KSA’s EV maker Ceer inks USD 2.2 bn supply agreement with Hyundai Transys

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WHAT WE’RE TRACKING TODAY

TODAY: Ceer inks major supply agreement with Hyundai + UAE’s Tenderd closes series A funding round

Good morning, lovely people, and a happy Eid to all. We’re very much looking forward to an extended break and wishing you all a week of relaxation, family time, and lots of meat for those who indulge. Enterprise Climate will be back in your inboxes on Monday, 24 June at our usual time.

We have a compact issue this morning as the news cycle grinds to a near halt in the runup to Eid, but first, a big move on Chinese imports from the EU…

THE BIG CLIMATE STORY OUTSIDE THE REGION- EU to impose up to 38.1% in tariffs on Chinese EVs: The European Commission told automakers it will begin imposing additional tariffs on Chinese EVs from next month to protect its local automotive industry. On top of the preexisting 10%, the duties will stand at 17.4% for BYD, 20% for Geely, and 38.1% for SAIC. Companies such as Tesla and BMW that produce vehicles in China, but were “cooperative” during the investigation, will be hit with a 21% tariff. The tariffs follow similar protectionist moves by the US last month that quadrupled duties on Chinese EVs up to 100% and will lead to EUR bns of extra costs amid slumping demand and low prices in China. Germany, Sweden, and Hungary did not support the move to increase tariffs in fear of retaliation by the Chinese.

China is unfazed: The Chinese Passenger Car Association doesn’t expect the tariffs to have much of an impact on Chinese firms and says they fall within expectations. The Commerce ministry said it would monitor the situation and retaliate if necessary to protect the “legitimate rights” of Chinese companies. The Chinese foreign ministry spokesperson Lin Jian reaffirmed those claims and urged the EU to support free trade. The country has already fought back with an anti-dumping investigation into mostly-French brands and passed a law that would make it easier to retaliate if needed back in April.

WATCH THIS SPACE-

Another Masdar-Infinity wind farm for Egypt? The European Bank for Reconstruction and Development (EBRD) is mulling over extending a USD 71.7 mn senior loan to finance a 200 MW, USD 214.8 mn wind farm in Egypt’s Ras Ghareb developed and operated by the UAE’s Masdar and Egypt’s Infinity Energy, according to the lender’s project description. The project, dubbed Masdar IPH Wind, is 51% owned by Masdar and Infinity Energy owns the remaining 49%.

Is this different from the mega wind farm already in the works? Infinity Power, Hassan Allam Utilities, and Masdar inked a land access agreement last month for their planned USD 11 bn 10 GW wind farm project in Sohag. The consortium will reportedly have access to over 3k sq km of land in West Sohag, Al Ahram reported at the time, allowing the group to conduct the surveys and studies needed before beginning construction. The consortium is expected to reach financial close and break ground on Egypt’s largest wind energy project in 1Q 2025.

On the solar side of things: The Egyptian government will launch a tender to select an international consultant tasked with developing a strategy to localize the manufacturing of chips and solar PV cells, according to a statement. No timeline was disclosed for the consultant selection process.

IN OTHER EGYPT NEWS- Cutting energy subsidies and introducing a carbon tax could boost Egypt’s revenues by up to 21.5%, according to a new report (pdf) by the World Bank. The report estimates that removing fuel subsidies could increase Egypt's budget revenues approximately 12%, while a carbon tax could add another potential 11.2%. The report projects that lifting fuel subsidies could reduce emissions by 2.2% to 3.4%, and introducing a carbon tax could further cut emissions by 6.7% to 8.1%. Implementing both measures could lead to a reduction of 8.4% to 10.7% in emissions.

The outcome depends on how the funds are used: The study warns of potential economic contraction, ranging from 0.005% to 0.104% — even if the government uses the additional funds to boost investments. The impact on the economy depends on how the revenue from the carbon tax and subsidy savings is utilized, with scenarios including public investment increases, cash transfers to households, or corporate tax cuts.

