Export-Import Bank of Korea signs a USD 6 bn loan agreement with Aramco

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WHAT WE’RE TRACKING TODAY

TODAY: South Korea’s official export credit agency inks loan agreement with Aramco

Good morning, nice people. We’re only one day away from the weekend and the regional news pace seems to be picking up pace.

THE BIG CLIMATE STORY- Saudi energy giant Saudi Aramco finalized a USD 6 bn framework agreement with South Korea’s official export credit agency the Export-Import Bank of Korea to support development projects in MENA with USD 1 bn of the financing earmarked for green hydrogen and renewables projects. We have all the details on this story and more in the news well, below.

HAPPENING TODAY- The Earthna Summit is kicking off today in Doha and will carry on into tomorrow. The event will bring together industry leaders and policymakers to explore tailored solutions for the energy transition in hot climates. Over in London, The Saudi British Joint Business Council is bringing together over 150 innovators to discuss and present clean technological solutions in sectors ranging from renewable energies, to waste management, battery storage, carbon capture, and water conservation.

THE BIG CLIMATE STORY OUTSIDE THE REGION- It’s relatively quiet on the global climate news front, but Canada’s issuance of a climate-focused disclosure rulebook pinged on the headlines yesterday. Canada’s Office of the Superintendent of Financial Institutions issued a set of guidelines mandating regulated companies in the country to disclose climate risks at least once a year. Banks and ins. companies will have to comply with the new rulebook by 2024, using the guidelines to assess clients’ climate risks in their credit-granting procedures. Canadian SMEs will be granted an additional year to adhere to the new guidelines. The story was picked up by Reuters and Bloomberg.

OVER IN COP LAND- The world needs to slash emissions by 7% annually to keep the ambitious warming limit of 1.5°C alive, Wam quotes COP28 president-designate Sultan Al Jaber as saying during the CERAWeek energy conference. Al Jaber also stressed the vital role that oil and gas industry play in resolving the climate crisis, urging the industry to “up its game.” “Energy leaders have the knowledge, experience, expertise and the resources needed to address the dual challenge of driving sustainable progress while holding back emissions,” he said. “Alongside all industries, the oil and gas sector needs to up its game, do more and do it faster.”

ALSO FROM THE UAE- THE UAE Net Zero 2050 Charter was signed this week, Wam reports, paving the way for further efforts to push on governmental climate action in the country. The charter would see the Gulf country accelerate the pace by local governments for progressive and durable solutions to slash carbon emissions across all fields, said Abu Dhabi Executive Council Secretary-General Saif Saeed Ghobash.

WATCH THIS SPACE #1- EDF Renewables plans to participate in upcoming UAE renewables tenders as it looks to double its clean energy capacity to 60 GW by 2030, the company’s CEO told The National. EDF Renewables — a wholly owned subsidiary of French utility EDF Group — has a 20% stake in the 2 GW Al Dhafra Solar project in Abu Dhabi set to become operational in 2Q 2023, and was part of a Masdar-led consortium developing the 800 MW third phase of the 5 GW Mohammed Bin Rashid Al Maktoum Solar Park in Dubai. It is also co-leading alongside Masdar a consortium constructing the 400 MW Dumat Al Jandal wind park in Saudi Arabia, which was due to be completed in 2022. The specific tenders the company is eyeing were not disclosed.

WATCH THIS SPACE #2- Rivian planning USD 1.3 bn green bond sale: Abdul Latif Jameel-backed EV startup Rivian Automotive is planning to sell “green” bonds totalling USD 1.3 bn amid liquidity woes, Reuters reports referencing a company statement. The company will offer its initial investors up to USD 200 mn of the bonds for settlement 13 days following the securities’ issuance date. Rivian’s green bond maturity date is slated for March 2029, and shareholders will have the option to convert their bonds into company shares or opt for cash payouts. The US-based automaker will use the proceeds to launch its R2 vehicle family, a company spokesperson told the newswire.

WATCH THIS SPACE #3- The UAE says it isn’t leaving OPEC: The UAE government debunked a Friday report from The Wall Street Journal saying the country plans to exit the OPEC oil alliance to seek higher independent production capacities, CNBC reports. The WSJ news sent Brent crude prices tumbling 2.8%, leading anonymous government officials to confirm the country would remain in the oil cartel for the remainder of 2023.

