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Ma’aden and GlassPoint reveal first phase of world’s largest solar thermal plant

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WHAT WE’RE TRACKING TODAY

TODAY: Ma’aden + GlassPoint reveal first phase of solar thermal plant

Good morning, friends. We have another brisk read for you this morning as we inch closer to the weekend.

THE BIG CLIMATE STORY- Ma’aden and US renewables developer GlassPoint have kicked off the the first phase of project development for their solar thermal energy power plant in the kingdom

^^ We have the details on this story and more in the news well, below.

THE BIG CLIMATE STORY OUTSIDE THE REGION- EU’s largest asset manager joins coordinated push to curb Shell emissions:Europe’s largest asset manager Amundi joined 26 other of Dutch oil giant Shell’s shareholders in pushing for the company to align its 2030 investment strategy with the Paris-agreed 1.5 °C warming threshold. The move is part of coordinated efforts led by activist group Follow This — who have carried similar actions against France’s TotalEnergies, BP, ExxonMobil, and Chevron — to pressure oil companies to accelerate their emissions cuts by 2030.

The story grabbed some ink in the international press:The Financial Times | Reuters | The Guardian | Bloomberg

WATCH THIS SPACE-

#1- Mubadala-backed Investcorp is doubling down: Mubadala-backed Bahrain-based alternative asset manager Investcorp — which oversees a combined USD 53 bn portfolio including green projects — is planning to double its infrastructure assets over the next five years to USD 10 bn, co-CEO Hazem Bin Jassim told Asharq Business in an interview on the sidelines of the World Economic Forum (WEF) in Davos, Switzerland. The firm — which recently publicly listed on the ADX — was amongst several mega corporations that signed the WEF’s joint communique pledging net zero and near-term emission reductions last month.

The breakdown: Investcorp is looking to channel between USD 500 mn to USD 1 bn annually in private equity, infrastructure and real estate investments. The company — which is looking to raise USD 1 bn in debt capital to fuel investments in the EU and US — is planning to earmark a total of USD 1.5 bn toward global investments.

Investcorp is taking its first steps in green sector investments: In December, the company launched a USD 750 mn climate-focused investment platform — backed by Bahrain’s sovereign wealth fund — focused on developing emission-reducing tech. Investcorp also acquired a controlling stake in China’s renewable energy critical components manufacturer Shandong Jianuo Electronics last May.

ALSO FROM THE DAVOS SIDELINES- Acwa Power lays out its 2024 map: Saudi Arabia’s Acwa Power will work on developing around 70% of the 20 GW annual green hydrogen production quota set by the kingdom’s sovereign wealth fund the Public Investment Fund, company CEO Marco Arcelli told Bloomberg Asharq. The company will also work on building “its share in battery storage,” Arcelli added, without specifying the capacity of the projects. Some unannounced projects are in their advanced stages of talks and will be finalized soon, Arcelli said, adding that one of the main goals during the coming period is to enter the Chinese market. 60% of the company’s total projects are based in Saudi Arabia, while the remaining percentage is distributed among 12 countries led by Morocco, South Africa, Uzbekistan and Indonesia.

#2- Morocco and the World Bank will explore the feasibility of building green hydrogen storage, ship refueling, and export-dedicated facilities across four ports, Asharq Business reported, citing Moroccan Equipment, Transport, Logistics and Water Minister Nizar Baraka. Details on a targeted timeline on completion were not disclosed.

What we know: The Jorf Lasfar, Mohammedia, Tanger-Med, and Tan-Tan ports are under consideration within the feasibility study. The study is primarily aimed at assessing the technical and economic potential for green fuel production at Moroccan ports in a bid to help decarbonize the shipping sector, which accounts for 2.9% of global greenhouse gas emissions.

REMEMBER- Morocco is looking to establish green corridors with the EU: Earlier this month Italy approved financing of a study on a planned green hydrogen corridor extending from Morocco, to the port of Trieste in Italy, and then extending to Central and Eastern Europe.

