CARBON CAPTURE-

Aramco and Siemens Energy have launched Saudi Arabia’s first Direct Air Capture (DAC) test unit, according to a press release from Thursday. Aramco will use the pilot facility — which can remove 12 tons of carbon dioxide from the atmosphere annually — to test new CO2 capture technologies against Saudi Arabia’s climate and to reduce DAC implementation costs in the region. The companies also plan to scale up the technology to eventually establish larger-scale DAC facilities.

Aramco is going all in on carbon capture: Aramco reportedly awarded Indian energy company Larsen & Toubro’s (L&T) Energy Hydrocarbon division the engineering, procurement, and construction (EPC) contract for the first phase of its USD 1.5 bn carbon capture and storage hub in Jubail that would store up to 9 mn tons of CO2 a year by 2027 or 2028.

WASTE MANAGEMENT-

#1- Alkhorayef Water and Power Technologies was tapped to develop a small wastewater treatment plant in Saudi’s Jazan, Trade Arabia reports. Alkhorayef — which was the sole bidder for the project — will be responsible for the development, financing, engineering, procurement, construction, and implementation of the project. The tender also includes a 25-year sewage treatment and collection network implementation agreement that will see Alkhorayef treat the sewage supplied by the Saudi Water Partnership Company. The project will have a daily capacity of 74.7k cbm, with commercial operations set to begin in 4Q 2028.

#2- UAE’s G6T Group + Kyoto Network partner on waste management: UAE-based carbon removal technology company G6T Group and UK-based environmental management firm Kyoto Network have agreed to co-develop, finance, and implement ‘waste-to-value’ plants, according to a press release issued on Tuesday. The plants would use advanced, low-emission carbon removal processes to convert organic and inorganic waste into valuable alternatives at low prices like engineered biochar. The project is expected to become operational by the end of the year.

Why biochar? The engineered biochar can be used to increase agricultural yields in desert environments, increase water and nutrient retention by up to 50%, and limit the need for harmful fertilizers. Once applied to soil, the material also acts as a carbon sink, preventing stored carbon from re-entering the atmosphere for over 150 years.

DECARBONIZATION-

ACC to purchase clean energy from IRSC: Egyptian solar developer IRSC has signed a 30-year Power Purchase Agreement with the Arabian Cement Company (ACC) for the second phase of ACC’s solar plant, according to a press release issued on Monday. The IRSC will develop, finance, construct, own, maintain, and operate the plant, which will supply energy to the ACC without an upfront capital investment. The facility will have a capacity of 17.6 MW to generate some 32.5 GWh of energy annually.

Not IRSC’s first venture into the cement industry: IRSC partnered with Misr Beni Suef Cement in January to launch a solar project with 17.5 MW capacity to produce 31 GWh annually and reduce 15k tons of emissions. The plant is being developed by Huawei and Jinko Solar through their authorized Egypt distributor El Marwa Renewable Energy.

ACC is upping its green efforts: ACC secured a EUR 25 mn financing package from EBRD and EU last month to expand its use of alternative fuel, improve energy efficiency, and cut some 130k tons of emissions annually. ACC also tapped Italian air pollution control firm Redecam Group to carry out a EUR 8 mn project aimed at curbing its Suez factory’s dust output last year.

INFRASTRUCTURE-

The Sharjah Electricity and Water Authority has inaugurated an AED 500 mn, 220 kV substation in Um Fannin, Wam reported on Sunday. The new substation — the largest in the network — includes four 400 MW transformers and four 75 MW transformers, bringing total capacity to over 1.2 GW. The project was established in cooperation with Siemens Energy and General Projects Company for Mechanical and Electrical Contracting, Wam added.

REGULATION WATCH-

The Dubai Electricity and Water Authority (Dewa) now requires independent EV charging operators to obtain a license for public charging infrastructure, according to a new regulatory framework (pdf). Operators are required to apply for one of two licenses — either a no-cost public charging license or a paid public charging license — before 31 March. No-cost charging services will continue to be permitted during the transitional period, but collecting fees without a valid DEWA license is prohibited.

What’s next? Dewa will issue AC charger licenses via an upcoming online portal. DC chargers over 50 kW or those in public areas need special approval.

STARTUP WATCH-

Aramco Ventures is participating in the seed funding round by the German direct air capture (DAC) startup Ucaneo, according to a statement published last week. Ucaneo raised EUR 6.8 mn to accelerate its development of Germany’s largest DAC demonstration plant, set to launch in early 2026. Ucaneo’s technology uses electricity and a specialized solvent to capture carbon, with the goal of making carbon removal more affordable. Aramco’s share of the total investment secured by Ucaneo was not disclosed.

Aramco Ventures is making significant investments in climate tech: Aramco Ventures led a USD 30 mn Series A funding round for US-based climate-tech startup Spiritus earlier this month. The unit also participated in US-based CarbonCapture’s USD 80 mn Series A funding round in March 2024, invested USD 10 mn in Singapore-based renewable energy certificate service provider Redex back in November 2023, and backed new technology from American start-up Rondo Energy earlier in August 2023.

DIPLOMACY-

UAE + Denmark to cooperate on sustainable agriculture: Foreign Minister Abdullah bin Zayed Al Nahyan signed an MoU with Denmark’s Foreign Affairs Minister Lars Løkke Rasmussen to cooperate on sustainable agriculture and food, state news agency Wam reported last week. The ministers also discussed expanding bilateral cooperation in health, renewable energy, artificial intelligence, and other key sectors.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • Egypt gets a new ammonia project: Air Liquide Egypt and China’s United Energy Group (UEG) have signed an MoU to explore and develop low-carbon ammonia projects based on green hydrogen in Egypt. Air Liquide would supply nitrogen to the project and work with UEG to use it to produce ammonia. (Egyptian Gazette)
  • Ignite to establish UAE HQ: Abu Dhabi Investment Office (ADIO) has signed an agreement with pan-African renewables firm Ignite Energy Access to launch its global headquarters in the emirate. ADIO will help the company scale up its operations as part of its goal to connect 100 mn people across Africa to clean energy by 2030 through solar home systems, solar-powered irrigation, and hybrid solar inverters. (Press release)
  • GS Inima inks PPA for Barka 5 PV plant: GS Inima has signed a power purchase agreement (PPA) for the 6.5 MWp Barka 5 photovoltaic plant in Oman, which will supply about 11% of the electricity needs for the Barka 5 desalination facility until mid-2044. The project is now set to start construction, targeting operational launch in 1Q 2026. (Press release)
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