Get EnterpriseAM daily

Available in your choice of English or Arabic

Dubai is one step closer to offering the world’s first air taxi service

1

WHAT WE’RE TRACKING TODAY

TODAY: The Greece-Saudi interconnection project is happening + The world’s first air taxi service in Dubai

Good morning, ladies and gents. It’s a much quieter morning, but we have a pile of small updates on both existing and new projects from around the region. But first, some very alarming and sad news from the UNEP…

THE BIG CLIMATE STORY OUTSIDE THE REGION- Warning bells for migratory species: Almost half of the world’s migratory species are in decline with one in five under threat of extinction due to global warming and human encroachment, according to a landmark UNEP State of the World’s Migratory Species report. 44% of the 1.18k species covered under the UN’s Convention on the Conservation of Migratory Species of Wild Animals (CMS) — including whales, sharks, sea turtles and songbirds — have seen their populations dwindle since CMS came into force in 1979, and up to 22% could be wiped out due to habitat loss, illegal hunting, overfishing, pollution, and climate change.

REMEMBER-196 countries signed the Kunming-Montreal Global Biodiversity Framework, committing to protect 30% of the planet’s oceans and lands by 2030 in a landmark agreement back in 2022 due to global warming’s impact on at least 10.96k species.

The story got lots of ink in the international press:Reuters | BBC | The Guardian | CNN | Deutsche Welle | France 24 | Euronews | AP News | Washington Post | Bloomberg


WATCH THIS SPACE-

#1- Neom is getting a new solar project:Enowa — a subsidiary of KSA’s Neom — will receive bids from Engineering, Procurement and Contracting (EPC) companies for its 800 MW Shiqri solar project, MEED reports. The deadline for the project — located in Saudi Arabia’s Tabuk region — was slated for early February before being delayed to 3 March. At least four companies have already been invited to bid, according to unnamed sources close to the project.

#2- Bahrain floats turnkey tender for solar project in Al Dur: Bahrain’s Electricity and Water Authority (EWA) issued a turnkey tender for solar power farms with a combined target power capacity between 90-100 MW in the Southern Governorate’s Al Dur, EWA said during a board meeting. The selected developer will be tasked with the design, engineering and construction of the project as well as an accompanying transmission line to the national grid.

The criteria: EWA is targeting solar companies that have generated no less than USD 100 mn in gross revenues over the past three FYs. Interested developers have until 21 March, 2024 to purchase the tender, with plans to close submissions on 3 April, 2024. The bid will be valid for 180 days, with an 18 month contract duration from the tender’s award.

#3- Egypt launches GHG QC for exports: Egypt’s Export and Import Control Authority has set up a lab to measure carbon emissions from the biodegradation of various products in a bid to boost exports, Amwal Al Ghad reports. The lab’s launch was revealed during a symposium organized to discuss the impacts of the European Union’s Carbon Border Adjustment Mechanism and ways to mitigate the impact on Egyptian exports to the EU, particularly in the fertilizer and hydrogen sectors.

REMEMBER- The world’s first carbon border tax comes in effect in 2026: The EU launched the first phase of the world’s first carbon border tax in October, requiring importers to report emissions from products sold in Europe, or risk fines starting from 2026 with a focus on steel, cement, aluminum, electricity, fertilizers, and hydrogen.

#4- UK geotechnical firm Eden GeoPower received a grant from the US Department of Energy to conduct studies on Oman’s geologic hydrogen potential, the Oman Observer reports. The firm will study ways to increase geological hydrogen production by applying its own electric reservoir simulation techniques, with tests conducted on peridotite rock samples from Oman’s Semail Ophiolite geological formation. The amount of funding was not specified.

About Eden’s tech: Eden GeoPower has developed patented Electrical Reservoir Stimulation (ERS) technology — which has a lower carbon footprint than hydraulic fracturing — in order to speed up the naturally occurring process of geologic hydrogen — produced when water interacts with iron-rich rocks like peridotite, Oman Observer writes. The company’s aim is to increase the output of geological hydrogen to levels suitable for commercial use, up from the current 2 to 4 kg of hydrogen per cubic meter of rock produced through drilling.

