Adnoc buys OCI Global’s stake in Fetriglobe becoming a majority shareholder

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WHAT WE’RE TRACKING TODAY

TODAY: OCI Global sells its stake in Fertiglobe to Adnoc

Good morning, nice people. We have a packed and meaty issue this morning with updates from around the region across all parts of the climate industry. Let’s jump right in.

THE BIG CLIMATE STORY- The Abu Dhabi National Oil Company (Adnoc) has signed a binding agreement with Sawiris-backed, Netherlands-headquartered chemicals company OCI Global to acquire the latter’s 50% +1 stake in their joint venture Fertiglobe for AED 13.28 bn (c.USD 3.62 bn).

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

HAPPENING TODAY- The Smart Grid Conference will kick off today and run through to Wednesday, 11 January in Riyadh, KSA. The event will see 2.5k participants to promote products, services, and ideas on smart grid technology, renewable energy and grid integrations, AI and blockchain studies on smart grids, and cyber security applications among others.

THE BIG CLIMATE STORY OUTSIDE THE REGION OVER THE WEEKEND- Biden backs ethanol industry tax credits: The Biden administration announced on Friday it is backing a methodology backed by the ethanol industry to claim tax credits for the production of sustainable aviation fuel (SAF). Ethanol groups lobbied the administration to recognize the GREET model for IRA credits. "Key to this was the Treasury recognizing and appreciating the importance of the GREET platform for providing a pathway for corn-based ethanol and [other] biobased fuels to qualify for significant tax credits that were included in the IRA," said Agriculture Secretary Tom Vilsack. The methodology will be updated in March to incorporate new data and modeling on emissions sources like land use change and livestock activity and strategies to reduce emissions, including CCS, renewable natural gas, and climate-friendly farming practices.

The story made headlines in the international press:Reuters | The Washington Post | AP News

OVER IN (POST) COPLAND-Carbon offset prices plummet to 14-month low after “weak” COP28 agreement: Carbon prices dropped to a 14-month low on the world’s largest CO2 offsets trading market as news of COP28’s “weak” Global Stocktake agreement left brokers skeptical about meaningful government action on climate, The Financial Times reported on Thursday. Futures contracts tracking the EU’s emissions trading scheme (ETS) saw carbon prices fall 4% from pre-COP levels of GBP 71 to GBP 66 per ton of emissions in London. The Global Stocktake’s “weak” language on a fossil fuel phase down and failure to lay out carbon trading mechanisms between states contributed to the fall in carbon prices, lead carbon analyst at the London Stock Exchange Group Yan Qin told FT.

But some say other factors are driving the fall: The EU’s gas storage capacity, mild weather, and weak economic growth are more likely candidates for the drop in the ETS carbon price, head of Future Energy Analytics at S&P Global Commodity Insights Roman Kramarchuk told the news outlet, adding that COP28-driven policies were “inherently a long-term story.” The real value for offsetting a ton of carbon should be around USD 100 to encourage decarbonization, according to a 2021 Reuters poll.

AL JABER SWITCHES TRACKS- Despite COP28’s adopted text calling for a “transition away” from fossil fuels, the UAE’s Abu Dhabi National Oil Company — headed by COP28 President Designate Sultan Al Jaber — said he is moving forward with plans to invest USD 150 bn in oil and gas production by 2030, The Guardian reported on Friday. Al Jaber says the expansion is aligned with the Paris-agreed 1.5C warming limit, citing findings by the Intergovernmental Panel on Climate Change that fossil fuels will be needed beyond 2050 under a net-zero pathway, The Guardian notes. Adnoc’s planned investment comes after discovery of oil and gas wells with up to a 57 bn cbm capacity, which the Climate Action Tracker says will dwarf the impact of the Emirates’ planned USD 54 bn investment to triple renewables production by 2030.

GRETA’S NOT IMPRESSED- Swedish environmental activist Greta Thunberg said COP28’s failure to rally more support for a full fossil fuel phaseout will jeopardize the future of the world’s most vulnerable countries. “This text [Global Stocktake Agreement] is toothless and it is nowhere even close to being sufficient to keep us within the 1.5C degree limit. It is a stab in the back for those most vulnerable,” Thunberg told Reuters on Friday.

AND ELON DEFENDS BIG OIL- B’naire founder of EV giant Tesla Elon Musk says the climate action movement has gone too far and is stoking fears for the future, Reuters reported on Saturday. Hard-to-abate sectors need to offset bns of tons of carbon emissions in the long run and the oil and gas sector “should not be demonized in the medium term,” Musk said.

