Iran’s electricity interconnection project with Turkey is tested and ready to go

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WHAT WE’RE TRACKING TODAY

TODAY: Egypt breaks ground on Dabaa’s fourth reactor + Regional interconnection projects pick up pace

Good morning, friends. It’s a quiet news day as we crawl closer to the weekend, but we have a couple of bits and pieces making ripples in the regional climate industry this morning.

THE BIG CLIMATE STORY OUTSIDE THE REGION- UK sinks GBP bns to develop nuclear plant: The UK is channeling an additional GBP 1.3 bn (c.USD 1.65 bn) toward establishment of its 3.2 GW Sizewell C nuclear plant in Suffolk, raising total investments for the project to over GBP 2.6 bn. The UK government and the project’s developer EDF — which expects to make a final investment decision on the project later this year — aim to raise GBP 20 bn to build the plant, which once fully operational could generate enough clean energy to meet seven percent of national power demands over its planned 60-year lifecycle. The fresh financing package committed by the UK government makes it the project’s majority stakeholder.

The story made headlines in the international press: Reuters | The Financial Times | Bloomberg | BBC

WATCH THIS SPACE-

#1- Construction of Egypt’s Dabaa’s fourth reactor kicks off: Russian President Vladimir Putinvirtually joined (watch, runtime: 32:22) President Abdel Fattah El Sisi yesterday for a ceremony marking the beginning of concrete pouring for the Dabaa nuclear power plant’s fourth and final reactor in Egypt. “Now all four power units of the El Dabaa nuclear power plant are under construction. This means that our Egypt site is becoming one of the two largest nuclear construction projects in the world,” Rosatom Director General Alexey Likhachev said, according to a press release (pdf).

REMEMBER- Rosatom was contracted in 2015 to handle the construction and provide fuel for Dabaa. It broke ground on the USD 28.75 bn project in July 2022. Construction work was set to begin in the second half of 2020 and completed by the fiscal year 2028-2029, but pandemic-related disruptions led to delays. Rosatom has signed 285 contracts worth USD 1.2 bn with more than 90 local companies for the construction of the plant, Likhachev said, adding that the plan will help increase Egypt’s GDP by over 1%.

#2- KSA and India partner on electricity interconnector: The Saudi cabinet has approved an MoU to develop a clean energy interconnector linking the kingdom’s electricity grid to India, SPA reports. The subsea transmission line will reportedly cost some USD 18 bn to build, Attaqa notes. Per the newly approved agreement, KSA will partner with India across the full green and low-carbon hydrogen value chains.

We knew this was coming: Saudi Arabia and India began talks on cooperation in green hydrogen with sources back in September, including discussion regarding plans to establish a subsea link between both countries.

India’s renewable goals: India aims to generate 50% of its electricity needs from renewable energy by 2030. India is also targeting 500 GW production capacity from renewables and a 45% slash in its emissions, offsetting about 1 bn tons of CO2. India estimates it will need around USD 10 tn by 2070 to reach carbon neutrality.

#3-93% of EU banks committed to decarbonization are misaligned with the bloc’s 2050 netzero target, threatening their balance sheets and exposing 70% of the banks to legal and reputational risks, a new report (pdf) by the European Central Bank (ECB) revealed yesterday. The ECB has given banks operating in the bloc until the end of 2024 to meet decarbonization disclosures, with plans to instate capital requirements for firms failing to report their climate action efforts, Reuters notes. The report surveyed 95 banking institutions covering 75% of EU loans.

And 90% of the banks are exposed to elevated energy transition risks: In its new report, the ECB quantifies the most notable energy transition risks across the credit portfolios of the banks surveyed, concluding that 90% of the banks are exposed to transition risks. 13 firms had over EUR5 bn in exposures across six key transition sectors, Reuters added.

REMEMBER- France is the EU’s top “carbon bomb” supporter: French banking groups have shelled out USD 154 bn since the 2015 Paris Agreement toward financing the world’s 425 largest fossil fuel extraction projects — also known as carbon bombs — with the country's top banking groups BNP Paribas, BPCE Group, Crédit Agricole, and Société Générale investing some USD 17.8 bn in big oil in 2022 alone.