REMEMBER- Oman’s Energy and Minerals Ministry signed two MoUs with Eden GeoPower and Earth Sciences Consultancy Centre to facilitate scientific discussions on conducting preliminary studies on exploring geological white hydrogen and identifying sites for conducting experimental research in September 2023.

DANGER ZONE-

There have been over 1.25k huge methane leaks from landfills globally between January 2019 and June 2023, new satellite analysis by The Guardian in partnership with Kayrros reveals. Pakistan, India and Bangladesh lead the list of methane emitters, and were followed by Spain and Argentina where waste management systems were expected to avert leaks. Methane is the second most abundant anthropogenic greenhouse gas after CO2, and contributes a third of global heating driving the climate crisis. 150 nations have signed up for the Global Methane Pledge — first proposed in 2021 to push down methane volumes by at least 30% by 2030.

***

YOU’RE READING ENTERPRISE CLIMATE, the essential MENA publication for senior execs who care about the world’s most important industry. We’re out Monday through Thursday by 9am Cairo / 10am Riyadh / 11am UAE.

EXPLORE MORE OF ENTERPRISE ON THE WEB —tap or click here to read EnterpriseAM, EnterprisePM, Enterprise Climate, Enterprise Logistics, and The Weekend Edition on our powerful new website packed with reader-friendly features.

Were you forwarded this email? Get your own subscription without charge here or reach out to us on climate@enterprisemea.com with comments, suggestions and story tips.
***

CIRCLE YOUR CALENDAR-

Egypt will host the Egypt Energy Show from Monday, 19 February to Wednesday, 21 February in Cairo. The event will gather 35k energy industry professionals and host over 80 conferences on energy transition and sustainable production.

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.

Saudi Arabia will host the International Conference on Sand and Dust Storms in theArabian Peninsula from Monday, 4 March to Wednesday, 6 March in Riyadh. The conference will address regional challenges caused by sand and dust storms and discuss monitoring systems, mitigation strategies, economic and infrastructural impacts, and more.

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

3

RENEWABLES

A step forward for Greece-Saudi interconnection project

Project update:Greece + KSA launch interconnection project company: Saudi Arabia’s National Grid and Greece’s Independent Power Transmission Operator (IPTO) have set up a 50-50 joint venture by way of a special purpose vehicle dubbed Saudi Greek Interconnection to connect KSA to the European continent, according to a statement. The JV will conduct a feasibility study on connecting the two countries’ electricity grids and enabling the exchange of renewable energy.

We knew this was coming: The two companies said in October they were forming a 50/50 joint venture to link their power grids to deliver greener, more affordable energy to Europe. The news followed an agreement between the governments of Greece, Cyprus, and Israel to establish a subsea electricity transmission cable linking their respective national grids to increase energy cooperation.

Part of EU’s bigger import plans: The EU has identified MENA countries as suitable partners to help them diversify their energy mix away from Russian imports due to the country’s high potential for solar and hydrogen energy production, as well as their geographical proximity, according to a plan proposal (pdf) published by EU Commission in 2022. The proposal identified Algeria, Qatar, Saudi-Arabia, the Emirates, and Iraq as the most capable in the short run, German think tank Bertelsmann Stiftung.

And the bloc isn’t wasting any time: Egypt is also in talks with Greece for the planned 3 GW Egypt-Greece Interconnector which would see Egypt export its renewables surplus to mainland Greece, and is finishing up the first phase of its interconnection project with Saudi as it plans to export renewable energy. Saudi Arabia is also establishing its own 1 GW electrical interconnection project with Iraq, and Morocco is looking to lay a 3.8k km HVDC subsea cable to eventually transport 3.6 GW of renewable energy to the UK. Tunisia is also working on a planned electrical interconnection project with Italy.

4

SOLAR

Kuwait’s Shagaya solar farm’s feasibility study is complete

China wants a piece of Kuwait’s planned Shagaya solar expansion: Kuwait’s government has wrapped two weeks of discussions with an undisclosed Chinese state-owned firm for the development of a planned solar energy farm at the Al Shagaya Renewable Energy Park, Kuwaiti daily Al-Seyassah reported on Friday. Both sides also discussed the regulatory framework for establishing renewables companies under the new Kuwait Direct Investment Promotion Authority law. The financials, launch date, and power output of the project were not disclosed.