Earlier in June, Italy and Morocco said they are partnering together with Spain on a green fuels transport corridor which is planned to go through the entire EU region. Last year, the European Hydrogen Backbone initiative submitted an updated version of its vision for the infrastructure map where hydrogen is set to be transported on the project.

#3- Kuwait is speeding up its renewables roll out: Kuwait needs more solar plants to prevent an ongoing electricity shortage crisis, unnamed official sources told AlQabas. The country’s plans include constructing an undisclosed capacity of solar plants within 2 years, building 500 MW of battery storage, and securing agreements for 900 MW of floating wind projects within 3 months. The shortage can see Kuwait face a 1 GW power deficit this summer which is expected to increase to 2 GW in 2025 and 2.5 GW in 2026. The sources also attributed the delay in implementing power projects to the Kuwait Authority for Partnership Projects's refusal to grant the Electricity Ministry permission to target foreign investors.

DATA POINT-

Emirati sukuk issuances made up 40% of total sustainable sukuk issuances worldwide in 2023, with AED 15.45 bn green and sustainable sukuk issuances in the first 11 months of the year, according to S&P Global’s sukuk outlook 2024 report. S&P attributed the UAE’s market contribution to the hosting of COP28 in November, and the Securities and Commodities Authority’s (SCA) decision to waive registration fees from sustainable bonds.

DANGER ZONE-

Saudi Arabia is responsible for half of the world’s food waste: Saudi Arabia accounts for 50% of global food waste, Gulf News reports, citing Chef Layla Fathalla, a United Nations Environment Programme advocate for reducing food waste. Fathalla revealed that the world produces 1.3 bn tons of food waste per year, with KSA being the top offender. With the rate of food waste surpassing 33%, it costs the kingdom about SR 40 bn annually to keep up, Saudi Minister of Environment, Water, and Agriculture (Mewa) Abdul Rahman Al Fadhli said, according to Gulf News.

REMEMBER- KSA is trying to tackle the issue:Mewa recently announced its intention to recycle up to 95% of its waste compared to its current rate of 3-4% — one of the lowest in the world. The new targets will see the ministry recycling c. 100 mn tons of waste annually and is forecast to add SAR 120 bn to the GDP, according to the ministry. The operational timeline and allocated budget were not disclosed.

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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.

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SOLAR

Ma’aden and GlassPoint reveal first phase of world’s largest solar thermal plant

Ma’aden and GlassPoint reveal first phase of world’s largest solar thermal plant: Saudi state-owned mining company Ma’aden and American renewables developer GlassPoint have revealed the plans for the first phase of project development for their solar thermal energy (STE) power plant in KSA’s Ras Al Khair, Zawya reports, citing a statement. An agreement was inked in 2022, and the companies expect to break ground on the project this year.

REFRESHER- STE converts radiant solar energy into heat to be repurposed for power generation, according to research published in Science Direct.

The details: The first stage of the project — which aims to decarbonize Ma’aden’s aluminum supply chain — will leverage GlassPoint’s patented Unify storage system, combining direct heat and ternary molten salts to provide 9 tons of continuous base load steam per hour to Ma’aden’s Alumina refinery at Ras al Khair, the statement notes. The initial phase is expected to yield some 12 mn British thermal units of natural gas savings annually, offsetting some 600k tons of carbon emissions per annum, according to the company.

Part of a much wider venture: Once fully operational, the project – named Ma’aden Solar 1 — will span a seven km2 area, six of which will be allocated to solar developments, yielding overall a 1.5 GWth capacity. The project is set to mitigate 10% of Ma’aden’s annual emissions – the equivalent of taking nearly 130k cars off the road.

More decarbonization moves from Ma’aden: The company recently signed an agreement with the Saudi Investment Recycling Company to expand its aluminum repurposing capacity in a bid to meet its environmental and decarbonization targets, the company said.

Not GlassPoint’s first MENA foray: Back in October, GlassPoint signed an agreement with KSA’s Investment Ministry to build a solar manufacturing facility in the Eastern Province aimed at producing 5k tons of solar steam daily and offsetting 200k tons of carbon emissions annually.