IN OTHER EU NEWS-EU carbon prices aren’t faring well: A new Reuters poll of nine analysts has cut forecasts for EU carbon prices from 2024 to 2026 on the back of weak industrial demand for power plants to an average of EUR 74.11 per CO2 metric ton (MT) this year, EUR 83.31 in 2025, and EUR 100.13 in 2026 The 2024 forecast is down 11.3% from a previous Reuters survey in October, while the 2025 projections fell 6.3%, and the 2026 numbers are also down 2.8%.

Why is this an issue? Last month, the International Monetary Fund called for raising the trading price of carbon in efforts to incentivize the world’s biggest polluters to accelerate their decarbonization efforts. Raising the price of carbon can help collect alternative funds for climate action without drowning developing countries in green debt, the IMF said at the time, adding that the price of carbon needs to more than double to average at least USD 75 / ton by 2030 for global climate goals to succeed.

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CIRCLE YOUR CALENDAR-

The UAE will host the Management and Sustainability of Water Resources Conference from Monday, 26 February to Wednesday 28 February in Dubai. Water availability in arid and semiarid regions, global water issues, and future water and environmental challenges are all on the agenda.

Saudi Arabia will host the International Conference on Sand and Dust Storms in theArabian Peninsula from Monday, 4 March to Wednesday, 6 March in Riyadh. The conference will address regional challenges caused by sand and dust storms and discuss monitoring systems, mitigation strategies, economic and infrastructural impacts, and more.

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

Iran completes testing on electricity interconnection project with Turkey

Iran’s electricity interconnection with Turkey is ready to go: Iran has constructed and successfully tested energy transmissions lines and facilities needed to export 400 MW of electricity — including energy generated by renewables — to Turkey, IRNA reported, citing comments made by Iran’s Minister of Energy Ali Akbar Mehrabian on the sidelines of Iran's Renewable Energies Exhibition. The new connection will also make it possible for Iran to export energy to the EU via Turkey.

Turkey and the EU are already connected: The Turkey-EU interconnection has been in operation since January 2016 after their state-owned transmission companies signed an agreement together the year before, according to an EU report (pdf). While the EU currently has three electricity interconnections with Turkey via Bulgaria and Greece, the bloc is looking to ramp up its interconnection capacity as it works on diversifying its energy sources away from Russian natural gas imports, the German Institute for International and Security Affairs said. Renewable energy imports (including hydrogen) from neighboring countries will be essential for this process given the EU’s ambitious production target, the institute added.

Eyeing an expansion: Iraq’s interconnection project with Turkey was completed in April, but the project is yet to be launched, pending an approval for the tariffs on transporting energy through the interconnection by Iraq’s Electricity Ministry.

Iran has been stepping up its renewables game: In October,Iran started construction on a EUR 60 mn, 100 MW solar power plant for the Chadormalu mine in Yazd. Early last year, Iran's Renewable Energy and Energy Efficiency Organization (Satba) announced earlier this year plans to re-tender 2.2 GW of solar projects, aiming to have one solar farm in each province. It also announced a 1 GW solar farm in Qazvin.

UAE’s Crysp Farms closes USD 2.25 mn seed round led by GateCapital

Dubai-based vertical farming startup Crysp Farms has secured USD 2.25 mn in a pre-series A funding round, according to a statement. The seed round was led by strategic and financial advisory firm GateCapital, as well as some unnamed strategic investors from the UAE and Saudi Arabia, the statement reads.

Crysp Farms: Founded in 2019, Crysp Farms builds and operates vertical hydroponic farms for hotels, hospitals, restaurants, and supermarkets, providing 130 crop varieties for fresh local produce. The startup currently operates in 20 locations across the UAE, setting up its farms at the Ritz Carlton JBR, Carrefour Me’aisem, and Mandarin Oriental.

The seed round will help Crysp Farms expand its presence regionally across Saudi Arabia, Seychelles and the Maldives, as well as facilitate the establishment of new farms in the UAE within hotels and resorts managed by Hilton Worldwide, Jumeirah Group and Marriott International.

A special focus on Saudi: Crysp Farms is currently prioritizing the establishment of its farms within the hospitality and healthcare sectors across different cities in Saudi Arabia, along with providing support for undisclosed “development projects.”