WATCH THIS SPACE #1- Jordan is still teasing its green hydrogen strategy release: Jordan is said to be “finalizing” its national green hydrogen strategy after saying it would be revealed last quarter, General of Jordan’s Energy and Mineral Resources Ministry Amani Azzam told Ad-dustour. The strategy will set in motion the 13 recently signed green hydrogen and ammonia MoUs paving the way for the kingdom to realize its goal of becoming a global hub for green hydrogen exports.

The pipeline: 5 of the 13 MoUs mentioned by Azzam were signed during COP28.The ministry also signed four MoUs in November with Jordan’s Kawar Energy, Philadelphia Solar, Amarenco, and the German renewables firm Enertrag to carry out feasibility studies for potential green hydrogen projects. In the same month, Jordan signed agreements with Irish-based renewables developer Amarenco and Zurich-based green hydrogen company H2 Global Energy for the development of a EUR 9 bn green ammonia project, and with Amman-based Mass Holding Group to establish a green ammonia plant with a 180k ton annual production capacity.

IN OTHER HYDROGEN NEWS- South Korea eyes Middle East's green hydrogen: South Korea's SK Ecoplant and South East Korea Energy have signed an MoU to partner on green hydrogen production in the UAE and Oman, Korean news agency Yonhap reported on Friday. The two companies will conduct feasibility studies to produce green hydrogen at the industrial park in the Abu Dhabi FreeEconomic Zone in the UAE and explore exporting the produced green hydrogen and green ammonia to South Korea. The project is targeting 50k tons of green hydrogen and 250k tons of green ammonia through solar-powered electrolysis.

ALSO- Saudi and Korea to partner on minerals: Saudi Arabia is open to partnering with South Korea on joint mining investments in third countries, Al Mal reported Thursday. Ma'aden and the Saudi sovereign wealth fund's Manara Metals might also explore investment cooperation in offshore mines.

WATCH THIS SPACE #2- Russia is planning to organize a contact group on climate issues as part of its responsibilities as the Brics chair next year, Bloomberg reported on Thursday, citing Russian first deputy Economy Minister Ilya Torosov. Russia aims to combine efforts in the Eurasian and Brics spaces for the climate agenda. Russia will also set up its own climate monitoring service focused on the oceans, permafrost, desertification, and carbon absorption and intends to invest around USD 111.6 mn in scientific development. “We view decarbonization as a driver of economic growth,” Torosov added.

WATCH THIS SPACE #3- KSA’s Acwa Power is on track to close agreements on five to eight projects in China next year, Zawya Projects reported last week, citing comments by company CEO Marco Arcelli. Projects in the pipeline include 2-4 GW solar and wind farms, 300k metric tons per annum green hydrogen projects, and 300k cbm per day water projects.

A shortcut to its 2030 goals: Entering the Chinese market would help Acwa achieve its goal of tripling its asset base to USD 250 bn by 2030 through expanding to 10 countries instead of 40, Arcelli said. The company plans to concentrate its efforts on Saudi Arabia, the Middle East, Africa, Central Asia, Southeast Asia, and China.

Acwa has been making moves: Acwa Power signed an MoU with Jordan at COP28 to produce 100-150k tons of green ammonia annually, and the company inked an agreement with Indonesia's PT Perusahaan Listrik Negara (PLN) to build the largest green hydrogen facility in Indonesia last week.

DANGER ZONE- Biofuels fraud calls for tighter import rules: Investigations found that a big share of used cooking oil imported by the EU for the production of biofuels may in reality be virgin palm oil that is falsely labeled, The Guardian reported on Thursday, citing the results of a European study by Brussels-based NGO Transport & Environment (T&E).

Why is this an issue? Crop-based biofuels — like virgin palm oil — contribute greatly to deforestation and raise emission levels. “Sustainable biofuel feedstocks are extremely limited. We need to stop seeing biofuels as a panacea for our climate problem,” biofuels expert at T&E Barbara Smailagic said. As demand for sustainable aviation fuels increases during the green transition, “we need greater transparency and a limit on imports to avoid used cooking oil simply becoming a backdoor for deforestation-driving palm oil” Smailagic adds.

T&E’s results: Despite EU imports of palm oil biodiesel dropping by almost 30%, derivatives of the oil labeled as “waste” — which is likely to include the unsustainable crop-based fuels — increased, the report found, which T&E said still had significant environmental impacts.

DATA POINT- Global coal use will peak in 2023 before declining in 2026: Global coal use is expected to reach an all time high in 2023, breaking last year’s record 8.42 bn tons by a projected 1.4%, the International Energy Agency said in its annual coal market report (pdf) last week. Demand is not expected to decline until 2026, when major renewable energy expansions come online and effectively reduce coal dependency by an estimated 2.3% from current levels.

