China’s CET eyes 10 GW solar project in Egypt

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WHAT WE’RE TRACKING TODAY

TODAY: Deme’s USD 3.1 bn green hydrogen project in Egypt gets cabinet nod

Good morning, wonderful people. We hope you had a relaxing long weekend and rang-in the New Year in a way that made you happy.

This morning’s issue is Egypt-heavy, with news out of the Gulf Cooperation Council and the rest of North Africa having taken something of a breather since Christmas Day. Among the big stories are a potential investments worth that could be worth more than USD 13 bn in both green hydrogen and renewable energy.

^^ We have the rundown below and in this morning’s news well.

WATCH THIS SPACE #1- Egypt's cabinet greenlit DEME’s USD 3.1 bn project to produce green hydrogen and its derivatives, including green ammonia, in the Gargoub Special Economic Zone (GSEZ) located in Matrouh Governorate, according to a statement on Wednesday. The project — which represents only the first of three phases — will be fully financed and established by Belgian renewable energy company D EME Group, in partnership with the Egypt’s Transport Ministry, the New and Renewable Energy Authority, and the Alexandria Port Authority.

Deme has been eying Egypt’s hydrogen sector for years: Last year, a consortium that includes DEME presented a feasibility study on a 500 MW green hydrogen plant on Egypt’s north coast. In 2021, the Belgian company said it will work with Egypt on exploring green hydrogen under an MoU with the oil and electricity ministries and the Egyptian Navy.

Egypt has big plans for Gargoub: Egypt’s transport ministry has inked an MoU with South Korean trading company STX Corporation in November at GSEZ last month. The agreement aims to upgrade Gargoub’s port and establish an industrial logistics zone in the area.

WATCH THIS SPACE #2- Russian state-owned nuclear company Rosatom opened an office in Cairo on Saturday, according to a press release.

REMEMBER- Rosatom is developing Egypt’s giant Dabaa plant:The Egyptian Nuclear and Radiological Regulatory Authority (ENRRA) granted permission for the construction of the fourth and final 1.2 GW reactor at 4.8 GW Dabaa nuclear power plant in September. Egypt and Rosatom began construction on the USD 30 bn plant in July 2022, kicking off an eight-year construction timeline that will see it come online at the beginning of the next decade.

ALSO- Speaking of the Dabaa plant: Remaining parts needed for the Dabaa plant’s reactor core catcher — a device used to catch the molten core material of a nuclear reactor — have just arrived at the plant’s specialized port, according to a statement by Egypt’sNuclear Power Plants Authority.

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THE BIG CLIMATE STORY OUTSIDE THE REGION- Extinction Rebellion blocks Amsterdam highway in protest of continued fossil fuel funding: 300 climate activists — including dozens from UK-founded environmental movement Extinction Rebellion — were held by Dutch police on Saturday for blocking Amsterdam’s A10 highway in a protest against banking group ING’s continued financing for fossil fuel projects. The demonstrators called for an immediate cessation of the bank’s Big Oil investments, calls which ING said are “radical and unrealistic.” Amsterdam police freed most of the activists it held later on Saturday.

The protest came after ING released an updated climate strategy to stop financing oil and gas exploration and production by 2040 and committed to tripling its lending for renewable energy projects over the next two years. Climate activists claim the pace is too slow to maintain global climate targets.

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

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 smart grid and renewable energy resources and related technologies. Look for discussion of 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 focus on resource-rich regions of Africa, Western Asia, and Central Asia and will include a ministerial roundtable with over 60 countries being represented. A parallel exhibition will have some 150 exhibitors and industry sponsors on site.

The UAE will host the Management and Sustainability of Water Resources Conference from Monday, 26 February to Wednesday 28 February in Dubai. Water availability in arid and semiarid regions, global water issues, and future water and environmental challenges are all on the agenda.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

China’s CET is planning a USD 10 bn, 10 GW solar project in Egypt

China’s CET to develop a 10 GW solar project in Egypt: China Electric Power Equipment and Technology (CET) signed an MoU with the Egyptian government on Wednesday to begin studies to develop a 10 GW solar project in Egypt, according to a cabinet statement published on Wednesday. The solar farm is expected to cost some USD 10 bn, Al Mal reports, citing a source from Egypt’s New and Renewable Energy Authority it says has knowledge of the matter. The timeline for the project was not disclosed.

What we know so far: CET expects to complete the 10 GW solar plant in multiple phases over five years under a build, own, operate agreement. The Egyptian Electricity Transmission Company will buy the farm’s output USD 0.2 per KWh under an offtake agreement, according to Al Mal. The utility-scale solar farm — expected to be established in Upper Egypt — will span 160 sqkm, and once completed, will offset 14 mn tons of carbon emissions annually, saving some USD 1 bn of gas-powered energy costs per year.

