Egypt inks EUR 7 bn green hydrogen agreement with French consortium

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THE WEEK IN REVIEW

TOP STORIES: Egypt’s EUR 7 bn green hydrogen project + Masdar now owns 100% of Terna Energy

Good morning, wonderful people. We’re back to your inboxes with a packed issue, featuring major green hydrogen, debt, M&A, and renewables updates from across the region. We also tackle below how the escalating trade war could impact the green sector’s supply chains and investments. But first, an update on China’s critical minerals export controls…

THE BIG STORY ABROAD THIS WEEK- Beijing limits rare mineral flow in trade war salvo: China has restricted exports of seven categories of medium and heavy rare earths, Reuters reported last week. The move encompasses exports to all nations and does not constitute a complete ban, though Beijing can still limit export licenses. The restriction is part of a set of countermeasures against renewed tariffs by the Trump administration on China.

This impacts the US: The US, which has only one rare earths mine, relies heavily on Chinese minerals. All but one of the world’s heavy rare earth element-focused operations are in China, Laos, and Myanmar, Project Blue consultant David Merriman told Reuters.

IN CONTEXT- China expanded its export restrictions on essential tech used to extract, process, and recycle critical minerals earlier this year, tightening its hold on global EV supply chains. The move came months after China banned the sale of materials used in semiconductors, a critical component in EV production, such as gallium and germanium.

The story made headlines in the international press: Reuters | FT | WSJ | Bloomberg | AP | Washington Post

WHAT WE’RE TRACKING REGIONALLY-

#1- Seventh phase of MBR solar park grabs some attention: 47 companies from 17 countries have expressed interest in developing the seventh phase of the Mohammed bin Rashid Al Maktoum Solar Park under an Independent Power Producer (IPP) model, according to a statement issued on Wednesday. Dewa invited expressions of interest for the project in February, which is set to bring the total solar park capacity to 7.26 GW.

REMEMBER- The seventh phase will include 1.6 GW of solar capacity and a 1 GW battery energy storage system, with commissioning slated between 2027 and 2029. The project positions Dewa to exceed its 5 GW target for the solar park ahead of schedule — initially set for 2030.

#2- Ma’aden eyes foreign partners for rare earths project: Saudi Arabian Mining (Ma’aden) is looking to partner with a foreign firm by the end of June to establish a rare earth minerals processing project and a magnet facility later, Reuters reported on Tuesday, citing unnamed sources familiar with the matter. A timeline for the project is expected to be finalized by December, and the investment ticket is yet to be disclosed.

The candidates: Among the companies Ma’aden is considering are US-based MP Materials, Australia’s Lynas Rare Earths, Chinese mining outfit Shenghe Resources, and Toronto-based Neo Performance Materials.

Ma’aden’s big ambitions: Mining giant Ma’aden said last year it wants to grow 10x by 2040 to become one of the world’s largest mining companies, targeting both mining JVs abroad and Saudi Arabia’s untapped mineral resources, which were reported last year to be worth as much as USD 2.5 tn — 90% more than the last forecast in 2016. The company is also investing in new tech to recycle and reprocess minerals from industrial waste.

#4- PIF-backed luxury EV maker Lucid saw its 1Q deliveries jump 58% y-o-y, largely driven by price cuts and incentives offers, Reuters reported last week. The company’s 1Q revenues are estimated between USD 232-236 mn, hovering below a market forecast of USD 256.3 mn. Tesla’s current brand crisis has also contributed to the figures as more consumers opt to replace their Teslas with Lucid-made cars, Interim CEO Marc Winterhoff told Yahoo Finance (watch, runtime: 03:34).

IN CONTEXT-Tesla 1Q 2025 sales dropped about 13% y-o-y, selling some 337k unitsthe year — the firm’s owest figure in three years, Reuters reported. The drop far exceeds the 3.7% drop predicted by S&P Global’s Visible Alpha, Reuters said. The decline comes in light of the firm’s recurrent launch delays and CEO Elon Musk’s controversial presence on the political stage, as well as weak sales in the EU and China markets.

Meanwhile, the Abdul Latif Jameel-backed, US-based EV maker Rivian saw a 36% drop in deliveries for the same period, which is largely attributed to market trends toward more modestly priced EVs and gas-powered cars. Rivian’s 1Q deliveries fell to 8.6k EVs, a marked drop from last year’s 13.6k.

In line with last year’s trend? Lucid’s 4Q 2024 deliveries had seen 11% q-o-q growth and 78% y-o-y growth thanks to lower prices and better financing, whereas Rivian lowered its annual production forecast last October by over 14% for last year due to parts shortages and demand slowdown last October.

#5- Xlinks slams UK gov’t for stalling Morocco-UK project: Xlinks is mulling whether to take its ambitious 3.6 GW renewables interconnection project — currently planned to connect Morocco’s grid to the UK — to a different European market, citing the UK government’s failure to greenlight it, Xlinks Chairman Dave Lewis told The Telegraph late in March. Xlinks Chief Executive Simon Morrish first indicated the possibility of exclusively involving Germany in the GBP 25 bn project last month.

