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Algeria’s Sonelgaz and Cosider Canalisations break ground on a 150 MW solar project

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WHAT WE’RE TRACKING TODAY

TODAY: Sonelgaz and Cosider kick off a new solar project + Egypt earmarks bns for food security, sets aside more land for renewables

Good morning, nice people. We have a brisk issue this morning with a few key updates coming in from Egypt and Oman, and an interesting read on how cleaning up scummy algae off ships could make them more fuel-efficient. First, let’s imagine an unpleasant scenario…

THE BIG CLIMATE STORY OUTSIDE THE REGION- It’s quiet on the international climate newsfront, but The Guardian poses the question of whether global climate goals can withstand another Trump presidency. Climate goals set out in the Paris Agreement will be even less likely to be achieved if former US President Donald Trump returns to office, the news outlet argues, and Trump’s opposition to climate action could significantly impact the US, the world’s second largest emitter of greenhouse gases and biggest oil and gas exporter. Trump is predicted to withdraw from the Paris Agreement, cancel President Joe Biden’s climate legislation under the Inflation Reduction Act, and boost oil and gas drilling. “I worry [about the potential election of Trump] because it would have very strong consequences, if we see a regression regarding climate policies in the US,” former executive secretary of the United Nations Framework Convention on Climate Change Patricia Espinosa warns.

WATCH THIS SPACE-

#1-Egypt allocates land for green energy projects: Egypt has allocated 3 sqm of land near Gargoub to the Electricity and Renewable Energy Ministry for a green hydrogen and ammonia plant, according to a statement. The Ministry also allocated a plot of land in Abu Rawash for a new waste-to-energy plant, nearly 10k square km in the New Valley governorate to establish renewable energy projects, and 46.7 square km next to the Benban solar energy site for the Ministry of Electricity and Renewable Energy.

ALSO- Egypt opens up electricity market to private sector: The board of the Egyptian Electric Utility and Consumer Protection Regulatory Agency (Egyptera) approved rules regulating bilateral agreements between private sector players in the energy production, distribution, and sales markets, including renewables, according to a statement, citing a report by Minister of Electricity and Renewable Energy Mohamed Shaker. This comes in efforts to increase private sector participation, investment, and competition in the renewables sector, Shaker said in the report. The next steps will be activating pending agreements in the private sector, with support from the European Bank for Reconstruction and Development (EBRD).

REMEMBER- EBRD has supported private sector projects in Egypt for a while: EBRD completed the review for a potential USD 75 mn equity investment into Egypt’s renewables sector in January, which included a 2.5 GW wind project near Sohag.The European bank also greenlit investments aimed at helping ACC develop its decarbonization roadmap with a focus on accelerating low-carbon cement production in Egypt in November.EBRD and its subsidiary TotalEren signed an agreement for a 300k ton green ammonia facility in Ain Sokhna alongside SME investor Enara Capital in 2022. The bank invited businesses from Tunisia, Jordan, Lebanon, Morocco, and Egypt to apply for its new Climate Change Innovation Programme earlier this month.

#2- Green Energy Oman’s giant hydrogen project will begin operations by the beginning of the next decade, according to Shell’s Energy Transition Strategy 2024 report (pdf). The Green Energy Oman (GEO) clean fuels hub — backed by a multinational consortium led by Shell including Hong Kong’s InterContinental Energy, Kuwait’s EnerTech, and OQ Alternative Energy — is one of the biggest green hydrogen projects Oman is planning. GEO will aim for a production capacity of 1.8 mn tons of green hydrogen annually, supplemented by 25 GW of renewables. Shell purchased a 35% stake in the project in January 2023.

REMEMBER- The GEO consortium secured some land for the megaproject from Hydrom in June: Oman’s state-owned hydrogen company Hydrom granted 320 sq km to the Green Energy Oman consortium in June for a hydrogen plant that is powered by 4 GW of renewable energy, and with the capacity to generate c.150k tons of the green fuel. Hydrom said in March of last year that GEO will cover an area of 337 sq km and will generate volumes at around 3.3 GW of electricity and 150k tons of green hydrogen.

