Good morning, friends. We have a steady stream of updates from across the region and beyond to kick off the week, with big green cooperation emerging from the Forum on China-Africa Cooperation and new EV plants for Saudi. Let’s get the ball rolling.

THE BIG CLIMATE STORY OUTSIDE THE REGION- China pledges USD 50 bn to Africa: Chinese President Xi Jinping pledged CNY 360 bn (USD 50.7 bn) in financing for Africa over three years. USD 210 bn will be in the form of credit lines, while USD 70 bn will come directly from Chinese companies. UN Chief Antonio Guterres expects the Africa-China relations to spur “the renewable energy revolution,” according to the China Global South Project. China is Africa’s biggest two-way lender with some 13 loans worth USD 4.2 bn provided last year, including a USD 500 mn for hydropower and solar projects in Africa.

REFRESHER- China is reducing reliance on Western markets: China is pushing leaders from 50 African countries to purchase more of its green exports in return for more loans and investment. The country is hoping to secure agreements before Western levies come into effect on some of their exports, mainly EVs and solar panels. It’s also looking to gain access to critical minerals — such as copper, cobalt, and lithium from Botswana, Namibia, and Zimbabwe — in exchange for more imports of its EVs and solar panels in Africa, replacing buyers from the West.

The story made headlines in the international press: Reuters | CNBC | CNN | Bloomberg | BBC | NBC | Washington Post | Business Times | France24

WATCH THIS SPACE-

#1- Acwa Power is set to complete the first phase of its green hydrogen project in the Suez Canal Economic Zone (SCZone) in 4Q 2028, Acwa Power Egypt CEO Hassan Amin told Asharq Business. Acwa first signed the USD 4 bn agreement with the Egyptian government at the end of last year to develop a large-scale two-phase green hydrogen and ammonia project in the SCZone. The first phase of the plant will have the capacity to produce 600k tons of green ammonia annually, while the second phase will expand the plant’s output by another 2 mn tons.

#2- Saudi Arabia has identified Italy as a “partner of choice to bring green products to the European continent,” as the Kingdom looks to ramp up production of blue and green hydrogen as part of efforts to diversify away from traditional hydrocarbon products, Reuters reported last Thursday, citing comments by Saudi Investment Minister Khalid Al Falih at a business conference in Milan. Al Falih also cited a need to build out ports and pipelines to carry low carbon energy exports to Europe, adding that he intends to visit Germany and other European countries to drum up support among customers and partners.

REMEMBER- Saudi has been working to develop green and blue hydrogen capacity here at home, after launching its national green hydrogen production strategy in 2020. It set a target to generate 1.2 mn tons of green hydrogen and supply 10% of global hydrogen demand by 2030. It aims to generate 50% of its electricity from renewable energy sources by the end of the decade. Neom Green Hydrogen Company, a joint venture between Neom, Acwa Power, and Air Products, is setting up a USD 8.5 bn utility-scale green hydrogen facility with a 1.2 mn ton annual green ammonia production capacity powered by nearly 4 GW of renewable power.

#3- Canada’s Brookfield is nearing an agreement to sell its stake in Spanish renewables firm Saeta Yield to Masdar, Spanish news outlet Expansion reported last week. The transaction could be valued at over EUR 1.5 bn (USD 1.66 bn), the news outlet quotes sources as saying. Brookfield started the sale process last December and tapped Société Générale Group and Santander Bank to advise on the transaction.

ICYMI- State-owned renewables giant Masdar was set to submit a final bid to acquire Brookfield’s Saeta Yield earlier in July. Saeta Yield, which Brookfield acquired from ACS for EUR 1 bn in 2018, owns a portfolio of 28 wind farms, 10 photovoltaic parks, and seven solar thermal plants across Spain and Portugal with a total capacity of 1.2 GW. The acquisition will include the entire renewables portfolio, excluding its solar thermal plants.

Part of a deeper push into Europe: Masdar lined up a transaction that would see it acquire a 50% stake in Spanish power firm Endesa’s solar power installations subsidiary EPGE Solar for AED 3.3 bn in July. The acquisition will make Masdar a partner in 2.5 GW of renewable energy assets in Spain. The company is also looking at acquisitions of both minority and controlling stakes in Europe’s green energy sector, with the continent set to be a crucial part of its plan to reach its 100 GW target capacity by 2030, CFO Mazin Khan said at the time.

#4- Minerals Development Oman (MDO) has successfully concluded its geophysical airborne survey assessing the country’s mineral resources, according to a statement released last week. The survey covered 16k sqm across seven mineral concessions. The project took 2.5k flight hours and covered six governorates, including Al Buraimi, North and South Al Batinah, South Al Sharqiyah, Al Dhahirah, and A’Dakhiliyah, Times of Oman reported last week.

