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Acwa Power signs 800 MW renewables + hydrogen agreement with Uzbekistan

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WHAT WE’RE TRACKING TODAY

TODAY: Acwa Power inks agreement for 800 MW hybrid energy project + US’ Cummins agrees to pay fine for emissions violation

Good morning, ladies and gentlemen — and a very Merry Christmas to all those observing or otherwise celebrating today.

THE BIG CLIMATE STORY- Acwa Power signed a new agreement with Uzbekistan’s government to develop a hybrid 800 MW renewable energy and integrated green hydrogen project.

^^ We have the details on this story and more in the news well, below.

THE BIG CLIMATE STORY OUTSIDE THE REGION- US engine maker Cummins agrees to pay record USD 1.7 bn emissions cheating fine: US truck engine manufacturer Cummins has agreed in principle to pay the highest ever civil penalty for a US Clean Air Act violation — over USD 1.67 bn — to settle claims it skirted emissions rules and installed “defeat devices” in hundreds of thousands of engines that bypassed emissions control sensors, according to a statement by the Department of Justice (DoJ). The DoJ alleges Cummins used defeat devices across 960k RAM 2.5k and 3.5k pickup trucks, releasing thousands of tons of nitrous oxide and affecting pollution vulnerable communities residing near highways. Cummins, which has denied the allegations, has recalled the 960k vehicles, and says it expects to take a nearly USD 2.04 bn charge in 4Q to resolve regulatory claims from the Justice Department and California Air Resources Board. Cummins shares were down 2.3% on Friday on news of the preliminary settlement agreement.

The story made headlines in the international press:The New York Times | The Wall Street Journal | Reuters | CBS News | ABC News | AP News | The Washington Post


Morocco gets USD 500 mn loan from the World Bank to mitigate climate risks:The World Bank has approved a USD 500 mn loan to Morocco aimed at enhancing institutional frameworks for disaster and climate risk management, in efforts to create insurance mechanisms that protect farmers impacted by climate change, especially droughts, according to a press release. The loan marks the second of three operations under the government's Strengthening Human Capital for a Resilient Morocco reform program, an initiative which works on mitigating health risks and poverty in precarious communities, partially through improving climate resilience and management.

Morocco has been facing a dangerous drought for years: 2023 marked the fifth consecutive year Morocco has been facing an intense drought, driven and exacerbated by climate change. Morocco saw its reservoir capacity drop to 23.55% this year (3.8 bn cubic meters), down from 29.8% (4.88 bn cubic meters) in 2022.

WATCH THIS SPACE #1- Acwa Power begins studies on its recently secured multi-bn Egypt green hydrogen plant: KSA renewable energy giant Acwa Power launched the technical studies phase of the first stage of its planned multi USD bn, two-phase green hydrogen production facility in Egypt’s Suez Canal Economic Zone (SCZone) on Thursday, the company’s Regional Manager for Egypt Hassan Amin told Al Dostor last week. The start of the technical studies came a day after Acwa Power inked an agreement with the Egyptian government to develop the project. The first phase of the project will cost USD 4 bn, and is planned to have a 600k annual green ammonia production capacity.

The expected timeline: Acwa plans to wrap up the technical assessments and reach financial close on the first phase of the project by 1Q 2025, and expects to secure financing for an associated 1.1 GW wind farm that will help power the plant by 1H 2024, Amin noted. Details on the feasibility and technical studies for the second phase of the project — planned to expand the plant’s output by another 2 mn tons — were not disclosed.

WATCH THIS SPACE #2- Vitol delivers biofuel to UAE: Swiss-based energy and commodity trading company Vitol’s maritime fuel provider, Vitol Bunkers, completed its first biofuel delivery in the UAE, according to a statement published last week. Vitol Bunkers delivered B24 — a blend of used cooking oil and low-sulfur content fuel oil — to two vessels on December 8 and December 14, the statement added. The fuel was sourced from Vitol's UAE-based refinery FRL in Fujairah, and blended with locally sourced biofuel at VTTI storage facilities.

UAE is going all out on biofuels: On the sidelines of COP earlier this month, Emirati logistics giant DP World inked an agreement with Singapore-based shipping company Pacific International Lines to develop green solutions for global supply chains including powering vessels using biofuel blends.In November, UAE's Adnoc Distribution said it is planning to supply biofuel to its business-to-business (B2B) customers.