The financing plans: The company plans to secure GBP 8 bn from investors, which Lewis said are already lined up pending the final regulatory nod. The remaining GBP 17 bn will be financed by debt. A market test for the debt financing reveals the project is likely to be oversubscribed, Lewis added. While the project has a hefty price tag of GBP 25 bn, investors and financial institutions are already expressing interest, Lewis told the British paper.

REMEMBER- Xlinks began talks earlier this year with the UK’s labor administration to draw up a pricing contract for the energy to be supplied by the project, a move that could help the company raise necessary financing.

About the project: Backed by the Abu Dhabi National Energy Company (Taqa) and TotalEnergies, the UK-Morocco interconnection project will comprise a 3.8k km high-voltage direct current (HVDC) subsea cable transporting 3.6 GW of renewable energy — nearly 8% of the UK’s current requirements — from a 10.5 GW solar and wind farm planned in Morocco’s Guelmim-Oued Noun region. It will also include a 20 GW battery storage system. Xlinks was scheduled to begin construction on its interconnection project last April.

IN OTHER GRID UPDATES- The GCC Interconnection Authority (GCCIA) is expected to spend up to USD 1.3 bn on network expansion over 2025-27, according to an S&P Global Ratings report published late last month. The investment could rise to USD 1.5 bn if additional backbone funding is secured. The funds are expected to be sourced from development banks in Kuwait, Qatar, and the UAE, according to the report. The rating agency also expctes no delays in the financing, cementing a stable outlook for the GCCIA.

ALSO- Oman Electricity Transmission (OETC) has earmarked USD 2.2 bn to undertake as many as 32 network transmission projects by 2028, according to its Green Financing Framework (pdf) published last month. The projects are expected to absorb new generation capacity, support load growth, and ensure the security of the grid.

#6- Spain’s GES eyes Egypt and Morocco for 2026 plans: Spain-based renewable energy developer Global Energy Services (GES) is planning to assemble wind turbines for a “large project” in Egypt under its 2026 plan, according to a press release published late last month. The firm is also mulling an entry into the Morccan markets, where it expects to partner with a local player. No further details were disclosed about each of the projects..

WHAT WE’RE TRACKING GLOBALLY-

#1- Indian electric scooter maker AtherEnergy is weighing whether to size down its planned USD 400 mn IPO by at least USD 50 mn, Bloomberg reported on Wednesday, citing multiple unnamed sources. The company may also trim its valuation target, though a final decision has not been made.

The context: The move comes as Ather’s existing investors are reportedly considering selling fewer shares in the listing, leading to a smaller float. Despite global market volatility, Ather is still expected to proceed with the IPO in the coming weeks, but could also consider a private placement instead if market sentiment continues to slide, the sources said.

A huge cut? The company initially filed for an IPO last September, with reports at the time saying the firm aimed to raise approximately USD 536 mn at a valuation of USD 2.5 bn

#2- US jumps ship on shipping emission talks: Washington has exited negotiations over decarbonising global shipping and threatened to take countermeasures to nullify any greenhouse gas tax on US-flagged vessels, Reuters reported on Wednesday, citing a diplomatic document it has seen. The US has urged other states not to attend meetings held by the International Maritime Organization in London.

A carbon levy is a no-go for many others: Saudi Arabia, China, Brazil, South Africa, and eight other countries formally opposed a proposed global levy on shipping emissions earlier this year. The anti-tax camp argued that it would harm developing nations’ exports, raise food prices, and exacerbate global inequalities.

#3- Green trucking suffers streak of failures: Four hydrogen trucking startups have gone bust in the past six months, as tepid demand, high hydrogen prices, and lackluster infrastructure continue to weigh down the industry, Bloomberg reported last week. US-based Nikola and Hyzon Motors and EU-based Hyvia and Quantron are among the shuttered firms, in addition to electric truck and bus makers Arrival and Proterra.

China is the exception: Green trucking has managed to progress in China, with 75k electric units sold in the medium and heavy truck sector last year, as well as roughly 4k fuel cell-powered trucks. China’s low battery prices for electric commercial vehicles — at USD 90 per kWh in 2024 — were less than half of the average for other nations, which stood at USD 190 per kWh — a low cost that allows China’s green trucks to compete with diesel-run counterparts.

Green passenger vehicles in slump too: Sales of hydrogen fuel passenger cars reportedly amounted to 4.8k in 2024, a sharp drop from 8.8k in 2023. Sales in 2022 were even higher, north of 15k.

DANGER ZONE-

A 4°C rise in global temperatures could result in a 40% drop in the average person’s wealth, The Guardian reported last week, citing a study published in Environmental Studies Letters. Limiting warming to 2°C could reduce global GDP per person by 16%, much higher than earlier predictions of 1.4%. In comparison, predictive models of wealth that account exclusively for extreme weather — and not for complex climate change trickle-down events — estimate an 11% drop. “We can expect cascading supply chain disruptions triggered by extreme weather events worldwide,” the study’s lead author Timothy Neal said. Global warming will affect all nations’ economies across the globe, as they are all linked by global trade, Neal said.

THE SCORECARD-

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CIRCLE YOUR CALENDAR-

The UAE will host the Electric Vehicle Innovation Summit conference from Monday, 21 April until Wednesday, 23 April in Abu Dhabi. The summit is the largest of its kind and brings together industry players to address and collaborate on sustainable transportation.