IN OTHER OMAN NEWS-Oman issues bonds and sukuk regulations: Oman’s Financial Services Authority (FSA) has issued new bond and sukuk regulations, including green and sustainable bonds and sukuks, according to a statement. Under the new regulations, issuers will be obliged to adhere to specific disclosure rules for green and sustainable bonds and sukuk in efforts to further attract investments.

#3- Jordan approves amendment of renewable energy law: Jordan’s House of Representatives approved an amendment to the renewable energy and energy conservation law aimed at regulating the sale and purchase of electricity generated from businesses and residences with renewable energy stations, according to a statement (pdf). The amendment — which comes in efforts to expand investments in green projects — outlines the systems, devices, and equipment needed to install renewable plants that are exempt from customs duties and subject to a zero-rated general sales tax. The new law adopts the net billing principle, which allows power producers to sell excess energy onto the national grid. Under the amended regulation, power producers will receive a credit of JOD 40 piasters for every 40 kW added to the grid, Addustour reported, citing Energy Minister Saleh Kharabsheh.

#4- Iraq’s first WtE facility nabs 15 bids: Iraq’s first waste-to-energy (WtE) project has received 15 bids from local and international companies to design, build, own, and operate the facility, Zawya Projects reports, citing a National Investment Committee statement. The facility — located in the Nahrawan area in Iraq’s Diyala Governorate — will have the capacity to process 3k tons of waste daily, and is expected to be completed within 24 months under a public-private partnership. The plant is also expected to have a generation efficiency higher than 30% and a landfill rate less than 5%. Iraq is also planning a similar project to be revealed once the land for it is secured, the authority noted in February.

#5- Voluntary carbon credits markets, including the UAE’s Carbon Alliance, are expected to play a “pivotal role” in global decarbonization efforts and slashing carbon and greenhouse gas emissions worldwide, according to a report (pdf) published by the International Energy Forum (IEF). The report highlighted the role of the alliance as it “underscores the significance of carbon markets in achieving net-zero goals” and looks to support private and public sector decarbonization initiatives.

The IEF named the alliance along with several other national carbon markets, including Saudi Arabia’s Regional Voluntary Carbon Market Company, China’s Emission Trading System and India’s Carbon Credit Trading Scheme and Green Credit Program, which “when designed well, facilitate the transfer of capital and technologies to the most impactful emission reduction activities, achieving important co-benefits,” the report reads.

#6- BYD targets 1 mn EV sales by 2025: Chinese automaker BYD is targeting 500k in EV sales overseas in 2024 and 1 mn in 2025, Reuters reports, citing sources with knowledge of the matter. The expansion strategy comes after BYD experienced its slowest quarterly bottomline growth in two years as EV sales momentum slowed down leading to a 6.1% drop in the company’s Hong Kong shares. BYD has recently overtaken Tesla as the world’s largest EV seller.

REMEMBER- BYD is already rolling out its EVs globally: Al-Futtaim Electric Mobility Company introduced three new BYD electric vehicle models in the UAE last month. BYD also started unrolling its EVs in Indonesia in January.

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CIRCLE YOUR CALENDAR-

The UAE will host the World Future Energy Summit from Tuesday, 16 April to Thursday, 18 April in Abu Dhabi. The summit will address solutions for development in the transformation of future energy systems. The summit will also feature discussions on recycling, waste-to-energy, and air-to-water trends and progressions.

The UAE will host the Connecting Green Hydrogen MENA event from Tuesday, 23 April to Thursday, 25 April in Dubai. The event will explore green hydrogen partnerships, policies, and practices in the region, in parallel to a showcasing of the latest in the clean fuel’s technology.

Oman will host the Oman Sustainability Week from Sunday, 28 April to Thursday, 2 May in Muscat. The event will focus on exploring investment opportunities and implementing best practices in sustainability within the energy, water, and environmental sectors.

The UAE will host The Electric Vehicle Innovation Summit from Monday, 20 May to Wednesday, 22 May in Abu Dhabi. The event will see industry leaders come together to discuss sustainable mobility and tapping into groundbreaking advancements in electric vehicles while engaging with key decision-makers.

