Infinity Power awarded 1.28 GW worth of renewable projects in South Africa

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WHAT WE’RE TRACKING TODAY

TODAY: Infinity awarded 1.28 GW renewable developments in South Africa + Egypt, Sweden’s Sunshine Pro to build solar panel plant

Good morning, everyone, and a very Merry Christmas to everyone celebrating today. It’s a brisk issue this morning with big news on Infinity Power’s expansion plans in Africa and more traction for Egypt on the solar component manufacturing side.

THE BIG CLIMATE STORY OUTSIDE THE REGION- There is no single story driving the conversation in the industry abroad, but China’s Contemporary Amperex Technology (CATL) launch of “the world’s first ultra-safe skateboard chassis” for EVs, dubbed the CATL Bedrock Chassis, grabbed some ink.The world’s biggest EV battery producer said its new product can withstand 120 km/h frontal impact without catching fire or exploding, setting “new standards” for the industry’s safety. The story got coverage in Reuters and Bloomberg.

ALSO- Jera, Marubeni, and BP were awarded offshore wind projects through Japan’s latest 1 GW auction. A consortium including Jera took a project off Aomori, and another consortium including Marubeni and BP will work on another project off Yamagata. The projects are set to begin operations in 2030, and will contribute to Japan’s goal of reaching 10 GW of offshore wind capacity by 2030 and up to 45 GW by 2040. The story grabbed some ink in Reuters and Bloomberg.

WATCH THIS SPACE-

#1- Ewec allocates land for four new renewables’ sites: The Emirates Water and Electricity Company (Ewec) has received approval to allocate four new sites for solar PV and wind energy projects, according to a statement. The solar PV sites will be located in Al Fayah, Al Khazna, and Al Zarraf, and a wind power plant will be allocated in Al Sila.

More on the projects: The projects will add 4.5 GW of clean energy to Abu Dhabi. The project sites — spanning an area of 75 sqkm — were identified and secured through collaboration with Abu Dhabi’s Department of Energy and the Environment Agency. Details on the tendering timeline and the standalone capacity of each project were not disclosed.

There’s a lot in the pipeline: Ewec has at least four known utility-scale solar projects, with a total capacity of 7 GW. The projects include the operational 2 GW Al Dhafra PV plant and the under-construction 1.5 GW Al Ajban solar PV facility, in addition to the 1.5 GW Khazna solar PV and the 1.5 GW Zarraf solar PV projects, which are both still in the tendering process.

#2- Egypt’s Suez Canal Economic Zone (SCZone) has lined up framework agreements exploring green hydrogen projects worth a total of USD 64 bn, according to a statement. So far, 30 MoUs have been signed, with 12 advancing to a ‘framework agreement’ for possible green hydrogen production totaling a capacity of 18 mn tons per year, SCZone Chairman Walid Gamal El Din said in the statement. Another framework agreement is in the pipeline, with an investment ticket of USD 7.5 bn and production plans of 1.3 mn tons annually.

#3- The UAE’s Ajman set to implement sustainability measures on petroleum trading: The Emirate of Ajman in the UAE will introduce 28 initiatives to regulate petroleum trading, ensure sustainability in energy management, and improve energy sector services over the next five years as part of a new energy strategy for 2030 approved by Crown Prince Sheikh Ammar bin Humaid Al Nuaimi, state news agency Wam reports. The strategy also involves measuring returns from energy investments and carbon emission reductions.

THE SCORECARD-

The catastrophe (cat) bond market reached an all-time high, garnering almost USD 50 bn, Bloomberg reports, citing data from the ins. and risk analysis company Artemis. USD 17.7 bn of that total were sold this year only, edging out the previous record from last year with a 7% increase.