Egypt will host Solar & Storage Live Egypt from Tuesday, 29 April until Wednesday, 30 April in Cairo. The supplier-led exhibition will allow companies to showcase their solar and clean energy solutions. Over 7k attendees, 150 exhibitors, and 150 speakers are expected to attend.

Turkey will host the International Renewable Energy Conference from Wednesday, 7 May until Friday, 9 May in Istanbul. The conference facilitates a dialogue between industry professionals on renewables policy, hydrogen in the energy transition, renewable energy solutions, and other.

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

Egypt inks EUR 7 bn green hydrogen plant agreement during Macron’s visit

Egypt is getting a new green hydrogen plant: A consortium of France’s EDF Renewables and Egyptian-Emirati firm Zero Waste inked a cooperation agreement with Egypt’s Red Sea Ports Authority (RSPA) and the New and Renewable Energy Authority to finance, develop, and operate a EUR 7 bn green hydrogen plant in Ras Shukeir. according to a statement issued on Tuesday. The agreement was signed during French President Emmanuel Macron’s visit to Egypt.

About the project: The project will have an annual production capacity of 1 mn tons of green ammonia when fully operational in early 2029 — production will be split between the local market and exports. The first of the project’s three phases will cost some EUR 2 bn and will produce 300k mn tons of green ammonia annually.

There’s more: The project company will also finance and develop a 7 km long, 100 m wide electricity transmission line, a seawater desalination unit to supply the facility, and a 400 m long 17 m draft loading dock for the RSPA.

Where do things stand? The alliance has already completed a preliminary feasibility study for the project. Land has also been allocated for the project, including for the renewables facilities that are set to power the project’s three phases and 120 hectares for the construction.

REMEMBER- The government in August launched the National Low-Carbon Hydrogen Strategy in August, which aims to clench a 5-8% share of the global hydrogen market by 2040. The strategy outlines two scenarios — a “central” scenario which sees the country producing 1.5 mn tons per annum of green hydrogen by 2030, with 1.4 mn tons pegged for export, and a more ambitious “green” scenario that sees the country producing 3.2 mn metric tons of green hydrogen annually by 2030, with 2.8 mn metric tons earmarked for export.

ALSO- There’s more from Macron’s visit: Egypt and the French Development Agency (AFD) also signed nine agreements for sovereign financing worth EUR 262.3 mn, according to a statement. Over EUR 120 mn were earmearked for projects in the wastewater treatment sector.

The projects include:

Upgrading Alexandria wastewater treatment plant: AFD will provide EUR 68 mn in financing and EUR 2 mn in grants to upgrade East Alexandria Treatment Plant. The project’s first phase is planned for completion of the first phase by 2032, and the facility is expected to serve 1.5 mn people with 300k cubic meters of water per day.
Expanding Yellow Mountain wastewater treatment plant: The AFD agreed to provide EUR 50 mn in financing and a EUR 1.5 mn — alongside another grant from the EU worth EUR 10 mn, to expand the Yellow Mountain Wastewater Treatment Plant in Cairo.

Masdar now owns 100% of Terna Energy

UAE’s renewables giant Masdar nabbed an additional 30% stake in Greece-listed Terna Energy in a squeeze-out, according to two separate statements here (pdf). The purchasing price — a EUR 20 per share — is equivalent to the last closing price of the Athens-listed firm.

With a delisting in view: Upon securing regulatory approval, the transaction will see Terna Energy’s shares delisted from the Athens Stock Exchange, bringing Masdar’s total holding in the clean energy company to 100%, up from 70% as of November of last year. The transaction valued the company then at EUR 3.2 bn.

Terna in numbers: Terna’s bottomline grew 23.5% y-o-y to EUR 70.5 mn in 2024, while its topline was up 37.6% y-o-y to EUR 347.1 mn largely driven by an uptick in renewable energy sales, according to its latest earnings release. The company’s capacity sits at 1.2 GW today, operating across a diverse renewable energy portfolio of wind, solar, biomass, and hydro projects, including the 680 MW Amfilochia pumped hydro project — one of Europe’s largest.

Masdar’s been on M&A roll this year: Masdar has just secured two major Spain-based acquisitions, clinching a 234 MW Valle Solar PV project in Spain’s valencia from Saeta Yield and finalizing a 49.99% stake aqcuisition agreement in four solar assets owned by utility firm Endesa.

2024 was also busy: The renewables major also finalized last December a 49.99% stake acquisition in EGPE Solar — an Endesa subsidiary with 2 GW assets — for EUR 817 mn and an equity value of EUR 280 mn. Last year also saw the firm bolster its European portfolio by acquiring Spanish renewables firm Saeta Yield’s 1.6 GW worth of renewables, in addition to a 49% stake in the UK’s 3 GW Dogger Bank Wind Farm. Across the pond, it also bought 50% of Terra-Gen Power Holdings, a US renewable energy producer.