Background: Disputes over oil production outputs emerged in 2021, with the UAE and Saudi Arabia entering a two-week public dispute over a Saudi-led strategy to lower OPEC production in response to pandemic-driven demand disruptions. The UAE used its veto to postpone an OPEC meeting until it secured a concession to hike its production baseline, which ultimately culminated in a Saudi-UAE compromise that saw the Emirates increase production to 3.5 mn bbl per day, 300k barrels below the 3.8 mn target it had demanded, Bloomberg reported.

WATCH THIS SPACE #4- Biden’s landmark green bill is spurring Big Oil to embrace low carbon projects: Having aggressively lobbied against the Biden administration’s USD 369 bn drive to paint the US economy green, oil and gas majors are now looking to benefit from its incentives by plowing money into low carbon projects, The Financial Times reports. Companies including ExxonMobil, Continental Resources, Talos Energy, and Phillips 66 are investing in carbon capture tech, converting fossil fuel refineries into biofuel plants, and setting up green hydrogen projects thanks to the Inflation Reduction Act’s attractive green subsidies. “This is not a game for start-ups. These are large, world-scale projects that require the kind of project expertise that we have, require the kind of size and balance sheet capacity that we have,” ExxonMobil head Darren Woods told investors in February.

A step in the right direction — or blatant greenwashing? Climate activists are infuriated by the provisions that subsidize technologies such as carbon capture, saying that it's a scheme by big oil companies to keep pumping fossil fuels. But US Energy secretary Jennifer Granholm said the incentives would help fossil fuel firms reinvent themselves as “more diverse energy and carbon management companies.”

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CLIMATE DIPLOMACY- Egypt and Australia discuss green cooperation: Biodiversity, ecotourism, waste management, and plastic pollution reduction were the focus of talks at a meeting in Cairo between Egyptian Environment Minister Yasmine Fouad and Australian Ambassador Axel Wabenhorst, according to a statement. Wabenhorst noted increased investment interest by Australian companies in marine reserves management, and ecotourism, the statement said. Wabenhorst also sat with Egyptian Oil Minister Tarek El Molla in January to discuss cooperation in mineral extraction and green energy, including hydrogen.

REFRESHER- Australia’s interest in MENA green investments is growing: Australia’s Fortescue signed an MoU with Egypt’s sovereign wealth fund to begin conducting feasibility studies on its planned USD 10 bn 9.2 GW green hydrogen project last August. In December, India’s Adani signed an agreement with Australia’s Cavendish Renewable Technology for electrolyzer technologies as part of a plan to develop hydrogen tech to meet demands in MENA. More recently, Australian-headquartered and ASX-listed mining exploration and development company European Lithium signed a non-binding MoU with Saudi Arabia’s Obeikan Investment Group in January to establish a hydroxide plant to process lithium in Saudi Arabia. Also in January, Saudi Arabia’s Royal Commission for Jubail and Yanbu signed a lease agreement for 1.27 mn sqm of industrial land with Australia’s battery materials company EV Metals to set up a facility to produce key chemicals for EV batteries.

Egypt wants to expand cooperation with the UK on renewables: Egypt’s Electricity Minister Mohamed Shaker met with Egypt’s British ambassador Gareth Bayley and a delegation of UK companies to explore avenues of cooperation in Egypt's renewables sector this week, a cabinet statement. That same day, a delegation of the British Trade Mission including green hydrogen-producing firms paid a visit to Egypt’s Suez Canal Economic Zone (SCZone) to discuss potential incentives for investors looking to produce green fuels in the economic zone, SCZone noted in a separate statement.

COME TO OUR NEXT ENTERPRISE FORUM-

We are delighted to share with you that the Enterprise Exports & FDI Forum will be taking place on 15 May at the Four Seasons Hotel at Nile Plaza in Cairo.

DO YOU WANT TO ATTEND? The first wave of invites is going out soon. If you’re a C-suite exec, exporter, investor, official, banker, or someone who should be part of the conversation, please click here to request a spot at this exclusive event.