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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SOLAR

Algeria’s Sonelgaz and Cosider Canalisations break ground on a 150 MW solar project

Algerian state-owned energy company Sonelgaz and utility giant Cosider Canalisationshave begun construction on a 150 MW solar power farm in Touggourt, according to a statement. The solar facility — which is expected to be completed in 14 months — will be divided into 27 subfarms. The project is part of Algeria’s recently announced 3 GW solar initiative.

Part of larger solar plans: Sonelgaz and Cosider Canalisations inked agreements last month for the construction of three PV solar power plants totaling 520 MW, one of which is the Touggourt farm, according to a statement released at the time. The agreement includes the construction of another 250 MW solar farm in Touggourt and a 120 MW plant in Béchar. The projects will be completed in partnership with Italian solar inverter supplier Fimer within 12 to 14 months.

About Cosider Canalisations: The company is a subsidiary of Cosider Group which carries out projects in the fields of fossil fuel transport, hydraulic works, electrical energy transport and seawater desalination, according to their website. The company plans to invest heavily in renewable energy projects as it continues to achieve its strategy to capitalize on upward trends.

The first phase of Algeria’s 3 GW initiative is underway: Sonelgaz broke ground on a 200 MW solar power plant — the first phase of a recently unveiled 3 GW solar initiative — last month. The 200 MW project is located in the El M'ghair region and is expected to be completed in 14 months.

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GREEN FINANCE

Egypt will extend EGP 120 bn in financing to shore up food security

Egypt’s Finance Ministry intends to allocate EGP 120 bn to support agricultural and industrial production in a bid to shore up food security, according to a statement. The initiative — an iteration of a previous EGP 150 bn incentive package for agriculture players — will target new and renewable energy projects, freezone factories, and agricultural cooperative associations in efforts to reduce agricultural production costs, boost exports, and enable the country to meet its demand locally.

The details: The financing will be offered at an interest rate of 15%, with EGP 105 bn allocated to finance working capital, while the other EGP 15 bn will be used to fund machinery, equipment, or production lines. Under the initiative, companies will have a higher maximum withdrawal limit of EGP 100 mn for individual entities, and EGP 130 mn for associated ones, up from the previous EGP 75 mn and EGP 112.5 mn cap, respectively. Projects that secured loans under the previous program (which has a lower interest rate of 11%) will continue to be subsidized, the statement noted.

How will it work? Local banks will disburse the loans to those eligible and in return receive the difference between the 15% rate and the corridor rate from the Finance Ministry. The state’s public treasury will cover around EGP 8 bn annually in interest rate differences for beneficiaries of this initiative.

Climate change is a major hindrance for Egypt’s food supply:Climate change poses a rising threat to Egypt's food security, according to research (pdf) by Cairo University and the National Research Center which concluded that the deterioration of weather conditions will reduce food production by up to 3.8% by 2050, leading to increased hunger risks and a decline in per capita food consumption.

Impacted harvests: Climate change is expected to significantly reduce wheat yields in Egypt as a result of its impact on growing seasons, cultivation areas, and soil salinity, according to Carnegie Endowment for International Peace. This is predicted to make the country more vulnerable to international and domestic food shocks.

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FROM THE CLIMATE STORE

Oman’s Mays set to debut its EV by the end of the year

Mays to debut its EV in Oman: Oman’s electric car maker Mays is set to launch its new EV SUV, named Mays Alive, by the end of the year, according to a statement published last week. The EV was priced at OMR 15.9k — discounted from the initial OMR 19.9k — and will be available by the end of the year. The company’s production capacity is expected to accommodate up to 2,5k orders annually, according to their LinkedIn.

About Mays Alive: The EV has a range of 510 km with a 64.6 kWh battery pack that can be charged in 30 minutes reaching 100 km/h in 7.9 seconds. The car is equipped with a hyper-realistic conversational AI. “The car is called Alive because you can have a conversation with your car,” Mays co-founder Haider bin Adnan al Zaabi told Muscat Daily.

Oman is fully committed to EVs: Oman said it plans to fully decarbonize its mobility sector by 2050 last July through an ambitious three-phase plan including promoting the use of EVs. Oman’s Oil Marketing Company also partnered up with Synergy Investments for the development of electric vehicle infrastructure in the same month. Oman’s Commerce, Industry, and Investment Promotion Ministry also issued a resolution mandating the country’s petrol providers to install EV charging points at all their gas stations last November.