WATCH THIS SPACE #3- The construction of the Grand Ethiopian Renaissance Dam (GERD) is now 94% complete, and is set to be fully finalized by September 2024, Ahram Online reported last week, citing comments made by Ethiopia's ambassador to the US and chief negotiator on GERD Sileshi Bekele. The scomes after the fourth and final round of talks between Egypt, Sudan, and Ethiopia on GERD ended in deadlock on Tuesday. Egypt has criticized what it called Ethiopia's consistent backtracking on agreed-upon understandings and its four unilateral fillings of the dam's reservoir.

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CIRCLE YOUR CALENDAR-

Qatar will host The International Conference on Smart Grid and Renewable Energy is kicking off Tuesday, 9 January through to Friday, 12 January in Doha. The conference will explore the importance of the smart grid and renewable energy resources and the viability of various related technologies. It will also host discussions on power electronics, controls, manufacturing, communications and computational intelligence.

Saudi Arabia will host the Future Minerals Forum from Tuesday, 9 January through to Thursday, 11 January in Riyadh. The event will bring nations and private sectors together to enable the creation of resilient mineral value chains in the resource rich regions of Africa, Western Asia, and Central Asia. The forum will hold a ministerial roundtable with over 60 countries being represented., and delegates will discuss global critical mineral strategies as well as an international exhibition with over 150 exhibitors and industry sponsors.

The UAE will host the Management and Sustainability of Water Resources Conference from Monday, 26 February to Wednesday 28 February in Dubai.The conference is set to address the importance of water resources availability in arid and semiarid regions and to discuss global water issues and address future water and environmental challenges.

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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RENEWABLES

Acwa Power signs another renewables + hydrogen agreement with Uzbekistan

Acwa Power inks agreement to develop 800 MW green project in Uzbekistan: KSA renewable energy giant Acwa Power signed an agreement with Uzbekistan's government to implement a hybrid 800 MW renewable energy and integrated green hydrogen project, according to a statement published on Thursday. No operational timeline, production date or financial details on the partnership have yet been disclosed.

Acwa is making big moves in Uzbekistan: The renewables giant broke ground on its green hydrogen production facility in Uzbekistan last month with a capacity of 3k tons of green hydrogen annually. The renewables giant signed three power purchase agreements totaling USD 2.5 bn in March with the National Electric Grid of Uzbekistan and the country’s Investment, Industry, and Trade Ministry for 1.4 GW worth of solar projects and three battery energy storage (BESS) units totalling a capacity of 1.5 GWh. Acwa Power has a 10-project green energy portfolio in Uzbekistan with a combined USD 7.5 bn investment value.

The renewables giant is also expanding globally: Acwa Power signed an agreement with Indonesia's PT Perusahaan Listrik Negara (PLN) earlier this month to build Indonesia's largest green hydrogen facility and signed an MoU with Jordan’s Energy and Mineral Resources Ministry for a feasibility study to produce 100-150k tons of green ammonia annually. Acwa also inked an agreement with the Egyptian government to develop a large-scale two-phase green hydrogen and ammonia project in the Suez Canal Economic Zone last week.

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GREEN CONSTRUCTION

KSA cuts the red tape on its first 3D concrete printing plant

KSA inaugurates its first 3D concrete printing plant: In partnership with Japan’s government, Saudi Arabia inaugurated on Saturday the kingdom’s first 3D concrete printing plant in the Sudair Industrial City, Al Ekhbariya reported on Sunday. The project is part of Saudi Arabia’s National Industrial Development and Logistics Services Program.

About the tech: The 3D concrete panels produced by the facility will be used for the construction of towers and bridges, and in the application of non-load-bearing insulated panels for walls, the news outlet notes. The panels will be designed to offer high flexibility, enabling easy alteration or removal post-construction, and will be designed to withstand 7-magnitude earthquakes and 100-meter high storms, Al Riyadh says. The construction material’s lifespan also extends beyond its conventional alternatives, reaching 200 years.

Huge carbon savings: The manufacturing of the 3D concrete materials will help reduce carbon emissions by 70% compared to the manufacturing methods used for conventional construction materials, Al Ekhbariya notes. Construction contributes around 40% of global CO2 emissions with an expected increase of another 13% by 2035.