What’s driving growth this year? Despite a significant push down in coal consumption in developed countries this year — 20% in the US and EU — countries including China, India, Indonesia, Vietnam, and the Philippines, which collectively make up 70% of global coal demand, will more than offset these decreases on a global level, the IEA notes. Demand is expected to surge in India and China by 8% and 5% respectively on the back of weak hydropower output and increasing power demands, the IEA notes.

China will have the last word: More than half of the global renewables expansion over the next three years is set to occur in China, which accounts for more than half of global demand, the IEA notes. The planned clean energy additions are expected to reduce coal demand in the country in 2024 before it plateaus through 2026. That said, the outlook for coal in China will be “significantly affected in the coming years by the pace of clean energy deployment, weather conditions, and structural shifts in the Chinese economy,” according to the IEA. While the first draft of COP28’s Global Stocktake included a clause limiting unabated coal production, the revised, adopted agreement did not mention a date to achieve this phasedown or specific targets as to how it would come about. It also failed to put a limit on new coal-power generation projects.

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CIRCLE YOUR CALENDAR-

Qatar will host TheInternational 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 theFuture 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.

TheUAE 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.

Adnoc becomes a majority shareholder in Fertiglobe

Adnoc snaps up OCI’s stakes in Fertiglobe:The Abu Dhabi National Oil Company (Adnoc) has signed a binding agreement with Sawiris-backed, Netherlands-headquartered chemicals company OCI Global to acquire the latter’s 50% +1 stake in their joint venture Fertiglobe for AED 13.28 bn (c.USD 3.62 bn), according to a statement released on Friday.

More details: The acquisition — expected to close in 2024 — would bring up Adnoc’s shares in Fertiglobe to 86.2%, with the remaining in freefloat on the Abu Dhabi Securities Exchange. The transaction prices Fetiglobe shares at an 8% premium at AED 3.20 (c.USD 0.87) per share, according to a separate OCI statement.

Fuelling Fertiglobe’s ammonia expansion:Adonc’s acquisition of OCI’s stakes is part of a company drive to expand its global ammonia production network, in efforts to grow a platform for the low-carbon fuel which also serves a (green) hydrogen carrier, the statement notes.

This isn’t the end of the road for Adnoc and OCI: In parallel to the acquisition agreement, both sides inked an MoU to explore importing and distributing ammonia in the EU, Adnoc’s statement notes. The agreement will also see the two explore joint investments in decarbonization and product distribution projects in North America and Europe, according to OCI’s statement. OCI is reportedly considering offering its US crop nutrient unit Iowa Fertilizers to Adnoc for more than USD 3 bn, Bloomberg reported on Thursday, citing sources familiar with the negotiations.

We might have new investors coming in: Nassef Sawiris’ private investment office NNS will also be investing in Fertiglobe, “demonstrating NNS’s deep conviction … in the material value creation that lies ahead for Fertiglobe under ADNOC’s stewardship,” Nassef Sawiris said, according to the OCI statement.

Fertiglobe is positioning itself as a major ammonia player: Last month, Fertiglobe sent the world’s first ISCC PLUS-certified (International Sustainability and Carbon Certification) green ammonia shipment to India from its electrolyzer facility in Egypt’s Suez Canal Economic Zone. Fertiglobe is currently in the process of finalizing engineering and technology choices for the full-scale 100 MW Egypt plant and aims to reach a final investment decision on the facility in the coming months. Fertiglobe, alongside Adnoc-ADQ JV Ta’ziz, GS Energy, and Mitsui, has also signed a shareholder agreement to construct a facility to produce some 1 mn tons of low-carbon ammonia annually in the UAE. The company is also studying another green hydrogen project in the UAE in collaboration with Masdar and Engie.

UAE’s Mubadala Investment Company partners with Hyundai on co-investments in green mobility and green tech

Mubadala + Hyundai Motors partner on mobility: UAE’s Mubadala Investment Company signed an MoU with Korean car making giant Hyundai Motor Company to explore co-investments in mobility and green tech, according to a statement published on Friday. The agreement will also see the two collaborate in green steel production, green aluminum production and recycling, advanced air mobility, and infrastructure for electric vehicles. As part of the agreement, Mubadala will also explore “expanding its presence in South Korea,” company CEO Waleed Al Muhairi said.

Hyundai 💚 the region: Hyundai Motor Company signed a JV agreement with Saudi's Public Investment Fund (PIF) back in October to establish a USD 500 mn highly automated vehicle manufacturing plant in the kingdom. The Koream auto giant also signed an MoU with UAE's Bee'ah to promote hydrogen mobility in the UAE last month. Hyundai Motor Company and Kia are targeting 550k of combined annual unit sales in the Middle East by 2030.