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ALSO ON OUR RADAR

Lots of green finance updates from the UAE and Egypt + Iraq tackles gas flaring

GREEN FINANCE-

UAE’s Aafaq Islamic Finance + NWTN partner to boost EV financing: Dubai-based green mobility company NWTN Motors and Aafaq Islamic Finance bank have inked an MoU to providing more accessible EV financing options and simplifying the purchase process in the UAE, according to a press release. The partnership will focus on creating tailored financing solutions and streamlined application processes, with both entities committed to integrating eco-conscious practices into their offerings.

Banque du Caire is incentivizing green purchases in Egypt: Egypt’s state-owned Banque du Caire has introduced new financing programs to promote sustainable technologies, including loans that can fully cover EV purchases and solar panel installations, the bank said on LinkedIn. “The personal loan for solar panels offers financing up to EGP 1 mn with a repayment period of up to seven years,” Head of Retail Banking and Microfinance Mohamed Tharwat told Daily News Egypt. “Electric car loans go up to EGP 6 mn with repayment periods of up to eight years,” he added. The loan will have an interest rate between 28-29% depending on the provision of income proof, according to the bank’s website.

IFC + DBS to dedicate portion of new facility to climate trade: The IFC and DBS Bank Limited have signed on a USD 500 mn facility to promote capital and trade flows across emerging markets in Asia, Africa, the Middle East, and Latin America, 20% of which will be allocated to climate-eligible trade transactions, according to an statement. The aim is to bolster trade flow decarbonization across emerging markets including in the trading of renewable energy equipment, energy efficient equipment, and sustainable agriculture commodities.

CARBON CAPTURE-

Iraq partners with Siemens + Schlumberger to reduce gas flaring: Iraq’s Oil Ministry signed an MoU with Siemens Energy and Schlumberger to invest in capturing gas currently being flared at Iraq’s oil fields, according to a statement. The captured gas will be used to generate electricity to support the country’s grid. Siemens also signed an MoU with the Electricity Ministry to support the country’s energy sector.

REMEMBER- Iraq is starting to show interest in carbon capture: The country has issued its first carbon, capture, usage and storage (CCUS) tenders last month, noting the projects would be funded by carbon credits generated from a natural gas field in Baghdad with a 12 mn cubic foot capacity.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • UAE Ghars Al Emarat initiative plants 850k mangroves: The UAE planting initiative Ghars Al Emarat has planted 850k mangrove trees — 10 for each person at COP28 — along Abu Dhabi’s coast. Mangroves have the ability to absorb one ton of carbon per 5000 mangroves falling in line with the Abu Dhabi five-year Climate Change Strategy and its net-zero goals. (Statement)
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AROUND THE WORLD

Oil giants are relying on CCS in Southeast Asia

CCS in Southeast Asia is big oil’s next attempt at going green: Major global oil companies are looking to Southeast Asia as the most viable destination to capture carbon emissions underground, Bloomberg reports. ExxonMobil has already claimed exclusive rights to CO2 storage sites in Malaysia and Indonesia, CEO Darren Woods told Bloomberg. Shell has inked agreements on site exploration with Malaysian state-owned oil company Petronas, while Chevron is eyeing a project in Indonesia. France’s TotalEnergies is considering the region’s storage potential as well.

And SEA countries are welcoming them with open arms: Indonesia began permitting its carbon capture and storage (CCS) operators to set aside 30% of their storage capacity for carbon from overseas last February. The new regulation also allows oil and gas companies to use depleted reservoirs or aquifers in their blocks for CCS operations. However, Japan, South Korea, Taiwan and Singapore lack the subsoil characteristics to permanently store enough CO2 underground, meaning they’ll need to export it elsewhere in the region, Bloomberg writes, citing analysts comments.

But it isn’t a perfect fix: If CCS is widely used, companies would only be able to maintain up to 20% of current oil and gas demand until 2050 without exceeding global warming targets outlined in the Paris Agreement, Bloomberg writes. A number of factors hinder CCS’s capabilities, such as its high cost and potential environmental damage to residents near the storage sites.