What’s the Enterprise Exports & FDI Forum? It is the latest in our series of must-attend, invitation-only gatherings for C-suite-level business leaders. The Enterprise Exports & FDI Forum will discuss the critical topics of exports and foreign direct investment (FDI) in Egypt.

We will be taking an in-depth look into some of the most vital industry topics, including:

How to effectively break into new export markets
How to leverage domestic trends in order to create export opportunities
What foreign investors are looking for
What the government's role should be

Why now? Exports and foreign direct investment (FDI) have never been more important to Egypt’s economy — or businesses — than in the wake of the float of the EGP. We think we have a once-in-a-lifetime chance to build an export-led economy that makes Egypt a magnet for FDI, and all the benefits that will come with it.

Think of the Enterprise Exports & FDI Forum as a hands-on lab for how to turn the devaluation of the EGP into something that will turbocharge your company and our economy.

WANT TO SHARE YOUR STORY ON STAGE? Drop a note to Patrick here and let’s talk.

WANT TO BECOME A COMMERCIAL PARTNER? Ping a note to Moustafa, our head of commercial, here.

CIRCLE YOUR CALENDAR-

Oman will host Oman Sustainability Week from 12-16 March in Muscat. The event aims to create discourse amongst leaders to drive change, and movement within businesses and communities towards adopting a sustainable lifestyle.

The UAE will host the Arab Aviation Summit from 14-16 March in Ras al Khaimah. The event will bring together global stakeholders to address sustainability in the aviation industry among other topics.

Germany will host The Infrastructure Investor Global Summit from 20-24 March in Berlin. The four-day event will gather industry leaders from the global infrastructure sector to map out a course for the industry to upscale its ESG-focused operations and investments. You can register for the event here.

The Arabia CSR Awards is accepting applications until Friday, 30 June. The awardwinners will be announced during a ceremony on Wednesday, 4 October.

The first MENA Solar Conference is accepting applications from published researchers specialized in PV technology until Sunday, 30 April. The Dubai Electricity and Water Authority will be hosting the conference from 15 to 18 November, in conjunction with the Water, Energy, Technology, and Environment Exhibition and the Dubai Solar Show 2023. Researchers can submit their papers here.

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

Export-Import Bank of Korea signs a USD 6 bn agreement with Aramco

South Korea loans Saudi Aramco USD 6 bn for MENA development boom: Saudi energy giant Aramco finalized a USD 6 bn framework agreement with South Korea’s official export credit agency The Export-Import Bank of Korea to support development projects in MENA, South Korean news agency Yonhap reports. USD 1 bn of the financing will be earmarked for green hydrogen and renewables projects, the statement notes. The timeframe of Exim’s renewables-focused investment plan was not disclosed.

The details: The three-year finance package will see the South Korean lender provide loans totalling USD 6 bn to the energy giant in a bid to help secure contracts for South Korean companies involved in a range of projects in KSA and the wider MENA region, according to Yonhap.

South Korea has been on a KSA green hydrogen hunt: South Korea’s Kepco and four other firms headquartered in the country signed an agreement with Saudi Arabia’s Public Investment Fund (PIF) in November worth some USD 6.5 bn to build a hydrogen and ammonia plant. KSA’s Saudi Exim also signed in December an MoU to export green hydrogen and ammonia to the Korea Trade Ins. Corporation (K-Sure). Saudi Aramco and Sabic Agri-Nutrients shipped the world’s first commercial load containing 25k tons of blue ammonia to South Korea which arrived to Korean shores late in December.

ADQ, IHC partner up to form MENA’s largest largest asset management firm

There’s a new asset management firm on the regional block: Abu Dhabi Sovereign Wealth Fund (ADQ) is set to launch MENA’s largest independent multi-asset investment manager with Abu Dhabi-based conglomerate International Holding Company (IHC), according to a statement. The partnership would bring in leading global equity investor General Atlantic to join in as a strategic investor and partner, it added.

