Dubai Islamic Bank lands a blockbuster maiden green sukuk issue

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WHAT WE’RE TRACKING TODAY

TODAY: Dubai Islamic Bank’s maiden green sukuk issue is nearly 2x oversubscribed + UAE passes a law to regulate renewable energy distribution + A low low-cost tech for zero-emissions hydrogen production?

Good morning, ladies and gents. If you’re still in disbelief at Saudi Arabia’s spectacular 2-1 victory over Lionel Messi’s Argentina, you’re not the only one. The most underdog W in World Cup history was the cherry on top of a great showing by MENA countries, with a shout out Tunisia for giving Denmark a run for their money.

So: Happy victory day, friends in KSA — enjoy the day off: Saudi Arabia has declared a national h oliday today for schools and the public and private sectors to celebrate.

We also wish Morocco — the last MENA country to play its first game — all the best today in its match with Croatia, which takes place at 10am UAE time.

THE BIG CLIMATE STORY- It’s another good day for regional green bond issuances: Dubai Islamic Bank (DIB) tapped debt markets yesterday with a USD 750 mn maiden sustainable sukuk sale that was almost 2x oversubscribed. Reports had emerged earlier in the week that DIB would kickstart a roadshow on Monday, a month after the bank issued its green financing framework. The issue sees the trend of GCC institutions selling green debt continue unabated despite EM bonds continuing to take a beating.

ALSO- One hydrogen to rule them all? The rainbow of hydrogen got a little bigger with UK-based start-up HiiROC claiming it has developed a process that can produce hydrogen cheaper and cleaner than all the other colors together.

^^ We have chapter and verse on these stories and more in the news well, below.

The Enterprise Climate X Forum is fast approaching, and we’re incredibly excited to meet with some of you in Cairo at the Grand Egyptian Museum on Tuesday, 6 December 2022. We get underway with a networking breakfast at 8am CLT.

What’s on the table? CEOs, execs, bankers and development finance folks will mull over a variety of topics, including:

What’s this green hydrogen mumbo-jumbo you speak of?
How are leaders building green businesses — from scratch, or as retrofits to decades-old family enterprises?
How do we pay for it all?
What do you really think of the green economy?

With that in mind, we’ll be dropping little notices in stories and topics we intend to explore more of at the forum. Study up if you’re coming.

Some of the biggest names in business and finance are on board — are you? If you’re a C-suite exec, business owner, climate professional, DFI staff, investor or banker, please email us at climatexrsvp@enterprisemea.com to signal your interest, letting us know your name, title and where you work. You can learn more on our conference website here.

YOU MUST REGISTER TO ATTEND by clicking the link on your registration email. Attendance is by invitation only. You’ll need a special QR code to gain access to the GEM on event day. Didn’t receive your registration email? Check your spam folder and then email climatexrsvp@enterprisemea.com if it’s still not there.

WATCH THIS SPACE #1- Russia is eyeing more nuclear on the continent: Russian nuclear giant Rosatom is reportedly in talks with several African countries and has concluded first agreements for future projects, according to statements picked up by India’s DaijiWorld. The company expects to see demand from several “newcomer countries” over the next two or three decades, the statements cite Rosatom director general Alexey Likhachev as saying. Rosatom is already building multi-bn USD nuclear plants in several countries in Asia and the Middle East, including Egypt and Turkey..

WATCH THIS SPACE #2- Iraq wants to invest in solar plants across all its governorates as part of a wider plan to diversify its energy sources and become a key energy player, Iraq’s electricity ministry spokesperson Ahmed Moussa told the Iraqi News Agency. He did not give further details on timeline, mechanism or the type of program the government has in mind.

WATCH THIS SPACE #3- More funds for Egypt’s NWFE: The China-backed Asian Infrastructure Investment Bank has signed a partnership agreement with Egypt for the implementation of the energy pillar in the country’s Nexus on Water, Food and Energy (NWFE), the bank said in a statement. There is no disclosure on the nature of or an exact figure for the funds. The NWFE initiative — which is expected to unlock over USD 15 bn in private sector finance for renewable energy plans and investments — has already secured nearly USD 10 bn in funding pledges.

