TODAY: More funding for Egypt’s green transition + Masdar is reportedly eyeing an Indian acquisition

Good morning, nice people. It’s a relatively quiet day on the climate news front, but we have some key updates on developing projects across the board from all corners of the region.

WATCH THIS SPACE-

#1- Egypt to issue consulting tenders for GREGY soon: The government will soon launch a tender to select an international consulting firm for the development of the 3 GW GREGY interconnection project with Greece, CEO of the Egyptian Electricity Transmission Company Sabah Mashaly told Arab World News. The move is part of ongoing negotiations to include the project in the EU's final list of mutually beneficial projects, which would expedite the permitting and financial funding processes. The estimated cost of the project stands at EUR 5.5 bn which will be funded by the EU through grants, officials told AWP last November.

REFRESHER- About the project: The GREGY will run almost 1.5k km from Wadi El Natroun directly across the Mediterranean to mainland Greece allowing Egypt to export renewable energy surplus to mainland Greece. Egypt and Greece’s energy ministers met to review the progress of the project in January. Infinity Power signed an agreement with Greece’s Copelouzos Group in May to carry out a feasibility study on the proposed 950 km link and as of July, both countries had not secured the EUR 4 bn initial investment required for the project.

#2- The world should “abandon the fantasy of phasing out oil and gas,”Reuters reported Aramco CEO Amin Nasser as saying at CERAWeek in Houston. “We should abandon the fantasy of phasing out oil and gas, and instead invest in them adequately, reflecting realistic demand assumptions, as long as essential,” he said during the S&P Global gathering, urging revised energy transition plans.

Nasser believes global oil demand won’t peak soon as he forecast oil demand to hit a new record of 104 mn bpd this year. While renewable energy is becoming more affordable and attracting growing investment, it has yet to take the place of hydrocarbons at scale, he said. “All this strengthens the view that peak oil and gas is unlikely for some time to come, let alone 2030,” he said.

#3- EU countries approve law to reduce raw materials dependency: EU members approved the Critical Raw Materials Act (CRMA) aimed at decreasing reliance on imports of essential energy transition minerals including lithium and nickel, Reuters reports, citing a European Commission statement. The new regulation — which mainly targets Chinese imports that account for 95% of the global supply — sets a target to have the EU domestically produce at least 10% and process at least 40% of strategic materials needed annually by 2030. The law adds that at least 25% of annual demand will come from recycled materials, and no more than 65% of the annual consumption of each critical mineral will come from abroad. The law is yet to be approved by the bloc’s parliament and council.

REMEMBER- The EU has been working on launching a central agency that will be responsible for ensuring the targets set out by the CRMA are feasible. The new European Critical Raw Materials Board would streamline permitting procedures for investors looking to launch mining projects in the bloc, and would provide financing for projects it deems strategic. Under the proposed law, the agency would grant permits for companies looking to undertake mining projects within 24 months, with the deadline for minerals processing projects set at 12 months.

#4- The world’s largest solar manufacturer LONGi Green Energy Technology is planning to lay off one third of its employees, Bloomberg reports, citing people with knowledge of the matter. The Chinese firm has plans to let go 30% of its 80k employees in efforts to cut costs and recover from a 44% drop in net income in 3Q 2023 amid overcapacity issues stemming from plummeting solar panel prices. Longi had already been ramping up layoffs since November but has refused to comment on any further plans.

There might be a light at the end of the tunnel: The Chinese solar industry might recover by the end of the year if supply and demand evens out and more consolidations are implemented, Bloomberg notes. Longi is already ahead of its competitors with USD 7.4 bn under its belt to support the company throughout the industry's misgivings.

IN OTHER SOLAR NEWS- France's energy giant TotalEnergies has surpassed 1.5 GW of long-term solar power contracts with over 600 customers globally, Reuters reports. The company's strategy involves developing, financing, constructing, and operating solar panels on rooftops, carports, and vacant industrial lands to supply electricity directly to the customers' premises. The power purchase agreements (PPAs) — with an average duration of 20 years — were signed across various sector including agrifoods, construction, and retail, and offer predictable electricity prices for customers, which are estimated to be 20%-45% lower than current market rates.

Some of the solar power is from the region: A TotalEnergies-led consortium is building a 119 MW solar plant in Saudi Arabia. Iraq's government granted land to TotalEnergies last November to establish a 1 GW solar plant. The company also inaugurated the USD 470 mn 800 MWp Al Kharsaah solar plant in Qatar in 2022, and recently acquired a minority stake worth USD 25 mn in the Xlinks Morocco-UK interconnector project.

#5- The maritime shipping carbon levy garners support at the IMO: The EU, Canada, Japan, and climate-vulnerable Pacific Island states are among a group of 47 countries pushing for an international shipping emissions charge which could rack up USD 80 bn annually, Reuters reports, citing documents it has seen being discussed at an ongoing International Maritime Organization (IMO) meeting. Supporters say the USD bns collected each year could be put towards developing low emissions shipping fuels and fund the energy transition of poorer states, the newswire said. The initiative is facing pushback from countries, including China and Brazil, who believe that a carbon levy would unfairly single out emerging economies that depend on trade. Parallel drives are also calling for the adoption of a global emission standard for fuels to power maritime shipping. An upcoming IMO meeting is scheduled in September to decide on both proposed measures.

IN OTHER MARITIME NEWS-The IMO looks to implement its revised GHG strategy: The IMO finalized some of its mid-term measures including adopting both a GHG Fuel Standard — a mandate on GHG intensity of fuel and energy — as well as a GHG pricing regulation, according to a UMAS statement. The IMO is now tasked with how to transfer the revised GHG strategy into specific and detailed regulation within the next 12 months, the statement notes.

***

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-

The UAE will host the World Future Energy Summit from Tuesday, 16 April to Thursday, 18 April in Abu Dhabi. The summit will address solutions for development in the transformation of future energy systems. The summit will also feature discussions on recycling, waste-to-energy, and air-to-water trends and progressions.

The UAE will host the Connecting Green Hydrogen MENA event from Tuesday, 23 April to Thursday, 25 April in Dubai. The event will explore green hydrogen partnerships, policies, and practices in the region, in parallel to a showcasing of the latest in the clean fuel’s technology.

Oman will host the Oman Sustainability Week from Sunday, 28 April to Thursday, 2 May in Muscat. The event will focus on exploring investment opportunities and implementing best practices in sustainability within the energy, water, and environmental sectors.

The UAE will host The Electric Vehicle Innovation Summit from Monday, 20 May to Wednesday, 22 May in Abu Dhabi. The event will see industry leaders come together to discuss sustainable mobility and tapping into groundbreaking advancements in electric vehicles while engaging with key decision-makers.

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