KSA’s Manara Minerals reportedly closes in on minority stake in Zambia mines

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WHAT WE’RE TRACKING TODAY

TODAY: Manara inches closer to minority acquisition in Zambian mines

Good morning, friends. It’s a calm news day as we slide into the weekend, but there’s news of a Manara Minerals mining acquisition making waves along with some interesting news emerging from Morocco as it prepares to host the FIFA World Cup in 2030.

THE BIG CLIMATE STORY OUTSIDE THE REGION- IEA releases this year’s World Energy Outlook report: The world is on the cusp of a new era of electricity, with fossil fuel demand expected to peak by the end of this decade, according to a new energy outlook report (pdf) from the International Energy Agency (IEA). The shift could result in surplus oil and gas supplies, potentially driving more investments into green energy. A high level of uncertainty due to ongoing conflicts in the oil and gas-producing regions of the Middle East and Russia still remains, as well as upcoming elections in countries that account for half of global energy demand.

Renewables are making strides: The agency reported a record high level of clean energy coming online globally last year, with over 560 GW of renewable power capacity added. Around USD 2 tn is expected to be invested in clean energy in 2024, nearly double the amount invested in fossil fuels. The IEA's scenario based on current government policies predicts that global oil demand will peak before 2030 at just under 102 mn barrels per day (mb/d) and then decline to 2023 levels of 99 mb/d by 2035, driven largely by increased EV use.

^^ We will have a deeper dive into the report next week in the news well.

WATCH THIS SPACE-

#1- Saudi and Egyptian private sector players have pledged to make investments worth USD 15 bn in Egypt across renewable energy, industry, real estate, tourism, and technology sectors, Saudi-Egyptian Business Council head Bandar Al Amri told Al Arabiya Business, without naming any of the potential investors. The investments were pending the Promotion and Mutual Protection of Investments agreement was signed on Tuesday in Cairo during Crown Prince and Prime Minister Mohammed bin Salman’s meeting with President Abdel Fattah El Sisi.

#2- A step forward for the Baltic Eagle wind farm: Spain’s utilities Iberdrola and UAE’s Masdar have completed the installation of all 50 wind turbines at the Baltic Eagle offshore wind farm in the German Baltic Sea, according to a statement. The turbines — supplied by wind energy company Vestas — have a total capacity of 476 MW.

REFRESHER- Masdar reached a financial close on EUR 488 mn in funding to secure its 49% acquisition of the Baltic Eagle wind farm in March. The project — which is slated to kick off initial operations by the end of 2024 — will produce up to 1.9 TWh of clean energy once it achieves full capacity, providing Germany with renewable power to some 475k homes and offsetting c. 800k tons of carbon emissions annually. 100% of Baltic Eagle’s production volume has already been sold via long-term offtake agreements.

#3- France is concerned about incoming EU emission fines: France wants more “flexibility” with the implementation of the EU’s incoming stricter car emissions next year which could lead to over EUR 10 bn in fines for European carmakers like Renault and Volkswagen, Financial Times reports. “I cannot see why there would be penalties when huge efforts [in investment] have been made [by carmakers],” France’s economy minister Antoine Armand told auto industry executives at the Paris Motor Show earlier this week. Brussels is maintaining its plan to ban the sale of new fossil fuel-powered cars by 2035 despite carmakers’ pressure, FT writes, citing internal EU documents.

What’s on the table? It’s unclear whether France is pushing to scrap the penalties, alter the criteria involved in implementing fines, or postpone the deadline for implementing the emissions tax.

But Europe’s EV factories are struggling: German carmaker Audi's EV factory in Brussels may close after failing to secure a viable investor, Bloomberg reports. Despite interest from 26 parties, none offered a “viable and sustainable concept” for the factory’s future, Audi COO Gerd Walker said. The factory, hindered by high costs and logistical challenges, has struggled with poor demand for the electric SUV produced there.

#4- Countries’ biodiversity pledges are severely lacking: More than 80% of countries haven't submitted their National Biodiversity Strategies and Action Plans (NBSAPs) ahead of Cop16 summit in Columbia, according to findings by Carbon Brief and The Guardian. Only 25 countries have met the deadline to submit new NBSAPs by COP16, leaving 170 nations lagging. Notably, only five of the 17 megadiverse countries, which harbor about 70% of global biodiversity, have submitted their plans. These include Australia, China, Indonesia, Malaysia, and Mexico. Significant nations like Brazil and India have cited complex governance and funding issues as reasons for their delays but are still expected to have their plans for the summit.

ALSO- Banks and asset managers have funneled at least USD 77 bn into companies linked to deforestation over the past two years, according to a recent study (pdf) by the Forests & Finance Coalition. The findings come as global negotiators prepare to meet in Colombia for the United Nations Biodiversity Conference, COP16, to assess progress on the Global Biodiversity Framework signed in 2022, which aims to halt and reverse nature loss by the end of the decade. Many banks are tuning in for the first time as biodiversity finances show profit promise and amid calls for more investments.