What’s the plan? The investment manager will manage a portfolio of assets from ADQ’s alternative investments platform, Abu Dhabi Growth Fund (ADG) and IHC upon launch. It will also manage fresh capital from founding shareholders and future investors. “Through a series of new funds, the investment manager will make investments in alternative assets, including private equity, venture capital, private credit and public equities,” the statement read. The investments would be made through a combination of limited partner commitments to top tier global funds (fund of funds strategy), direct investments (including PE and VC), credit and co-investments.

The parties have been on a renewables investment spree: ADQ recently added Abu Dhabi Waste Management (Tadweer) to its portfolio, while ADX-listed Multiply Group acquired a majority stake in IHC’s subsidiary International Energy Holding Company last year in a bid to up its investments in clean energy globally. General Atlantic has maintained a presence in the region since 2015, pouring over USD 400 mn to date across its investment portfolio. India’s Tata Motors is reportedly in talks with General Atlantic and other private equity investors and Gulf sovereign wealth funds to raise up to USD 1 bn through the sale of a “significant” minority stake in its EV business.

The story got ink from Bloomberg | Reuters | The Financial Times | The National

Check out Sahara, an off-grid solar generator made in the GCC

Sahara — KSA’s answer to off-grid sustainable energy: Manufactured in a Jeddah factory, Desert Technology’s (DT) solar generator Sahara is an off-grid containerized solar generator (CSG) that provides sustainable, affordable access to electricity in remote areas with quick and easy installation. The solar generator is designed as a standalone microgrid to provide small businesses, households, and larger enterprises with enough energy to power shops, machinery, and appliances at a fraction of the cost of diesel generation without the pollutants, their website notes.

How does it work? The Sahara models are compact and portable, including solar modules, inverters, a smart meter, batteries, and a control panel. Solar panels can be fitted atop ready-made structures that can be easily unfolded on site. During daylight hours, power flows directly through the photovoltaic system and switches to sourcing power through a battery bank at night, providing power 24/7. The product packs a versatile PV inverter designed to operate under varying temperatures, ranging from -25°C and 60°C, according to DT's fact sheet, offering suitable off-grid solar deployment for virtually any region.

Let’s talk specs: DT launched two containerized solar systems of Sahara — the Sahara 20’s and Sahara 40’s. The 20’s series stands 20 feet high and the 40’s series reaches 40 feet in height. Both have an expected operational lifetime of over 15 years, with PV modules reaching a 390 watt peak (Wp) and similar battery inverter specs of 13.8 KW with an energy efficiency rate of approximately 98.6%.

Pick between the Sahara 20’s…: The four models range between 110-180 sqm in size, generating between 21.5-35 kWp of solar energy. The battery storage capacity ranges between 38.4 kW to 76.8 kW.

… or the 40’s: These four models range between 220-340 sqm in size, generating between 35-130 kWp of solar energy. The battery storage capacity ranges between 76.8 kW to 153.6 kW. The Sahara 40’s series was designed with Africa’s energy needs in mind and can power about 100 households in remote villages in Africa, according to a company press release.

DT has nabbed government interest: The Communications and Information Technology Ministry inked an MoU with Desert Technologies to help the kingdom to operate its 5G network towers via solar energy, according to renewable energy publication PV Magazine.

And is ramping up production capacity: The Saudi company launched a subsidiary, Nurun Digital Energy, to produce more of its solar containers for off-grid portable energy generation in November. More recently, it signed an agreement with Oman’s Colossal Engineering and Construction to launch solar projects in Oman on the sidelines of the Saudi-Omani Investment Forum this month.

Can blooming seaweed be used to store carbon?

A sargassum bloom is no good news: A large mass of brown seaweed sargassum is extensively stretching across the Atlantic Ocean, ringing alarm bells over its harmful impact on climate and the pace at which it is blooming, The Guardian reported. The benign seaweed is known to harm coastal wildlife and fish and negatively impact necessary infrastructure like water and power supplies. It also causes multiple health issues including mild headaches or blackout. Researchers estimated the size of the Great Atlantic Sargassum Belt to be 24.2 mm tons last year — that’s nearly four times the weight of the Giza Pyramid.