High-level representatives were present at the plant’s inauguration: The launching ceremony was held in the presence of Saudi Arabia’s Under Secretary to the Ministry of Commerce Abdul Salam Al-Mana, Director General of the Manufacturing Department at the Ministry of Industry and Mineral Resources Majid Al Quwaiz, Japanese Ambassador Fumio Iwai, and Korean Ambassador Jun Young Park, Al Riyadh said.

REMEMBER- KSA is leveraging 3D printing to decarbonize its building sector: Saudi multi project developer Red Sea Global (RSG) and Kuwait-based telecom company Zain developed the world’s first carbon-neutral 5G network back in August at RSG’s Red Sea Project in KSA, using solar energy and 3D printing technology to construct net-zero communications towers. On the green finance front, Saudi oil giant Aramco’s Wa'ed Ventures led the USD 52 mn funding round of 3D printing startup Mighty Buildings in a bid to help finance its expansion in Saudi Arabia and the wider MENA region. Back in March, KSA real estate developer Dar Al Arkan completed construction of the kingdom’s largest 3D printed building. The 3-storey, 9.9-meter-tall villa was printed over 26 days.

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CARBON CAPTURE

KSA’s Petro Rabigh inaugurates carbon capture facility in Jeddah

Saudi petrochemical company kickstarts operations of its carbon capture facility: Saudi Arabia’s RabighRefining and Petrochemical Company (Petro Rabigh) — a JV between Saudi Aramco and Japan’s Sumitomo Chemical — opened its new carbon capture and utilization facility located north of Jeddah, according to a press release published on Wednesday. The facility is set to capture 300 metric tons of CO2 daily from the company’s Mono Ethylene Glycol (MEG) plant, equivalent to a 85% reduction of the plant’s annual emissions.

The details: The captured CO2 will be purified for various productive uses like water desalination, carbonation in food and beverages, agricultural applications, and use in ready mix concrete, the press release added. Industrial gas producer Gulf Cryo designed, constructed, and operated the advanced carbon capture plant.

Not Gulf Cryo’s first decarbonization project in the region: In June,Gulf Cryo partnered with Emex for Engineering and Construction to establish a unit to process hydrogen gas for various uses in Egypt, and market and sell it under an agreement with the state-owned Egyptian Chemical Industries (Kima). Earlier in the year, Egypt’s state-owned Misr Chemical Industries also tapped Gulf Cryo for a hydrogen exploitation project under a build, own, operate contract. Saudi mining company Ma’aden signed a 20-year agreement with the gas company to operate a carbon capture plant in its phosphate complex in Ras Al Khair last year.

Regional players are relying on carbon capture: Dubai Municipality and Masdar signed an MoU earlier this month to establish a carbon capture plant at Dubai Municipality’s Al Warsan waste-to-energy plant. Bahrain's Bapco Energies and Japan's Mitsui OSK Lines (MOL) also signed an MoU in December to develop cross-border CO2 transport and sequestration in a bid to eventually establish a carbon dioxide capture and storage (CCS) value chain.

About Petro Rabigh: The JV, which was formed in 2005, produces about 18.4 mn tons per annum (MTPA) of petroleum-based products and 2.4 MTPA of ethylene and propylene-based derivatives, according to their website.

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CLIMATE DIPLOMACY

Algeria partners with Indonesia on energy and mining, submits bid to join ASEAN bloc

Indonesia + Algeria sign agreement to expand energy + mining cooperation:Indonesia’s Foreign Minister Retno Marsudi signed an MoU with her Algerian counterpart Ahmed Attaf to expand joint investments in energy and mining cooperation, including renewables, Indonesian news outlet Jakarta Globe reported on Thursday citing a joint press statement. The two are also looking to diversify partnerships in the electricity, agriculture, and fisheries sectors, Attaf said in the statement, which came at the conclusion of a bilateral meeting between Marsudi and Attaf, held in Algiers.

The investment ticket will be USD 900 mn by 2048: Indonesian state-owned oil and gas firm Pertamina will invest around USD 900 mn in Algeria’s energy sector by 2048, some of which will be allocated to decarbonization projects, Marsudi added in the presser.