ALSO- Mubadala partners with its subsidiary Solutions+ to decarbonize its operations: Mubadala signed an agreement with its subsidiary Solutions Plus to work on establishing decarbonization initiatives across the company, according to a statement released last week. The agreement will see the two work on various sustainable practices including setting up a carbon emissions calculator, implementing energy efficiency measures, and enhancing overall operational sustainability.

About Solutions Plus:Solutions Plus is a Mubadala company that offers integrated facilities management, and services in media, finance, human resources, procurement, customer service, sports and entertainment, and ESG and sustainability, according to its website.

Masdar signs a strategic joint development and investment framework agreement with the Clean Hydrogen Infrastructure Fund

Masdar + France’s Hy24 to invest in global hydrogen supply chain: UAE renewables developer Masdar signed a strategic joint development and investment framework agreement with France’s Hy24-managed Clean Hydrogen Infrastructure Fund to boost large-scale green hydrogen production projects globally, according to a statement released on Thursday. Under the agreement, Masdar will get access to a pipeline of up to EUR 2 bn in co-invest and co-develop in green hydrogen supply chain projects across MENA, the Americas, Asian Pacific countries, and European markets.

REFRESHER - Hy24 — a joint venture between asset manager FiveT and private equity firm Ardian — reached close on its EUR 2 bn clean hydrogen fund last year, which at the time was the world’s largest. Investors in the fund include TotalEnergies, Baker Hughes, Airbus, AXA, and Crédit Agricole Assurances. The company plans to raise EUR 20 bn over the next six years to scale up clean hydrogen value chains.

There’s already an investment model hashed out: Masdar and Hy24’s co-investment strategy will be modeled on a Power-to-X framework with the aim of setting up an all encompassing clean energy production value chain from renewables, to green hydrogen and its derivatives including green ammonia, e-methanol, sustainable aviation fuel, and liquid hydrogen, Masdar notes.

Not Masdar’s only recent co-investment agreement: Earlier this month, Masdar signed a strategic partnership agreement with Spain’s Iberdrola to co-invest up to EUR 15 bn in exploring development projects in the offshore wind and green hydrogen in key markets including Germany, the UK, and the US.

Hy24 is no stranger to MENA: Hy24 invested USD 115 mn alongside Singapore’s sovereign fund GIC in InterContinental Energy's green hydrogen expansion plans in the Middle East and Australia. Hy24 plans to leverage Masdar’s 20 GW renewables portfolio, along with the partnerships its parent company Adrian have formed in the MENA region, to open up new investments in the area.

Egyptian solar panel supplier Sunway plans to acquire two local solar solutions firms

Egypt’s Sunway plans to acquire two solar solutions firms: Egypt-based solar panel supplier Sunway is in the final stages of acquiring two local solar system installation companies as part of the company’s plans to increase revenues by 200% next year, CEO Ahmed El Ghandour told Al Arabiya in an interview on Thursday. The company is currently in the “advanced stages” of the process, and is yet to decide whether the acquisition will be implemented via equity investments or stock transfers. Sunway is aiming for a 30% capital increase to fuel its expansion plans.

Lots of solar for Egypt’s agriculture sector: The company was recently contracted by three Egyptian companies working in the agriculture sector to develop three solar energy farms with a combined 9 MW generation capacity at an expected EGP 90 mn investment ticket, Ghandour said. Sunway also develops solar-powered irrigation systems and has so far installed enough solar systems to irrigate 30k acres of agricultural projects. The company's business portfolio nets EGP 100 mn annually and is targeting a EGP 150 mn increase in 2024.

And lots in the pipeline for KSA: The company was contracted to build two solar projects in the kingdom with a combined capacity of 115 MW at a SAR 10 mn price tag and has signed implementation agreements with China Energy Engineering Group to carry out works on the 65 MW Shuaiba 3 solar farm. There are also agreements in place with Al Suwaidi Holding Company for the 50 MW Saad 1 solar station. It expects to break ground on both projects before the end of the month.

Expansion plans in the kingdom: The company — which already established two branches in Jeddah and Riyadh — is looking to further expand in the Saudi market, Ghandour said. Sunway’s total KSA portfolio will reach SAR 30 mn, which it plans to double next year.

Korean automaker KG Mobility to start manufacturing Torres EV in kingdom

KG Mobility to assemble its signature Torres EV in the kingdom: The Saudi National Automobiles Manufacturing Company (SNAM) signed a new partnership agreement with South Korean automaker KGM Mobility — formerly known as SsangYong Motor — to manufacture KGM’s all-electric Torres EVX SUV in the kingdom, The Korea Herald reported last week. No operational timeline, production date or financial details on the partnership have yet been disclosed.