WORTH READING-

Can natural gas be converted to hydrogen while still underground? A new method to produce hydrogen from natural gas directly on gas fields was revealed by researchers from the Skolkovo Institute of Science and Technology, according to a new study in Fuel Journal. Their method — which has an efficiency rate of 45% — involves injecting steam, a catalyst, and oxygen into natural gas wells to release a mixture of carbon monoxide and hydrogen, from which pure hydrogen can be easily separated. The CO2 produced is trapped underground, preventing it from contributing to the greenhouse effect. The findings are yet to be tested beyond the laboratory, and in an actual gas field.

The details: The method is based on established technologies, adapted for the first time for in-field hydrogen extraction from natural gas reservoirs. Laboratory tests simulating real gas field conditions have shown that the optimal reaction occurs at 800°C with a steam-to-gas ratio of four to one. The efficiency of hydrogen production also varies with the rock composition.

THE SCORECARD-

#1- Egypt and Morocco rank among top ten of hydropower added in Africa in 2023: Egypt and Morocco were included in the ten African countries that added the most hydropower in 2023, according to this year’s World Hydropower Outlook. Egypt installed an additional 2.876 GW of hydropower capacity, while Morocco added 1.77 GW.

Egypt has untapped potential: There is still much potential for small hydro and pumped storage projects in Egypt, the report found. Egypt is also partnering with China Energy to conduct feasibility studies for a proposed 2 GW pumped storage hydropower (PSH) plant, which would be the largest PSH project in Africa.

And Morocco has projects in the pipeline: The El Menzel PSH plant near Séfrou, Morocco, which is co-financed by the Islamic Development Bank, is set to commence operations by the end of 2028, the report states. It will add 300 MW to the national grid, enhancing Morocco's clean energy transition by integrating renewable energy sources, improving grid stability, and meeting peak electricity demand.

#2- Brics emissions surge: Brics nations emitted a record 1.98 bn tons of CO2 from power generation in 1Q 2024, exceeding the rest of the world's combined emissions by 500 mn tons, Reuters writes, citing data from think tank Ember. China and India contributed over 90% of the bloc’s total emissions, primarily due to their heavy coal use. Russia also saw increased power emissions in the beginning of 2024, while Brazil and South Africa's emissions remained stable.

REMEMBER- Regional players recently joined: Egypt, the UAE, Saudi Arabia, and Iran were among the six countries invited to join the bloc of emerging economies known as the Brics during the organization’s annual summit in South Africa last year.

COP WATCH-

COP29 host Azerbaijan has been accused of clamping down on media and civil society activism — particularly climate advocacy groups, The Guardian reports. There were at least 25 arrests or sentencing of journalists and activists over the past year, Human Rights Watch found and campaigners made their concerns known at the pre-COP29 meetings in Bonn. The country has also been accused of holding political prisoners since its invasion of Armenia’s Nagorno-Karabakh region last year. Azerbaijan is considered one of the most corrupt countries in the world and was ranked 154 out of 180 in a corruption index by Transparency International last year.

Will Azerbaijan follow the UAE’s footsteps to make an “exception”? Climate activists were allowed to “assemble peacefully” during COP28 in UAE, despite a ban on unauthorized protests in the Gulf country. “In line with UNFCCC guidelines and adherence to international human rights norms and principles, there will be space available for climate activists to assemble peacefully and make their voices heard,” the UAE said at the time.

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CIRCLE YOUR CALENDAR-

Spain will host the Connecting Green Hydrogen Europe conference from Tuesday, 25 June to Thursday, 27 June in Madrid. The event will see around 5k attendees including industry leaders, energy ministers, and executives to explore solutions, new technologies, and transformative advancements to advance the hydrogen industry.

Turkey will host the Nuclear Power Plants Summit & Expo from Tuesday, 2 July to Wednesday, 3 July in Istanbul. The event will gather utility companies, independent power producers, government officials, and industry leaders to explore nuclear power projects, plans, products and tech solutions.

Egypt will host the Egypt Mining Forum from Tuesday, 16 July to Wednesday, 17 July in Cairo. The event will convene decision-makers from government, industry experts, new exploration firms, financiers, and investors to explore the challenges and advantages to establish Egypt as a leading global mining hub by 2040.

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

Saudi EV maker Ceer inks USD 2.2 bn supply agreement with Hyundai Transys

Ceer lines up more EV component suppliers: KSA’s EV company Ceer has inked a SAR 8.2 bn (c. USD 2.2 bn) contract with global auto parts maker Hyundai Transys to supply advanced EV drive systems (EDS) for its vehicles, according to two separate statements (here and here).

