Masdar inks an agreement with three Japanese companies to export e-methane

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WHAT WE’RE TRACKING TODAY

TODAY: Masdar is exploring an e-methane corridor with Japan

Good morning, nice people. It’s a quiet morning as we slide into the weekend, but there is one significant piece of news emerging from the UAE…

THE BIG CLIMATE STORY- UAE renewables giant Masdar has signed an agreement with Japanese oil and gas firms Tokyo Gas, Inpex, and Osaka Gas to study the feasibility of establishing a synthetic methane supply chain extending from Abu Dhabi to Japan.

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

THE BIG CLIMATE STORY OUTSIDE THE REGION- UK’s flagship nuclear project is expected to cost USD 59 bn: France’s EDF has revised the timeline and projected investment ticket for the UK’s 3.2 GW Hinkley Point C nuclear plant, hiking the estimated cost of the project from 2015 prices by GBP 10 bn (c.USD 13 bn) to up to GBP 46 bn (c. USD 59 bn). The facility’s launch date has also been pushed by two years with an expected inauguration date of 2029 at the earliest. The UK government — which earlier this week said it will earmark an additional GBP 1.3 bn in investments for another EDF nuclear plant with a similar generation capacity — set a target to source 25% of its electricity from nuclear production by 2050, and hopes Hinkley C could meet 7% of national power demands if completed.

WATCH THIS SPACE-

#1-Egypt is reportedly planning a new 2.5 GW renewables project: Egypt is exploring the possibility of launching a 2.5 GW renewable energy park in Aswan and Sohag governments with investments worth USD 2.5 bn, Al-Arabiya reports, citing sources it says have knowledge of the matter. Egypt has held talks with Saudi, Emirati, Chinese, Norwegian, French, and German companies to discuss the development and implementation of the project, the sources said, adding that the renewables farm will have a structure similar to the 1.8 GW Benban solar project near Aswan — the largest project of its kind in Africa. It is not clear whether a tender will be launched soon to select the project developer.

What’s next: According to sources, the initial land sites nominated for the project are a 10k sqkm plot in West Sohag, and a 16k sqkm plot in West Aswan, both owned by the New and Renewable Energy Authority. The ministry is currently in the process of conducting technical, legal, commercial, and financial studies for the project, including evaluating wind speeds and sunlight hours to determine site with the highest productivity for the project, as well as setting a suitable tariff and off-take guarantee with the government.

REMEMBER- This may be the project pending funding from EBRD: Earlier this week, the European Bank for Reconstruction and Development completed the review for a potential USD 75 mn equity investment into Egypt’s renewables sector last week, which included a 2.5 GW wind project near Sohag. The review mentioned that the project is part of a larger 10 GW project currently in the early stage of development, without providing any further details.

#2-China’s Aeolon will open its first wind turbine manufacturing plantin Morocco in 1Q 2025, MAP reports. The EUR 220 mn plant will be located in Nador’s industrial zone and will have an annual output of about 600 wind turbine blades. Aeolon tapped Morocco as a location in a bid to capitalize on its proximity to global markets and expand sales particularly to the EU and the remainder of the Middle East. Morocco’s participation in China’s Belt and Road initiative has provided incentives for Aeolon’s planned operations in the country

REMEMBER- Aeolon isn’t the first to head to the kingdom: Siemens Wind Power — the exclusive supplier of wind turbines for the 300 MW Boujdour wind farm in Morocco — last year sourced a large part of the wind turbine components for the plant locally at its Tangier blade production plant, which it is currently looking to sell.

#3- The EU needs to spend EUR 1.5 tn a year in order to meet its 2050 net zero targets, Brussels stated in a European Commission draft document seen by the Financial Times. The plan outlines a 90% reduction of emissions by 2040 and “economy-wide climate neutrality” by 2050. It also requires transitioning to a decarbonized electricity sector by 2040, shifting the workforce into green industries, and reducing fossil fuel consumption by 85%. The steep annual investment — which should begin in 2031 — is projected to save the bloc EUR 2.4 tn in economic losses as well as EUR 2.8 tn in fossil fuel imports between 2031 to 2050.

The agriculture sector isn’t ready to commit just yet: Brussels’s plans struck the wrong chord with some industries including agriculture, FT said. Farmers in France and Germany blocked roads earlier this week in protest of the stricter green regulations which fail to offer transitional support to the farmers amidst an already existing inflation and energy crisis.

