of the global 2030 pipeline of hydrogen projects (360 GW) reached financial close in 2023, IEA notes.

Green hydrogen projects may be getting more expensive: According to the IEA, renewables-powered hydrogen production could see a 3% cost of capital increase compared to fossil-fueled generation over the next five years partly on the back of a projected drop in natural gas prices, Reuters notes, citing the IEA’s latest Global Hydrogen Review (pdf). Several developers are hiking previous investment tickets for hydrogen projects by up to 50%, the IEA notes, adding that price tag increases will mean already earmarked government funding for hydrogen investments will be allocated to a smaller number of projects through to 2028.

Some countries will prevail: While renewables allocations for hydrogen production over the five-year period — representing 7% of total global output — are set to plummet globally, China, Saudi Arabia, and the US are predicted to circumvent the drop, which together are expected to channel some 33.75 GW of clean power toward hydrogen projects by 2028. China accounted for 70% of global hydrogen-centered renewables additions between 2023 and 2024, currently holds half of global electrolyzer capacity, and plans to increase annual production to 7.7 mn tons by 2030, Reuters notes. China has signed hydrogen accords with regional players including co-developer of Neom’s mega hydrogen plant Acwa Power and Egypt.

***

YOU’RE READING ENTERPRISE CLIMATE, the essential MENA publication for senior execs who care about the world’s most important industry. We’re out Monday through Thursday by 9am Cairo / 10am Riyadh / 11am UAE.

EXPLORE MORE OF ENTERPRISE ON THE WEB —tap or click here to read EnterpriseAM, EnterprisePM, Enterprise Climate, Enterprise Logistics, and The Weekend Edition on our powerful new website packed with reader-friendly features.

Were you forwarded this email? Get your own subscription without charge here or reach out to us on climate@enterprisemea.com with comments, suggestions and story tips.
***

CIRCLE YOUR CALENDAR-

Egypt will host the Egypt Energy Show from Monday, 19 February to Wednesday, 21 February in Cairo. The event will gather 35k energy industry professionals and host over 80 conferences on energy transition and sustainable production.

The UAE will host the Management and Sustainability of Water Resources Conference from Monday, 26 February to Wednesday 28 February in Dubai. Water availability in arid and semiarid regions, global water issues, and future water and environmental challenges are all on the agenda.

Saudi Arabia will host the International Conference on Sand and Dust Storms in theArabian Peninsula from Monday, 4 March to Wednesday, 6 March in Riyadh. The conference will address regional challenges caused by sand and dust storms and discuss monitoring systems, mitigation strategies, economic and infrastructural impacts, and more.

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