What’s behind the surge? Ins.ers and issuers have been drawn to the debt instruments because higher inflation has made it more costly to rebuild after damage from natural disasters. The bonds are more profitable than many other fixed-income assets, with investors set to earn 16% returns this year. Investors “can expect high single-digit to low double-digit gross returns” in 2025 as well, the head of Twelve Capital AG’s cat. bond portfolio Tanja Wrosch told Bloomberg. The risk spread is another attractive feature and is expected to range between 5% to 7% next year.

REFRESHER- Cat. bonds are high-yield debt instruments designed to help ins. companies raise money in the event of a natural disaster. They are also frequently used to mitigate the financial effects of climate change by transferring a specified set of risks from a sponsor, typically an ins. company, to investors. The cat bond market was at the heart of the highest-returning hedge fund strategy last year, with a 20% value growth.

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CIRCLE YOUR CALENDAR-

The UAE will host the World Energy Summit from Tuesday, 14 January to Thursday, 16 January in Abu Dhabi. The summit will host over 350 speakers including energy industry leaders and policymakers with discussions ranging from eco-waste to sustainable cities. An exhibition will also be held for showcasing green products.

Saudi Arabia will host the Future Minerals Forum from Tuesday, 14 January to Thursday, 16 January in Riyadh. The forum will gather stakeholders from over 170 countries to discuss mineral technology and exploration. Speakers will include senior government officials and CEOs from renowned mining companies Vale, Rio Tinto, and Manara.

Bahrain will host the Sustainability Forum Middle East from Tuesday, 28 January to Wednesday, 29 January in Manama. Climate experts and decision-makers will convene to discuss a number of issues ranging from decarbonization to supporting SMEs on their path to net zero. Speakers will include GCC government officials and industry leaders from the banking and industrial sectors.

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

Infinity Power awarded 1.28 GW worth of renewable projects in South Africa

Infinity + Pele awarded six solar projects in South Africa: Infinity Power — a joint venture between Infinity and UAE renewables giant Masdar — and Pele Green Energy have been awarded six solar PV projects with a total capacity of 1.28 GW in South Africa, according to a press release. The projects are set to triple Infinity’s portfolio in the country.

More details: The projects were part of the seventh round of the South Africa Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). Each project will be 51% owned by Infinity and 49% owned by Pele Green Energy.

Here is the breakdown of the projects:

A 240 MW Highveld solar farm in the Province of Mpumalanga;
Three plants in Limpopo Province including the Palladium 1 and Copper 1 boasting a 240 MW capacity each and the 150 MW Vanadium 1 farm;
The 220 MW Onderstepoort 1 and 190 MW Onderstepoort 2 in North West Province.

What’s next? The companies expect to sign implementation and Power Purchase Agreements with the government within the next eight months, the statement notes.

Infinity and SA go way back: Infinity has five operating wind plants in the country with a total capacity of 624 MW and has a pipeline of under-development projects — three solar and one wind — with a total capacity of 2.4 GW, according to the company’s website.

REMEMBER- The company has its sights on Africa: Infinity has set a target to reach 10 GW of capacity in Africa by 2030, with some USD 5 bn in expected investment tickets to realize the strategy. Last year, it acquired the Africa-focused wind power platform Lekela Power, which had 1 GW of wind capacity in Egypt, Senegal, and SA, and a pipeline of another 1.8 GW projects.

IN OTHER MASDAR NEWS-

It’s a wrap for Masdar’s Endesa acquisition: Emirati state-owned renewables giant Masdar finalized the acquisition of a nearly 50% stake in EPGE Solar, a subsidiary of Spanish power utility Endesa, for an enterprise value of EUR 817 mn and an equity value of EUR 280 mn, according to a press release (pdf).

REFRESHER- The agreement, first announced in July, will see Endesa have complete ownership of the energy generated by EPGE’s 2 GW solar portfolio under 15-year power purchase agreements. Meanwhile, both companies will mull a potential battery energy storage system hybridization developed on the portfolio of EPGE’s solar plants with up to 0.5 GW of additional capacity.

