Moroccan renewables outfit Nareva to power one of the country’s largest silver mines

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WHAT WE’RE TRACKING TODAY

TODAY: One of Morocco’s key silver mines is set to be powered by renewable energy

Good morning, wonderful people. We have a light issue to ease you into the beginning of a new week.

Two of the bigger stories this morning come to us from Morocco, where one of the country’s largest silver mines just signed a 20-year agreement to purchase renewable energy, and the EBRD is helping a major packaging company transition to more environmentally-friendly plastics.

Elsewhere, a number of oil and gas companies used last week’s Egypt Petroleum Show (EGYPS) to emphasize their green credentials, announcing several new decarbonization initiatives including a potential carbon capture and storage project between Shell Egypt and Energean.

^^ All that and more in the news well below.

ICYMI — Egypt is getting serious about EVs: The Egyptian cabinet has launched a fund that will offer incentives for greener vehicle production to help develop the domestic production of environmentally friendly cars, EnterpriseAM reported. The Environmentally Friendly Car Production Fund is one of three bodies green-lit last Wednesday to help deliver the government’s long-awaited automotive strategy. The other two organizations will also work to facilitate the integration of EVs in Egypt’s automotive sector, cabinet said.

THE BIG CLIMATE STORY OUTSIDE THE REGION–

US rail operator remains under fire for Ohio crash that caused major toxic chemical spill: Norfolk Southern, the operator of a cargo train that derailed two weeks ago in Ohio’s East Palestine, is drawing criticism for having caused “a major environmental and health crisis.” The crash released a host of hazardous chemicals, causing residents to fear for the safety of their air and water. Eight lawsuits have been filed against Norfolk Southern accusing the company of causing the accident through negligence and of using a cheap, unsafe method to clean up the spill. Some 3.5k fish in nearby streams were killed, and mass evacuations and shelter-in-place orders issued in the aftermath of the accident. It is believed thousands of people have been exposed to long term health risks.

The Environmental Protection Agency (EPA) is also stoking mistrust: Though the EPA — which is involved in the crash response — has assured residents that Ohio’s air and water are safe, important information is still lacking about the degree of exposure citizens may have to hazardous chemicals. “What’s really missing is information about how people come into contact with these chemicals in the air, drinking water or through soil,” Johns Hopkins environmental health professor Keeve Nachman told the BBC. Meanwhile, consumer advocate Erin Brockovich (yes, she of the film) has urged residents of East Palestine not to trust the EPA’s assurances and to leave the area if they feel unsafe.

The story is attracting widespread coverage in the international press: AP | Reuters | Washington Post | BBC | Time.

WATCH THIS SPACE #1- 2023 will be a “breakout year” for General Motors’ electric vehicles division, CEO Mary Barra tells Bloomberg. The American automaker intends to surpass rival Ford and close in on Tesla in the EV race, and generate USD 50 bn in revenues from EVs by the middle of the decade. Bank of America forecasts the company to produce 1 mn vehicles by 2025. GM’s advantage comes from previous investments in an Ohio battery plant operated by Ultium Cells — a USD 2.3 bn JV between General Motors and LC Energy Solution — which is increasing battery production by 20% quarterly.

GM’s EVs are coming to MENA: In January, General Motors announced that its first-ever electric hybrid Corvette E-Ray would be available in MENA by 4Q 2023, with plans to roll out electric versions of the Blazer, Equinox and Silverado in 2023 as well. GM also has plans to launch its first EV in Saudi Arabia in 1H 2023 last year. In December, GM and Al Mansour Automotive announced plans to roll out Cadillac’s all-electric mid-size luxury SUV Lyriq, as well as five other Cadillac EVs, in Egypt by the end of 2023. Al Mansour Auto also said it is finalizing feasibility studies to begin assembling the electric vehicles in Egypt.

WATCH THIS SPACE #2- Electric vehicle maker Tesla is reportedly eyeing a takeover of Canada-based battery metals miner Sigma Lithium, according to Bloomberg, citing people with knowledge of the matter. Tesla CEO Elon Musk is reportedly mulling a bid on Sigma — one of “multiple mining options” Tesla is looking at. Sigma’s US-listed shares rose 21% in extended trading on Friday, following the Bloomberg report — on which neither Sigma, Musk nor Tesla has officially commented.