Egypt’s COE/E wraps feasibility study on solar-powered desalination system

The Center of Excellence for Energy (COE/E) has concluded the feasibility study on a decentralized solar-powered desalination system, according to the team’s research published on Science Direct. The system is being developed in a bid to secure water supplies for households living in remote areas and tackle the water scarcity that has left about 93% of Egypt’s rural lands untapped for agricultural potential, co-author of the USD 160k, USAID-funded study and Director of Mansoura University’s Nanotechnology Center Mohamed Elmarghany told Attaqa.

The tech: COE/E — operated by Arizona State University (ASU) in partnership with Ain Shams University, Mansoura University, and Aswan University — fabricated and tested a fully solar reliant offgrid desalination system for electricity generation and freshwater production in Egypt’s Mansoura University, incorporating photovoltaic (PV) panels, a solar thermal collector, and a membrane desalination (MD) unit in their system. The researchers assessed the tech’s performance against various feed temperatures, flow rates, and salt concentrations.

What’s the difference between MD and RO? Compared to the conventional reserve osmosis (RO) method, MD is a low-energy consuming desalination technique garnering support regionally for its potential to produce high quality potable water, along with its ability to incorporate low-grade thermal sources from renewable energy such as solar power and geothermal energy, all while having low operating pressure and temperature, according to the researchers.

How it works: The MD method extracts salt and minerals from water solutions through porous layers, which extends the life cycles of desalination plants given it is less prone to fouling — the accumulation of undesired deposits on membrane surfaces, resulting in the reduced production efficiency, higher energy consumption, and a decrease in water quality — compared to RO. MD also has a nearly 100% salt ejection rate (separation of water from the salt).

Findings: The team’s unit attained higher freshwater flux productivity rates — volume of water produced per area per unit of time — compared to conventional MD systems, reaching around 15 kg/sqm/hour at a feed inlet temperature of 65 °C and feed mass flowrate of 66 kg/h for the MD cell with cylindrical obstacles.

Minimal solar needed: The COE/E team notes a small PV unit spanning an area of just 0.377 m2 would be enough to power its MD system for 15 consecutive hours, helping people residing in rural areas shore up water supplies with minimal energy generation capacity.

A step toward MD commercialization: The usage of turbulence promoters — leveraged to enhance hydraulic conditions in MD units — helped the team overcome limitations of the temperature polarization (TP) phenomenon which is infamous in MD systems for decreasing water production as a result of the removal of latent heat associated with water evaporation. The heat removal process leads to the decline of feed temperature profile in proximity to the membrane surfaces, and remains a main obstacle hindering expansion of MD utilization, the researchers explain.

Why does this matter? MENA is the most water-scarce region in the world, according to the Public Reference Bureau. While the region holds some 6.3% of the global population, it only has 1.4% of the world’s renewable freshwater sources. As global warming exacerbates desertification globally, MENA is upping its desalination projects and is looking to conserve water to withstand the effects of climate change. Seawater desalination projects currently provide more than 90% of all daily water requirements in the GCC region. The GCC region produces approximately 40% of the total desalinated water in the world, according to the MENA Desalination Market report by Ventures Onsite.

More about COE/E: Established in 2022, the five-year project received USD 22 mn funding from USAID and aims to provide current and future professionals in the energy sector with the means to meet the market’s dynamic and ever-developing expectations. Earlier this month, Enterprise sat down with the project’s director and professor at ASU, Sayfe Kiaei, and the COE/E’s technical advisor and professor at Ain Shams University, Tamer Elnady, to understand the ways in which the CEO/E plans make a sustainable mark on Egypt’s energy industry.

ADCB partners with UNIDO, joins Egypt’s green growth program

GREEN FINANCE-

ADCB Egypt partners with UNIDO on green growth program: The Abu Dhabi Commercial Bank Egypt (ADCB) is cooperating with the United Nations Industrial Development Organization (UNIDO) and joining Egypt's green growth program to support small and medium-sized businesses, especially ones targeting green projects, according to a statement. UNIDO will offer financing and non-financing products and services for ADCB's clients to achieve the lender's goal of having sustainable financing make up 15% of its loan portfolio by 2030. The program will include companies working on renewable energy projects, sustainable agriculture, waste management, and others.

The lender is doing more: ADCB launched Egypt's first sustainable corporate account last month. The lender also joined the Net-Zero Banking Alliance and committed AED 125 bn in sustainable finance by 2030.