The details: Ceer will install the integrated drive systems in its entire EVs lineup including SUVs, sedans and coupe models. The contract marks the first by Hyundai Transys for a global automaker. Hyundai Transys is a unit of South Korean automobile giant Hyundai Motor Group.

What is EDS? Unlike typical EDS — which is made up of separated motors, inverters, and reduction gears — the Hyundai Transys’ EDS is an integrated 3-in-1 system that combines the EV’s motor, inverter, and the reduction gear. This system is smaller, lighter, and more power efficient than traditional ones, making it easier for EV manufacturers to design their vehicles and cut costs.

Not Ceer’s first partnership with Hyundai: Hyundai Kefico — another subsidiary of Hyundai — signed a KRW 250 bn (c. USD 196 mn) agreement to supply spare parts to Ceer last August. Under the agreement, Hyundai Kefico will supply Ceer with vehicle control units — the travel computers which realize the control decisions of electric vehicles — and EV traction inverters, which transform direct current supply from EV batteries into an alternating current output.

Ceer’s EV complex is also underway: The company awarded a SAR 5 bn (USD 1.3 bn) construction contract for its electric vehicle complex to local contractor Modern Building Leaders in March. The complex is set to be completed in two years with an estimated capacity of multiples of 100k vehicles.

About Ceer: Ceer — a JV between the Public Investment Fund and Taiwanese multinational electronics contract manufacturer Hon Hai Precision Industry Company (Foxconn) — launched in 2022 as KSA’s first national electric vehicle brand. The EV company is expected to contribute USD 8 bn to GDP by 2034 and to be a magnet for more than USD 150 mn in foreign direct investment. Ceer’s EVs are expected to hit the market in 2025. It will license component technology from BMW in the development process.

Emirati contech startup Tenderd closes USD 30 mn closes series A funding round

UAE-based sustainable construction tech startup Tenderd raised USD 30 mn in a series A funding round from both new and existing investors, according to a press release. The round was led by AP Moller Holding, and saw the participation of new investors, including Quadri Ventures and Saurya Prakash (Linkedin), and existing investors, including Aramco’s venture arm, Wa’ed Ventures, Nakhla Ventures, SOMA Capital, and Liquid 2 Ventures.

Where’s the money going? The company plans to use the funds towards expansion plans and developing its tech to better integrate AI into the daily operations of construction, mining, and industrial sectors.

What does Tenderd do exactly? Founded in 2018 by Arjun Mohan (LinkedIn), the company develops tech tailored to heavy industries like construction, energy, and logistics. The firm offers customers AI-generated data analytics for calculating carbon footprint, tracking emissions by equipment type, monitoring fuel costs and usage in real-time, and report generation with actionable insights. The tech also helps construction companies visualize operational trends across project sites and provides in-depth data about transport fleets.

Making early strides in efficiency: Tendred was selected as the World Economic Forum's Innovation Partner in 2021. The tech first tested Internet of Things devices to help 120 small and medium-sized manufacturers improve income, sustainability, and efficiency in a pilot program launched in Brazil. Following the project's success, it started expanding to Colombia, South Africa, Kazakhstan, Saudi Arabia, and Turkey, providing guidance and support for project planning and execution across these markets.

Adnoc taps Celeros for CCS tech + Egypt tackles water scarcity

CARBON CAPTURE-

Adnoc taps Celeros to provide carbon capture tech for Habshan plant: Adnoc has chosen US-based flow technology company Celeros to provide two high pressure CO2 injection packages — among the world’s largest — for carbon capture and storage (CCS) at its gas plant in Abu Dhabi, according to a statement. The Habshan plant will be able to process 1.5 mn tons of CO2 annually.

REMEMBER- Adnoc has been exploring CCS investment opportunities: Adnoc signed a strategic collaboration agreement with Occidental Petroleum to explore potential investments in CCS hubs in the UAE and the US in April. The carbon capture program is part of an initial USD 15 bn decarbonization investment in low-carbon solutions to reach Adnoc’s Net-Zero by 2045.