Iraq signs MoU for 3 GW solar project backed by US

Iraq inks MoU for solar project with UGT Renewables: Iraq’s Electricity Ministry has inked an MoU with US-based UGT Renewables to develop a 3 GW capacity integrated solar energy project, alongside battery storage systems of up to 500 MWh, according to a statement issued Wednesday. The project will be financed through a mix of public and private international lenders, including US Export-Import Bank, UK Export Finance, and JP Morgan, which will act as lead arranger. The investment ticket, timeline, and site locations were not disclosed.

There’s more: The agreement also covers the modernization of Iraq’s electricity transmission and distribution infrastructure, including the construction of up to 1k km of new high-voltage direct current (HVDC) lines and providing for a two-year window for tech transfer, training, operations, and maintenance.

Late to the party: Iraq has no operational renewable projects, according to Dii’s MENA Energy Outlook 2025 (pdf). However, the government has lined up its first major solar project, with the Basra Investment Commission finalizing an agreement with TotalEnergies in February to build a 1 GW solar power plant in partnership with QatarEnergy at a cost of USD 820 mn. It was then reported last year that the first operating phase was set to begin in 2025.

But picking up: The Iraqi government’s upcoming solar energy projects — set to be rolled out in the summer — have attracted interest from 150 companies, INA reported last week. Iraq’s National Team for Renewable Energy Projects will undertake these projects, with a focus on managing consumption via smart meters and efficient solar energy systems, the entity’s head Karim Naseer told INA. The Iraqi government launched a program last month to use smart meters and solar water heaters to convert almost 5k government buildings to a solar power system.

MORE REGIONAL SOLAR UPDATES

Chinese Chint Group’s solar unit Astroenergy will build a USD 500 mn solar cell factory in Turkey, according to a statement issued late March. The facility will produce TOPCon 4.0 solar cells, the company’s latest version of the more energy-efficient tunnel oxide passivated contact solar cells. About 80% of the output is earmarked for exports.

Part of a bigger initiative: The project would fall under Turkey’s USD 30 bn High-Tech Incentive Program (HIT-30), which was launched in July 2024. The program covers electric vehicles, battery production, semiconductor manufacturing, and energy, and aims to establish Turkey as a regional battery production hub, with a USD 4.5 bn incentive package up for grabs.

Not the company’s first investment in the country: Astroenergy had previously invested in a PV module factory in Turkey, which reached 850 MW of production capacity last month, a company spokesperson told PV Magazine earlier this month.

Lucid closes USD 1 bn convertible bond sale via private placement

Lucid wraps hefty refinancing play: PIF-backed luxury EV-maker Lucid closed a USD 1.1 bn offering of convertible notes due 2030, according to a press release published on Tuesday. The Nasdaq-listed firm earmarked USD 935 mn of the total proceeds to repurchase nearly USD 1.05 bn in outstanding convertible bonds originally due next year — effectively extending their maturity and reducing Lucid’s near-term debt pressure. The offering was backed by the PIF, Lucid’s largest shareholder.

On a fund-raising roll: In 2024, PIF and its subsidiary Ayar Third Investment Company invested USD 2.55 bn and USD 1.5 bn, respectively, in Lucid through follow-on public offerings and private placings.

ICYMI- The cash-strapped automaker exceeded expectations in 4Q 2024 with vehicle deliveries growing 78% y-o-y to 3.1k, and production surging 42% to 3.4k vehicles. Meanwhile, Lucid’s net loss widened 9.3% y-o-y to USD 3.07 mn in 2024, according to its latest earnings release.

DEBT UPDATES FROM JORDAN-

#1- The World Bank has approved USD 250 mn in additional financing for Jordan’s Electricity Sector Efficiency and Supply Reliability Program(ESERP), according to a statement issued on Tuesday. The financing is part of a broader USD 1.1 bn package aimed at supporting the country’s Economic Modernization Vision.

We knew this was coming: The World Bank was said last month to be reviewing a request from the Jordanian government for up to USD 200 mn to support the country’s ESERP — a two-phase, eight-year program that focuses on cost-efficiency, grid reliability, and governance reforms at the state-owned grid operator — the National Electric Power Company (NEPCO). The funding will support cost-cutting and revenue-boosting measures aimed at reducing NEPCO’s operational losses, while also cutting outages per customer.

Jordan is no stranger to World Bank support: The country inked two loan agreements with the bank back in 2023, worth a combined USD 650 mn, including a USD 250 mn facility already directed to support the ESERP.

#2- EBRD doles out EUR 27.3 mn for Jordanian climate finance: The European Bank for Reconstruction and Development (EBRD) has approved a EUR 27.3 mn (c. USD 30 mn) loan to bolster Bank Al Etihad’s ability to provide green finance in Jordan, according to a press release published on Monday. The loan — a Basel III-compliant instrument — will provide funding to micro, small, and medium enterprises.

Where’s the money going? 60% of the funds will be set aside for green financing, enhancing industrial energy efficiency, and renewable energy. The remaining 40% will contribute to social initiatives as well as inclusive finance and underserved MSMEs.

And that’s not all: EBRD and Jordan’s Microfund for Women inked a USD 4 mn Green Economy Financing Facility (GEFF), including USD 1 mn in co-financing funded by the Green Climate Fund, according to a press release published on Monday. The loan aims to boost green financing for underserved businesses, especially those owned by women.

