Good morning, nice people. We have a lot of M&A ground to cover this morning with big news from Adnoc and Taqa, along with an interesting update on an Emirati water tech outfit making drinking water from the air. But first, a quick look into Europe's struggle to revive its domestic EV market…

THE BIG CLIMATE STORY OUTSIDE THE REGION- Germany throws Volkswagen a lifeline: Shortly after Volkswagen said it would close down factories amidst a sector slowdown, Germany’s cabinet has approved additional tax breaks worth EUR 465 mn per annum until 2028 for company fleets of electric cars. Companies will be eligible for depreciating write-offs, starting at 40% during the first year. Only days ago, Volkswagen CFO Arno Antlitz signaled a grave warning that the company only had “a year, maybe two years, to turn things around,” due to slowing demand. The company also announced layoffs earlier this week, predicting a 500k drop in European sales per year.

The story made headlines in the international press: Reuters | Bloomberg | Financial Times | The Wall Street Journal | CNN | The Guardian | CNBC

Volvo is also in the headlines for abandoning its plan to only sell EVs. The Swedish carmaker is backtracking on its 2021 pledge to only sell electric vehicles by 2030, citing the sector’s slump as the reason for their decision. The company is now aiming for 90-100% fully electric or plug-in hybrid sales by 2030 with up to 10% allowed for mild hybrids. “The transition to electrification will not be linear, and customers and markets are moving at different speeds of adoption,” CEO Jim Rowan warned.

The story made headlines in the international press:Reuters | Bloomberg | Financial Times | Wall Street Journal | The Guardian | CNBC

WATCH THIS SPACE-

Turkey eyes Chinese EV partnership: Turkish Energy Minister Alparslan Bayraktar is set to visit China in October for talks on a potential partnership on EVs and batteries, Bloomberg reports, citing people with knowledge of the matter. Turkey is aiming to attract Chinese EV makers to produce batteries in the country, especially after the country discovered reserves of rare earth elements near Anatolia which raised its interest in refining the elements locally. “The country wants to be active across the supply chain from raw materials to finished EVs and batteries,” Turkey’s Industry and Technology Minister Fatih Kacir said.

Some work is already underway: Turkey already held talks with Cherry, Saic, and others for EV partnerships, Bloomberg writes. Chinese manufacturers are looking to bypass EU tariffs on their EVs through similar agreements with countries like Turkey which has a customs agreement with the EU. Turkey already partnered with EV maker BYD for a USD 1 bn EV and hybrid production plant last July.

WORTH READING-

Morocco’s desalination sector is setting an example: The renewables-powered desalination plant in Morocco’s Agadir, run by Spanish company Coxabengoa, is setting an example for addressing water scarcity without high costs, The Wall Street Journal reports. The plant uses wind and solar power and produces 275k cubic meters of water daily, supporting both drinking water and irrigation needs.

The synergy between desalination and renewable is crucial: Desalination is an energy-intensive process, but the combination of renewable power and desalination is proving effective, especially in regions like North Africa and the Middle East. Desalination costs have dropped by 60% in the last decade to around 37 cents per cbm while renewable energy costs have also decreased by two-thirds in parallel, WSJ adds, citing GWI data. This decline in costs, along with increased plant capacity, has resulted in a significant reduction in the cost of desalinated water. Plants with a capacity of 1 mn cbm are currently being built, compared to 600k cubic meters just five years ago.

But more needs to be done: Coxabengoa predicts that USD 60 bn will be required for desalination investments over the next five years due to a projected 10% annual increase in demand for this technology.

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CIRCLE YOUR CALENDAR-

The UAE will host the World Utilities Congress from Monday, 16 September to Wednesday, 18 September in Abu Dhabi. The event will gather global energy leaders, policymakers, and other industry professionals from the power and water utilities value chain to discuss industry trends and challenges.

Saudi Arabia will host the EV Auto Show from Tuesday, 17 September to Thursday, 19 September in Riyadh. The show offers a platform for participants to learn about the latest EV technologies and services.

The UAE will host the Green Steel Summit from Wednesday, 25 September to Thursday, 26 September in Dubai. The event will bring together steel industry professionals and decision makers to discuss market intelligence and the latest technological developments in sustainable steelmaking.

Egypt will host the Portfolio Egypt conference on Monday, 30 September in Cairo. The event aims to enhance cooperation among Arab stock exchanges and will cover crucial topics including market integration, product diversification, carbon markets, and regional debt markets. It will aim to outline recommendations to strengthen regional financial markets.

Egypt will host Cairo Sustainable Energy Week from Tuesday, 1 October to Thursday, 3 October in Cairo. The event will bring together policymakers, companies, and experts to discuss collaboration on the renewable energy transition across 17 Arab countries.

The UAE will host the World Green Economy Summit from Wednesday, 2 October to Thursday, 3 October in Dubai. The summit will promote the push for a green economy and will offer a platform for international entities to collaborate on sustainable development, financing, and policymaking.

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

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