WATER MANAGEMENT-

Egypt inks agreement for water resources management: Egypt’s National Authority for Remote Sensing and Space Sciences (NARSS) and the National Water Research Center (NWRC) have signed a joint cooperation protocol to enhance water resource management and development to address Egypt’s water challenges, Daily News Egypt reports. The collaboration involves studying and evaluating surface and groundwater resources, managing natural resources and earth sciences, and developing smart systems for efficient water management. It also aims for the use of advanced technologies like remote sensing, GIS, lasers, radar, and thermal sensors.

REMEMBER- Egypt’s water scarcity crisis will reach new levels once GERD is complete: Water scarcity has left about 93% of Egypt’s rural lands untapped for agricultural potential. Without increasing agricultural water efficiency, “water scarcity will increase net virtual water imports by 15% by 2030, reaching 45% in drought periods,” according to a report from the World Bank, the International Finance Corporation, and the Multilateral Investment Guarantee Agency. Egypt fears that the Grand Ethiopian Renaissance Dam (GERD) presents an existential threat to its water security as Ethiopia continues to unilaterally fill the reservoir without a binding agreement.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

UAE’s Moro Hub gives MOCA green certificate: Digital DEWA subsidiary Moro Hub has awarded a green certificate to the UAE Ministry of Cabinet Affairs (MOCA) for its commitment to environmental sustainability through the use of Moro Hub's Green Data Centre for its IT work. (Wam)

Another attack on corporate climate action from US Republicans

Right wing attack on Wall Street: Republican lawmakers are accusing Wall Street of “colluding” with climate advocacy groups and forming a “climate cartel” in their bid to shrink corporate America's emissions, Reuters reports, citing a report by the Republican majority in a US congressional committee. In response to fears that the fossil fuel industry will see increased divestment as more firms adopt ESG criteria, Republicans are accusing the Biden administration of not properly investigating the “apparent violations of longstanding US antitrust law.”

Big names were thrown in the bag: “The Republicans described the world's three biggest asset managers, BlackRock, Vanguard, and State Street as members of the climate cartel,” Reuters writes. From the climate advocacy side, the report focused most of its criticisms on Climate Action 100+ — a group of more than 700 investors working on pushing companies to curb emissions — which the report says are “bullying asset managers to join.”

But not everyone agrees: “There is no theory of antitrust law that prevents private investors from working together to capture the risks associated with climate change,” Democrat Congressman Jerrold Nadler said in response to the report. He argued that cooperating on climate efforts enhances competition by creating a streamlined emissions disclosure framework. Democrats still control the White House and the Senate making anti-ESG legislation unlikely at the moment. However, the upcoming elections may shake things up.

You can read more about the recent political backlash against ESG in our comprehensive report published last month.

Italian electrochemistry firm Industrie De Nora has broken ground on Italy's largest electrolyzer manufacturing plant, Reuters reports. The EUR 100 mn plant is slated to be operational by late 2025 or early 2026, and already has orders from customers — including Neom's Green Hydrogen Project — secured to produce 2 GW worth of hydrogen.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

Orsted to install Tesla battery system in offshore wind farm: Renewables group Orsted will use Tesla’s Megapack battery storage system in its 600 MWh eastern England offshore wind farm. The move will help ensure stability in the UK energy supply as well as reduce price volatility. (Statement)
Netherlands awards largest-ever offshore wind tender to SSE, Vattenfall: The Dutch government has awarded permits for developing 4 GW of offshore wind farms off its west coast. Swedish energy company Vattenfall and Copenhagen Infrastructure Partners will develop the 2 GW IJmuiden Ver Beta project, while British firm SSE Renewables, in a consortium with ABP and APG, can also go forward with a bid to develop the 2 GW IJmuiden Ver Wind Farm Alpha project. (Reuters)

The reality of EU green hydrogen projects is well behind ambitions

The EU has over 1.4k hydrogen projects planned but most are still in the concept or feasibility study phase with only 7% having reached final investment decisions, The Financial Times reports. The bloc expects there to be 40 GW of electrolyser capacity on the continent by 2030, but the world only has 1 GW available currently.

What would it take? More government support is needed for infrastructure such as gas-carrying pipelines, electrolyzer transmission lines, and electron management equipment, Chief Executive of Fortescue Hydrogen Systems Cameron Smith tells the FT. New technology is also necessary to manage the fluctuations of energy better than the commonly used alkaline water electrolyzers, he added. Another obstacle is that pricing cannot be understood for a not-yet-existing market.