Saudi Electricity kickstarts phase two of BESS project

SEC reportedly launches second phase of BESS project: The Saudi Electricity Company (SEC) has launched the second phase of its Battery Energy Storage System (BESS) project with a 2.5 GW capacity and a SAR 6.73 bn investment ticket, CNBC reported on Tuesday, citing a company statement. No further details were disclosed for the projects.

The details: SEC has signed purchase contracts with BYD and Al Fanar Projects Company to supply and build 500MW/2GWh BESS across five locations — Riyadh, Al Qaisumah, Al Jawf, Al Dawadmi, and Rabigh. The goal is to increase energy reserves in the selected areas to increase supply flexibility and lower response time to changes in demand, all while reducing operational costs.

ICYMI- BYD signed contracts for the 12.5 GWh energy storage project in February, which included BYD’s Cell-to-System integrated tech. During the same mont, the Saudi Power Procurement Company has issued a Request for Proposals to qualified bidders for 2 GWh Battery Energy Storage System (BESS) projects, the first group of 8 GWh developments, Trade Arabia reported on Wednesday. The deadline for submissions is 2 June.

Part of a bigger plan: The BESS project falls under the Ministry of Energy-monitored National Renewable Energy Program which aims to increase the installed capacity of renewable energy in the Kingdom to 50% of the electricity mix by 2030.

IN OTHER ENERGY STORAGE NEWS-

Morocco’s National Office of Electricity and Drinking Water (ONEE) has reportedly invited expressions of interest for a 1.6 GW battery energy storage system, Telexpress reported on Sunday. The projects are planned for the Kenitra, Settat, Tetouan, Tit Mellil, Khénifra, and Khouribga regions.

The details: ONEE is eyeing firms willing to handle the design, equipment procurement, construction, trial runs, and long-term operations and maintenance. Operations are slated for 2026.

Recent moves: Morocco said earlier this year it is earmarking some MAD 27 bn (c. USD 2.7 bn) for electricity grid development to accommodate the increasing share of renewable energy. The investments — expected to be made over the next five years — will be key to accommodating the 9+ GW of renewable energy capacity that the kingdom aims to add between 2023 and 2027, with total investments of MAD 90 bn.

REMEMBER- Morocco needs some MAD 30 bn in investments to boost its national electricity grid by 2030.

Acwa inaugurates Uzbek wind farms

Acwa Power’s 500 MW Dzhankeldy and 500 MW Bash Wind projects in Uzbekistan have begun commercial operations, according to Tadawul disclosures issued Sunday here and here. The financial impact of the operations is expected to be reflected in 2Q 2025.

Background: The company signed 25-year power purchase agreements back in December with the National Electrical Grid of Uzbekistan for both projects, which included a 128 km transmission line for Dzhankeldy and a 160 km one for Bash. The OPEC Fund approved two USD 20 mn loans to finance the projects in April 2023.

Who owns what? Acwa now owns 65% of the USD 1.3 bn projects after it offloaded a 35%stake back in June to China Southern Power Grid’s global investment arm China Southern Power Grid International for SAR 596 mn (c. USD 159 mn).

Acwa 💚 Uzebkistan: The company signed a SAR 18.2 bn (c. USD 4.9 bn) power purchase agreement with the National Electric Grid of Uzbekistan (Negu) to develop a new 5 GW wind farm — set to become the largest in Central Asia — in May. It also signed a SAR 985 mn (c. 262.6 mn) power purchase agreement to develop the 200 MW Nukus 2 wind project in April 2024, and a USD 2.4 bn agreement with the National Electric Grid of Uzbekistan for a 1.5 GW wind energy farm in January 2024. Acwa has a total of 15 projects in Uzbekistan worth around USD 13.9 bn.

Masdar back in the black as bottomline swings positive FY 2024

MASDAR-

Masdar turns to the black in 2024: UAE’s Masdar reported a net income of 412.5 mn in 2024, reversing a AED 44.7 mn loss from the previous year, according to its financials (pdf). The turnaround came despite a 3.9% y-o-y drop in revenues to AED 3.4 bn.

ICYMI- Masdar’s rebound hasn’t gone unnoticed: Earlier this week, Moody’s upgraded the renewables giant to an A1 credit rating with a stable outlook, up from A2. The upgrade came on the back of strong backing from the Abu Dhabi Government and shareholders as the company pursues its 100 GW renewable energy capacity target by 2030.

Accounting for FX losses and swings in derivative valuation, Masdar recorded a total comprehensive loss of AED 31.4 mn for the year, widening slightly from an AED 22.9 mn loss in 2023.

TADWEEER-

National Environmental Recycling (Tadweeer) saw its net income grow 40.2% y-o-y in 2024 to SAR 36.2 mn on the back of improved production efficiency, tighter cost controls, and lower operational expenses from replacing rental assets with owned assets, according to a disclosure to Tadawul. Meanwhile, the company recorded a 27.6% y-o-y growth in revenues during the year to SAR 806 mn, supported by the launch of a new production line and better utilization of existing lines.