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M&A WATCH

General Atlantic is buying Actis, the backer of Yellow Door and Emicool

General Atlantic acquires Actis to form USD 96 bn asset manager: US private equity firm General Atlantic has agreed to acquire London-based infrastructure giant — and longtime regional investor — Actis, according to a joint statement, which did not disclose the value of the acquisition. The move will add USD 12.5 bn worth of assets to General Atlantic’s USD 83 bn portfolio to form what will now be its sustainable infrastructure arm.

Actis has stakes in a couple of Emirati firms: The PE firm bought a controlling stake in local renewable energy developer Yellow Door Energy, and a 50% stake in district cooling company Emicool, in 2022.

What they said: “Addressing the global paradigm shift toward sustainability requires an economic transformation and a capital investment on a massive scale,” said Bill Ford, General Atlantic chairman and CEO. “With the addition of Actis, we are taking a significant step forward to add a sustainable investment capability which positions General Atlantic to capture this [potential] set for our investors.”

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MACRO PICTURE

World Economic Forum publishes report on preparedness for transformational trends in the global economy

WEF releases Future Possibilities Report: Newsweek Vantage and the Swiss Horizon Group released the first Future Possibilities Index (FPI) report (pdf) at the World Economic Forum (WEF) meeting in Davos, Wam reports. The report identifies six global transformational trends — representing current shifts in society, nature, or technology that are predicted to bring new economic avenues in the next 5-10 years — and ranks countries around the world on how well they can leverage each trend. The country’s are evaluated based on the effectiveness of their government policies and industries in driving the growth of the identified trending economies.

The green economy is trending: Three of the trending sectors identified in the report — the net zero economy, the circular economy, and the biogrowth economy — are estimated to reach a global market value of USD 4 tn, USD 4.5 tn, and USD 1.7 tn by 2030, respectively. The net zero category is evaluated based on green practices, carbon neutrality, and environmental sustainability, the circular economy focuses on recycling, waste management, and resource efficiency, while the biogrowth economy includes the use of natural resources for green agricultural and industrial practices, biomaterials and refinery, and synthetic biology.

UAE comes on top regionally: The UAE came first in the region in several of the indices. The country was rated 8th globally in government strategy on the circular economy trend, 9th in biogrowth economy, and 19th in government strategy on the net zero economy trend. The UAE's lead comes due to its progress in the net zero economy, where its government strategy ranked 12th as the country made strides in increasing its energy capacity, and investments in research and development for green hydrogen, solar, and nuclear energy, the report outlined.

How is the rest of our region faring? The MENA region is lagging behind others in circular economy, biogrowth economy, and the net zero economy, the report concludes. The overall future possibilities score ranked UAE 23rd in the world, Saudi Arabia 36th, Egypt 52nd, Bahrain 53rd, Oman 54th, Jordan and Kuwait 56th and 59th, and Morocco and Tunisia 60th and 62nd, respectively. Middle-income countries have a better average performance in the biogrowth sector compared to others due to a focus on tech innovation in agriculture, the report adds.

Nordic countries are leading the pack: In the net zero economy, Denmark ranked first with other Nordic countries in the top five due to changes in their climate policies and commitments to carbon neutrality. The UK came first in the circular economy, although the report highlights there are no “clear leaders and laggards” globally as few governments have set binding policies to support it. The biogrowth economy saw Germany in the lead, which the report links to patent innovations in the sector.

Skilled labor for the new economies is needed: The transformational trends will have an impact on sectors' talent demand. The growth of the net zero economy will see strong talent demand rise, specifically in energy and utilities. The circular economy sector will require talent in information and communication technologies, while the biogrowth economy will boost demand for workers in the energy and utilities, advanced material, and biotechnology sectors.

And nature-based solutions are in demand: The report emphasized the importance of nature-based solutions in encouraging green urban infrastructure, fighting climate impact in cities, and reaching 2030 net zero goals. The report outlines some examples of nature based solutions including reforestation and sustainable farming practices such as agroforestry.