It’s part of a broader push from automakers to secure a supply of core metals needed for EV batteries, Bloomberg notes. GM is said to be competing for part of Brazilian mining company Vale SA’s base metals unit. Lithium demand and cost are set to continue skyrocketing, given its role as a key battery metal.

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CLIMATE DIPLOMACY- Egypt + Uzbekistan to collaborate on renewables? Egypt’s Electricity and Renewable Energy Minister Mohamed Shaker met with First Deputy Energy Minister Azim Akhmedkhadjaev to discuss cooperation on electricity and renewable energy projects, according to a ministry statement.

UAE + Azerbaijan could do likewise: UAE Vice President and Prime Minister Mohammed bin Rashid Al Maktoum met with Azerbaijani Prime Minister Ali Asadov to discuss increasing collaboration on green economy and renewable energy, according to a statement released last week.

The GCC has been eyeing a greater presence in the country: UAE renewables developer Masdar expanded its operations in Azerbaijan earlier this month and KSA’s Acwa Power inked a cooperation agreement for a 1.5 GW wind project.

COME TO OUR NEXT ENTERPRISE FORUM-

We’re excited to unveil our next C-level event in Cairo: The Enterprise Exports & FDI Forum, where we will take a deep dive into two of the most critical topics affecting our community.

Interested to learn more about how Egypt is planning on drumming up foreign direct investment (FDI) for all these green hydrogen, solar and wind agreements? Exports and FDI have never been more important to Egypt’s economy — or its businesses — than in the wake of the float of the EGP and the country’s positioning as a regional renewable energy hub. We think there’s a unique chance to build an export-led economy that makes Egypt a magnet for FDI and all the benefits that will come with it.

Want to join the conversation? Drop us a line on events@enterprisemea.com.

CIRCLE YOUR CALENDAR-

The UAE will host the World Environment, Social and Governance Summit from next Tuesday, 21 February to Thursday, 23 February in Dubai. The summit will host discussions on reducing carbon emissions and the urgency to incorporate ESG. Stakeholders from various fields will address the financial and strategic implementation of ESG.

The UAE will host the Annual Gulf Ins. Forum from Monday, 27 February to Tuesday, 28 February in Dubai. The event will host panel discussions on sustainable ins. for ESG, the role of Gulf ins. companies in securing renewables, the future of ins. for Autonomous Vehicles (AVs), ins. solutions to address climate change and environmental pollution, and the banking sector’s experience in issuing green and sustainability bonds. You can register for the event here.

Qatar will host the International Conference on Climate Change and Human Rights from Tuesday, 21 February to Wednesday, 22 February in Doha. The conference will gather over 300 participants from governments, think tanks, universities, and human rights institutions to discuss and present climate mitigation and adaptation policies from a human rights perspective.

Egypt will host the CSR Forum from 2-5 March at Somabay, Hurghada. The event aims to further discussions put forth during COP27 and boost private and public sector cooperation on climate action. You can register for the event here.

The Arabia CSR Awards is accepting applications until Friday, 30 June. The awardwinners will be announced during a ceremony on Wednesday, 4 October.

The first MENA Solar Conference is accepting applications from published researchers specialized in PV technology until Sunday, 30 April. The Dubai Electricity and Water Authority will be hosting the conference from 15 to 18 November, in conjunction with the Water, Energy, Technology, and Environment Exhibition and the Dubai Solar Show 2023. Researchers can submit their papers here.

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

A key Moroccan silver mine will soon be powered primarily by wind energy

Moroccan renewables outfit Nareva to power one of the country’s largest silver mines: Moroccan mining firm Zgounder Millennium Silver Mining — a subsidiary of Canada-based miner Aya Gold & Silver — has signed a 20-year power purchase agreement (PPA) with Énergie Éolienne du Maroc (EEM) — a subsidiary of Moroccan energy firm Nareva — to purchase renewable energy for its Zgounder silver mine, according to a statement. The agreement will see EEM supply 80 GWh of electricity annually, generated from its renewable energy projects, the company said. No details were provided about the pricing of the PPA or when exactly it would be operational.

The details: Under the PPA, the processing plants and infrastructure of the Zgounder silver mine — one of Morocco’s most important silver mines — will be powered primarily by renewable energy, according to the statement. In time, all of the mine’s electricity consumption could be covered by the PPA. EEM currently operates five wind projects with a combined generation capacity of 505 MW.