The culprits: Brazilian banks like Banco do Brasil were the top lenders to these "forest-risk" companies, followed by European banks like Banco Santander, Rabobank, and BNP Paribas, while top-risk industries included beef, palm oil, pulp, paper, rubber, soy, and timber, the report said.

THE SCORECARD-

The Middle East saw an 18% y-o-y decline in sustainable bond issuance to USD 16.7 bn in the first nine months of 2024, according to a Standard & Poor’s (S&P) Global Ratings report (pdf). The decrease follows a period of high issuance levels spurred by the COP28 summit in 2023. Despite government initiatives and increasing alignment with sustainability strategies, the region's sustainable bond market faces challenges due to economic factors such as inflation, interest rates, and the early stages of ESG reporting transparency. The report defines sustainable bonds to include green, social, sustainability, and sustainability-linked bonds.

The breakdown: Saudi Arabia and the UAE are still leading the region with 60% share of sustainable bond issuance, but Qatar and Turkey also saw a rise in issuances. The overall volume of sustainable sukuk in the Middle East remained stable at USD 6.1 bn, and their share within the region's sustainable bond market increased to close to 35%-40%.

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CIRCLE YOUR CALENDAR-

Egypt will host the World Urban Forum from Monday, 4 November to Friday, 8 November in Cairo. The forum, established by the UN and one of its largest non-legislative events, will center around the effect of rapid urbanization on communities, economies, climate change, and policies and will bring together government representatives, academics, business people, urban planners, and more.

South Africa will host the Critical Mineral Africa Summit from Wednesday, 6 November to Thursday, 7 November, in Cape Town. The summit aims to attract critical minerals investment to the continent and will be held alongside African Energy Week. The summit will be held in partnership with the Southern African-German Chamber of Commerce Partners representing Germany’s increasing investments in southern Africa.

Azerbaijan will host the United Nations Climate Change Conference or Conference of theParties (COP29) from Monday, 11 November to Friday, 22 November in Baku. The annual conference brings together governments, world leaders, and other stakeholders to advance the Paris Agreement and negotiate ways to fight climate change. The United Nations Framework Convention on Climate Change’s objective is to “stabilize greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system”.

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

KSA’s Manara Minerals is reportedly close to snapping up a minority stake in Zambia mines

PIF-Ma’aden JV Manara Minerals is reportedly close to acquiring a USD 1.5-2 bn minority stake in Canadian miner First Quantum Minerals' copper and nickel assets in Zambia, Reuters reports, citing sources with knowledge of the matter. Manara is looking to acquire a 15-20% stake in the mines. The agreement is expected to close by the end of the year, though negotiations are ongoing.

REFRESHER- Manara Minerals has been eyeing a stake in First Quantum’s Zambian assets since earlier this year, with an eye on copper mines Sentinel and Kansanshi. First Quantum, meanwhile, disclosed earlier this year that it was in discussions with potential investors to sell stakes in its Zambian operations while also looking to offload other assets to offset debts and compensate for the shutdown of other operations.

Manara emerged as a top contender for the sale due to the fact that its plans to acquire a minority stake fit well with First Quantum’s plan to retain majority ownership in its highly profitable Zambian mines.

Zambia's mines are crucial for the global green energy transition: Zambia is Africa’s second-largest copper producer, and it plans to more than quadruple its output in the coming decade. The nation also has deposits of cobalt, graphite and lithium –– critical minerals for EV and battery storage production. Copper is used in everything from consumer electronics to home appliances, and it is key to powering renewable energy systems, including solar, hydro, thermal, and wind, making it key to the energy transition.

Manara has been expanding its mining portfolio: Manara Minerals completed the acquisition of a minority stake in Brazilian miner Vale Base Metals (VBM) back in May. The transaction is worth an estimated USD 2.6 bn, based on a USD 26 bn enterprise value VBM had previously disclosed. The company also submitted an offer in August to acquire a 15% stake in Barrick Gold’s Reko Diq copper and gold mining project in Pakistan.

Morocco will reportedly expand renewables capacity in Western Sahara

Morocco is reportedly set to double its green energy output in the Western Sahara by 2027 as the country prepares to co-host the 2030 FIFA World Cup, an unnamed Energy Ministry official told Bloomberg. The plan will entail developing around 1.4 GW of solar and wind projects with USD 2.1 bn. Western Sahara’s current capacity stands at 1.3 GW of renewable energy output.

International recognition made a difference: The EU said last year that it would not import energy from the Western Sahara due to the disputed status of the territory. However, more states are increasingly supporting the energy project and recognizing Morocco’s sovereignty over the region, including the US, Spain, and France.