This has been in the works: The meetings follow a previous bilateral MoU signed last September for the project during a state visit by Kuwaiti Crown Prince Mishal Al Ahmad Al Sabah, Al-Seyassah writes.

Kuwait has been planning a solar expansion for a while: Kuwait is committing to sourcing 15% (or 14 GW) of its power from renewables by 2030, including from planned increases to Shagaya’s power capacity from 70 MW to 4 GW to replace eight oil and gas-fired power stations. The park currently includes a 50 MW thermal solar plant, a 10 MW wind farm, a 10 MW PV plant, and 132 kV overhead transmission line connected to the national grid. The expansion project is not expected to kick off operations before 2027.

5

GREEN MOBILITY

Dubai is one step closer to offering the world’s first air taxi service

Dubai to launch air taxi service in 2026: The Roads and Transport Authority (RTA), the General Civil Aviation Authority (GCAA), Dubai Civil Aviation Authority (DCAA), and the UK’s SkyportsInfrastructure signed an agreement to establish transport infrastructure to deploy electric air taxis in Dubai by 2026, Wam reports. The move makes Dubai the first city to launch a commercial electric aerial taxi service.

Who’s doing what: California-based eVTOL manufacturer JobyAviation will provide ridesharing services, Skyport will design, construct and operate a network of vertiports, and RTA be responsible for the air mobility services.

About the service: The aerial taxi service will use the Joby Aviation S4 — a four-seater aircraft that can fly up to 321 km per hour, with a range of 161 km. The service will initially operate at four locations; near Dubai International Airport, Downtown, Dubai Marina, and Palm Jumeirah. The vertiports will feature take-off and landing zones, dedicated spaces for passengers and security checks, electric charging stations, and integration with public transport systems.

Joby is already in UAE: Joby Aviation joined Abu Dhabi’s Smart and Autonomous Vehicle Industry (SAVI) cluster in October. The cluster aims to establish a smart and autonomous vehicle development hub in Masdar city.

Big clean aviation plans: The Abu Dhabi Investment Office signed an agreement with US-based, Mubadala-Capital-backed net-zero aircraft maker Archer Aviation last month to explore the possibility of establishing an air taxi network in the Emirates by 2026. The firm also signed agreements with French company Ascendance and Italy’s Manta Aircraft to join SAVI.

6

EARNINGS WATCH

UAE’s Empower hits record high revenue in 2023

UAE’s district cooling company Emirates Central Cooling Corporation (Empower) saw its revenue jump 8.7% y-o-y in 2023 to its highest ever at AED 3.04 bn, according to an earnings release. The company’s net profit fell 4% y-o-y to AED 960 mn last year, according to its financials (pdf).

What’s behind the numbers? Empower saw its portfolio grow last year, as it provided services to over 1.5k buildings in Dubai across various industries, according to the statement. The company also opened a new 47k refrigeration ton district cooling plant in the DubailandResidence complex, and started upgrading its Jumeirah Beach Residence plant with an AED 102 mn investment. Empower awarded contracts for next-gen cooling plants in 2023, expanding to provide a total cooling capacity of 48k tons.

Major partnerships in 2023: Empower finalized Master Development Agreements with some of Dubai’s biggest real estate developers, including Dubai Maritime City, to provide cooling services for 43 of its buildings with a total capacity of over 63k tons. The company also inked agreements with Sobha Properties, the Anwa residential tower, and the Dubai International Airport.

What they said: “Empower moves forward with a clear vision and effective expansion strategies that align with the vision of wise leadership for transitioning towards sustainability,” said Bin Shafar, the CEO of Empower, adding that the company also “aims to contribute more to cost reduction and improved energy efficiency” using their in-house tech.

7

MOVES

France has a new envoy for the India-Middle East-Europe Economic Corridor

France has appointed former CEO of Engie Gérard Mestrallet as the country’s special envoy for the India-Middle East-Europe Economic Corridor, Reuters reports. Mestrallet served as Engie’s chairman of the board of directors and chief from 2008 to 2016 and was later commissioned by France’s Ecology, Sustainable Development Ministry to chair a three-person advisory committee reviewing the EU’s carbon pricing market.