REMEMBER- Chinese companies are ramping up green investments in Egypt: In October,Egypt’s Suez Canal Economic Zone (SCZone) has inked agreements worth a combined USD 14.75 bn for two clean energy projects with China Energy and China’s United Energy. China Energy signed a framework agreement for a planned green hydrogen plant in the SCZone and United Energy is planning a renewables-powered potassium chloride production facility.

Germany’s development bank KfW + the European Investment Bank are extending more green loans to Egypt

KfW Development Bank inks 2 agreements with Egypt: Germany's KfW Development Bank has signed two development financing agreements totalling EUR 76 mn with Egypt's International Cooperation Ministry to be allocated to renewable energy and smart grid projects, according to a statement on Monday.

First, smart grids: The first agreement, which will cost EUR 53 mn, comprises development financing and a grant for the smart grid development project, with an aim to add 450 MW to the capacity of the Abis transformer station. This follows Germany's agreement with Egypt to provide EUR 258 mn in green finance for the Nexus for Water, Food and Energy (NWFE) climate adaptation program, the statement adds.

Then, onto renewables: The second agreement, worth EUR 23 mn, comprises EUR 8 mn in funding for the energy efficiency project that aims to facilitate investments in energy efficiency, and EUR 15 mn in funding to rehabilitate hydroelectric stations at the High Dam power station.

REMEMBER- KfW 💚 Egypt: Egypt and KfW signed a EUR 54 mn debt swap agreement in June as part of the program. KfW Development Bank is among the consortium funding Vesta's 250 MW wind farm in Egypt’s Gulf of Suez.

ALSO- Egypt gets EUR 165 mn from EIB: The European Investment Bank (EIB) is loaning Egypt EUR 135 mn and providing an EUR 30 mn grant for the sustainable green industry project, according to a statement on Monday. The funds will be allocated to public and private companies operating in eliminating industrial pollution, decarbonizing the industrial sector by using renewables, and developing sustainable industrial practices.

EIB has a solid portfolio in Egypt: The lender inaugurated a new regional hub in Cairo to further its investment — including green investments — in the MENA region last month. EIB is also looking to fund Scatec’s green hydrogen projects in Egypt.

Masdar connects 1.4 GW to Uzbekistan’s grid, looks to expand there and in Georgia

Project update:Masdar connects 1.4 GW of its renewables projects in Uzbekistan to the grid: UAE renewables developer Masdar completed the connection of four of its solar and wind power farms totalling 1.4 GW to Uzbekistan’s electricity grid on Thursday, Wam reports. The grid connection ceremony was attended by Uzbekistan’s President Shavkat Mirziyoyev, Masdar CEO Mohamed Jameel Al Ramahi, and the UAE’s Ambassador to the Central Asian country Saeed AlQemzi.

The details: Masdar will deliver the clean power to Uzbekistan’s power grid from its 500 MW Zarafshan wind farm and from three solar projects in the Jizzakh, Samarkand, and Sherabad regions of the country with a combined capacity of 900 MW.

ALSO- Masdar signed more green agreements with the Central Asian country: On the sidelines of the grid connection ceremony,the UAE renewables giant signed an implementation agreement with Uzbekistan’s Ministry of Energy and its Ministry of Investments, Industry and Trade, to develop an additional 2 GW of wind energy projects, as well as expand its storage capacity to 1.15 GWh — up from the previous 500 MWh plan set in May, Wam reports. The storage projects will be spread across five existing Masdar projects in the country. The new agreement brings Masdar’s total Uzbekistan investments to approximately USD 4 bn.

All in line with Uzbekistan’s green energy targets: The Uzbekistan government’s long-term strategy to diversify its energy mix targets 8 GW of solar and 12 GW of wind capacity by 2026 and 2030, respectively. The country is developing solar and wind power plants with a capacity of 5.5 GW.

REMEMBER- Masdar has been making moves in the country: The UAE firm actively contributed to Uzbekistan’s first 100 MW IPP solar project Nur Navoi (pdf), which has been in operation since 2021. The company was also awarded the 250 MW Bukhara Solar PV project last April, and was awarded the tender for the 300 MW Guzar Solar PV project which boasts a 75 MWh storage capacity, Wam notes.

N OTHER MASDAR NEWS- The company is eying expansion in Georgia: Masdar signed a preliminary agreement with the Georgian Energy Development Fund to establish a joint venture company aimed at developing the country’s largest solar power plant, according to a separate statement. If finalized, the 100 MW project would mark the UAE company’s first utility scale project in Georgia. Masdar is currently in talks with Georgia’s government on the solar farm, and is expected to ink an MoU to launch the venture’s feasibility studies “in the near future”, the company said without providing a specific timeline, Solar Quarter notes.

KSA + Tunisia team up on agritech and water security

KSA + Tunisia partner on agritech + water security: Saudi Arabia’s government signed seven MoUs with its Tunisian counterpart aimed at strengthening knowledge transfer and cooperation in the agricultural research, water security, environmental protection, and meteorology fronts during a high level meeting in Tunis, the Saudi Press Agency reported on Thursday. The meetings were attended by the kingdom’s ministers of industry and mineral resources, finance, and economy and planning.