AND- EU delays ESG disclosure rules for some sectors until 2026: The European Parliament's legal affairs committee has approved a draft proposal to postpone by two years a requirement for some sectors to make detailed disclosures about environmental, social, and governance (ESG) factors, Reuters reports. The rules would require companies in the oil, gas, mining, road transport, food, cars, agriculture, energy production, and textiles to provide more detailed information on their ESG performance.

Why the delay? EU financial services commissioner Mairead McGuinness had asked the European Commission's corporate reporting advisory body, EFRAG, to prioritise the broader ESG disclosures that all companies must include in their annual reports from 2024 onwards under the EU's corporate sustainability reporting directive. The delay is also seen as a response to the growing backlash against climate-related regulation in the EU, as some lawmakers and businesses argue that "companies have been putting up with too much bureaucracy in years of crisis, from Covid to inflation."

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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.

Masdar inks an agreement with three Japanese companies to export e-methane

Masdar exploring establishing bilateral e-methane corridor to Japan: UAE renewables giant Masdar has signed an agreement with Japanese oil and gas firms Tokyo Gas, Inpex, and Osaka Gas to study the feasibility of establishing a synthetic methane supply chain extending from Abu Dhabi to Japan, according to a statement. The four companies will also assess the viability of establishing a transportation network leveraging pre-existing LNG tankers, gas pipelines, and consumer gas equipment, the statement notes.

More details: E-methane is generated from a mix of CO2 with green hydrogen, and per the MoU, the UAE developer would leverage its planned green fuels domestic production hubs to help LNG importers Tokyo Gas and Osaka Gas shore up enough e-methane reserves to meet 1% of their respective cities’ gas demand by 2030.

A long time coming: Back in July, Masdar signed an agreement with Inpex to undertake a joint study aimed at assessing potential for locally producing e-methane to make use of low-cost renewable energy in Abu Dhabi. Masdar has set a target to produce 1 mn tons of green hydrogen annually by the end of the decade, and is planning to develop green fuels corridors to the EU with Holland, and Germany.

Kaust team develops cooling solution from polymer film

Kaustresearchers develop eco-friendly cooling film: Researchers from King Abdullah University of Science and Technology (Kaust) have developed a novel passive cooling technique that uses a superabsorbent polymer film to lower temperatures without the use of any electricity, according to a statement. The team — who published their findings (pdf) in Nature Communications Journal — is currently designing a simplified device to produce the film at an industrial scale.

Why does it matter? The researchers demonstrated that the film can reduce the temperature by 5 °C under a partly cloudy sky, potentially saving up to 3.3% of the total energy consumption for cooling if used on a commercial scale.

How does it work? The film is made from sodium polyacrylate, a material commonly used in diapers, hair gels, and soaps due to its ability to absorb and retain water. Kaust’s super-absorbent polymer can collect moisture from the air at night and release it during the day for evaporative cooling, lowering the temperature by using the evaporated water to cool hot air. The material also has high thermal emissivity and reflectivity properties to allow for radiative cooling — a process that involves the emission of infrared thermal radiation from a surface to its surroundings (including the atmosphere and outer space), to cool down its temperature.

Lots of potential energy applications ahead: The team is now working on scaling up the production and exploring applications for the film, such as cooling solar panels, light-emitting diodes (semiconductors that act as a one-way switch for current), and batteries. The research team is using a lab-scale roll-to-roll processing method powered by a steam generator to speed up manufacturing without depending on outdoor moisture, one of the researchers explained. “They are now designing a streamlined machine to achieve industrial-level fabrication,” the statement added.

Clean energy expected to account for almost half of the world’s electricity by 2026, IEA says

Low-carbon energy sources will account for almost half of the world’s electricity by 2026up from 39% in 2023, according to a new report (pdf) by the International Energy Agency (IEA). Despite an anticipated 3.4%y-o-y hike in global electricity demands over the next three years, the share of renewables’ in the global energy mix is set to rise 7%, to reach 37% in 2026. The predicted surge in low-carbon power production comes on the back of forecasts of nuclear energy generation reaching an all-time high, in parallel to continued renewables and EV expansions, the IEA says.

Global fossil fuel generation set to decline to lowest levels in six decades: The global pipeline of renewables projects planned over the next three years, along with pre-existing facilities and nuclear plants, are expected to drive down global fossil fuel consumption from 61% in 2023 to 54% in 2026 — the lowest rates since the IEA began taking records in 1971.