Refresher on the corridor:The corridor will facilitate trade of green fuels and renewable energy to and from the GCC with an east corridor connecting India to the GCC and a northern corridor linking the Gulf with Europe. The MoU for the interconnection project was inked on the sidelines of the G20 meeting in September by signatories including Saudi Arabia, the UAE, the EU, India, and the US, Reuters writes. KSA and the US signed an MoU to develop a protocol for the establishment of the project’s railway and subsea pipeline infrastructure as part of the latter’s plan to counter China’s Belt and Road project, the newswire adds.

8

ALSO ON OUR RADAR

Algeria’s Sonatrach and Norway’s Equinor team up on carbon capture

CARBON CAPTURE-

Algeria’s Sonatrach and Norway’s Equinor partner on CCUS: Algeria’s state-owned oil firm Sonatrach has signed an MoU with Norwegian energy company Equinor to study the feasibility of establishing carbon capture, usage, and storage (CCUS) projects across their joint gas drilling projects in In Salah and In Amenas, according to a statement. Together with Italy’s Eni, the companies are developing two of the largest gas fields in the country.

REMEMBER- Sonatrach is ramping up CCUS efforts: Sonatrach signed an agreement with Eni in January last year to identify prospects for greenhouse gas and methane emission reduction, as well as initiatives in fields spanning CCUS, energy efficiency, renewable energy, and green hydrogen.

FOOD SECURITY-

FAO-led projects get USD 2.9 bn boost from GEF: The Global Environment Facility (GEF) approved 48 projects led by the Food and Agriculture Organization (FAO) with an estimated value of USD 2.9 bn to enhance sustainable agrifood systems in 46 countries including Tunisia and Turkey, according to a statement. The initiatives, which should benefit 4.2 mn people, are set to enhance practices on more than 24 mn hectares of terrestrial and marine ecosystems, establish and upgrade the administration of over 2 mn hectares of protected areas on land and in the ocean, restore over 474k hectares of land, reduce 133 mn metric tons of emissions, and eliminate 202 metric tons of harmful agrochemicals

Abu Dhabi’s Masdar City launched a new indoor vertical farm in collaboration with Singaporean agritech firm Alesca Life, The National reports. The project plans to use automated monitoring systems and machine learning to grow 7.8k kg of leafy greens, lettuce and herbs annually inside two repurposed shipping containers. The farm will require 90-95% less water than conventional farms.

RENEWABLES-

SPPC announces bidders for 3.7 GW projects: The Saudi Power Procurement Company (SPPC) has revealed a list of 23 qualified bidders for 3.7 GW worth of renewable energy projects, SPA reported last week. The projects will comprise the 2 GW Al Sadawi IPP, the 1 GW Al Masa’a IPP, the 400 MW Al Henakiyah 2 IPP in Al Madinah, and the 300 MW Al Rabigh 2 IPP in Makkah. The regional and international qualified bidders include Masdar, EDF Renewables, Jinko Power, and Samsung.

We knew this was coming: SPPC issued requests for qualifications for the projects in November. This came a week after the company signed two 25-year power purchase agreements (PPAs) for the fourth round of solar projects under the country’s NREP.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • Acwa Power + King Fahd University partner on renewables: Acwa Power signed an agreement with King Fahd University to collaborate on tech research and development in critical sectors including renewable energy, battery storage, green hydrogen production, and water desalination. (Statement)
  • Egypt licensed 579 EVs in January: Egypt had 579 EVs insured and licensed in January 2024, mainly from Volkswagen, Mercedes, BMW, and Tesla. (AlBawabah)
9

AROUND THE WORLD

Indonesia and China expected to cut nickel output by at least 100k tons this year

Indonesia and China to scale back nickel output to control prices: Indonesia and China — who produce 70% of the world’s nickel — are expected to collectively cut extraction by at least 100k tons in 2024 to boost prices and alleviate oversupply of the critical metal amid a continued drop in demand, Reuters reports, citing analysts from Macquarie. The move aims to rally nickel prices, which have dropped to USD 16k/ton from the 2022 peak of USD 100k/ton. The 2022 record was driven by reduced output projections from major producer Russia due its war with Ukraine and the economic fallout of the invasion has seen several Western mining firms put on ice nickel expansions as the market remains oversaturated, the newswire writes.

