TODAY: Hassan Allam Utilities ♥️ Egyptian renewables + Adnoc gets the OK for Fertiglobe acquisition.

Good morning, nice people. We have a compact issue this morning as everyone heads off for a well-deserved vacation after Ramadan, with some new partnerships forming in Egypt and some debt news and M&A updates emerging from UAE.

HAPPY EID, EVERYONE- Enterprise Climate will be taking a break for Eid Al Fitr starting tomorrow, but we will be back in your inbox at our usual time with all the latest regional climate industry updates on Monday, 15 April.

THE BIG CLIMATE STORY OUTSIDE THE REGION- Yellen and Li settle some differences, but more progress needs to be made: US Treasury Secretary Janet Yellen and Chinese Premier Li Qiang concluded a diplomatic visit in Guangzhou over the weekend which has left the US-China relationship “on more stable footing.” Trade issues were sparked by a Chinese oversupply of cheap solar panels and EVs which crowded American and European markets and threatened domestic production. Yellen had warned Beijing earlier this month against dumping key components of the global green economy on other markets, arguing the practice “distorts global prices and production patterns and hurts American firms and workers, as well as firms and workers around the world.” Li maintained China’s rapidly growing green energy industry — spurred by policy and subsidies — is playing an important role in addressing climate change. Yellen and Li agreed to initiate discussions on achieving equitable economic growth to tackle US concerns regarding China’s surplus manufacturing capacity.

The story made headlines in the international press over the weekend: Reuters | AP | Bloomberg | The Financial Times | The NewYork Times

WATCH THIS SPACE-

#1- Oman’s OQ has a renewable projects pipeline until 2030: Oman’s state-owned gas network operator OQ Group plans to develop over 5 GW of renewable energy projects by the end of the decade, according to a recently released annual report (pdf). The first phase will target nearly 400 MW capacity and will reach a Final Investment Decision (FID) by the end of the year. The group’s subsidiary OQ Alternative Energy (OQAE) aims to diversify its portfolio through introducing projects in energy efficiency, clean energy, and low carbon molecules.

OQAE made significant strides in the green sector last year: OQAE’s key achievements inked green hydrogen and ammonia export agreements with Oman’s Hydrom including Hyport Duqm, Green Energy Oman (GEO), and SalalaH2, securing renewable energy concession plots along the way. The Hyport Duqm facility will be built in partnership with Denmark’s DEME Concessions in efforts to produce some 1 mn tons of green ammonia, while the Green Energy Oman’s project will aim for a production capacity of 1.8 mn tons of green hydrogen annually, supplemented by 25 GW of renewables. The projects are expected to begin operations by the beginning of the next decade.

#2- KSA’s largest biofuel producer The Biofuel Company is set to triple its production of biofuels to 36 mn liters per annum by 2025, Vice President of Commercial and Operations Gary Hubbard told Zawya Projects on Thursday. The company plans to launch two new Used Cooking Oil (UCO) refining facilities in Jeddah and Riyadh, with each reaching a capacity of 12 mn liters per year, similar to its operating facility in Al Jubail. The company has expanded three times since November 2022 as a result of increased demand in the kingdom, Hubbard said.

REMEMBER- KSA’s first waste-to-biofuel plant opened last year: The Biofuel Company inaugurated the kingdom’s first biofuel production plant in Al Jubail in March 2023. The project is wholly financed by Saudi investors, with financial backing from Aramco’s VC outfit Waed Ventures. The plant converts reclaimed cooking and palm oil into carbon-neutral biodiesel and has a yearly production capacity totaling some 4.2 mn liters of biodiesel per year. The refinery’s green fuel would be earmarked for the local market, and any excess biodiesel output would be exported to the European market.

#3- Another Suez wind farm in the pipeline? Egypt’s cabinet greenlit the signing of agreements to establish a 500 MW wind farm in the Gulf of Suez, according to a statement last week. The farm will be developed by Siemens Gamesa under a build-own-operate (BOO) agreement. No timeline or financial ticket were disclosed for the project.

What we know so far: There’s not much that has been revealed about the project yet, but Siemens Gamesa was negotiating with the New and Renewable Energy Authority (NREA) to acquire land for the construction of a 500 MW wind stations back in January 2020, a source at Egypt's Energy ministry told Daily News Egypt at the time. The sources added that Siemens Gamesa also held talks with the Egyptian Electricity Transmission Company (EETC) on an agreement to transfer the energy produced from the project to other areas through the national grid.

REMEMBER- There are other similar wind plants underway in the Gulf of Suez: The Red Sea Wind Energy — a JV between Orascom Construction, Japan’s Toyota Tsusho Corporation/Eurus Energy Holdings, and France’s Engie — achieved financial close for a 500 MW wind farm near Egypt’s Ras Ghareb in April last year. The European Bank for Reconstruction and Development and the UN’s Green Climate Fund will each extend USD 50 mn credit lines, contributing to the USD 501 mn syndicated loans that will fund the project. An international consortium led by Denmark’s wind turbine developer Vestas also began trial operations on a EUR 250 mn, 250 MW wind farm in the same area last November.

#4- Germany moves forward with hydrogen network: Germany’s energy policy lawmakers approved financing for a future core network for hydrogen, Reuters reported on Friday. The coalition extended the completion deadline to 2037 from 2032 for the 9.7k km long hydrogen transport infrastructure which is set to cost the country EUR 20 bn. Lawmakers are also looking to ease the financial burden on investors by offering bankruptcy protection and a 6.7% return on equity before taxes. The terms of the agreement will be passed on to the lower house of parliament this week for approval.

REMEMBER- Germany has ambitious green hydrogen import plans: Germany will not have the production capacity to meet its hydrogen demands through domestic production alone leading to the need to build strong partnerships with overseas suppliers. The country will need to import around 50% to 70% of its hydrogen to meet demand — which is estimated to be between 95 to 130 TWh in 2030. Germany has already signed hydrogen cooperation agreements with several countries, including the UAE, and has been conducting talks with Morocco and Oman for even more green hydrogen partnerships.

***
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.