Record high nuclear output projected: The global atomic power declaration during COP28 — which has seen 20 countries commit to triple the world’s nuclear energy production by 2050 — is expected to bear fruit over the next three years, with planned expansions by France, China, India, South Korea in the works. Nuclear energy production is expected to rise by 3% y-o-y through 2026, helping drive down coal consumption by 1.7% annually, the IEA notes. The UK has been the latest to ramp up nuclear expansions, channeling an additional GBP 1.3 bn (c.USD 1.65 bn) toward establishing a 3.2 GW plant with a GBP 2.6 bn investment ticket.

Nuclear will also help decarbonize MENA: CO2 intensity dropped by 2.3% in 2023, as the regional push for nuclear power led by the UAE gained pace, the IEA notes. Over the 2024-2026 outlook period, CO2 intensity is forecast to plummet an additional 1.7% y-o-y as the nuclear and renewables push continues to gather steam.

The UAE tops the list for regional decarbonization forecasts: In the UAE, renewables rose 3% y-o-y in 2023 and are on track to account for 12% of electricity generation in 2026 — more than double the 2022 output. Nuclear generation — which grew by about 70% in 2023 on the back of the Barakah Nuclear Energy Plant developments — is predicted to decrease reliance on natural gas by 6% in 2026, down from the current 70% share, the IEA says. The UAE saw its power emissions drop 11% in 2023, with forecasts of a further 9% decrease in 2024 as Barakah becomes fully operational. However, the IEA warns that a gradual increase in emissions is expected after it reaches a peak low in 2024, as a result of increased energy demand that will only partially be met by renewables, the IEA notes.

Oman’s solar drive is similarly expected to push down greenhouse output: Oman’s electricity demand is expected to rise 3% from 2023 levels, which were already up 2.5% y-o-y, but the Sultanate’s planned 1 GW Manah I and Manah II PV farms — due to kickoff operations next year — would almost triple renewables production to reach 8% of the national power mix by 2026, bringing down gas reliance by 5% in the same time period, the IEA adds.

Morocco will source its rising energy demand from renewables: Though Morocco is expected to see its national electricity demand rise by an estimated 3.1% by 2026, the country’s plans to triple appropriations toward renewables projects between 2023-2027, together with the addition of the 400 MW Noor Midelt II and the 400 MW Noor Midelt III farms once completed, are expected to get the country to meet its 7 GW renewable energy by 2027, the IEA notes.

AND- Egypt is also showing potential: Electricity demand in Egypt was up 1.5% y-o-y in 2023, but national subsidies that encouraged substituting oil with natural gas for fuel, led to a 1.2% drop in yearly emissions intensity levels, the IEA notes, adding that the state’s target to slash energy subsidies could put downward pressure on demand growth beyond 2026. Though Egypt is expected to see its demand increase 2% on average over the next 3 years, its plan to add 10 GW of renewables between now and 2028 could see the share of green energy in its power mix rise to 13% — up from the current 11% — by 2026, according to the IEA.

But others are still lagging behind: Kuwait — which has an installed power capacity of 20 GW — sources only 70 MW of its energy from renewables, including its Shagaya solar plant. Although Kuwait is committing to sourcing 15% (or 14 GW) of its power from renewables by 2030, its expansions — including a plan to increase Shagaya’s power output to 4.5 GW — are not scheduled for operation before 2027. Meanwhile Saudi Arabia, which is the world’s largest operator of carbon-intensive desalination, is expected to see a 2.6% boost in electricity demand over the next 3 years, the share of clean energy’s is predicted to rise 3% from 2023 levels, to comprise 4% of its cumulative generation by 2026, the IEA notes. Algeria — which as of the end of 2023 secured no tenders for renewables projects — is similarly forecast to see its power sector’s emissions rise by 4.5% annually between 2024-2026, with gas generating 99% of its electricity over the same period, according to the IEA.

MENA outlook sees a fossil fuel drop: Overall in the Middle East, fossil fuels are set to drop from 93% of the regional power mix to 90% by 2026,while in Africa, the agency sees electricity consumption rising 4% through to 2026, with more than 60% of demand being met from renewables.

On a global level, China will have the last word: More than half of the global renewables expansion over the next 3 years is set to occur in China, which accounts for more than half of global demand, the IEA said in its annual coal market report last month. The planned clean energy additions are expected to reduce coal demand in the country in 2024 before it plateaus through 2026. That said, the outlook for coal in China will be “significantly affected in the coming years by the pace of clean energy deployment, weather conditions, and structural shifts in the Chinese economy,” according to the IEA.

If IEA projections hold true, we could see a significant emissions drop: Global electricity-linked carbon output is expected to plummet 2.4% in 2024 after increasing by 1% in 2023, the IEA notes, forecasting a further 0.5% decline in both 2025 and 2026, barring economic shocks and government policies that could change the projections.