It’s all kicking off once Zgounder has finished its current expansion: The PPA will come into effect once the Zgounder project has completed its current expansion project, the statement said. The company recently secured a USD 100 mn loan from the European Bank for Reconstruction and Development (EBRD) to fund the expansion, which includes the installation of a new power line to transmit the power purchased under the agreement.

EBRD backs Moroccan packaging company in a bid to boost green initiatives

Moroccan packaging firm to use more environmentally-friendly plastics with EBRD money: The European Bank for Reconstruction and Development (EBRD) is extending a EUR 15 mn loan to help Moroccan packaging manufacturer Multisac lower its carbon footprint, the lender said in a statement last week. Multisac produces woven bags made from polypropylene and is the leading company in the Moroccan market, manufacturing 220 mn bags a year.

Where’s the money going? Multisac will use the money to introduce more environmentally-friendly types of plastics into its products, the EBRD said. Biaxially oriented polypropylene films are easier to recycle and reuse, and have a lower carbon footprint than standard polypropylene. The loan will also help raise the company’s production capacity to 250 mn units a year, and fund the construction of a “green manufacturing plant” which will be certified as sustainable based on independent accreditation, the statement added, without giving further details.

The EU is backing the loan: The EUR 15 mn loan will be backed by an EU guarantee through the European Fund for Sustainable Development (EFSD) — an EU financial instrument designed to spur public and private investment in sustainable areas, including greentech in industry, green infrastructure, energy efficiency, and logistics. The EU will also offer technical cooperation to support the project, it adds, without providing further details.

Not the first EBRD funding for Multisac: The EBRD previously provided EUR 4.3 mn in local-currency funding to Multisac in 2018 to boost production and increase resource efficiency.

It all fits in with the EBRD’s green financing goals for MENA: Climate-focused investment in MENA is a priority for the EBRD, multiple representatives have toldEnterprise Climate and Enterprise AM. Helping to “greenify” projects, enhance their bankability, and de-risk overall climate-focused investment is part of the value the EBRD brings to climate activity in the region, stakeholders have said.

Energean, Shell to explore carbon capture and storage in Egypt

Energean, Shell to explore carbon capture + storage in Egypt: London-headquartered hydrocarbon exploration and production outfit Energean has signed an MoU with Shell Egypt to study a proposed carbon capture and storage (CCS) project in Egypt, according to a statement (pdf) released on Thursday.

The details: The two companies will conduct a study to capture CO2 from Shell’s LNG terminal in Idku and store it in a depleted reservoir in the Energean-operated Abu Qir concession. Future iterations of the project could see it expand in scope to capture and store CO2 from other industrial emitters — like fertilizer companies, it adds. Energean will apply its knowledge and experience of getting a CCS project up and running — as it’s currently doing in its concession in Greece’s Prinos, the statement notes.

Energean has big investment plans for Abu Qir: The company plans to invest USD 350 mn in Abu Qir the concession this year, CEO and chairman of Energean International Nicolas Katcharov said at the Egypt Petroleum Show (EGYPS) last week. Katcharov did not elaborate on why the company was directing so much capital into the concession.

This isn’t the first carbon sequestration project in the region we’ve heard about in the past month: The UAE’s Adnoc said last month that it would begin to capture and sequester CO2 from Fertiglobe’s UAE operations into carbonate rocks from 2Q 2023. The company will invest USD 15 bn alongside several other companies in the region to develop the tech that is hoped will permanently mineralize CO2 in rock formations in Fujairah.

And even more is planned for carbon capture and utilization (CCU): KSA’s oil giant Aramco and mining company Ma’aden agreed to build sizable CCU facilities last November at COP27, and Omani state-owned energy investment company OQ signed an agreement last month with the Oman India Fertiliser Company (Omifco) to explore including carbon capture tech at its Sur ammonia-urea fertilizer production plant.

ALSO- Egyptian firms signed two agreements that could accelerate decarbonization in the country’s oil and gas sector on the sidelines of EGYPS last week. According to a statement from the Egyptian Oil Ministry:

The Egyptian Natural Gas Holding Company (EGAS) and Shell will explore the feasibility of producing sustainable biofuels and low-carbon fuel from agricultural waste.
Norways’ DNV Group will support Egyptian contractor Petrojet’s participation in green hydrogen production plants under an agreement, the details of which were not disclosed.

Hydrogen-powered drones set to debut in Abu Dhabi this week

Israel’s Hevendrones says it will debut its hydrogen-powered drone the H2D55 during this week, the National reports. The drone can be used for defense, last-mile deliveries, and agricultural applications — including artificial pollination and pesticide control, according to the company website.