Pertamina has solid ties in the Gulf: In February,Masdar acquired an undisclosed stake in Pertamina subsidiary Pertamina Geothermal Energy.Last month, Pertamina's Masdar-backed geothermal arm signed an agreement with the UAE's Mubadala Energy to explore potential geothermal energy projects. Pertamina also partnered with Aramco last year to individually conduct feasibility studies on the creation of a hydrogen and ammonia value chain.

ALSO- Algeria submitted an application to join the ASEAN bloc: Algeria has submitted an official application to join the Association of Southeast Asian Nations (ASEAN) under its Treaty of Amity and Cooperation, Asharq Al Awsat reported last week. Indonesia hosts the headquarters of the Southeast Asian bloc, and holds the current chairmanship which rotates annually. If approved, Algeria would benefit from the bloc’s carbon neutrality strategy, which it said could help unlock up to USD 6.7 tn in green investment regionally by 2050.

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FROM THE CLIMATE STORE

Nissan plans to debut its e-POWER electric motor in Egypt next year

Nissan’s ‘e-POWER’ electric motor-driven system to hit Egypt’s automarket next year: Nissan Egypt is planning to debut its e-POWER electric-drive powertrain technology in the Egyptian automarket in 2024, Al Borsa quoted Nissan Africa’s Managing Director Sherif Al Desouki as saying on Saturday. Nissan e-POWER models include the Qashqai and the Nissan X-Trail. Nissan Egypt’s production factory plans to ramp up domestic production to expand exports to neighboring African countries while supporting Egypt’s plans to localize EV manufacturing, Al Desouki says.

About the tech: The e-POWER electric-drive powertrain integrates a gasoline engine, a lithium-ion battery pack, and is driven by a high-output electric motor. The e-POWER system combines the EV technology of the Nissan Leaf and adds a petrol engine to charge its lithium-ion battery pack, removing the need for traditional AC/DC charging for all-electric models (watch, runtime 03:31).

Full engine control: The system pioneered by Nissan is different from other hybrid powertrains in that the petrol engine never drives the car, with the electric motor providing a responsive and quiet driving experience “remarkably similar” to that of an EV (watch, runtime: 4:53). With the petrol engine unconnected to the wheels, e-POWER can freely control engine start timing, driving vehicles with just the electric-motor from start to low/mid-range speed, the company notes.

The motor can save tons of emissions compared to traditional models: The hybrid model is low on fuel consumption “because it generates electricity at efficient engine RPM,” Nissan adds. The e-POWER system allows motorists to accelerate and decelerate using only the electric motor, and its regenerative brake system also helps improve fuel efficiency by charging the battery, giving cars like the Qashqai over 1k km of range on just a 55 liter-tank.

Nissan’s EV targets: Nissan has sold more than 1 mn EVs since it launched its first all-electric car in 2010, and plans to end combustion engine sales in Europe by 2030 as part of its wider 2050 net-zero target. The company says it will introduce in the next five years zero-cobalt technology aimed at bringing down EV battery costs by 65% by FY 2028.

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ALSO ON OUR RADAR

Bahrain Steel to build a solar project + Saudi partners with China on renewables

Bahrain Steel is building a solar plant: Bahrain Steel is launching three projects worth USD 250 mn to develop its operations in the kingdom, including developing a solar energy plant to power its plants, TradeArabia reported on Thursday. The other two projects will consist of building a roof to cover the iron ore materials area, and allocating an industrial land plot to support the company’s operations. The company is boosting its green portfolio as it also partnered with Essar Group in August to supply the latter’s USD 4.5 bn green steel project in Saudi Arabia with 4 mn tons of iron ore pellets per year.

ALSO FROM BAHRAIN- Bapco Energies joins the Oil and Gas Methane Partnership 2.0: Bahrain’sBapco Energies announced yesterday its membership to the Oil and Gas Methane Partnership 2.0 (OGMP 2.0) — a UN-led reporting framework to monitor emissions of the greenhouse gas — committing to annually report methane emissions from its assets.(Statement)

KSA + China players partner on renewables and BESS localization: Saudi Arabia’s Energy Care Holding, Arabian Transformers Company (ATC), and SEP Fab Plant signed pacts with Chinese firms to localize renewable energy and battery energy storage system technology in the region, Economy Saudi Arabia reported on Thursday. SEP signed an agreement with green energy infrastructure manufacturer Chinese Dongfang Electric, while Energy Care signed an agreement with China’s green tech developer Jiangsu Linyang Energy Company aimed at localizing BESS tech in the kingdom. ATC also inked a pact with smart energy solutions firm Chint Group aimed at localizing high voltage power transformers tech and other electrical industrial products in Saudi Arabia, the company said. The agreements came on the sidelines of the Smart Grids Conference in Riyadh.