REFRESHER- The project was first announced by Morocco's National Office for Electricity last year. France first expressed interest in funding a 3 GW power cable linking the Moroccan city of Casablanca to the town of Dakhla in Western Sahara back in April.

Many are interested in the region: Regional and international developers have been eying Dakhla-Valley of Gold for green energy projects, with Taqa Morocco — a subsidiary of Abu Dhabi National Energy Company (Taqa) — already securing 70k hectares in Dakhla-Oued El-Dahab to develop a 6 GW renewables farm that will power a planned MAD 100 bn (c.USD 10 bn) green hydrogen project.

Jinko Solar + Acwa ink 3 GW solar modules supply contract

Jinko to supply Acwa Power with 3GW of solar modules: Chinese solar and energy storage company Jinko Solar was awarded a contract to supply Saudi’s Acwa Power with PV panels, according to a statement. The contract will support Acwa’s 1.2 GW Haden and 1.8 GW Al Khushaybi projects.

About the projects: The Haden solar power plant will be constructed by a consortium led by China Energy Engineering Group and will use Jinko's N-type Tiger Neo series 78 PV modules, while India’s Larsen & Toubro’s (L&T) was contracted for Al Khushaybi project which will use Jinko's N-type Tiger Neo series 66 PV modules. Earlier in September, Acwa Power secured USD 2.6 bn financing from PIF’s Water and Electricity Holding Company (Badeel) and Aramco subsidiary Aramco Power for three solar plants, including Haden and Al Khushaybi.

Jinko Solar already has projects in Saudi: Jinko Solar is supplying 1 GW of solar modules for the solar energy plants powering Saudi Arabia’s giant Neom Green Hydrogen Project currently under construction. The company also signed a JV agreement in July with Saudi’s PIF and Vision Industries to locally produce 10 GW of photovoltaic cells and modules each year.

And the rest of the region too: The company boasts a self-reported 50% share of the PV suppliers market in the region with activities in Oman and UAE. Last March, Jinko partnered with Singapore’s Sembcorp Utilities to develop Oman’s 500MW Manah 2 solar plant. In UAE, the company is partnering with Masdar, Abu Dhabi National Energy Company (Taqa), France's EDF Renewables, and Emirates Water and Electricity Company (Ewec) to develop the 2 GW Al Dhafra Solar IPP.

Algeria’s Sonatrach partners with Norway’s ICA-Finance to slash emissions

EMISSIONS-

Sonatrach inks MoU with Norway’s ICA-Finance to reduce GHG emissions: Algeria’s state-owned oil company Sonatrach and ICA-Finance, a company specialized in helping oil producers reduce emissions, have signed an agreement to collaborate on reducing greenhouse gas emissions in Algeria’s upstream oil and gas sector, according to a press release. The agreement is part of both companies' efforts to support Algeria's energy transition, focusing specifically on methane emission reduction and climate action. No further details were provided.

Sonatrach has been making big moves: The company signed an MoU earlier this week with Germany’s VNG, Italy’s Snam and Sea Corridor, and Austria’s Verbund to conduct feasibility studies for the implementation of the SoutH2 Corridor pipeline. Sonatrach also signed an MoU with Mubadala-owned Spanish oil refiner Cepsa to jointly explore establishing a project to produce green hydrogen and its derivatives in Algeria.

BATTERY STORAGE-

Saudi will get a new BESS manufacturing facility: China’s Hithium Energy Storage Technology and Saudi-based Manat have formed a JV – labeled Hithium Manat – to establish a battery energy storage system (BESS) manufacturing facility in Saudi, according to a statement. The facility will have a capacity of 5GWh annually. No timeline or financial details we disclosed for the project.

About their tech: Hithium’s tech – which they displayed at Solar & Storage Live KSA – is built for desert applications, the statement adds. It includes advanced sandstorm protection and high and low-temperature designs that support ultra-long discharge cycles of 12+ hours. The company said it customized this product line to suit the Middle East and Africa regions.

CLIMATE DIPLO-

Egypt + Netherlands partner on water management: Egypt and the Netherlands signed an MoU to enhance cooperation in water management and climate change adaptation, according to a statement. It focuses on leveraging technical, economic, and administrative capabilities from both government agencies and private sector companies. The agreement will include researching sand sources along the Nile Delta's maritime border and preparing feasibility studies for coastal replenishment strategies.

Eve Air Mobility nabs USD 88 mn in funding for eVTOL factory

EVTOL company Eve Air Mobility has secured a USD 88 mn loan from Brazil's state development bank BNDES to fund its first production facility in the country, according to a press release. The Taubate-based facility will eventually produce up to 480 aircraft annually, with Eve aiming to start production of its prototype battery-powered eVTOL aircraft by 2026. With nearly 3k potential orders, Eve estimates future revenue at USD 14.5 bn. The latest funding builds on a previous USD 92.5 mn credit line from BNDES back in 2022.

