Good morning, folks. It is another packed issue this month, with a slew of IPO, debt, M&A, and investment updates from all over the region. But first, the latest on Europe’s EV battery making blunders…

THE BIG STORY ABROAD THIS WEEK- Northvolt files for bankruptcy in Sweden: Swedish battery maker Northvolt has filed for bankruptcy in Sweden after failing to secure the financial backing needed to stay afloat. Investors backed out from a financing round at the last minute, marking the fall of a company that was once hailed as Europe’s best chance to compete in the China-dominated EV battery market.

REMEMBER- Northvolt had filed for bankruptcy protection in the US last November, giving it a temporary reprieve while it attempted to secure new partnerships and funding.

Dumped by everyone: The company failed to secure rescue funding from the Swedish government, as well as from other private sector backers. The company’s main customers, such as VW and its Sweden-based subsidiary Scania, have also begun working on securing supplies from alternative producers.

What’s next? A Swedish court-appointed trustee will now oversee the sale of the company’s assets and manage outstanding obligations in consultation with creditors. The filing doesn’t include the company’s subsidiaries in North America and Germany, and excludes Northvolt’s industrial battery systems unit, which is planned to be sold to Scania, the Financial Times reported last month.

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

WHAT WE’RE TRACKING REGIONALLY-

#1- Oman power utility company puts IPO on ice: Omani state-backed Oman Electricity Transmission (OETC) paused its IPO plans and is said to be exploring a bond sale to drum up fresh capital, Bloomberg reported on Wednesday, citing sources familiar with the matter. The utilities firm will sound out investor appetite in the US and UK this week for a potential USD-denominated debt issuance, though no final decisions have been made on size, timing or structure.

ADVISORS- The firm tapped Citigroup and Oman Investment Bank to work on the potential transaction.

Supporting Oman’s green push: OETC completed tests to remotely operate the 500 MW Ibri III solar project. OETC, Hydrom, OQ Gas Networks, and Nama Water Services were reported in 2023 to be working on establishing a hydrogen infrastructure company that will work on projects across the Al Wusta and Dhofar governorates. It also started operations on the first phase of its interconnector project linking the north of the country to the south, with plans to connect some 2.6 GW of renewables capacity to it by 2027.

IN OTHER REGIONAL IPO NEWS- Dubai-based decarbonization company Positive Zero might be looking at an IPO in the future, as the company looks to shore up liquidity to enter new markets, CEO David Auriau told The National on Wednesday. The BlackRock-backed firm says it has doubled its earnings and nearly tripled its capital expenditures y-o-y since BlackRock’s USD 400 mn cash-infusion in 2023, though no figures were made public. The outfit is also eyeing a fresh round of debt to finance its near-term growth push into new geographies, he said.

#2- Egypt’s green data center plans are back in focus: Egyptian Investment Minister Hassan El Khatib met with Income Egypt Chairman Hesham Sheta and a group of green energy investors to review plans for a renewable-powered data center complex — dubbed the Atlas Project, according to a statement released on Tuesday. The project appears to build on a January MoU a consortium of Swicorp Infra Capital, Income Egypt, and Record Digital Asset Venture signed with the Communications Ministry to develop a data center targeting exports of digital services abroad. The data center will be powered by a 200 MW mix of solar and wind energy.

#3- Algeria will start connecting the first batch of projects from its 3.2 GW solar initiative between the end of the year and early 2026, the Energy Ministry’s Renewables Secretary Nour-Eddine Yassa told state-owned channel Chaine Une on Monday (watch, runtime: 51:48). The 3.2 GW of capacity is distributed over 20 projects with capacities of 50-300 MW, along with a 200 MW plant to feed an iron factory in Gara Djebilet.

What’s next? The government has identified 212 potential sites across 46 provinces for future solar developments. Algeria is also moving forward with wind power plans, with feasibility studies pinpointing 10 suitable locations for a 1 GW wind energy rollout.

ICYMI- Algerian state-owned energy company Sonelgaz awarded 20 solar projects with a total capacity of 3 GW last March, including a 200 MW solar plant in El M’ghair on which the company broke ground in March last year. The project was reportedly set to be completed within 14 months of the start of construction.

Electricity interconnections are on the table: Algeria is also looking to develop cross-border electricity connections with multiple neighbours, including the Sahel nations, Libya, and eventually Egypt, reinforcing its focus on south-south integration, Yassa added.

ALSO- Algeria is moving to liberalize its mining sector with a draft law that aims to attract private investment and simplify regulations, APS reported on Monday, citing the draft text. If passed, the bill would eliminate the restrictive 51-49% ownership rule that has historically required state-owned majority ownership, opening the door for foreign investors to hold majority stakes in mining ventures on the condition that the state still holds a minimum 20% stake. The bill is yet to be discussed in the House.

There is more: Licensing procedures will be streamlined by replacing the current dual approval process — pertaining to requirements from both mining and environmental laws — with a single-track process to cut red tape. Mining exploitation licenses will have a maximum duration of 30 years, while quarrying licenses will be capped at 15 years. Artisanal mining licenses will be issued for up to five years. The bill would also introduce a “local content” requirement to increase domestic value-added production, mandating miners to process, refine, or convert a portion or all of extracted materials locally.