Hydrogen vs. electric: The H2D55 can fly for 100 minutes with a 7kg load on a full charge while being 5x more energy efficient than contemporary lithium battery-powered drones, IsraelDefense notes. Hevendrones says the affordability of the green fuel when purchased at scale — coupled with the possibility of using portable electrolysers to generate hydrogen from moisture in the air and electricity — will bring down costs and turbocharge the adoption of similar logistics offerings, CEO Bentzion Levinson told the National. These perks will position hydrogen-powered drones as a more affordable option in the long term compared to electric alternatives, despite the heftier retail price tags.

And it’s a W for decarbonizing logistics: A recent study by PwC found that a switch to drones for the fulfillment of last mile deliveries would push down annual emission levels by some 2.4 mn tons of CO2 equivalent in the UK alone.

More drones in the pipeline: The H2D55 is the first in a line up of three other hydrogen drones set to be rolled out in 2023, IsraelDefense notes. Hevendrones is expecting in excess of 100% y-o-y in sales hikes, Levinson told the National.

Could the UAE be in line for local assembly? The company is currently exploring the possibility of launching assembly facilities in the country with potential partners, Levinson added.

The UAE has more low-carbon logistics solutions coming its way: UAE logistics firm Aramex said on Tuesday that it successfully completed drone and roadside bot delivery pilot tests in partnership with drone delivery solutions company Barq EV in the UAE. The company completed a similar pilot in Oman back in October, and said it will expand testing across MENA, without disclosing the timeframe of its planned regional expansion.

Fortescue Future Industries chief thinks Australia is at risk of losing green hydrogen race

Australia risks losing green hydrogen race to MENA and the US: Despite its green energy advantages, Australia risks losing the race to build a green hydrogen sector due to sizable policy support in MENA and the US, the Guardian reports Fortescue Future Industries (FFI) Director Guy Debelle saying. The Biden administration’s recently-passed Inflation Reduction Act (IRA) is encouraging renewables companies to move to the US, while oil-rich countries in the GCC and MENA are working to build a clean hydrogen sector by making land and resources available for firms, Debelle says. “There’s a risk that, despite Australia’s great comparative advantages in green energy, the US and the Middle East are going to eat our lunch,” he adds. FFI has itself been exploring green hydrogen prospects in MENA, as we’ve noted previously.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

Europe’s workforce will require over 1 mn solar workers to keep up with the renewables expansion as the EU set a target to install 600 GW by 2030. (Reuters)
DHL Express has launched GoGreen Plus allowing customers to opt for Sustainable Aviation Fuel (SAF) when shipping parcels. The service will initially launch in the UK and is part of DPDHL Group’s goal of using 30% SAF for air transport shipments by 2030. (Statement)

Algeria’s Sonelgaz to research battery storage systems

Algeria’s state-owned utilities company Sonelgaz has signed an MoU to advance the development of renewable energy battery storage, according to a ministry statement. The agreement was signed with the Centre de Recherche en Technologie des Semi-Conducteurs pour l’Energétique and the Renewable Energy Development Center to develop battery storage systems for renewable energy, and no further details on a timeline or expected outcomes have been disclosed.

Dewa, Emerson may work on green energy projects: Dubai’s Water and Electricity Authority (Dewa) met with a delegation from US-based tech and engineering firm Emerson to discuss potential collaboration on renewable energy projects, Wam reports. Key projects discussed during the meeting included the 5 GW Mohammed bin Rashid Al Maktoum solar park, and the 2.4 GW Hassyan Power Complex, and no details regarding the scope of the cooperation have been disclosed.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

Egypt’s Water Resources and Irrigation Ministry conducted a field visit on the outskirts of Kinshasa in the Democratic Republic of the Congo as part of a bilateral effort to establish some 12 solar-powered underground water projects. (Statement)
US-based AeroFarms AgX launched the world’s largest indoor vertical farm in Abu Dhabi last week. The company last month entered a joint venture with KSA’s Public Investment Fund to build and operate indoor vertical farms. (Statement)
Adnoc Drilling launched a battery-based hybrid energy storage system at one of its land drilling units in Abu Dhabi last week in an effort to reduce emissions by 10-15%. (Trade Arabia)
Bahrain will issue a tender by the end of 2Q 2023 to hire a consultant to create a strategy for developing the kingdom’s electric vehicles industry. (Al Ayam)

Scientists explore the use of inexpensive clay for carbon capture

Could clay be used for carbon sequestration? A team of scientists is exploring whether clay can be used as an inexpensive way of capturing and storing carbon, Science Daily reports. Led by scientists at Sandia National Laboratories, the researchers are combining computer modeling with laboratory experiments to study how a certain kind of clay can be used to soak up and store carbon dioxide.