ALSO- ExxonMobil hit with greenwashing allegations over CCS plan: ExxonMobil subsidiary Esso has yet to make good on its plans to capture and trap carbon emissions at an oil refinery and petrochemical complex in the UK and store it under the seabed of the English Channel, the Guardian reports, citing an investigation by independent media platform openDemocracy. A lack of funding and licensing has prompted greenwashing accusations as Esso shows little progress in getting the initiative off the ground, making it unlikely that it will see the light of day, the media platform concluded.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • Japan’s Jera introduces ammonia to power generation: Jera and engineering firm IHI Corporation are introducing a 20% mix of ammonia in its coal-powered thermal plant to generate electricity for the first time. The results of tests — which will be completed in June — will determine if Japan will go through with a larger implementation of the project. The plant — scheduled for operation in 2028 — is expected to be the largest of its kind in the world with a capacity of 900k metric tons of hydrogen and over 1 mn tons of ammonia. (Statement)
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ON YOUR WAY OUT

Could underwater cleaning robots help ships become more fuel efficient?

Hong Kong-based startup Neptune Robotics says its biofoul cleaning robots can reduce fuel consumption per trip by at least 18%, Bloomberg reported last week. A thin layer of algae, seaweed, and barnacles covering half of a vessel can increase emissions by up to 30% by creating resistance in the water, according to a study (pdf). “It’s like swimming with a thick blanket,” Neptune co-founder Elizabeth Chan said.

How it works:Using AI, the robots first identify the type of biofouling on a ship’s hull and the thickness of the layer before mapping out a plan for cleaning. The cleaning process is similar to cleaning off tarnish from jewelry and involves vibrating the biofoul off the vessel’s hull using high-velocity microdrops of water. The robots cannot reach spots like the ship’s propellers.

The benefit is on several fronts: Neptune’s robots have helped the shipping industry avoid about 1 mn tons of emissions since 2020 by cleaning 700 vessels, with the cost of cleaning falling between USD 12k and USD 40k. The use of robots can also increase safety, since it eliminates the need for divers to clean hulls. Humans are still needed to launch the robots from a boat and to review the cleaning process.

The shipping industry has been in hot water: A majority of countries at the International Maritime Organization’s (IMO) two-week negotiations on climate policy were in favor of mandating a global emissions levy starting next year. The levy — which was backed by 34 countries — will help countries achieve the revised emissions targets approved last year which some experts are already doubting its feasibility. Revenues collected from the tax could be put towards developing low emissions shipping fuels and fund the energy transition of poorer states. Delegates at the IMO are expected to hold talks in the fall to further discuss the different proposals for a carbon levy.


APRIL 2024

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

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

19 April (Friday): Global Stocktaking on SDG7, New York, US.

22-24 April (Monday-Wednesday): Oman Petroleum and Energy Show, Mustac, Oman.

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

24-26 April (Wednesday-Friday): Global Education & Training Exhibition (GETEX), Dubai, UAE.

28-29 April (Sunday-Monday) Global Cooperation, Growth and Energy for Development,Riyadh, Saudi Arabia.

28 April-2 May (Sunday-Thursday) Oman Sustainability Week, Oman International Exhibition Center, Muscat.

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

MAY 2024

6-9 May (Monday-Thursday): Arabian Travel Market, Dubai, UAE.

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

14-15 May (Tuesday-Wednesday): Invest in African Energy (IAE) Forum, Paris, France.

14-16 May (Tuesday-Thursday): Airport Show, Dubai, UAE.

18-25 May (Saturday-Saturday) The World Water Forum, Bali, Indonesia.

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

20-22 May (Monday-Wednesday): Electric Vehicle Innovation Summit, Abu Dhabi, UAE.

28-30 May (Tuesday-Thursday): Make it in the Emirates Forum, Abu Dhabi, UAE.

JUNE 2024

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

11-12 June (Tuesday-Wednesday): International Conference on Financing Investment and Trade in Africa (FITA 2024), Tunis, Tunisia.

OCTOBER 2024

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

NOVEMBER 2024

4-8 November (Monday-Friday): World Urban Forum, Cairo, Egypt.

11-14 November (Monday-Thursday) Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC), Abu Dhabi, UAE.

DECEMBER 2024

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

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.

World Water Forum, Riyadh, Saudi Arabia.

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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