THE BIG CLIMATE STORY OUTSIDE THE REGION- The great debate continues: Climate activists are concerned over the influence of oil producers in climate talks as the UAE — one of the world’s biggest oil producers — gears up to take the COP baton next year, the Guardian reports. Fossil fuel producers were criticized by many during COP27 to have “stonewalled” talks and pushed for the removal of a fossil fuel phaseout declaration in the final text. Saudi Arabia in particular has been the subject of several long features, giving a critical look at the kingdom’s “strategy” to continue producing and investing in oil while investing in a massive renewables push at home to export more of the oil abroad. (Financial Times | Bloomberg | New York Times)

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HAPPENING TODAY-

Saudi Arabia’s Education Ministry will host its Global Conference on SustainablePartnerships today and tomorrow in Riyadh, bringing together ministers and senior officials from the private and public sectors.

CIRCLE YOUR CALENDAR-

Oman will host a green hydrogen summit on Monday, 5 December to 7 December at Oman’s Convention and Exhibition Center in Muscat. The summit will discuss all aspects of the hydrogen value chain including production, transportation, and storage challenges.

UAE will host the Big 5 global construction impact summit on Wednesday, 7 December at the Dubai World Trade Centre, bringing more than 2k exhibitors from 60 countries, as well as regional and global construction industry leaders together to discuss ways to meet local and global net zero and waste reduction targets.

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

Dubai Islamic Bank’s maiden green sukuk issue was nearly 2x oversubscribed

Dubai Islamic Bank (DIB) sold USD 750 mn of its maiden sustainable Shariah-compliant bonds (sukuk), Reuters reported yesterday, citing a bank document. The five-year notes were sold at 155 basis points (bps) over five-year US treasuries, tightened from initial guidance on the back of high demand. DIB is the first Islamic bank in the UAE to issue sustainable sukuk bonds.

The issuance was a little over 2x oversubscribed, drawing more than USD 1.6 bn in orders from would-be investors, according to the document cited by Reuters. The bonds had initially been priced at around 175 bps over five-year US treasuries.

Where’s the money going? The funds will be used to fund projects pertaining to renewable energy, energy efficiency, sustainable transport, green buildings and wastewater management, the bank said last month when it set up the green financing framework ahead of the issuance.

Green bond issuances in the GCC (particularly for banks) have been on a roll recently: The GCC has been a hotbed of successful green bond issuances this year, with Abu Dhabi Commercial Bank (ADCB) raised USD 500 mn in a green bond sale in September — an issuance that was almost 4x oversubscribed, demonstrating strong investor demand in regional sustainable bonds. More recently, Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), sold USD 3 bn in green bonds last month — which were almost 6x oversubscribed.

There’s more coming down the MENA pipeline: Egypt wants to roll out USD 500 mn in green bonds before the end of the fiscal year — which ends in July 2023.

Advisers: Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, KFH Capital, HSBC, Sharjah Islamic Bank and Standard Chartered were named as advisers in earlier reporting by Reuters.

In the UAE, your nearest power plant could be closer than you think

The UAE has ratified a law that could expand the use of renewable energy and make the distribution of electricity in urban areas easier and more efficient. Under the new law, anyone wishing to connect a ‘distributed electricity power plant’ to the grid can do so after obtaining prior approval from regulators, according to an Energy and Infrastructure Ministry statement on Monday.

SOUND SMART- Distributed renewable energy refers to electricity sources operating at or near the structure(s) it will power. And it can be just about anything, in theory: solar panels, wind turbines, geothermal, hydro, biogas, and energy storage among others, according to the Handbook of Distributed Generation (pdf).

What this means for renewable energy providers: Connecting these energy sources to the electric grid can help scale their use and provide more stability to the grid. Allowing distributed electricity on the grid’s lower voltage lines will expand the distribution of renewable energy to more customers and reduce electricity loss in the transmission lines. It also opens up geographically where renewable energy power plants can be set up.

There’s more, but very little detail is out there: While the Energy Ministry statement is scant on details and we have yet to find a copy of the legislation floating online, previous coverage by local media indicates that the law also contains penalties for violations of the law.

Also unclear: The feed-in tariff, who’s granting the approvals, and what the criteria or minimum size might be.

There’s green, blue, gray, turquoise hydrogen. Say hello to “emerald” hydrogen.

New tech for lower-cost hydrogen production? UK-based start-up HiiROC claims to have developed technology — thermal plasma electrolysis — that it says can convert biomethane, flare gas or natgas into low-cost, zero-emissions hydrogen, the Financial Times reports.

How do they do it? HiiROC uses “a very strong electric field inside a plasma torch” to separate methane molecules, producing “emerald” hydrogen and a byproduct called carbon black. It can produce hydrogen at a micro and at an industrial scale.