It’s been a busy month for Masdar M&A: Masdar finalized its acquisition of Spanish renewables firm Saeta Yield from Brookfield Renewable for EUR 1.2 bn this week, adding 1.6 GW renewables to Masdar’s portfolio. It also finalized the acquisition of a 70% stake in Greece’s Terna Energy earlier this month.

Egypt and Sweden’s Sunshine Pro to build a solar panel production line

Egypt partners with Sunshine Pro on solar manufacturing hub: Egypt’s state-owned Arab Organization for Industrialization signed an agreement with Sweden’s Sunshine Pro to establish a joint solar panel manufacturing project, according to a statement. Details on the timeline and the investment ticket were not disclosed.

About the factory: The factory is set to produce 1 GW of solar panels annually under the name Arab-Sewedish Energy Factory (ASEF) and will use state-of-the-art automated technology to manufacture solar panels. The production will focus on the Egyptian and African markets, with plans to reach high-performance panels capable of competing in international markets.

Egypt is going big on localization: The country has been working on strategies to localize solar PV cell manufacturing and recently kicked off construction on multiple manufacturing ventures. Elite Solar broke ground on its USD 150 mn, 2 GW solar panel factory in the TEDA zone in Ain Sokhna last week. CNG Egypt New Energy Glass has also began constructing a USD 300 million plant in Ain Sokhna, producing 230,000 tons of PV glass annually. Another solar panel mounting systems factory is set to begin production in the same industrial zone.

Developing countries will be the driver behind global cooling-related emissions as temperatures rise

Sustainable cooling is a necessary mitigation strategy, especially for developing countries most affected by extreme heat, according to a report (pdf) by the UN-sponsored Cool Coalition. “We must avoid creating a vicious cycle of meeting cooling demands through solutions that further heat up the planet,” Executive Director of the UN Environment Program Inger Andersen said in September.

Cooling demand will boom: With rising global temperatures alongside economic and population growth, the demand for cooling will boom, with the global cooling market expected to grow by USD 500 bn annually by 2050. Africa will see its cooling market increase sevenfold, while South Asia is set for a fourfold increase. Developing countries at large — which account for two-thirds of cooling-related emissions — are expected to see their cooling market almost double to at least USD 600 bn per year by 2050.

But without policy intervention, emissions would boom too: Without upgrading the current cooling systems, annual emissions from the industry are expected to double by 2050 to account for over 10% of the world’s total greenhouse emissions. Under the current trajectory, the increasing cooling need will be dealt with using fossil fuels rather than sustainable alternatives, delaying the phasing out of fossils.

The sector’s emission issue was recognized in COP28: The United Nations Environment Programme's Cool Coalition and the UAE developed a pledge that requires cutting cooling-related CO2 emissions by 68% by 2050 and requires big investments to decarbonize the sector. COP28 President Designate Sultan Al Jaber called on nations to join the pledge in July to deliver more sustainable cooling solutions globally ahead of COP28.

Big economic and human costs: On average, there are almost 500k heat-related deaths annually – the death rate for those over 65 alone is expected to quadruple by 2050 from the 2018 average of 300k. Worker productivity and economic output will also see major hits due to excessive heating. Working hours equivalent to up to 136 mn jobs would be lost, and the world GDP would see a USD 2.4 tn loss by 2030. Furthermore, the lack of access to refrigerating systems has far-reaching impacts on health and food security, leading to perishing medications, vaccines, and food products in poorer regions.

REMEMBER- MENA is especially vulnerable: The region’s geographical position, and geopolitical and socioeconomic status make it more susceptible to the effects of heat stress caused by climate change. MENA temperatures have risen an average of 0.46°C per decade in the last 45 years compared to the world’s average of 0.18°C per decade. Annual temperatures in East and North Africa could rise over 2°C by 2100 and possibly reach 6°C in some cases. North Africa saw record-breaking temperatures in July and August, including 49°C in Tunis, Tunisia, and 50.4°C in Agadir, Morocco.