Invest Qatar joins global coalition for climate-aligned foreign investments

CLIMATE FINANCE-

Invest Qatarhas joined a World Economic Forum-led global coalition aimed at encouraging foreign direct investment (FDI) in climate related projects, the Peninsula Qatar reports. Invest Qatar is the only regional participant in the coalition, which is made up of 14 other global investment agencies and the World Association of Investment Promotion Agencies. The initiative aims to address the climate finance gap, promote green investments, and encourage collaboration among investment authorities in efforts to drive climate-aligned growth.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

Oman to establish greenhouse gas inventory: Oman’s Environment Authority is collaborating with Microsoft to launch a national platform for monitoring greenhouse gas emissions as part of its plan to achieve net zero by 2050. (Muscat Daily)
Egypt’s Youssef Allam Group invests in PET recycling project: Dayra for Waste Management andRecycling, a subsidiary of Youssef Allam Group, has inked a framework agreement with Egypt’s Suez Canal Economic Zone (SCZone) to build a USD 15 mn PET plastic recycling project across 10k sq meters in the Sokhna Industrial Zone. (Statement)
Morocco explores HVDC project for renewables interconnection: Morocco has issued tenders for a 3 GW High Voltage Direct Current (HVDC) interconnector linking the north and south of the Kingdom. The interconnector will span 1.4k km and will be set up over two phases, 1.5 GW in 2026 and the rest in 2028. (Telexpresse)

The world's first solid-state battery gigafactory launches in Taiwan

Taiwan’s ProLogium Technology has inaugurated the world's first gigafactory for solid-state lithium ceramic batteries, according to a statement. The factory — established in partnership with Posco, Mercedes-Benz, Arkema, and others — has a planned capacity of 2 GWh, enough to supply batteries for up to 26k EVs.

TotalEnergies acquires German battery maker Kyon Energy: French energy giant TotalEnergies has fully acquired the share capital of German battery storage systems developer Kyon Energy for EUR 90 mn pending final authorizations, according to a statement. The transaction also includes further payments linked to the achievement of development targets. TotalEnergies will also develop, build, and operate Kyon Energy's 770 MW worth of projects, of which 120 MW are already in operation, 350 MW are under construction, and 300 MW are ready to build.

Global mining industry faces pressure to address environmental concerns

Global mining industry may be under threat if it fails to step up its environmental protection efforts, the Financial Times reports, citing comments made by CEO of Canadian giant mining company Teck Resources Jonathan Price. Growing government and local opposition against copper, lithium, and iron ore mining for the environmental harm it causes — ranging from deforestation, stripping animals of their natural habitats, and polluting local freshwater supplies — have led some governments to take over resources owned by private sector mining companies, Price explains to FT.

Lack of action and transparency could block mining permits: The International Council of Mining and Metals (ICMM) has required companies — including some of the biggest mining players such as BHP, Rio Tinto and Anglo American — to disclose nature-related risks, ensure no loss of biodiversity when closing mines, and aim to stop and reverse biodiversity loss by 2030, according to a recent statement. Price told FT that “mines or operators might not be able to achieve permits” if local and indigenous communities do not see significant efforts to reduce environmental impacts.

The mining industry has gotten a bad rep: Arecent report (pdf) by the UK and US-based Environmental Investigation Agency found that the risks of mining fall upon average investors, Canadian taxpayers, indigenous communities, rural residents, and downstream US communities, while mine owners and major investors reap profits with minimal risk. It also found that companies associated with the Prospect Generator Model — a financial model used by the mining industry — take advantage of smaller investors and damage fragile ecosystems.

CALENDAR

JANUARY 2024

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

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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Masdar inks an agreement with three Japanese companies to export e-methane

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Kaust team develops cooling solution from polymer film

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Clean energy expected to account for almost half of the world’s electricity by 2026, IEA says

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Invest Qatar joins global coalition for climate-aligned foreign investments

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The world's first solid-state battery gigafactory launches in Taiwan

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Global mining industry faces pressure to address environmental concerns

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Masdar inks an agreement with three Japanese companies to export e-methane

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Masdar inks an agreement with three Japanese companies to export e-methane

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Kaust team develops cooling solution from polymer film

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Clean energy expected to account for almost half of the world’s electricity by 2026, IEA says

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Invest Qatar joins global coalition for climate-aligned foreign investments

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The world's first solid-state battery gigafactory launches in Taiwan

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Global mining industry faces pressure to address environmental concerns

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