REMEMBER- Oman has abundant minerals for green energy: Oman has a rich geological structure of natural resources that can support the global energy transition. The geological deposits include platinum, lithium, copper, silicon, and cobalt — essential for the production of solar panels, wind turbines, electric vehicles, and other clean energy technologies. The sustainable commercialisation of these ores can help unlock access to these resources, Ministry Under-Secretary Mohsin al Hadhrami said.

Oman is already capitalizing on its minerals: The Oman Investment Authority and the Energy & Minerals Group’s lithium refining subsidiary LiChem signed an agreement last year to explore the development of a lithium refining complex in Oman.

#5- China Energy wants to build a green ammonia plant in Egypt: Egyptian Prime Minister Mostafa Madbouly met with chairman of state-owned China Energy Engineering Corporation — also known as Energy China — Song Hailing to discuss the company’s investment in renewables in Egypt, where Song brought up plans to construct a green ammonia plant in Egypt, according to a statement. Madbouly called on the company to speed up its renewables developments, specifically in battery storage and wind turbines. China Energy expressed that it is ready to do so, while planning to increase its energy portfolio in Egypt.

China Energy is already busy in Egypt: The company partnered with Egypt in June to conduct feasibility studies for a proposed 2 GW pumped storage hydropower plant, which would be the largest project of its kind in Africa. The Chinese firm also signed a framework agreement with Egypt’s Suez Canal Economic Zone for its USD 6.75 bn green hydrogen plant which will generate 210k ton of green hydrogen annually.

IN OTHER CHINA NEWS- China takes Canada to WTO to challenge new EV tariffs: For the third time this year, China is turning to the World Trade Organization to challenge new tariffs, this time filing the complaint against Canada’s new levies on Chinese electric vehicles, steel, and aluminum, Bloomberg reported. China’s Ministry of Commerce called the move “trade protectionism” that would harm global supply chains.

ICYMI- Canada will slap a 100% tariff on Chinese EVs, and a 25% tariff on Chinese steel and aluminum from 1 October, mirroring a similar move recently made by the US and the EU. Tariffs will apply to all EVs shipped from China, including Tesla vehicles. Canadian Prime Minister Justin Trudeau stated that these measures are intended to protect Canadian industries in response to China's state-directed policy of over-capacity. “Actors like China have chosen to give themselves an unfair advantage in the global marketplace,” Trudeau said.

COP WATCH-

US and China find middle ground on climate finance: US Senior Advisor to the President for International Climate Policy John Podesta and China’s Special Envoy for Climate Change Liu Zhenmin’s talks brought the two countries closer together regarding climate finance ahead of COP29, especially with regards to allocating funds to developing countries, Bloomberg reported on Friday. Podesta did not reveal details of the “excellent discussions” but said the pair “can find places to collaborate for the good of our people and the good of our climate.”

Background: Podesta and Zhenmin met to discuss ways of reducing global emissions and increasing funding for developing nations with a focus on establishing post-2025 funding goals for the green transition in developing countries. The meeting built on their previous talks in May where they had agreed to co-host an event on methane and other greenhouse gasses reduction at COP29 in Azerbaijan. The pair also discussed Chinese overcapacity of solar panels, EV batteries, steel, and coal power — which has been an area of contention for some time — and agreed to improve monitoring and standards of methane emissions controls.

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CIRCLE YOUR CALENDAR-

The UAE will host the World Utilities Congress from Monday, 16 September to Wednesday, 18 September in Abu Dhabi. The event will gather global energy leaders, policymakers, and other industry professionals from the power and water utilities value chain to discuss industry trends and challenges.

Saudi Arabia will host the EV Auto Show from Tuesday, 17 September to Thursday, 19 September in Riyadh. The show offers a platform for participants to learn about the latest EV technologies and services.

Tunisia will host the Decarbomed Forum from Tuesday, 24 September to Wednesday, 25 September in Tunis. The forum will showcase innovative solutions for transitioning to carbon neutrality in Tunisia and the Mediterranean region, focusing on helping businesses take advantage of new tech, renewable energy services, and green financing mechanisms to decarbonize operations.

The UAE will host the Green Steel Summit from Wednesday, 25 September to Thursday, 26 September in Dubai. The event will bring together steel industry professionals and decision makers to discuss market intelligence and the latest technological developments in sustainable steelmaking.

Egypt will host the Portfolio Egypt conference on Monday, 30 September in Cairo. The event aims to enhance cooperation among Arab stock exchanges and will cover crucial topics including market integration, product diversification, carbon markets, and regional debt markets. It will aim to outline recommendations to strengthen regional financial markets.

Egypt will host Cairo Sustainable Energy Week from Tuesday, 1 October to Thursday, 3 October in Cairo. The event will bring together policymakers, companies, and experts to discuss collaboration on the renewable energy transition across 17 Arab countries.

The UAE will host the World Green Economy Summit from Wednesday, 2 October to Thursday, 3 October in Dubai. The summit will promote the push for a green economy and will offer a platform for international entities to collaborate on sustainable development, financing, and policymaking.

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