Torres EVX?The all-electric SUVs were launched in South Korea last September with just one powertrain that uses a 73.4kW/h battery and a 201 bhp electric motor to drive the front wheels, Autoexpress noted.

Not their first rodeo: In October, SNAM and KG Mobility signed a MoU to supply automotive parts to the Saudi company. They also signed a knock-down parts supply agreement last year and product license agreements in 2019 and 2020.

KSA could become KG Mobility’s stepping stone into the region’s EV market: “As a new member of the KG Group family, KG Mobility has been accelerating its global market expansion since early year. We're setting our sights on building a robust EV production network in Saudi Arabia, which we see as a stepping stone into the Middle Eastern EV market,” Kwak Jae-sun, KGM’s Chairman.

IN OTHER SAUDI EV NEWS- PIF-backed US EV maker Lucid assembles 800 EVs in Jeddah plant:Electric vehicle maker Lucid — in which the PIF owns a 60% stake — has assembled c. 800 vehicles in its factory in Jeddah since its inauguration in late September, Reuters reported last week, citing the company’s Middle East Managing Director Faisal Sultan. His statements come a few months after Lucid opened its first plant outside the US in September in the kingdom with an initial capacity to manufacture 5k EVs a year after the government pledged to purchase up to 100k vehicles over a timeframe of ten years.

REMEMBER- Lucid is planning big for the kingdom: Lucid plans to produce 155k EVs yearly in the kingdom once full-fledged production capacity is achieved by 2025. Lucid aims to build a full production plant in the kingdom that could potentially earn the EV manufacturer USD 3.4 bn over 15 years.

We have more details on Hydrom’s new hydrogen infrastructure company

Here’s what we know about Hydrom’s new company:The new shared hydrogen infrastructure company under establishment by Hydrogen Oman (Hydrom), OQ Gas Networks, Nama Water Services, and the Oman Electricity Transmission Company (OETC) — provisionally named InfraCo — will work on projects across the Al Wusta and Dhofar governorates, the Oman Daily Observer reported last week. Last week, Hydrom said it plans to take an equity share in any planned green hydrogen projects in exchange for the supply of water, electricity and a pipeline network.

Who’s doing what: The planned common infrastructure sites will include developing electricity interconnectors to hydrogen production plants, establishing desalinated water supply systems to hydrogen production sites, and building hydrogen transportation networks from plants to ports and freezones. OQ Gas Networks was tapped by the government to manage the hydrogen pipelines, while Nama Water Services will oversee water networks, and OETC will be responsible for the electric connectivity side of the project. The Omani government has not yet picked Infraco’s partner for the desalination component of the project.

Coming online by 2029: Hydrom has set a target to commission the project before the “first production of hydrogen” locally by 2029, the news outlet quotes the company’s Managing Director Abdulaziz al Shidhani as saying.

REMEMBER- Hydrom is moving fast to make Oman a hydrogen hub: Last month, Hydrom said it’s looking to raise USD 20-30 bn in investments from its second round of auctions for green hydrogen projects in the Dhofar region. Hydrom recently signed an MoU with Asyad Group aimed at strengthening Oman’s logistics sector in order to support the green hydrogen projects coming down the pipeline, and signed another agreement with Siemens Energy and the Oman Investment Authority (OIA) to explore the feasibility of establishing an electrolyzer manufacturing facility in the Sultanate. The Omani company is expecting to receive bids for the second round of the country’s land auction for integrated green hydrogen projects in late January and will award the contracts by 2H 2024.

ALSO- Hydrom wants in on China too: The company is aiming to tap the Chinese market for its hydrogen exports, the company’s Managing Director Abdulaziz Al Shidhani told Asharq Business on Friday. This follows Hydrom’s recently signed agreements with markets in South Korea, Japan, and Western Europe.

Green hydrogen production is booming: Hydrom recently inked six green hydrogen agreements — three of which were signed during COP — which will reach a total annual production of 925k tons of the green fuel, bringing it close to reaching Oman’s goal of 1 mn tons by 2030, Al Shethani said. Implementation of the SalalaH2 project is expected to start in 2Q 2024, CEO of OQ Alternative Energy Najla bint Zuhair Al Jamali told Attaqa.

Neom’s Enowa partners with Belgium’s Solvay on carbon-neutral soda ash

Enowa + Solvay partner on carbon-neutral soda ash plant: Neom’s energy and water company Enowa is partnering with Belgian chemicals manufacturer Solvay to build the world’s first carbon-neutral soda ash production plant in Neom, according to a statement released last week. The plant is expected to begin operations by 2030 and no investment ticket has been disclosed.