A Sesame Street refresher on the colors of hydrogen:

Green hydrogen is produced by using electrolysis powered by renewable energy sources to split water into hydrogen and oxygen.
Blue and gray hydrogen are created from natural gas or other methane sources through a process called steam methane reforming (SMR) — which uses high-temperature steam to produce hydrogen and CO2. Blue hydrogen uses carbon capture and storage (CCS) tech to prevent the CO2 from being emitted.
“Turquoise” hydrogen is also produced by heating hydrocarbons — but the CO2 produced alongside the hydrogen is captured in solid form.

What’s so special about emerald? HiiROC’s process is “electrically driven” (as opposed to using steam), meaning it uses less energy and has a lower emissions footprint, CEO Tim Davies tells the FT. The byproducts are also cleaner, with negligible CO2 emissions, as carbon black is usually solid. HiiROC’s thermal plasma electrolysis “is as cheap as SMR, without needing CCS, and a fraction of the energy/cost of water electrolysis,” according to its website. Its process takes place at the point of use, meaning the costly issues usually associated with hydrogen of all colors — production cost, storage and transportation — are avoided, the FT notes.

Why is this important for us here? Because existing low-emissions hydrogen faces issues — including cost and distribution. Currently, green hydrogen is poised for significant growth — globally and in MENA — but it still faces some issues before it can get off the ground, as we noted yesterday. These include the high cost (and limited supply) of electrolyser technology — which is still relatively early-stage — and limited capacity in green power generation. Storage and transportation are also currently impediments to widespread green hydrogen uptake. Working out how to scale up production remains a major challenge for green hydrogen in particular, the FT notes.

(And, in the short term, there’s the question of the demand side: We can talk about supply as much as we want, but policymakers will need to take steps — thought carrots and sticks — to ensure there is also corresponding demand from industry and other players.)

HiiROC is launching pilot projects: HiiROC raised GBP 2.5 mn in a 2020 funding round, followed by a further GBP 28 mn in 2021, the FT tells us. The funds raised will be used to launch pilot projects with some of its investors — including one in Germany with Wintershall Dea and VNG that could have daily production capacity of 400 kg of hydrogen, it adds.

KEZAD is exploring options to power up its industrial space with solar energy

KEZAD is going solar: Khalifa Economic Zones Abu Dhabi is teaming up with TotalEnergies Renewables Distributed Generation Middle East & Africa to explore distributing solar energy across KEZAD’s industrial space, according to a company statement released this week.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

The Irrigation Ministry signed four contracts worth EGP 225 mn for its Kitchener Drain cleanup project, which is being supervised by the European Bank for Reconstruction and Development. (Al Borsa)
UAE’s Siraj Power is partnering with Nakheel to deliver nine solar projects across the developer’s residential and commercial complexes in the UAE. (Zawya)
Three Qatari companies are mulling investing in renewable energy production materials in Egypt, Muharram Helal, the chairman of the Egypt-Qatar Business Council reportedly said. (Al Borsa)
China-based PV manufacturer and solar developer Longi aims to sell approximately 200 MW worth of solar products in Egypt next year. (Zawya)
Abu Dhabi Global Market pledged to plant 15k mangrove trees on Jubail Island during Abu Dhabi Finance Week. (WAM)

A new device could lessen shark bycatch by 90%

(Introducing SharkGuard — the catchy-sounding device that could lessen shark bycatch by 90%: Scientists have designed a device that uses electrical pulses to deter sharks and stingrays from accidentally getting caught up in fishing gear, the Guardian reports. When clipped onto fishing lines, Fishtek Marine’s SharkGuard emits a short pulse that “temporarily overstimulates” the sensors around a shark’s nose and mouth acting as a deterrent. SharkGuard reduced by 91% the numbers of blue sharks and by 71% the numbers of stingrays accidentally caught in one recent study, published in a peer-reviewed journal. The device could be commercially available by 2024, Fishtek’s co-founder tells the news outlet.

But why do we care? Because fishing is decimating the shark population: An estimated 100 mn sharks, stingrays and skates (another kind of ray) are killed annually because of fishing and bycatch, the Guardian tells us. Oceanic sharks and rays have declined by over 71% since 1970 due to fishing, it adds. The general abundance of sharks in the Arabian Sea has experienced a perceived decline of around 80% since the late 1990s and the early 2000s, according to a study. The UAE runs an annual ban on shark fishing between March and June annually during spawning season to allow populations to recover and has permanently banned the import and re-export of shark fins in any form, according to The National.

CALENDAR

NOVEMBER

21-23 November (Monday-Wednesday): Cityscape Intelligence Talks, Dubai World Trade Center, UAE.

22-24 November (Tuesday-Thursday): International Envirocities Conference 2022, Fujairah City, UAE.