How does it work? The research uses molecular simulations to explore how water, CO2 and clay interact and how the chemical properties of the tiny cavities in clay — called nanopores — can be engineered to capture carbon. Inexpensive, stable and abundant, clay also has a high surface area, which could reduce the cost of direct-air capture.

CALENDAR

FEBRUARY 2023

21-23 February (Tuesday-Thursday): World Environment, Social and Governance (ESG) Summit, Dubai, UAE.

27-28 February (Monday-Tuesday): The Annual Gulf Insurance Forum, Dubai, UAE.

MARCH 2023

7-9 March (Tuesday-Thursday: Middle East Energy Exhibition, Dubai World Trade Center, Dubai, UAE.

14-16 March (Tuesday-Thursday): Arab Aviation Summit (AAS), Al Hamra International Exhibition & Conference Centre, Ras al Khaimah, UAE.

15-19 March (Wednesday-Sunday): Qatar International Agricultural and Environmental Exhibition, Doha, Qatar.

22-24 March (Wednesday-Friday): K.ey – The Energy Transition Expo, Rimini Expo Centre, Emilia-Romagna, Italy.

22-24 March (Wednesday-Friday): UN 2023 Water Conference, New York, NY, United States.

APRIL 2023

6 April (Thursday): Arabia CSR Awards 2022 Clinic (online).

MAY 2023

1-4 May (Monday-Thursday): Arabian Travel Market, Dubai, UAE.

2-7 May (Tuesday-Sunday): Salon International de l’Agriculture au Maroc (SIAM), Meknes, Morocco.

16-18 May (Tuesday-Thursday): Seatrade Maritime Logistics Middle East, Dubai, UAE.

29-31 May (Monday-Wednesday): Electric Vehicle Innovation Summit, Abu Dhabi, UAE.

JUNE 2023

1-3 June (Thursday-Saturday): Envirotec and Energie Expo, Tunis, Tunisia.

13-14 June (Tuesday- Wednesday) The Arab Green Summit, Dubai, UAE.

13-14 June (Tuesday- Wednesday) Bloomberg New Economy Gateway Africa Conference, Marrakesh, Morocco.

SEPTEMBER 2023

Chariot Limited and Total Eren’s feasibility study on a 10 GW green hydrogen plant in Mauritania to be completed.

OCTOBER 2023

2-4 October (Monday-Wednesday): WETEX and Dubai Solar Show, Dubai, UAE.

4 October (Wednesday): Arabia CSR Gala Awarding Ceremony, UAE.

NOVEMBER 2023

30 November – 12 December: Conference of the Parties (COP 28), Dubai, UAE.

EVENTS WITH NO SET DATE

End-2022

KSA’s Neom wants to tender three concrete water reservoir projects to up its water storage capacity by 6 mn liters.

2023

Early 2023: Egypt’s KarmSolar to launch KarmCharge, the company’s EV charging venture.

1Q2023: Oman will award two blocks of land for green hydrogen projects in Duqm, Oman.

Mid-2023: Sale of Sembcorp Energy India Limited to consortium of Omani investors to close.

Phase C of the 900-MW of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai to be completed.

Saudi Basic Industries Corporation (Sabic) steam cracker furnace powered by renewable energy to come online.

4Q2023: Oman to award four blocks of land for green hydrogen projects in Thumrait, Oman.

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.

First 1.5 GW phase of Morocco’s Xlinks solar and wind energy project to be operational.

2025

Second 1.5 GW phase of Morocco’s Xlinks solar and wind energy project to be operational.

UAE to have over 1k EV charging stations installed.

2026

1Q 2026: QatarEnergy’s USD 1 bn blue ammonia plant to be completed.

End-2026: HSBC Bahrain to eliminate single-use PVC plastic cards.

Iraq’s Mass Group Holding wants to invest EUR 1 bn on its thermal plant Mintia in Romania to have 62% of run on renewable energy, while expanding its energy capacity to at least 1.29k MWh.

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.

2060

Nigeria aims to achieve its net-zero emissions target.

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