Updates on sustainable finance, solar energy, and EVs from across the region

GREEN FINANCE-

#1- Jordan + AFESD to fund new development projects including renewables: Jordan’s Cabinet has approved a partnership with the Arab Fund for Economic and Social Development to establish a framework for priority development projects — including a focus on solar and wind power, Jordan Times reported on Thursday. An initial USD 750 mn will be allocated to the development projects over the next year with the help of regional and international partners, including the World Bank and the European Investment Bank. The framework will run until 2029.

#2- The Central Bank of Iraq (CBI) has amended its renewable energy financing initiative to streamline disbursements and tighten reporting requirements, according to a statement (pdf) issued on Wednesday. Under the revised rules, each bank is now entitled to a single IQD 300 mn (c. USD 230k) advance at a time, with future advances contingent on submitting required reports within set deadlines.

Financing terms were also revised: Loan tenures can now reach seven years, including a six-month grace period. CBI’s interest rate is set at 0.5%, while banks may charge up to 2.5%. The central bank will replenish bank balances based on submitted financing requests, and banks must provide detailed beneficiary disclosures within six months of disbursing loans.

Applications are through two channels: The Tamwil platform or via companies accredited by the Electricity Ministry, which will supply and maintain the renewable systems. Loans cover residential and project-based renewable energy installations.

#3- Saudi to support renewables in Solomon Islands: The Saudi Fund for Development (SFD) has signed a USD 10 mn development loan agreement to help develop renewable energy infrastructure in the Solomon Islands, according to a press release issued on Tuesday. The project includes 35.5 MW of solar power plants, with energy storage systems. The agreement marks SFD’s first development loan to the Pacific region.

SFD is going global: SFD pledged pledged USD 150 mn to support mining in Balochistan in December, agreed to develop a framework with the Saudi Global Water Organization to finance water projects around the world in October, and signed a USD 83 mn development loan agreement with El Salvador to fund a water treatment and biogas power generation project in June.

SOLAR-

EWA opens bids for Belaj Al Jazaer: Bahrain’s Electricity and Water Authority (EWA) has received three consultancy bids for the 200 MW Belaj Al Jazaer IPP solar project from KPMG Fakhro, Ernst & Young Middle East, and Deloitte & Touche Middle East, according to the government tender board. KPMG Fakhro entered a bid of BHD 506k, Ernst & Young Middle East BHD 770.5k, and Deloitte & Touche Middle East BHD 589.5k. The chosen bidder will provide consultancy services for the study and implementation of the project — which is planned to be later offered for development via a build, own, and operate model.

ELECTRIC VEHICLES-

EV distributor Smart Mobility International partnered with Chinese EV manufacturer IM Motors to launch its products in the UAE, according to a press release on Wednesday. IM Motors plans to expand its operations in the GCC region, starting in the Emirates and expanding to Saudi Arabia before later in 2025. The company introduced the IM LS7 electric SUV in the UAE, with more Battery Electric and Range-Extended Electric Vehicle models set to follow later this year.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

UAE, UNCTAD to advance sustainable investment policy reform: The UAE Investment Ministry and UN Trade and Development (UNCTAD) signed a cooperation agreement to work on sustainable investment frameworks and economic growth strategies. (Press release)
SIG launches new recycling solution in Egypt: Switzerland-based sustainable packaging tech provider SIG has partnered with three Egyptian companies to set up an end-to-end recycling system for used aseptic beverage cartons. Plastic Bank will oversee collection, Carta Misr will separate the paper fibers from the aluminum and polymers to produce paper products, and TileGreen will use the separated PolyAI mixture to create durable interlock bricks. (Press release)
Aquila Group lands in the region: German investment firm Aquila Group will open a new office in Abu Dhabi — dubbed Aquila Capital Middle East — from which it will manage its regional projects, including data centers and renewable energy projects. The company has received preliminary permission from the Abu Dhabi Financial Center and is waiting on final approval. (Reuters)
Jameel Motors + GAC enter Polish market: KSA’s Jameel Motors has signed an agreement with China’s GAC to distribute the latter’s new energy vehicles in Poland. Jameel Motors will initially distribute the smart new energy Aion and Hyptec passenger car models, with purchases beginning in 3Q 2025. (Press release)
Jordan extends agreement with Fortescue: The Jordanian government has extended its framework agreement with Australia’s Fortescue Future Industries (FFI) for its green hydrogen and green ammonia projects until 31 March 2026. The projects are planned to be based in the Aqaba Special Economic Zone. (Petra)

China’s first-ever green sovereign bonds see CNY 6 bn from investors

Germany getting massive grid boost: German grid operator Amprion will invest EUR 36.4 bn (c.USD 40 bn) in its transmission networks through 2029 to upgrades lines and cables to handle more renewable power, Reuters reported on Thursday. The earmarked investment marks a 32.4% increase from the previous figure in an earlier five-year plan ending in 2028. Power utility RWE — a shareholder in Ampriom — is also reportedly exploring a partial or full exit from its stake due to high capital requirements.

About the operator: Amprion operates 11k km of high-voltage lines from the North Sea to the Alps, with financing covered largely by external funding and grid fees — which make up around a quarter of German retail power bills.