Developing countries' emissions in focus at Davos: One of the main critical areas for global cooperation is addressing future emissions which are expected to emanate from developing countries, Asharq Business writes, citing a report by WEF experts. More private capital is needed alongside ensuring investments include adaptation strategies in the Global South to tackle their expected emissions, the news outlet added. Multilateral development banks and the start-up sector also need to be more climate-oriented and adopt green energy strategies focused on channeling investments from the developed world.

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MOVES

Dalya Al Muthanna appointed Managing Director + CEO of Alstom’s Gulf operations

French train manufacturer Alstomhas appointed Dalya Al Muthanna (LinkedIn) as Managing Director & CEO in the Gulf region, according to a press release. Al Muthanna will spearhead operations in the UAE, Qatar, Oman, Kuwait, and Bahrain and work to localize the company’s presence in the Middle East. She previously held multiple positions at General Electric (GE), including president in the UAE, chief of strategy & operations for GE International Markets, and president & CEO for GE in the Gulf region. Al Muthanna has a Ph.D. from Imperial College London and an MBA from the American University in Dubai.

Al Muthanna will lead Alstom’s green plans: “Her [Al Muthanna’s] role is crucial as we align with each country's drive towards net-zero carbon emissions … particularly in areas of infrastructure enhancement, digital optimization, and innovative sustainable mobility solutions,” Alstom’s Head of Africa, Middle East and Central Asia Region Andrew DeLeone said in the statement. Alstom is currently working on a hydrogen train network in Saudi Arabia after it recently opened a regional office. The company is also working on Egypt’s electric monorail project.

Tags:
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ALSO ON OUR RADAR

Updates on EVs and smart cities from the UAE and Saudi Arabia

!_StoryHed_!GREEN CITIES-

UAE’s Presight partners with Hitachi on smart city solutions: ADX-listed regional AI Giant Presight has inked an MoU with Hitachi Digital Services, the data solutions and services arm of Hitachi Ltd, to explore cooperation on environmental and energy efficiency solutions in smart and cognitive city technology, Wam reports. The two companies will collaborate in several areas including integrating AI into smart city technologies.

REFRESHER- Presight previously signed MoUs to implement AI-enabled monitoring systems: Presight has signed agreements with Japan's NEC and DeepTech Engineering to implement their monitoring and detection tech into Presight's Emergency Response Management Platform back in October.

!_StoryHed_!ELECTRIC VEHICLES-

EVIQ starts fast charging operations in KSA: Saudi's Electric Vehicle Infrastructure Company (EVIQ) has opened its first fast EV charging stations in Riyadh, SPA reports. The 100 kW two-charger service can charge up to four vehicles simultaneously. The company aims to set up over 5k fast chargers in over 1k locations in cities across KSA and unrolled the kingdom’s first testing and software center for EVs. EVIQ also signed an agreement with Roshn last week to set up EV charging stations across its properties in the country.

GREENINDUSTRY-

Heidelberg Materials installs waste heat recovery system at Egypt plant: German cement manufacturer Heidelberg Materials has invested USD 30 mn to set up a waste heat recovery system at its factory in Helwan, Egypt, the German Embassy in Cairo said. The new system will supply 30% of the factory’s electricity needs, Al Borsa reported.

!_StoryHed_!CARBON MANAGEMENT-

Green Economy Partnership sets up new headquarters in Doha: The Green EconomyPartnership (GEP), a carbon credit management initiative previously based in Dubai, is moving its headquarters to Doha, Qatar, Trade Arabia reports.

About GEP: The GEP aims to achieve net zero goals through decarbonization and reforestation projects, according to its website. It identifies and provides certification to carbon removal suppliers across different industries and also offers consulting services.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • Qatar’s self-driving electric bus completes trial run: Qatar’s Mowasalat (Karwa) and Chinese EV bus manufacturer Yutong have completed trial operations for a new autonomous electric bus, which departed from the Lusail bus terminal with passengers onboard. (Marsal Qatar)
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AROUND THE WORLD

Northvolt acquires Europe’s highest green loan at USD 5 bn

Northvolt expands battery factories: Swedish electric battery maker Northvolt has secured USD 5 bn — Europe’s largest green loan — to fund a factory expansion in Sweden, Reuters reports. This latest financing brings the company’s total debt and equity financing up to over USD 13 bn, which will fuel expansion plans in Sweden, Poland, Germany, the United States, and Canada. The debt — including the refinancing of a USD 1.6 bn package from 2020 — is provided by a consortium of 23 commercial banks, along with the European Investment Bank and the Nordic Investment Bank.