Sustainable cooling can cut tns in costs: The switch to sustainable cooling could save USD 8 tn in power generation investments by 2050 for developing economies in savings from reduced spending on electricity, future power investments, and equipment.

Private financing will be essential: The biggest obstacle to making sustainable cooling more accessible is financing. On the supply side, current market conditions prefer big-sized firms with a higher ability to scale, with fewer funding sources available for small enterprises using sustainable tech. On the demand side, more efficient cooling systems have higher upfront costs, making access to grants and government support essential for consumers to switch to more sustainable cooling.

What can be done? The paper provides a series of recommendations to increase the uptake of sustainable cooling, including implementing business models that assist in reducing affordability constraints for new players, such as the pay-as-you-go programs.

Waste management and biofuels updates from the UAE

WASTE MANAGEMENT-

Jafza slashes landfill waste by 37%: Jafza, the Jebal Ali Freezone, reduced its waste going to landfills by 37% in the first nine months of 2024 through a new partnership with Dubai-based waste management company Imdaad, Al Bayan reports. The reduction is largely due to a new Refuse-Derived Fuel (RDF) plant that converts leftover waste from the material recovery facility into clean energy, replacing fossil fuels for industrial furnaces.

More details: The new RDF plant — developed under the joint venture Farz — processes 150 tons of waste daily and has generated 312 GWh of renewable energy since January. Overall, the partnership has saved over 200k trees and conserved 2.2 mn cubic meters of landfill space. By 2026, Jafza and Imdad aim to divert over 80% of waste from landfills.

BIOFUELS-

Emarat and Lootah Biofuels eye SAF production: Emarat Petroleum and Lootah Biofuels signed an MoU to conduct feasibility studies to look into building a sustainable aviation fuel (SAF) manufacturing plant to serve the UAE and the wider region, according to a press release. The partnership will also see the two parties work on other initiatives, including:

Used cooking oil recycling: Developing a collection system through Emarat’s retail stations to convert used cooking oil into biofuels;
Biodiesel integration: Introducing Lootah’s Biodiesel B5 at Emarat stations;
Maritime collaboration: Exploring biodiesel supply for vessels at select UAE ports.

ICYMI- The UAE signed off on the National Policy on Biofuels to boost production and consumption of locally produced biofuels in March. The policy introduces a regulatory framework for biofuel distribution, sets benchmarks for biofuel production and usage, and enforces production standards and mandates for the fuel within the nation.

Lithium Americas + GM partner on lithium mining

Lithium Americas + GM to develop lithium mine: Lithium Americas and General Motors reached a close on their joint venture to develop the Thacker Pass lithium mine in Nevada, Reuters reports. The JV — first announced in October — would see GM contribute USD 625 mn through a cash and credit facility in exchange for a 38% stake in the project. A final investment decision on the project will be made in early 2025.

About the mine: Thacker Pass is set to open by the decade's end. It is expected to produce 40k metric tons of battery-quality lithium carbonate annually in its first phase, enough for about 800k electric vehicles.

Nevada has big plans: The state is home to the US’ single operational lithium mine, but it is set to expand its lithium mining and processing capacity over this decade as part of a US bid to limit dependence on Chinese supply chains. In October, the US approved Ioneer’s Rhyolite Ridge lithium-boron project in Nevada, which is set to begin production by 2028 to supply Ford and other EV makers with lithium for approximately 370k EVs annually. The US-based supermaterial applications startup Lyten also announced plans to build the world’s first lithium-sulfur battery gigafactory near Reno, Nevada. The facility will have a production capacity of up to 10 GWh annually at full scale and is set to begin phase one operations by 2027.

IFC grants EUR 75 mn loan to help Senegal’s Sococim decarbonize: The International Finance Corporation (IFC) has provided a EUR 75 mn green loan to Senegal’s largest cement manufacturer Sococim to help the company reduce carbon emissions, according to a statement. The loan will help Sococim advance its 2019 Climate Plan by modernizing its furnaces to use energy efficiency systems and alternative fuel technologies like solar and refuse-derived fuels. The modernization will help the company cut emissions by 312k tons annually by 2030.