KSA is also looking to upskill green energy workforce: The Saudi College of Technology for Selective Services signed a cooperation agreement during the conference with Egypt’s Elsewedy Electric to train KSA’s green energy workforce, and inked another pact with local firm National Batteries Company to help employ local talents in clean power specializations, the news outlet added.

Saudi’s Mowreq + YesHealth start construction on giant vertical farm project: Vertical Farms Company — a JV between Mowreq and YesHealth Group established in 2022 — has broken ground on a giant vertical farm in Riyadh, set to be the largest in the country, according to a statement last week. The project — which is scheduled for operation in the second half of 2024 — will consist of 15 meter-tall, 19-layer towers built on an area of 20k sqm, with a capacity to produce up to 2.2k kgs of leafy greens daily. Produce will include full-size lettuce, cruciferous vegetables, baby leaves, and specialty crops such as edible flowers.

Not the region's first vertical farm: The UAE's ReFarm announced earlier this month the construction of a vertical farm that is set to be fully operational by 2026.

UAE’s Zeroe drums up USD 2.2 mn to help businesses track their emissions: UAE carbon management software startup Zeroe secured USD 2.2 mn in a seed funding round, according to a statement. Zeroe’s platform allows companies to measure emissions and report on decarbonization performance. The startup was launched earlier this year.

AND- Dubai wants to transition to e-bikes for delivery services:Dubai's Roads and Transport Authority (RTA) announced implementing a new initiative on Thursday to boost the use of electric bikes in the delivery sector. The plan includes establishing charging stations, amending licensing and registration requirements, and developing projects for pilot charging stations to replace electric bicycle batteries. (Wam)

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • Ewec boosts energy modelling and forecasting: The Emirates Water and Electricity Company (Ewec) signed an MoU with software provider for the energy and water sectors Energy Exemplar on Thursday to expand its climate forecasting and modeling capacities as part of its decarbonization efforts. The model will factor in “future-facing energy innovations.” (Wam)
  • Oman’s Bahwan Automobiles Trading (BAT) is now the official distributor for Vietnam’s giant EV automaker VinFastin the sultanate. VinFast has a wide range of EVs including electric SUVs, sedans, crossovers, e-scooters, and e-buses. (Times of Oman)
  • EWEC partners with Energy Exemplar to expandenergy modeling and forecasting: The Emirates Water and Electricity Company (EWEC) signed an MoU Thursday with software provider Energy Exemplar to introduce Energy Exemplar's cloud-based platform modeling capabilities to EWEC’s operations. (Statement)
  • Siemens to upgrade transformers of the High Dam and Aswan: Siemens Energy has been selected to upgrade the power transformers at Egypt’s High Dam power station and Aswan power stations 1 and 2. The project aims to boost the transformers' life span 40-50 years and add 300 MW to the grid. (AlMasry Al Youm)
  • University of Sharjah + Karmantera partner on agriculture: The University of Sharjah and US climate tech firm Karmanterra will together explore methods of expanding green spaces in desert areas and promoting sustainable agriculture in reclaimed lands, as per an MoU signed on Wednesday. The project aims to turn coal into nano-carbons which will be used to boost the plants' durability against drought, extreme heat and soil salinity — events that have been exacerbated by climate change in recent years. (AlKhaleej)
  • Morocco’sBank of Africa launches initiative to promote sustainable financial practices: The Bank of Africa has partnered with six local academic institutions to launch the African Chair for Sustainability and Impact Finance initiative on Tuesday. The program aims to contribute to the research and education on sustainable finance, corporate social responsibility, technology, circular economy, green mobility, and environmental impact measurement. (Telexpresse).
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AROUND THE WORLD

UK’s Octopus Energy raises USD 800 mn in latest fundraising round

Octopus Energy’s valuation hits nearly USD 8 bn: UK-based energy supplier and renewables investor Octopus Energy has raised USD 800 mn from investors in a fundraising round, bringing its current valuation to USD 7.8 bn, Financial Times reports.