Eve is active in the region: The company — a subsidiary of Brazilian aerospace company Embraer — signed an MoU in December with Saudi Arabia's air carrier and the leading low-cost airline Flynas to explore operating eVTOLs in the kingdom as early as 2026in Riyadh and Jeddah. The company also signed an MoU with Saudi aviation services provider Saudia Technic to explore the potential demand for Maintenance, Repair, and Overhaul (MRO) activities for eVTOLs in the kingdom back in May.

US-based supermaterial applications startup Lyten plans to build the world’s first lithium-sulfur battery gigafactory near Reno, Nevada, with more than USD 1 bn investment, according to a press release. 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. Lyten aims to meet demand from "hundreds of potential customers" in sectors like micromobility, aerospace, defense, and drones using “locally sourced materials and fully US-based manufacturing.”

Lithium-sulfur vs traditional batteries: Lyten’s lithium-sulfur technology offers a lightweight, high-energy-density alternative to traditional batteries, the company said. This eliminates the need for critical minerals like nickel, cobalt, manganese, and graphite. The company’s batteries are also 40% lighter than lithium-ion and 60% lighter than lithium iron phosphate (LFP) batteries, claims the company.

Swiss startup gets greenlight for solar railway pilot project

Switzerland to install solar panels on railway tracks in first-of-its-kind project: Swiss start-up Sun-Ways has been granted approval to launch a pilot project that will see the company install removable solar panels on railway tracks in Neuchâtel, Switzerland, Euro News reports. Beginning in spring 2025, the three-year pilot project will test solar panels laid out like carpet using a specially designed train. The panels will cover 100 meters of track to produce electricity for the power grid.

About the tech: Sun-Ways’ patented removable system, developed with the École Polytechnique Fédérale de Lausanne (EPFL), allows the panels to be smoothly removed for needed track maintenance. If successful, the technology could be expanded to cover much of Switzerland's 5.3k km rail network to generate 1 TWh of solar energy annually, contributing 2% of the nation's total consumption.

Challenges remain: Some have pointed to weather functionality problems and safety concerns like panel cracks that can cause fire risk or reflections distracting drivers. Sun-Ways said it is addressing these issues with more durable materials, anti-reflective coatings, and ice-melting technology.

Sun-Ways has expansion plans: The company plans to expand globally eyeing potential projects in Spain, Romania, and South Korea. “We believe that 50% of the world's railways could be equipped with our system,” Sun-Ways co-founder Baptiste Danichert told SWI Swissinfo last year.

CALENDAR

OCTOBER 2024

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

15-16 October (Tuesday-Wednesday): Solar & Storage Live KSA, Riyadh, Saudi Arabia.

16-17 October (Wednesday-Thursday): Upscaling Investment on Small-Scale Renewable Energy in Rural Areas Forum, Tunis, Tunisia

17-19 October (Thursday-Saturday): Africa Solutions Week 2024, Rabat, Morocco.

25-27 October (Friday-Sunday): Al Sidr Environmental Film Festival, Abu Dhabi, UAE.

29-31 October (Tuesday-Thursday): Future Investment Initiative Conference, Riyadh.

NOVEMBER 2024

4-7 November (Monday-Thursday): Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC), Abu Dhabi, UAE.

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

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

6-7 November (Wednesday-Thursday): Renewable Energy Forum Africa, Tunis, Tunisia.

6-7 November (Wednesday-Thursday): Critical Mineral Africa Summit, 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, Abu Dhabi, UAE.

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

19-22 November (Tuesday-Friday) Aquaculture Africa 2024, Hammamet, Tunisia.

26- 27 November: (Tuesday - Wednesday): World Food Security Summit, Abu Dhabi, UAE.

26-28 November (Tuesday-Thursday): Future Power 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.

3-4 December (Tuesday-Wednesday): MSGBC Oil, Gas & Power 2024 conference, Dakar, Senegal.

3-5 December (Tuesday-Thursday): World Energy storage Conference, Doha, Qatar.

4-6 December (Wednesday-Friday): International Conference on Smart Power & Internet Energy Systems, Abu Dhabi, UAE.

10-12 December (Tuesday to Thursday): International Mangrove Conservation and Restoration Conference, Abu Dhabi, UAE.

16-18 December (Monday-Wednesday): Saudi Arabia Smart Grid Conference, Riyadh, Saudi Arabia.

22-24 December (Sunday-Tuesday): Renewable & Sustainable Energies And Green Processes Conference, Sousse, Tunisia.

JANUARY 2025

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

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

15-16 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, Riyadh, Saudi Arabia.

FEBRUARY 2025

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.

JUNE 2025

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

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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