Drastic cuts needed to level the global market: Indonesia contributed half of global mined supplies last year at 3.4 mn metric tons, some 30% of its output in 2020. However, some 250k tons of cuts from the global supply are needed this year to balance the nickel market, Reuters quotes Benchmark Mineral Intelligence as noting. Some 230k tons of cuts have been made so far, representing 6% of potential supply in 2024.

10

CLIMATE IN THE NEWS

Green tech startup Twelve kicks off operations on CO2 transformation unit

US green tech company Twelve has launched a commercial-scale carbon transformation unit to convert captured CO2 into products including sustainable aviation fuel (SAF), Bloomberg reported last week. The company plans to supply SAFs to airlines including Alaska Air Group, while generating carbon credits for customers including Microsoft and Shopify to help mitigate their business travel-related emissions.

Where does Twelve come in? Twelve leverages a PEM-based CO2 electrolyzer named Opus — about the size of a shipping container — to repurpose carbon dioxide and water via renewables-powered electrolysis into oxygen and synthetic gas. The company will combine hydropower and use CO2 captured from a nearby ethanol plant to turn CO2 and water into synthetic gas — the basis of SAF — at its planned SAF plant in Washington, with plans to later mix it with traditional jet fuel in order to meet the current 50/50 SAF blend requirements.

We’ve heard about this before: Honeywell International started using new technology to manufacture lower-carbon aviation fuel from green hydrogen and CO2 captured from industrial smokestacks last May. Honeywell said the new tech could help slash greenhouse gas emissions by 88% in comparison with conventional jet fuel at the time.

REMEMBER- This is perfect timing for this kind of tech: In a bid to decarbonize the industry,the EU agreed last year to set binding targets for the European aviation industry to boost its use of SAF. The proposal aims to increase the use of SAF by ensuring fuel suppliers have 2% of the fuel accessible at EU airports as SAF in 2025, rising to 6% in 2030, 20% in 2035 and 70% in 2050. The EU carbon market is set to provide about EUR 2 bn to help airlines switch to SAF. Some 1.2% of fuels must also be synthetic fuels from 2030, rising to 35% in 2050.

11

ON YOUR WAY OUT

Researchers develop AI for locating where to store hydrogen

New algorithm spells more efficient underground hydrogen storage: A team of researchers from Khalifa University (KU), King Fahd University of Petroleum and Minerals, and University Teknologi Petronas have developed an algorithm that can predict where and how much hydrogen can be stored underground, according to a statement. The researchers aimed to address the challenge of finding space to store hydrogen as demand for the green fuel grows. A potential solution is underground storage in sedimentary formations, such as shale gas reservoirs. The sedimentary rock has a high adsorption rate and is safe for hydrogen storage, but estimating the amount of hydrogen that can be adsorbed in shale is a complex and time-consuming task.

What they did: The researchers used gradient boosting regression, a machine learning technique, to create a data-driven model that can predict hydrogen adsorption in kerogen — the organic material in shale — based on various parameters like pressure, temperature, and kerogen density. Compared to other machine learning methods, the model proved to be accurate and fast for different types of shale paving the way for quicker identification of the best locations and conditions for storing hydrogen in formations.


FEBRUARY 2024

13-15 February (Tuesday-Thursday): Iran’sNational Symposium on Tourism and Green Investment, Tehran International Permanent Fairground.

19-21 February (Monday-Wednesday): Egypt Energy Show (EGYPES), Cairo, Egypt.

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

26-28 February (Monday-Wednesday): Oman Conference for Environmental Sustainability, Muscat, Oman.

27-27 February (Tuesday-Wednesday): Climate Business Forum: Asia Pacific, Hong Kong, China.

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.

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

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

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

28-2 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

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

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

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

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.

OCTOBER 2024

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

NOVEMBER 2024

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, 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.

Now Playing
Now Playing
00:00
00:00