About the project: The renewables-powered plant will convert seawater brine into soda ash and use the e.Solvay process for sustainable and carbon-neutral soda ash production. The plant is targeting a capacity of 500k tons of soda ash by 2030, which would gradually increase to 1.5 mn tons by 2035.

What’s the significance of soda ash: Soda ash is used to manufacture window panes, laundry detergents and rechargeable batteries. India's Tuticorin Alkali Chemical and Fertilizers (TFL) also successfully produced green soda ash and can capture carbon dioxide from the flue gasses of biomass boilers at its facilities and reuse it in the production, promoting a circular economy and resulting in a near-zero carbon.

And the region is lending a helping hand: Egypt exported 37.4 tons of green ammonia in October to TFL for soda ash production. TFL also received Fertiglobe's first renewable ammonia shipment in November to produce soda ash as well.

UAE’s Tabreed secures AED 600 mn Green Revolving Credit Facility

The UAE’s National Cooling Company (Tabreed) has successfully closed its inaugural Green Revolving Credit Facility (RCF) for AED 600 mn, according to a statement (pdf) released on Thursday. This five-year financing agreement aims to introduce highly efficient cooling solutions in the GCC market, focusing on sustainable and innovative technologies.First Abu Dhabi Bank (FAB) will serve as green coordinator, along with the Abu Dhabi Commercial Bank PJSC (ADCB), and Emirates NBD.

Where is the money going? Tabreed will allocate the funds to green projects exclusively, including district cooling schemes, energy and water efficiency, and wastewater management as part of its Green Finance Framework launched in 2022. FAB has committed USD135 bn in sustainable and transition financing by 2030, the statement said.

REMEMBER- Tabreed has made some big moves this year: Abu Dhabi National Oil Company (Adnoc) and Tabreed launched operations for the MENA region’s first geothermal cooling plant located in Abu Dhabi’s Masdar City earlier this month. The company also announced results of a district cooling pilot project it completed using nanofluid tech in November. The pilot — which Tabreed says is the world’s first in heat transfer technologies — was trialed at one of its district cooling plants in Khalifah City, Abu Dhabi.

Tabreed’s efficient cooling has saved tons of CO2:By using district cooling instead of conventional air conditioning, Tabreed has prevented the release of over 713k tons of CO2 emissions into the atmosphere, the equivalent of eliminating the emissions of 143k vehicles annually, according to their website.

UAE signs agreements on climate actions and Egypt + Spain partner on sustainable irrigation

UAE boosts green cooperation with Paraguay, Mexico, and Germany: The UAE signed an agreement with the Republic of Paraguay to exchange information and best practices regarding carbon trading, as well as co-develop greenhouse gas mitigation initiatives and emission reduction projects, Climate Change and Environment Minister Mariam Almheiri said. The UAE also signed an MoU with the Mexican Agriculture and Rural Development Ministry to enhance collaboration in agriculture, fisheries, aquaculture, and food security. Another MoU was signed with Germany's Environment, Nature Conservation, Nuclear Safety and Consumer Protection Ministry to cooperate in the field of protecting, restoring and managing trees.

ELSEWHERE IN THE REGION- Egypt and Spain partner on sustainable irrigation: Egypt’s Water Resources and Irrigation Ministry signed an agreement with the Spanish Agency for International Cooperation to jointly launch a smart irrigation project in the country, according to a statement released on Thursday. The project aims to upscale Egypt’s integrated water resources planning and management strategies. The cabinet is currently in the process of selecting land in either the Minya, Menoufia, Qalyubia, Ismailia, or Suez governorates to be used for a “medium sized” trial area.

OTHER DIPLO STORIES WORTH KNOWING ABOUT THIS MORNING-

Oman and Singapore want to boost cooperation: Oman and Singapore are exploring ways to boost investment cooperation in various sectors including green hydrogen and renewable energy. (Oman News Agency)

Enec will collaborate with Chinese nuclear firm and AfDB supports Tunisian water treatment

NUCLEAR-

ENEC signs agreement to explore collaboration with a Chinese nuclear firm: The Emirates Nuclear Energy Corporation (ENEC) signed an MoU with the China National Nuclear Corporation (CNNC) to explore co-investment and development of new international nuclear energy plants, Wam reported on Friday. They'll also explore the development and deployment of High-Temperature Gas-Cooled Reactors (HTGRs) in the country which use helium as a coolant instead of graphite or CO2, according to the International Atomic Energy Agency. HTGRs produce process heat, which can be used for hydrogen production and low-temperature applications such as seawater desalination and district heating.