But could the bloomin’ seaweed be useful? Researchers have been thinking of ways to dispose of the harmful brown seaweed, with some suggesting its potential benefit as a fertilizer and others seeing compost as one option, the news outlet reports. However, heavy metals in the contaminated biomass pose a further threat to the environment, with arsenic threatening its safe use around plants. Sargassum’s ability to act as a carbon sink has led some researchers to reach an ambitious plan of having robots capture the seaweed, bundle it and drop it to the bottom of the ocean.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

Norwegian hydrogen company Nel sold 108 mn shares in a private placement this week, earning the company USD 54.7 mn. Nel will use the funds to expand its plant in Norway or possibly establish a new one in the US. (Reuters)

Morocco’s UM6P partners with France’s Capgemini to research hydrogen storage

Morocco’s UM6P University has a new green innovation partner: The Mohammed VI Polytechnic University (UM6P) inked an MoU with French engineering firm Capgemini Engineering to exchange knowledge on the solid-state storage of hydrogen and its integration within vehicles, according to a UM6P LinkedIn post. The new partnership is an additional step in the university’s interest in advancing hydrogen innovation after launching pilot projects to test the feasibility of implementing patented water splitting technology in the use of large-scale green hydrogen and ammonia production last November.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

Saudi Arabia’s Shura Council approved hydrogen MoUs the Kingdom had signed with China during President’s Xi Jinping’s visit to the kingdom last December. (Saudi Gazette)

Japanese-Australian JV gets USD 1.6 bn to convert coal into hydrogen

Japan will invest USD 1.6 bn to back a Japanese-Australian joint venture project producing hydrogen from brown coal, Reuters reports. The USD 336 mn Hydrogen Energy Supply Chain (HESC) project is led by Kawasaki Heavy Industries and creates Japan's first hydrogen supply chain between Australia’s Victoria state and Kawasaki, the newswire quotes Japanese Industry Minister Yasutoshi Nishimura as saying. Production will begin towards the end of the decade and reach 30 to 40k tons of hydrogen per year — potentially rising to 250k tons — through carbon capture, Bloomberg adds.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

Tesla has lowered the price of some of its electric vehicles in the US by USD 5k in a bid to boost sales. This is the fifth time the company slashes prices in the US this year. (The Guardian)

CALENDAR

MARCH 2023

12-16 March (Sunday-Thursday): Oman Sustainability Week, Oman Convention and Exhibition Centre (OCEC), Muscat.

14-16 March (Tuesday-Thursday): Arab Aviation Summit (AAS), Al Hamra International Exhibition & Conference Centre, Ras al Khaimah, UAE.

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

20-21 March (Monday-Tuesday): Copenhagen Climate Ministerial.

27-29 March (Monday-Wednesday): First Meeting of the Transitional Committee in Egypt focusing on Adaptation and Loss and Damage.

20-23 March (Monday-Thursday): The Infrastructure Investor Global Summit, Hilton Berlin, Germany.

22-24 March (Wednesday-Friday): K.ey - The Energy Transition Expo, Rimini Expo Centre, Emilia-Romagna, Italy.

22-24 March (Wednesday-Friday): UN 2023 Water Conference, New York, NY, United States.

APRIL 2023

6 April (Thursday): Arabia CSR Awards 2022 Clinic (online).

MAY 2023

1-4 May (Monday-Thursday): Arabian Travel Market, Dubai, UAE.

2-7 May (Tuesday-Sunday): Salon International de l’Agriculture au Maroc (SIAM), Meknes, Morocco.

16-18 May (Tuesday-Thursday): Seatrade Maritime Logistics Middle East, Dubai, UAE.

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

JUNE 2023

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

13-14 June (Tuesday- Wednesday) The Arab Green Summit, Dubai, UAE.

13-14 June (Tuesday- Wednesday) Bloomberg New Economy Gateway Africa Conference, Marrakesh, Morocco.

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, UAE.

4 October (Wednesday): Arabia CSR Gala Awarding Ceremony, UAE.

31 October – 2 November (Tuesday-Thursday): World Hydropower Conference, Bali, Indonesia.

NOVEMBER 2023

30 November - 12 December: Conference of the Parties (COP 28), Dubai, UAE.

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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