23-24 November (Wednesday-Thursday): Global Conference on Sustainable Partnerships, The Ritz-Carlton, Riyadh, Saudi Arabia.

Deadline of bid submissions for the Ras Mohaisen – Baha – Makkah Independent Water Transmission Pipeline in Saudi Arabia.

DECEMBER

5 December (Monday): The Korea-Oman Green Hydrogen Strategic Forum 2022, Oman Convention and Exhibition Center, Oman.

6 December (Tuesday): Enterprise Climate X Forum, Cairo, Egypt.

7 December (Wednesday): The Big 5 Global Construction Impact Summit, Dubai World Trade Center, Dubai, UAE.

13-14 December (Tuesday-Wednesday): Seminar on EU standards for agri-food products for the Gulf Cooperation Council countries, Grand Millennium Business Bay Hotel, Dubai, UAE.

13-15 December (Tuesday-Thursday): International Renewable Energy Congress, Hammamet, Tunisia.

15 December (Thursday): TheUN’s 15th meeting of the Conference of the Parties to the Convention on Biological Diversity (COP15), Montreal, Canada.

JANUARY 2023

10-12 January (Tuesday-Thursday): The Future Minerals Forum, Riyadh, Saudi Arabia.

13 January (Friday): The International Renewable Energy Agency’s Youth Forum, Abu Dhabi, UAE.

14-21 January (Saturday-Saturday): Abu Dhabi Sustainability Week, Abu Dhabi, UAE.

16-18 January (Monday-Wednesday): EcoWASTE, Abu Dhabi National Exhibition Center (ADNEC), UAE.

16-18 January (Monday-Wednesday): World Future Energy Summit, Abu Dhabi National Exhibition Center (ADNEC), UAE.

January 2023: Bid submission deadline for green hydrogen projects to Hydrogen Oman (Hydrom).

FEBRUARY 2023

6-8 February (Monday-Wednesday): Saudi International Marine Exhibition and Conference, Hilton Riyadh, Saudi Arabia.

21-22 February (Tuesday-Wednesday): The Arab Green Summit, Dubai, UAE.

21-23 February (Tuesday-Thursday): World Environment, Social and Governance (ESG) Summit, Dubai, UAE.

MARCH 2023

15-19 March (Wednesday-Sunday): Qatar International Agricultural and Environmental Exhibition, Doha, Qatar.

MAY 2023

1-4 May (Monday-Thursday): Arabian Travel Market, Dubai World Trade Centre, Dubai, UAE. Register here.

29-31 May (Monday-Wednesday): Electric Vehicle Innovation Summit, Abu Dhabi National Exhibition Centre, Abu Dhabi, UAE.

JUNE 2023

Bloomberg New Economy Gateway Africa Conference, Marrakesh, Morocco.

1-3 June (Thursday-Saturday): Envirotec and Energie Expo, UTICA, Tunis, Tunisia.

SEPTEMBER 2023

Chariot Limited and Total Eren’s feasibility study on a 10 GW green hydrogen plant in Mauritania to be completed.

OCTOBER 2023

2-4 October (Monday-Wednesday): WETEX and Dubai Solar Show, Dubai World Trade Centre, Dubai, United Arab Emirates.

NOVEMBER 2023

6-17 November (Monday-Friday): The UAE will host COP28.

EVENTS WITH NO SET DATE

End-2022

KSA’s Neom wants to tender three concrete water reservoir projects to up its water storage capacity by 6 mn liters.

2023

Early 2023: Egypt’s KarmSolar to launch KarmCharge, the company’s EV charging venture.

1Q2023: Oman will award two blocks of land for green hydrogen projects in Duqm, Oman.

Mid-2023: Sale of Sembcorp Energy India Limited to consortium of Omani investors to close.

Phase C of the 900-MW of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai to be completed.

Saudi Basic Industries Corporation (Sabic) steam cracker furnace powered by renewable energy to come online.

4Q2023: Oman to award four blocks of land for green hydrogen projects in Thumrait, Oman.

2024

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.

First 1.5 GW phase of Morocco’s Xlinks solar and wind energy project to be operational.

2025

Second 1.5 GW phase of Morocco’s Xlinks solar and wind energy project to be operational.

UAE to have over 1k EV charging stations installed.

2026

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

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

Iraq’s Mass Group Holding wants to invest EUR 1 bn on its thermal plant Mintia in Romania to have 62% of run on renewable energy, while expanding its energy capacity to at least 1.29k MWh.

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.

2060

Nigeria aims to achieve its net-zero emissions target.

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