Investors: The Canada Pension Plan Investment Board invested USD 326 mn, raising its stake to 11% from 6%. Australia’s Origin Energy put in USD 305 mn, taking its stake to 23% from 20%.

Octopus has regional ties:The Abu Dhabi National Energy Company (Taqa) signed an agreement with Octopus Energy Group earlier this month to trial the latter’s AI-powered energy management platform Kraken across its UAE operations. The company announced in July that it will earmark USD 20 bn by the end of the decade to fund offshore wind energy projects globally.


DECEMBER 2023

26-27 December (Tuesday-Wednesday): International Conference on Environmental, Food,Agriculture and Bio-Technology, Dubai, UAE.

JANUARY 2024

8-10 January (Monday- Wednesday): International Conference on Smart Grid and Renewable Energy, Doha, Qatar.

9-11 January (Tuesday-Thursday): Future Minerals Forum, Riyadh, Saudi Arabia.

FEBRUARY 2024

26-28 February (Monday-Wednesday): Management and Sustainability of Water Resources, Dubai, UAE.

MARCH 2024

4-6 March (Monday-Wednesday): International Conference on Sand and Dust Storms in the Arabian Peninsula, Riyadh, Saudi Arabia.

APRIL 2024

16-18 April (Tuesday-Thursday): World Future Energy Summit, Abu Dhabi, UAE.

16-18 April (Tuesday-Thursday): Middle East Energy, Dubai, UAE.

23-25 April (Tuesday-Thursday): Connecting Green Hydrogen MENA, Dubai, UAE.

30 April-2 May (Tuesday-Thursday): Autonomous E-Mobility Forum, Doha, Qatar.

MAY 2024

7-9 May (Tuesday-Thursday): Global Waste Forum, Algiers, Algeria.

19-21 May (Sunday-Tuesday): Saudi Energy Convention, Riyadh, KSA.

JUNE 2024

5 June (Wednesday): World Environment Day, Saudi Arabia.

OCTOBER 2024

15-17 October (Tuesday-Thursday): EV Auto Show, Riyadh, KSA.

DECEMBER 2024

2-13 December (Monday-Friday): Conference of the Parties (COP16) to the United Nation Convention to Combat Desertification, Riyadh, KSA.

EVENTS WITH NO SET DATE

2024

Early 2024: The 2023 US Algeria Energy Forum, Washington DC, USA.

12-14 February (Monday-Wednesday): Sustainable Aviation Futures MENA Congress, Dubai, UAE.

End-2024: Emirati Masdar’s 500 MW wind farm in Uzbekistan to begin commercial operations.

QatarEnergy’s industrial cities solar power project will start electricity production.

2025

International Union for Conservation of Nature World Conservation Congress, Abu Dhabi, UAE.

UAE to have over 1k EV charging stations installed.

2026

26-29 October (Monday-Thursday): World Energy Congress, Riyadh, Saudi Arabia.

UITP Global Public Transport Summit, Dubai, UAE.

Annual Meetings of the World Bank and the International Monetary Fund, Bangkok, Thailand.

1Q 2026: QatarEnergy’s USD 1 bn blue ammonia plant to be completed.

End-2026: HSBC Bahrain to eliminate single-use PVC plastic cards.

2027

MENA’s district cooling market is expected to reach USD 15 bn.

2030

UAE’s Abu Dhabi Commercial Bank (ADCB) wants to provide AED 35 bn in green financing.

UAE targets 14 GW in clean energy capacity.

Tunisia targets 30% of renewables in its energy mix.

Qatar wants to generate USD 17 bn from its circular economy, creating 9k-19k jobs.

Morocco’s Xlinks solar and wind energy project to generate 10.5 GW of energy.

2035

Qatar to capture up to 11 mn tons of CO2 annually.

2045

Qatar’s Public Works Authority’s (Ashghal) USD 1.5 bn sewage treatment facility to reach 600k cm/d capacity.

2050

Tunisia’s carbon neutrality target.

2060

Nigeria aims to achieve its net-zero emissions target.

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