IsDB + AIIB reaffirm sustainability partnership: The Islamic Development Bank (IsDB) and The Asian Infrastructure Investment Bank (AIIB) signed an MoU to boost sustainable financing, according to a statement. The agreement builds an initial partnership between the two lenders, and expands on their existing co-financing framework with a focus on enhancing climate-resilient infrastructure.

REMEMBER- Both banks are making strides in green finance: AIIB partnered with the COP28 presidency in October to mobilize establish financial structures to increase the mobilization of private and institutional capital, including a blended finance structure to drive capital into green projects. IsDB also committed USD 250 mn to the International Renewable Energy Agency’s USD 4 bn Energy Transition Accelerator Financing platform last month.

Bapco Energies launches new green transition finance framework: Bahrain’s Bapco Energies has unveiled a green transition finance framework — made in collaboration with international banking group Standard Chartered — making it the first energy company in the region to do so, according to a press release. The framework outlines plans to secure funding for renewable energy, carbon capture and storage, no/low emissions fuels, and energy efficiency projects. Global provider of ESG goal solutions ISS Corporate Solutions offered a Second Party Opinion for the framework.

ELECTRIC VEHICLES-

Bee’ah Group to establish EV charging infrastructure in Sharjah: The Sharjah Roads and Transport Authority (SRTA) is partnering with the UAE’s Bee’ah Group to establish and operate an EV charging network across the emirate to keep up with the recent surge of EV usage, according to a statement. Hundreds of chargers — including new fast chargers — will be deployed along highways, urban areas, and coastal regions. The partnership aligns with the National Electric Vehicles Policy, which aims to have EVs make up 50% of vehicles on the UAE’s roads by 2050.

REMEMBER- Bee'ah is set to achieve carbon neutrality in Sharjah: Bee’ah Group has set a target to reach net zero emissions by 2040. The company is close to reaching carbon neutrality in the Sharjah Emirate alone, where Bee’ah’s zero-waste strategies have enabled a 90% landfill waste diversion rate.

Archer Aviation + NASA partner on air mobility: Mubadala Capital-backed green mobility firm Archer Aviation has signed an agreement with NASA to collaborate on Advanced Air Mobility (AAM), according to a statement. The two will study efficient battery cells and safety testing for AAM, mainly Archer’s Midnight battery system and its space applications. NASA also plans on providing its test results to advance the AAM industry globally.

Archer has a regional presence: Archer signed an agreement with the Abu Dhabi Investment Office last month to explore the possibility of establishing an air taxi network in the Emirates by 2026.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

ACUD approves incentives for green buildings: Egypt’s Administrative Capital for Urban Development (ACUD) is offering incentives for investments in green projects in the New Administrative Capital. Qualified candidates will have to have international certifications like that of the LEED International Certificate for Green and Sustainable Building. (Daily News Egypt)
Algeria + US talk energy cooperation: Algeria's Energy and Mining Minister met with the heads of big US energy firms — including Exxon Mobil, Chevron, Hecate Energy, Arc Energy, National Energy Services Reunited, Reasol, and Philippe Group Mining — to discuss cooperation and investment paths in renewable energy, hydrogen, desalination, and mining. (Statement)

JSW invests USD 4.8 bn in EV manufcaturing

India's JSW Group is investing INR 400 bn (USD 4.9 bn) in EV manufacturing in India, Reuters reports. The group has earmarked INR 250 bn from the investment for an EV battery factory in the first two phases of its plan, and INR 150 bn for an EV components manufacturing plant in the third phase. The group also partnered with China's SAIC Motors in November to develop a system for EVs and green mobility.

Part of bigger goals: EVs made up 2% of India’s car sales in 2023 and the country aims to boost the share to 30% by 2030. India is also exploring cutting import taxes for EVs to boost local production, a government official told Reuters.

Australian investment group Macquarie has raised more than EUR 8 bn for its new European Infrastructure Fund 7, the largest of its kind on the continent, according to a statement. The fund aims to invest in critical assets and infrastructure companies in the decarbonisation, digitalisation, and circular economy sectors, among others. The fund attracted investors from pension funds, ins. companies, sovereign wealth funds, and family offices, mainly from Europe, the Middle East, Africa, and Asia-Pacific, The Financial Times writes.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