Northvolt has been raking it in: The company raised USD 1.2 bn last August from international investors — including BlackRock and Goldman Sachs — and Canadian pension funds in preparation for expanding in Europe and North America.


Vestas' wind operations are getting greener: Danish wind turbine maker Vestas is partnering with European steel manufacturer ArcelorMittal to use recycled steel in Vestas’ wind turbine towers, Bloomberg writes. The new turbines — which will reduce emissions by 66% compared to common ones — will account for two-thirds of the 76 turbines to be installed in the Baltic Power farm next year. The greener steel can cut emissions by 25% if used in the top two parts of offshore towers, and even more for those that are onshore, where it can make up the entire tower structure. Vestas is currently building Egypt's Gulf of Suez wind farm.

Not the only efforts to green the turbine industry: Spanish renewables giant Iberdrola, which co-owns East Anglia 3 and Baltic Eagle wind farms with the UAE's Masdar, is reassembling and reusing using old blades and building a turbine blade recycling plant to recover the materials for use in different fields including energy and construction. France's Veolia is also on the same path, partnering with GE Renewable Energy to recycle blades.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • Japan to release more Fukushima wastewater: The Tokyo Electric Power Company (Tepco) is planning to release a fourth batch of treated radioactive water sourced from the Fukushima Daiichi Nuclear Power Plant next month. Despite objections from China, Japan started discharging the wastewater in August, starting with around 8k tons out of the 1.34 mn tons of accumulated wastewater. (Reuters)
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ON YOUR WAY OUT

UAE’s Desert Board is recycling palm waste to decarbonize the construction industry

Abu Dhabi-based climate tech startup Desert Board is repurposing palm trees into their patented carbon-negative building boards, CNN writes. The company aims to make use of the UAE’s estimated 40 mn palm trees to decarbonize the country’s construction sector which accounts for 8% of total carbon emissions.

How do they do it? Desert Board uses the waste from palm trees — which take a decade to decompose and release substantial amounts of methane into the atmosphere — left over from pruning to create their proprietary Palm Strand Board (PSB), a material that can replace plywood in furniture, flooring, walls, doors and shelves, the company noted to CNN. PSB is recyclable, has the same durability as a regular board, and offsets some 400 tons of carbon emissions compared to conventional alternatives per 1 ton of PSB produced. The carbon saving comes from the palm trees natural ability to capture CO2 while they are alive, the company notes. The materials are also fire, termite, and moisture resistant, the company told the news outlet.

Current capacity: Desert Board manufactured its first PSB two years ago, and is currently operational in the UAE, Saudi Arabia, Bahrain and India, CNN added. The production plant in Abu Dhabi’s Khalifa Economic Zones Abu Dhabi (Kezad) currently produced enough of its PSB materials to fill up two and a half football fields (c. 300x 133 yards) on a daily basis, Desert Board director Kamal Farah told CNN.

The UAE is going big on green construction: In December, the Abu Dhabi Waste Management Company (Tadweer), Masdar City, the UAE Energy and Infrastructure Ministry, and GIGA Graphene Technologies partnered to develop graphene-enhanced concrete made with recycled plastic in the UAE. In August, Abu Dhabi-based investment firm GL Holding signed an agreement with Dutch green construction equipment company Urban Mobility Systems to build a green manufacturing facility. A year ago, the UAE cabinet approved regulations designed to lower carbon emissions in the construction sector.


JANUARY 2024

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

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.

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

MAY 2024

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

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

JUNE 2024

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

OCTOBER 2024

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

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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