We’ve been seeing a lot more of ENEC recently: Enec signed a flurry of MoUs during COP28 including with Canada's Terrestrial Energy to collaborate on using advanced nuclear energy technologies, Bill Gates’ TerraPower, GE Hitachi, and Kazakhstan's National Atomic Company Kazatomprom last week to boost the use of nuclear energy and explore its latest tech. It also signed an MoU with US miniature nuclear reactor developer Xenergy to deploy the latest nuclear energy tech, and with the UK Department for Energy Security and Net Zero to collaborate on nuclear energy deployment.

ELECTRIC VEHICLES-

Oman + LiChem ink MoU on lithium refining complex: The Oman Investment Authority and the Energy & Minerals Group ’s lithium refining subsidiary LiChem signed an agreement Wednesday to explore the development of a lithium refining complex in Oman using LiChem’s cost-effective, closed-loop process, according to a statement released last week.

About LiChem’s low waste, low emissions approach: The LiChem process’s key advantage above the rest of the lithium refining industry is its use of an alternative reagent rather than the commonly used sulfuric acid roast and the leaching process created by Metso Outotec, widely used across the lithium industry today. LiChem is able to recycle and reuse its reagents, resulting in less waste and environmental impact, according to its website.

GREEN FINANCE-

Opec Fund extends USD 50 mn loan to Acwa Power for Azerbaijani wind plant: The OPEC Fund has approved a USD 50 mn green loan to Acwa Power for the construction of its 240 MW Khizi-Absheron wind farm in Azerbaijan, according to a statement released on Thursday. Acwa Power had secured USD 196 mn in financing for the project from the European Bank of Reconstruction and development back in October. OPEC has also signed off on USD 205 mn in loans to help finance sustainable irrigation, climate action and innovation, green energy, and food security projects in Malawi, Armenia, Bangladesh, Nepal , Uganda, and Uzbekistan, according to a statement. Last year at COP27, ACG and the OPEC Fund for International Development committed to channeling USD 24 bn in climate financing by the end of the decade.

Sirius International Holding invests in Botanical Water Technologies: The UAE's Sirius International Holding has invested an undisclosed amount in the London-based Botanical Water Technologies, according to a statement released on Thursday. The investment aims to create new sources of drinking water, replenish aquifers, and bring relief to water-scarce regions in developing countries. This comes after Sirius launched earlier this month its Smart Sustainability Solutions (S3) climate company focusing on water scarcity and efficiency, circular economy, methane, and carbon.

EBRD may extend USD 35 mn loan to Egypt’s aiBank: The European Bank for Reconstruction and Development (EBRD) is looking to extend USD 35 mn in loans to the Arab Investment Bank (aiBank) to support small, and medium-sized enterprises (MSMEs) working on climate and agriculture initiatives, Ahram Online reported last week. If approved, USD 25 mn would go towards implementing climate and energy efficiency initiatives for households and companies, while the other USD 10 mn will be earmarked for on-lending to MSMEs in the agribusiness sector. The Green Climate Fund (GCF) is a co-financier for the former USD 25 mn loan.

AfDB boosts Tunisia’s water treatment sector with fresh EUR 82 mn loan: The African Development Bank Group (AfDB) has approved a EUR 81.9 mn loan to help finance Tunisia’s Treated Wastewater Quality Improvement Project For Climate Resilience Building, according to a statement released last week. The project will be implemented from 2024 to 2028.

About the project: The project involves upgrading Tunisia’s electromechanical and electrical equipment and using solar farms to power 19 wastewater treatment capacity across the country and ensure wastewater treatment standards comply with international requirements. The treated water will be used to seed more than 3k hectares of agricultural land around the planned water treatment facilities, the lender notes. The project should build resilience against climate change and is expected to improve the quality of life for around 670k people, according to AfDB.

AGRICULTURE-

UAE’sAl Dahra + Denmark’s Agreena to transition EU’s largest arable farm to regenerative agriculture: UAE-based agribusiness Al Dahra and Danish climate agritech company Agreena signed an agreement for a carbon offset initiative to turn 55k hectares of arable farmland in Romania — EU’s largest consolidated farm — towards regenerative agriculture, according to a statement released last week. The agreement comes as part of Agreena’s soil carbon offsetting program.

The details: The farm will adopt regenerative practices including maximizing the use of cover crops –plants used for soil protection and improvement – and minimizing soil disturbances like overgrazing, excessive pesticides, and tillage. Agreena will use IPCC -aligned scientific methodology and new technology to measure the farm's greenhouse gas reductions and CO2 removal. This will lead to the issuance of credible carbon removal credits within the world's largest voluntary carbon market standard, enabling support for funding the transition through regenerative farming.