Volkswagen Group’s EV sales jumped 59% y-o-y to 217k units in 1Q, while Chinese sales dropped 37% amid intensifying competition, according to a press release (pdf) issued Wednesday. The figure was driven by a 112% surge in European deliveries to 158k, up from 74k last year. Porsche EVs — part of VW’s portfolio of brands — led the 1Q growth, with a 326% spike in EV deliveries to 18.4k compared to 4.3k in 1 Q of last year.

The motivation? The first phase of the EU’s strict emissions rules on automakers entered into effect this year with a specter of up to EUR 15 bn in fines for automakers who miss the targets. To achieve the targets and avoid fines, companies will either have to pool their emissions or spur sales of EVs models at the expense of petrol-powered cars.

China’s inaugural green sovereign bonds attracted some CNY 6 bn (c. USD 689 mn) from investors with bids exceeding CNY 37 bn (c. USD 5 bn), Bloomberg reported last week. The yields were finalized at 1.88% and 1.93%, lower than the initial pricing of around 2.3% and 2.35%. The bonds will be listed in Hong Kong, with plans for trading on the London Stock Exchange.

Greece to invest EUR 5.8 bn in green energy + tech: Athens-based Public Power Corporation (PPC) will invest around EUR 5.8 bn (c. USD 6.4 bn) to establish a green energy and technology hub in Greece’s Western Macedonia region, according to a statement released last week. PPC will utilize sites formerly used to extract coal, with plans to install 3 GW of renewable energy capacity with 860 MW of storage capacity. The plans also include a 300 MW data center that could be potentially upscaled to 1 GW, depending on future demand. Operations are expected to being in 2027. Some EUR 1.2 bn will also be allocated to build solar parks on former mining sites with an installed capacity of at least 2.1 GW, sufficient to supply around 715k homes and businesses.

Trump’s tariffs to rattle global clean sector’s supply chains, but our region and China could benefit

Tariffs threaten clean energy sector globally: The global clean energy industry is bracing for fresh supply chain disruptions and steeper costs after Trump unveiled sweeping new tariffs on all imports to the US, the Financial Times reported on Monday. With duties ranging from 10% to 49% — and reaching up to 129% for China, the move threatens to raise prices across the green sector, including solar and battery storage, and trigger a wave of supply chain sourcing realignments.

Uncertainty is the name of the game: It isn’t clear whether these tariffs are here to stay, with Trump repeatedly claiming he’s open to bilateral negotiations, and after he announced a 90-day pause on (most of) his tariffs on (most) countries on Wednesday.

US Solar imports are set to be one of the hardest-hit segments: Solar projects could become very expensive in the US, which imports most of its panels from Southeast Asian suppliers who are now facing steep levies — Vietnam (46%), Cambodia (49%), and Thailand (36%), Bloomberg reported last week. Despite recent growth in domestic production, the US still imports far more solar panels than it manufacturers — roughly 95 mn PV panels in 2023 alone, FT noted citing Rystad Energy.

Our region could benefit : With imports from China, Vietnam, Malaysia, and Thailand now under pressure, there is a possibility the the US will turn to the Middle East and Africa for green tech imports, Rystad’s VP for solar research told FT. The US tariff approach could also spur a growth in the region’s renewables manufacturing capacity, as Southeast Asian green producers shift operations abroad to evade the tariffs.

India could be one of the few relative winners: With a more modest 26% tariff rate and a growing export profile, India sent 9.4 GW worth of cells to the US between 2023 and 2024, Bloomberg noted. The lighter tariffs could open the door for further Indian expansion in the US renewables market, especially as other Asian players are squeezed out, according to Vagneur-Jones.

China could also emerge stronger: The US is hardly a major market for China’s green sector exports except in the case of battery storage systems, Semafor reports. The US tariffs could, in effect, undermine the US’ transition, while spurring China to redirect production for its local projects and other markets, accelerating the transition in China and globally and butressing China’s global dominance in the industry, Greenpeace East Asia project lead Yao Yi told Semafor.

China is also expected to double down on emerging markets, Bloomberg reported last Thursday, citing BloombergNEF’s supply chain & trade head Vagneur-Jones. The tariffs could further reinforce an already established trend that’s seen the share of Chinese clean-tech exports to low and middle income countries expand rapidly between 2022 and 2024, Bloomberg reports citing its BNEF data. Brazil and Pakistan could be two major destination for the Chinese green exports, the New York Times reported last Thursday.

On the flipside, the tariffs are contributing to an undervaluation of publicly-traded green energy companie, spurring interest from private equity investors, Bloomberg reported on Wednesday. This, in turn, is expected to make several clean energy companies — especially those under strain in the US — attractive for investors who are looking to taking these companies private for restructuring at lower prices, Bloomberg reported. Firms with complex supply chains and those with solid tech — like grid software or energy intelligence, but face market headwinds could be prime targets, Minotaur Capital co-founder Armina Rosenberg told Bloomberg.

Foreign corporations are exploiting Africa’s undervalued carbon credits, outgoing head of the African Development Bank (AfDB) Akinwumi Adesina told Financial Times last week. Europe’s expensive carbon credits — which can go up to EUR 200 per ton — can be skirted by purchasing African credits for as low as USD 3, Adesina said.