Hedge funds scale back on nuclear stocks after 2024 surge

Hedge funds hit the brakes as nuclear stocks soar: Nuclear power stocks saw major surges in 2024 as interest in the tech grew to meet the AI-driven energy demand, but some hedge funds are worried about risks of an over-valuation, Bloomberg reports. The concerns have pushed some hedge funds like Tribeca Investment Partners and Segra Capital to scale back their exposure and shift sectors.

The dynamics: Tribeca is cutting down its exposure, while Segra is shifting focus on uranium mining companies. Shifting focus to Uranium is expected to bring short-term gains, with predicted supply chain issues expected to drive prices up in 2025. Some analysts are also casting doubt over small modular reactor developers like NuScale, whose commercial viability remains years away, Bloomberg reported.

Some stocks tell the story: Constellation Energy doubled its stock value, while NuScale saw a peak of 800% rise before slowing down. Meanwhile, uranium prices have dropped about a third since their peak in February, leaving investors debating where the real chance lies.

Long-term prospects look healthy: While there are some doubts on the sector, shorting its stocks is likely a bad move “because you’re one data-center announcement” from losing big on the bet, Tribeca’s nuclear portfolio manager Guy Keller told Bloomberg.

CALENDAR

JANUARY 2025

12-15 January (Sunday-Wednesday): World Renewable Energy Congress, Manama, Bahrain.

14-16 January (Tuesday-Thursday): World Energy Summit, Abu Dhabi, UAE.

14-16 January (Wednesday-Thursday): Future Minerals Forum, Riyadh, Saudi Arabia.

18-19 January (Saturday-Sunday): Libya Energy & Economic Summit, Tripoli, Libya.

28-29 January (Tuesday-Wednesday): Sustainability Forum Middle East, Manama, Bahrain.

FEBRUARY

17-19 February (Monday-Wednesday): Egypt Energy Show, Cairo, Egypt.

23-25 February (Sunday- Tuesday): Global Water Energy and Climate Change Congress, Manama, Bahrain.

24-26 February (Monday-Wednesday): Connecting Hydrogen MENA, Dubai, UAE.

24-27 February (Monday-Thursday): Oman Climate Week, Muscat, Oman.

APRIL

7-9 April (Monday-Wednesday): Middle East Energy, Dubai, UAE.

10-12 April (Thursday-Saturday): SolarEX Istanbul, Istanbul, Turkey.

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

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

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

MAY

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

JUNE

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

OCTOBER

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

NOVEMBER

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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Infinity Power awarded 1.28 GW worth of renewable projects in South Africa

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TODAY: Infinity awarded 1.28 GW renewable developments in South Africa + Egypt, Sweden’s Sunshine Pro to build solar panel plant

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Infinity Power awarded 1.28 GW worth of renewable projects in South Africa

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Egypt and Sweden’s Sunshine Pro to build a solar panel production line

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Developing countries will be the driver behind global cooling-related emissions as temperatures rise

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Waste management and biofuels updates from the UAE

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Lithium Americas + GM partner on lithium mining

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Hedge funds scale back on nuclear stocks after 2024 surge

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Infinity Power awarded 1.28 GW worth of renewable projects in South Africa

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TODAY: Infinity awarded 1.28 GW renewable developments in South Africa + Egypt, Sweden’s Sunshine Pro to build solar panel plant

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Infinity Power awarded 1.28 GW worth of renewable projects in South Africa

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Egypt and Sweden’s Sunshine Pro to build a solar panel production line

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Developing countries will be the driver behind global cooling-related emissions as temperatures rise

Related

Waste management and biofuels updates from the UAE

Related

Lithium Americas + GM partner on lithium mining

Related

Hedge funds scale back on nuclear stocks after 2024 surge

Related

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