EMISSIONS-

Gulf Air to launch carbon management initiative: Bahrain’s flag carrier Gulf Air is partnering with carbon offsetting platform Safa to offer passengers the option to voluntarily offset their carbon footprints by supporting a portfolio of high-impact carbon projects, according to a statement. Passengers can opt in when purchasing their tickets to offset their individual carbon footprint in accordance with global standards outlined by the International Air Transport Association (IATA).

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

University of Sharjah to collaborate on green research with Honeywell: US-based conglomerate Honeywell signed an agreement with the University of Sharjah in the UAE to research sustainable and renewable energy, smart city technology, and environmentally friendly building design. The two will also work together on developing AI-based energy management systems for buildings, and creating sustainable educational programs in the university. (Wam)
IEA partners with Abu Dhabi to drive the UAE’s clean energy transition: The Abu Dhabi Department of Energy and the International Energy Agency will set decarbonization strategies and targets and implement green energy policies to drive renewable energy efficiency and low-emission technologies in Abu Dhabi. (Statement)
Sonasid receives certification to expand green steel supply to new markets: Moroccan long-steel producer Sonasid has received the Environmental Product Declaration certificate to produce high value added green steel from the International Organization for Standardization (ISO). The certification opens up new global markets and large-scale green projects for Sonasid. (Steel Orbis)
Iran + China to produce EVs: Six Iranian automakers — including the country’s two largest, SAIPA Automotive Group, and Iran Khodro Industrial Group — will collaborate with China to co-produce electric cars in Iran. Charging stations in Iran’s inner- and inter-cities areas are currently being rolled out, the country’s Deputy Minister of Industry said. (Tasnim News Agency)
Tunisia secures loan from AfDB to boost (green) wastewater treatment: The African Development Bank (AfDB) approved a loan of EUR 81.9 mn for Tunisia’s Treated Wastewater Quality Improvement Project, aimed at boosting wastewater treatment standards and incorporating renewable energy into the process. The project will be implemented between 2024-2028 and will benefit over 670k people. (Statement)
EBRD to boost Jordan's green economy: EBRD will extend a USD 15 mn green loan to finance Jordan's green economy including USD 3.75 mn in co-financing from the Green Climate Fund and up to USD 1.8 mn in incentive grants provided by the EU. (Al Mamlakah)
Oman's interconnection project begins operations: Oman Electricity Transmission Company (OETC) launched the first phase of its interconnection project on Thursday, which will connect 5 new stations including ones at Duqm. OETC has shut down 14 diesel plants, offsetting 474k tons of CO2 annually. (Oman News Agency)
Abu Dhabi gets a new EV bus fleet courtesy of ITC: UAE-based car dealership Al Khoory Automobiles signed an agreement to supply the Abu Dhabi Integrated Transport Centre with a fleet of its all-electric Yutong buses. (Khaleej Times)

France’s Credit Agricole axes fossil fuels funding

France’s Credit Agricole axes fossil fuels funding: France’s second largest listed banking group Credit Agricole will stop financing new fossil fuel extraction projects and increase its corporate and investment banking entity’s exposure to low-carbon technologies by 80% to reach EUR 13.3 bn by 2025, according to a statement released on Thursday. The lender will publish its exposure to pre-existing fossil fuel projects starting 1Q 2024, and has also committed to pushing down its financed emissions linked to the oil and gas sector by 75% by 2030 compared to its previous 30% target in 2022. Credit Agricole also says it will triple its renewable energy investment by 2030 to EUR 3 bn.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

Japan to offer tax breaks for EV + chip production for 10 years: Japan plans to introduce a 10-year tax incentive plan aimed at attracting investors to boost the production of EVs and high-tech chips. The initiative also targets semiconductor production, sustainable aviation fuel, green steel, and green chemicals. (Reuters)
Sembcorp gets 300 MW solar project: Singapore's Sembcorp has been awarded a 300 MW solar power project by Indian state-owned hydropower producer NHPC. NHPC also committed to a 25-year power purchase agreement from Sembcorp's Green Infra Wind Energy. (Reuters)
Greenpeace Australia hits Woodside Energy with a lawsuit: Greenpeace Australia has filed a lawsuit accusing the country’s largest oil and gas company, Woodside Energy, of deceiving the public with its claims of cutting direct emissions. Woodside says the claims have no merit. (Reuters)

CALENDAR

DECEMBER 2023

18-20 December (Monday-Wednesday):Saudi Arabia Smart Grid Conference, Riyadh, Saudi Arabia.

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.

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

MAY 2024

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

JUNE 2024

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

OCTOBER 2024

10-12 October (Tuesday-Thursday): Autonomous E-Mobility Forum, Doha, Qatar.

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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