Including natural capital in Africa’s GDP: With large swathes of carbon sinks being undervalued, Adesina suggests recalculating the continent’s GDP to reflect its natural capital. Africa’s stores of gas, minerals, metals, biodiversity, and forests could drive up its GDP valuation, with carbon credits reflecting a fairer price, Adesina said.

UK looks into blocking sun rays to combat global warming

UK makes SRM research push: The UK’s Natural Environment Research Council (NERC) has earmarked GBP 10 mn (USD 13.2 mn) to research Solar Radiation Modification (SRM) — an experimental form of geoengineering that can induce atmospheric cooling — to offset rising global temperatures, Bloomberg reported last week. The push will support four studies exploring the possible effects and risks of solar radiation modification measures.

What’s being researched? One of the methods to be exploited by the studies covers what is dubbed atmospheric aerosol intervention, in which dispersing reflective particles are inject into the atmosphere to block sun radiations. One study is exploring marine cloud brightening — raising the reflectivity of clouds via sea water spray, and another study aims to assess the environmental effects of these methods by using models that compare the interventions to volcanic eruptions and shifts in shipping’s sulfur emissions — a type of emissions combated by the shipping industry that turned to be helpful in slowing warming.

There’re major risks: Despite the potential benefits, SRM poses significant risks, such as altering weather and rainfall patterns and increasing the prevalence of infectious diseases like Malaria. Historical evidence from volcanic eruptions shows that rapid cooling can have severe consequences, such as ozone layer damage, crop failures and disease outbreaks. However, the tech could be our best shot in a worst-case warming scenario, former WTO Director Pascal Lamy argued in September last year.

REMEMBER- Interest in the tech is picking up: An increasing number of Silicon Valley investors — including the likes of Bill Gates, Sam Altman, and several Meta Platforms affiliates — have reportedly backed startups testing with the tech last year, such as Make Sunsets and Stardust Solutions. Earlier in 2023, the nonprofit research organization The Degrees Initiative announced it, in collaboration with the United Nations, would disburse upward of USD 900k to 81 scientists in the Global South studying SRM.

CALENDAR

April

14-15 April (Monday-Tuesday): Istanbul Carbon Summit, Istanbul, Turkey.

15-16 April (Tuesday-Wednesday): Green Energy Summit Saudi Arabia, Riyadh, Saudi Arabia

15-17 April (Tuesday-Thursday): International Conference on Functional Materials and Renewable Energies, Tangier, Morocco.

21-23 April (Monday-Wednesday): Electric Vehicle Innovation Summit, Abu Dhabi, UAE.

29-30 April (Tuesday-Wednesday): Solar & Storage Live Egypt, Cairo, Egypt.

MAY

6-8 May (Tuesday-Thursday): Autonomous e-Mobility Forum, Ar-Rayyan, Qatar

7-9 May (Wednesday-Friday): International Renewable Energy Conference, Istanbul, Turkey.

13-14 May (Tuesday-Wednesday): International District Cooling Conference, Riyadh, Saudi Arabia

14-15 May (Wednesday-Thursday): Saudi Arabia Green Energy Week, Riyadh, Saudi Arabia

JUNE

9-13 June (Monday-Friday): UN Ocean Conference, Nice, France.

15-17 June (Sunday-Tuesday): G7 Summit, Kananaskis, Canada.

16-26 June (Sunday-Saturday): Bonn Climate Change Conference, Bonn, Germany.

17-20 June (Tuesday-Friday): Mediterranean Water, Irrigation and Photovoltaic Exhibition, Tunisia.

30 June-3 July (Monday-Thursday): International Conference on Financing for Development, Seville, Spain.

SEPTEMBER

8-9 September (Monday-Tuesday): Sustainable Buildings and RetrofitTech Qatar Summit, Doha, Qatar.

9-11 September (Tuesday- Thursday): Global Water Energy and Climate Change Congress, Manama, Bahrain.

9-23 September (Tuesday-Tuesday): UN General Assembly, New York City, USA.

OCTOBER

14-15 October (Thursday-Wednesday): Egypt Energy, Cairo, Egypt

20-21 October (Monday-Tuesday): Sustainable Buildings and RetrofitTech Saudi Summit, Riyadh, KSA

28-30 October (Tuesday-Thursday): EV Auto Show, Riyadh, Saudi Arabia

NOVEMBER

4-6 November (Tuesday-Thursday): World Social Summit, Doha, Qatar.

10-21 November (Monday-Friday): UN Climate Change Conference (COP30), Belém, Brazil.

22-23 November (Saturday-Sunday): G20 Leaders’ Summit, Johannesburg, South Africa.

24-27 November (Monday-Thursday): HVACR World, Dubai, UAE.

25-26 November (Tuesday-Wednesday): Sustainable Buildings and RetrofitTech Bahrain Summit, Manama, Bahrain.

EVENTS WITH NO SET DATE

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.

November: Arab Forum for Renewable Energy and Energy Efficiency, Amman, Jordan.

2025

International Union for Conservation of Nature World Conservation Congress, Abu Dhabi, UAE.

UAE to have over 1k EV charging stations installed.

Middle East Electric Vehicle Show, Sharjah, UAE.

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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