Petrobras to expand renewables portfolio: Brazilian oil firm Petrobras is eyeing stakes in already operational solar and wind projects with the aim of creating a 2 GW renewable energy portfolio. The company is looking to invest USD 5.2 bn in solar and wind projects by 2028, but did not disclose how much it will invest this year. (Reuters)
Chile’s Codelco secures first lithium asset worth USD 253 mn: State-owned copper mining company Coldeco got approval from its shareholders to aquire Australia’s Lithium Power International company, which is valued at USD 253 mn. This marks the first lithium purchase for Codelco, the world’s biggest copper producer. (Bloomberg)

Researchers at Qatar University develop new material to detect hydrogen

Hydrogen sensing method refined: A research team from Qatar University (QU) has created a new eco-friendly material that can detect hydrogen gas in the air at different concentrations and temperatures quickly and with high selectivity, Alsharq writes. The researchers used a new method to synthesize the material without using hazardous chemicals or organic solvents. The sensing material can be produced in large quantities at room temperature, making the process both energy and cost efficient.

Why does this matter? Accurately sensing and measuring hydrogen concentrations is important for the safe use of hydrogen fuel — especially as hydrogen is much lighter than air allowing for a rapid dispersal of the fuel in case of a leak — and therefore will be a crucial element in the energy transition, Open Access News writes. While hydrogen is a non-toxic fuel, it is highly flammable and can be dangerous, especially if a continued leak leads to the concentration of the gas.

Safety concerns: Given that the International Energy Agency has identified that the world will need to produce 520MT of clean hydrogen annually by 2050 to reach net zero, safety will be a major challenge for hydrogen proponents, especially as hydrogen’s properties make it difficult to detect using traditional infrared sensors, Open Access News added.

How did they do it? The material is made of hollow nanocages of palladium and a mixture of palladium and platinum, which have a core-shell nanostructure and have physical and chemical properties for catalytic reactions and hydrogen absorption. The team used a green method to make the nanomaterial that can produce several grams at once at room temperature.

CALENDAR

JANUARY 2024

20-24 January (Saturday-Wednesday): ASHRAE Winter Conference, Illinois, USA.

22-25 January (Monday-Thursday): Iran International Renewable Energy and Energy Efficiency Exhibition, Tehran, Iran.

29 January-2 February (Monday-Friday) World Environmental Education Congress, Abu Dhabi, UAE

FEBRUARY 2024

26-28 February (Monday-Wednesday): Management and Sustainability of Water Resources, Dubai, UAE.

MARCH 2024

4-6 March (Monday-Wednesday): International Conference on Sand and Dust Storms in the Arabian Peninsula, Riyadh, Saudi Arabia.

APRIL 2024

16-18 April (Tuesday-Thursday): World Future Energy Summit, Abu Dhabi, UAE.

16-18 April (Tuesday-Thursday): Middle East Energy, Dubai, UAE.

23-25 April (Tuesday-Thursday): Connecting Green Hydrogen MENA, Dubai, UAE.

28-29 April (Sunday-Monday) Global Cooperation, Growth and Energy for Development,Riyadh, KSA.

30 April-2 May (Tuesday-Thursday): Autonomous E-Mobility Forum, Doha, Qatar.

MAY 2024

7-9 May (Tuesday-Thursday): Global Waste Forum, Algiers, Algeria.

14 to 16 May (Tuesday-Thursday): Airport Show, Dubai, UAE.

19-21 May (Sunday-Tuesday): Saudi Energy Convention, Riyadh, KSA.

20-22 May (Monday-Wednesday): Electric Vehicle Innovation Summit, Abu Dhabi, UAE.

28-30 May (Tuesday-Thursday): Make it in the Emirates Forum, Abu Dhabi, UAE.

JUNE 2024

5 June (Wednesday): World Environment Day, Saudi Arabia.

OCTOBER 2024

15-17 October (Tuesday-Thursday): EV Auto Show, Riyadh, KSA.

NOVEMBER 2024

(xxNA) 11-14 November (Monday-Thursday) Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC), Abu Dhabi, UAE.

DECEMBER 2024

2-13 December (Monday-Friday): Conference of the Parties (COP16) to the United Nation Convention to Combat Desertification, Riyadh, KSA.

EVENTS WITH NO SET DATE

2024

Early 2024: The 2023 US Algeria Energy Forum, Washington DC, USA.

12-14 February (Monday-Wednesday): Sustainable Aviation Futures MENA Congress, Dubai, UAE.

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.

2025

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

UAE to have over 1k EV charging stations installed.

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.

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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