#4- GCC Interconnection to award two expansion tenders within two months: The GCC Interconnection Authority (GCCIA) is evaluating bids from eight to 10 companies for the two expansion projects in the UAE and Oman, GCCIA CEO Ahmed Al Ibrahim told Al Riyadh on Sunday. This comes as part of a push to award the tenders by mid-year and complete the projects by 2027. Bids from Gulf companies will be given priority, Al Ibrahim added.

The financing: The USD 205 mn UAE expansion will be fully financed by the Abu Dhabi Fund for Development. The USD 724 mn Omani expansion will be partially financed by the Qatar Development fund, and the authority is in talks to secure the remainder of the financing from other Gulf banks, including Oman’s Bank Al Sohar.

Demand is on the rise: Energy trade volume between GCC countries is set to increase to 1.8 TW/h this year, compared to 1.3 TW/h in 2024, Al Ibrahim predicts, with power purchase requests predicted to surpass 1 GW/h this year — an increase from 840 MW/h in 2024.

REMEMBER- The Gulf Electricity Interconnection Project extends nearly 1k km of transmission lines from Kuwait to Oman and plans to connect all six Gulf countries. Iraq’s tie-up to the interconnection power grid was 90% complete last December.

WHAT WE’RE TRACKING GLOBALLY-

#1- NZBA at a crossroads over 1.5 C° climate goals: The Net Zero Banking Alliance (NZBA) is advancing a policy change proposal that, if passed, would scrap the alliance’s 130 signatories’ commitment to keeping global warming below 1.5 C° in their financing portfolios, Bloomberg reported on Tuesday, citing an unnamed source it says is familiar with the matter. The NZBA has about four weeks to vote on the proposal drafted by the group’s governing entity.

ICYMI- Four Canadian banks reportedly exited the group earlier this year in an exodus led by major US financial institutions including Goldman Sachs, Wells Fargo, Morgan Stanley, and JPMorgan Chase. European banks have also reportedly been reconsidering their obligations to the NZBA.

#2- Financing pledges to support energy transitions in top polluting developing nations are moving forward despite the US pulling the plug on climate funding, Bloomberg reported here and here last week. A USD 9.3 bn Just Energy Transition Partnership (JETP) agreement to help South Africa shift away from coal remains on track despite the US withdrawing its pledged USD 1 bn in commercial loans and USD 56 mn in grants, Bloomberg reported, citing UK climate envoy Rachel Kyte. The UK, France, Germany, Netherlands, Denmark, and the EU continue to back the agreement. The World Bank-linked Climate Investment Funds could also trigger a USD 2.6 bn green finance package, Bloomberg reported last Thursday, citing people familiar with the matter.

Similar JETP agreements in Indonesia and Vietnam — worth USD 15.5 bn and USD 20 bn — could also be moving ahead despite the US exit as more countries renew their commitment, Bloomberg reported on Friday. Japan has confirmed its continued support for Indonesia’s decarbonization efforts, with Germany stepping in as co-leader.

Could it fill the vacuum? JETPs were initially celebrated as a breakthrough in 2021 for bringing together public and private capital to phase out coal in major developing economies. By providing financial incentives, the agreements aimed to accelerate coal plant retirements and expand clean energy, but slow financing, political shifts, and the complexity of decommissioning plants have stalled progress. However, even with these efforts, global energy transition funding remains far short of what’s needed, with USD 2 tn investment recorded last year, just 37% of the annual financing required to reach net zero by 2050, according to BloombergNEF calculations.

DANGER ZONE-

South Sudan’s recent heat wave spurred by climate change: At least one week of South Sudan’s February heat wave – which shut down schools for two weeks after students collapsed from heat stroke – was made 10 times more likely and 2°C hotter by climate change, the New York Times reported last week citing a study by the World Weather Attribution found. During the heat wave, temperatures surpassed 42°C in some areas, and it was the second time in less than a year that schools had to shut down.

REMEMBER- Climate change has adverse impacts on education: Climate change is predicted to impact education outcomes negatively as a result of increased school closures, disease, stress, and conflict. During extreme weather events such as heat waves or flooding, schools close around 75% of the time and sometimes for prolonged periods when infrastructure is affected or evacuation is needed. Sudden temperature and rainfall change has also been shown to increase violence amongst students by 14%. These negative impacts could translate into lower future earnings and productivity, especially for lower income students.

PSA-

Oman’s mining players can now manage their licenses digitally via Taqa — the Energy Ministry’s digital services platform for its mining and energy sector, Oman NewsAgency reported on Wednesday. Businesses can manage their mining licenses, use a newly-minted automatic bidding system, be informed about application procedures, and stay updated via a message and notifications center.

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CIRCLE YOUR CALENDAR-

The UAE will host the Middle East Energy conference from Monday, 7 April until Wednesday, 9 April in Dubai. The event will target six product sectors, including smart solutions, transmissions and distribution, renewable and clean energy, critical and backup power, energy consumption and management, batteries, and eMobility.

The UAE will host theSolar Energy Storage Future MENA conference on Tuesday, 8 April in Dubai. The conference aims to empower solar energy and storage in the MENA region to align with net zero goals. Planned events include a panel on navigating competitive markets and financing energy efficiency upgrades.

Turkey will host the International SolarEX Istanbul Fair from Thursday, 10 April until Saturday, 12 April in Istanbul. The event will bring together investors from 125+ countries along with over 200 world-renowned companies and 500+ brands in the solar sector. The fair will feature firm conferences and seminars covering financing, investment, and production in the solar industry.

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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