First reduction in ozone-depleting greenhouse gasses achieved

The ozone layer is on a healing track: The first reduction in the level of hydrochlorofluorocarbons (HCFCs) — the greenhouse gasses responsible for the ozone layer hole — in the atmosphere has been recorded, The National writes, citing a new study published in Nature Climate Change. This decrease reflects the effectiveness of the 1987 Montreal Protocol which targeted the control of ozone-depleting substances.

HCFCs are slowly declining: Despite the global ban on chlorofluorocarbons (CFCs) since 2010, HCFCs are still being phased out with a complete phase-out pegged for 2040, study lead Luke Western told The National. Instead, they are being replaced by non-ozone-depleting hydrofluorocarbons (HFCs) and other compounds, he added.

Policy reform is key: The ozone hole is predicted to recover in about 40 years, proving that environmental policies work, Western said. “Without the Montreal Protocol, this success would not have been possible, so it’s a resounding endorsement of multilateral commitments to combat stratospheric ozone depletion, with additional benefits in tackling human-induced climate change. It shows the success of international cooperation and the importance of it in tackling environmental issues.”

CALENDAR

JUNE 2024

11-13 June (Tuesday-Thursday): Morocco Energy Week Summit, Marrakesh, Morocco.

17-20 June (Monday-Thursday): The International District Energy Association's Annual Conference, Florida, USA.

18-19 June (Tuesday-Wednesday): Biofuels International Conference & Expo, Brussels, Belgium.

18-19 June (Tuesday-Wednesday): Sustainable Aviation Fuels Summit, Brussels, Belgium.

25-27 June (Tuesday-Thursday): Connecting Green Hydrogen Europe, Madrid, Spain.

26-27 June (Wednesday-Thursday): Decarbonizing Shipping Forum, Rotterdam, Netherlands.

JULY 2024

2-3 July (Tuesday-Wednesday): Nuclear Power Plants Summit & Expo, Istanbul, Turkey.

12-14 July (Friday-Sunday): G20 Leaders Summit, Rio de Janeiro, Brazil.

16-17 July (Tuesday-Wednesday): The Egypt Mining Forum, Cairo, Egypt.

AUGUST 2024

1 August (Thursday): Distributed Solar Summit, Dubai, UAE.

12-16 August (Monday-Friday): Mastering Renewable & Alternative Energies, Dubai, UAE.

20-21 August (Tuesday-Wednesday): The World ESG Summit, Dubai, UAE.

24-26 August (Saturday-Monday): International Conference on Clean and Green Energy Engineering, Izmir, Turkey.

24-26 August (Saturday-Monday): International Summit on Non-Renewable and Renewable Energy, Valencia, Spain.

SEPTEMBER 2024

16-18 September (Monday-Wednesday): World Utilities Congress, Abu Dhabi, UAE.

17-19 September (Tuesday-Thursday): EV Auto Show, Riyadh, Saudi Arabia.

OCTOBER 2024

1-3 October (Tuesday-Thursday): Water, Energy and Environment Technology Exhibition, Dubai, UAE.

13-17 October (Sunday-Thursday): Cairo Water Week, Cairo, Egypt.

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

NOVEMBER 2024

4-8 November (Monday-Friday): World Urban Forum, Cairo, Egypt.

4-8 November (Monday-Friday): AfricanEnergy Week, Cape Town, South Africa.

11-22 November (Monday-Friday) United Nations Climate Change Conference or Conference of the Parties (COP29), Baku, Azerbaijan.

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

18-19 November (Monday-Tuesday): G20 Summit, Rio de Janeiro, Brazil.

26-28 November (Tuesday-Thursday): Saudi Electricity Expo, Riyadh, Saudi Arabia.

26-28 November (Tuesday-Thursday): Egypt Energy Show, Cairo, Egypt.

27-28 November (Wednesday-Thursday): RAK Energy Summit, Ras Al Khaimah, UAE.

DECEMBER 2024

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

JANUARY 2025

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

28-29 January (Tuesday-Wednesday): Sustainability Forum Middle East, Riyadh, Saudi Arabia.

FEBRUARY 2025

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

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: 9th 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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