And there’s more cooperation to come: Tunisia expects to bring “major joint investment projects” to the table by 1H 2024 in a bid to attract Saudi developers to its water, agri-foods, and environmental protection industries, TAP reports, citing comments made by Tunisia's representative for the Tunisian-Saudi Business Council Mohamed Kooli on Wednesday.

REMEMBER- Climate-induced drought is taking a toll on Tunisia’s agri sector and economy: Months of drought and intense heat waves in Tunisia over the last years led the North African country to call for the establishment of a joint program to alleviate the impact of climate change on economic development. The World Bank forecasts 71% of climate-related GDP losses in Tunisia by 2050 will be attributable to water shortages, noting inaction to shore up water supplies and step up its flooding and coastal protections could drop the country’s GDP up to 3.4 % — translating to USD 1.8 bn annually — by 2030.

Lots of work in KSA. Plus: Money for Morocco, energy storage and EVs in Oman

CONTRACTS IN KSA-

#1- India’s L&T Construction lands EPC contract for KSA’s Amaala project: Indian multinational Larsen & Toubro’s (L&T) construction arm has been chosen as the engineering, procurement, and construction contractor to develop renewable energy generation, power utilities, and water systems for the Amaala project in Saudi Arabia’s Red Sea region, according to a press release.

About Amaala:Red Sea Global (RSG) — a global multi-project developer fully owned by Saudi Arabia’s sovereign wealth fund — announced in September that it had entered into a 25-year concession agreement with French power giant EDF and the UAE’s state-owned renewables player Masdar on a multi-utility infrastructure facility to service its ultra-luxury resort destination Amaala on the country’s northwestern coast. Amaala will be fully powered by solar energy saving c. 500k tons of CO2 emissions per year.

#2- Solar tracking system provider Arctech lands 1.7 GW order in Saudi:China’s Arctech has been tapped to provide a 1.7 GW SkyLine II solar tracking solution for L&T Construction’s 1.3 GW Ar Rass 2 and 408 MW Al Kahfah project in Saudi Arabia. Arctech supplied multiple other solar projects with trackers in Saudi Arabia, including 1.5 GW for ASB, and around 2 GW for Al Shuaibah 2. (Statement)

MONEY FOR MOROCCO-

#1- EIB loans Morocco EUR 100 mn: The European Investment Bank (EIB) and the Moroccan Economy and Finance Ministry signed a EUR 100 mn financing agreement to support the sustainable development of forests in Morocco, according to a statement on Thursday. The initiative will be implemented by the National Agency for Water and Forests from 2024 to 2028 and aims to manage natural resources to boost eco-tourism and value chains.

REMEMBER- EIB issued nature-positive finance principles at COP: The EIB and other multilateral development banks issued common principles aimed at identifying and tracking investments earmarked for the protection, restoration, and sustainable use of natural resources during COP28 earlier this month.

#2- KfW to fund sustainable development in Morocco: The German Development Bank (KfW) has inked three loan agreements totaling EUR 250 mn and two grant agreements worth EUR 7 mn with Morocco to fund projects related to social protection, green mobility, and improving irrigation efficiency. (Africa News)

ENERGY STORAGE-

Nafath + Forming Future partner on energy storage: Oman's Nafath Renewable Energy Company has signed an agreement with Saudi Arabia's Forming Future to develop a solar thermal energy and storage project, according to a company statement published on Sunday. The project aims to use stored solar thermal energy to produce electricity for more than 15 hours. The company also signed an agreement with AlCrai Contracting company to develop solar energy projects in the kingdom.

Oman is seeing more solar and storage action: Omani state-owned oil company Petroleum Development Oman is looking to establish a 100 MW solar energy plant with plans to have it complemented by the country’s first battery energy storage system.

EVs IN OMAN-

Oman is speeding up EV roll out: Oman has updated its plan for rolling out EVs, to have 22k electric vehicles on the road 10 years sooner than initially set out. The previously announced target was to have 22k Evs on the road by 2040, instead of the new target of 2030. (Oman Observer)

COASTAL RESTORATION-

Abu Dhabi ramps up coastal and desert ecosystem restoration: The Environment Agency Abu Dhabi (EAD) and the Abu Dhabi Developmental Holding Company (ADQ) have partnered with green tech company Dendra to assess and restore terrestrial and coastal ecosystems across the emirate using advanced seeding drones and AI technology. The initiative aims to protect local species’ habitats and restore ecological balance. (Statement)

CALENDAR

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.

8-9 January (Monday-Tuesday): Sustainability Forum Middle East,Manama, Bahrain.

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

20-24 January (Saturday- Wednesday): ASHRAE Winter Conference, Illinois, USA.

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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