Morocco taps possible investors for USD 33 bn green hydrogen projects

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THE WEEK IN REVIEW

TOP STORIES: Morocco’s new green hydrogen players + Egypt’s climate efforts get IMF backing

Good morning, folks. It is another packed issue this month, with a slew of IPO, debt, M&A, and investment updates from all over the region. But first, the latest on Europe’s EV battery making blunders…

THE BIG STORY ABROAD THIS WEEK- Northvolt files for bankruptcy in Sweden: Swedish battery maker Northvolt has filed for bankruptcy in Sweden after failing to secure the financial backing needed to stay afloat. Investors backed out from a financing round at the last minute, marking the fall of a company that was once hailed as Europe’s best chance to compete in the China-dominated EV battery market.

REMEMBER- Northvolt had filed for bankruptcy protection in the US last November, giving it a temporary reprieve while it attempted to secure new partnerships and funding.

Dumped by everyone: The company failed to secure rescue funding from the Swedish government, as well as from other private sector backers. The company’s main customers, such as VW and its Sweden-based subsidiary Scania, have also begun working on securing supplies from alternative producers.

What’s next? A Swedish court-appointed trustee will now oversee the sale of the company’s assets and manage outstanding obligations in consultation with creditors. The filing doesn’t include the company’s subsidiaries in North America and Germany, and excludes Northvolt’s industrial battery systems unit, which is planned to be sold to Scania, the Financial Times reported last month.

WHAT WE’RE TRACKING REGIONALLY-

#1- Oman power utility company puts IPO on ice: Omani state-backed Oman Electricity Transmission (OETC) paused its IPO plans and is said to be exploring a bond sale to drum up fresh capital, Bloomberg reported on Wednesday, citing sources familiar with the matter. The utilities firm will sound out investor appetite in the US and UK this week for a potential USD-denominated debt issuance, though no final decisions have been made on size, timing or structure.

ADVISORS- The firm tapped Citigroup and Oman Investment Bank to work on the potential transaction.

Supporting Oman’s green push: OETC completed tests to remotely operate the 500 MW Ibri III solar project. OETC, Hydrom, OQ Gas Networks, and Nama Water Services were reported in 2023 to be working on establishing a hydrogen infrastructure company that will work on projects across the Al Wusta and Dhofar governorates. It also started operations on the first phase of its interconnector project linking the north of the country to the south, with plans to connect some 2.6 GW of renewables capacity to it by 2027.

IN OTHER REGIONAL IPO NEWS- Dubai-based decarbonization company Positive Zero might be looking at an IPO in the future, as the company looks to shore up liquidity to enter new markets, CEO David Auriau told The National on Wednesday. The BlackRock-backed firm says it has doubled its earnings and nearly tripled its capital expenditures y-o-y since BlackRock’s USD 400 mn cash-infusion in 2023, though no figures were made public. The outfit is also eyeing a fresh round of debt to finance its near-term growth push into new geographies, he said.

#2- Egypt’s green data center plans are back in focus: Egyptian Investment Minister Hassan El Khatib met with Income Egypt Chairman Hesham Sheta and a group of green energy investors to review plans for a renewable-powered data center complex — dubbed the Atlas Project, according to a statement released on Tuesday. The project appears to build on a January MoU a consortium of Swicorp Infra Capital, Income Egypt, and Record Digital Asset Venture signed with the Communications Ministry to develop a data center targeting exports of digital services abroad. The data center will be powered by a 200 MW mix of solar and wind energy.

#3- Algeria will start connecting the first batch of projects from its 3.2 GW solar initiative between the end of the year and early 2026, the Energy Ministry’s Renewables Secretary Nour-Eddine Yassa told state-owned channel Chaine Une on Monday (watch, runtime: 51:48). The 3.2 GW of capacity is distributed over 20 projects with capacities of 50-300 MW, along with a 200 MW plant to feed an iron factory in Gara Djebilet.

What’s next? The government has identified 212 potential sites across 46 provinces for future solar developments. Algeria is also moving forward with wind power plans, with feasibility studies pinpointing 10 suitable locations for a 1 GW wind energy rollout.

ICYMI- Algerian state-owned energy company Sonelgaz awarded 20 solar projects with a total capacity of 3 GW last March, including a 200 MW solar plant in El M’ghair on which the company broke ground in March last year. The project was reportedly set to be completed within 14 months of the start of construction.

Electricity interconnections are on the table: Algeria is also looking to develop cross-border electricity connections with multiple neighbours, including the Sahel nations, Libya, and eventually Egypt, reinforcing its focus on south-south integration, Yassa added.

ALSO- Algeria is moving to liberalize its mining sector with a draft law that aims to attract private investment and simplify regulations, APS reported on Monday, citing the draft text. If passed, the bill would eliminate the restrictive 51-49% ownership rule that has historically required state-owned majority ownership, opening the door for foreign investors to hold majority stakes in mining ventures on the condition that the state still holds a minimum 20% stake. The bill is yet to be discussed in the House.

There is more: Licensing procedures will be streamlined by replacing the current dual approval process — pertaining to requirements from both mining and environmental laws — with a single-track process to cut red tape. Mining exploitation licenses will have a maximum duration of 30 years, while quarrying licenses will be capped at 15 years. Artisanal mining licenses will be issued for up to five years. The bill would also introduce a “local content” requirement to increase domestic value-added production, mandating miners to process, refine, or convert a portion or all of extracted materials locally.

#4- GCC Interconnection to award two expansion tenders within two months: The GCC Interconnection Authority (GCCIA) is evaluating bids from eight to 10 companies for the two expansion projects in the UAE and Oman, GCCIA CEO Ahmed Al Ibrahim told Al Riyadh on Sunday. This comes as part of a push to award the tenders by mid-year and complete the projects by 2027. Bids from Gulf companies will be given priority, Al Ibrahim added.

The financing: The USD 205 mn UAE expansion will be fully financed by the Abu Dhabi Fund for Development. The USD 724 mn Omani expansion will be partially financed by the Qatar Development fund, and the authority is in talks to secure the remainder of the financing from other Gulf banks, including Oman’s Bank Al Sohar.

Demand is on the rise: Energy trade volume between GCC countries is set to increase to 1.8 TW/h this year, compared to 1.3 TW/h in 2024, Al Ibrahim predicts, with power purchase requests predicted to surpass 1 GW/h this year — an increase from 840 MW/h in 2024.

REMEMBER- The Gulf Electricity Interconnection Project extends nearly 1k km of transmission lines from Kuwait to Oman and plans to connect all six Gulf countries. Iraq’s tie-up to the interconnection power grid was 90% complete last December.

WHAT WE’RE TRACKING GLOBALLY-

#1- NZBA at a crossroads over 1.5 C° climate goals: The Net Zero Banking Alliance (NZBA) is advancing a policy change proposal that, if passed, would scrap the alliance’s 130 signatories’ commitment to keeping global warming below 1.5 C° in their financing portfolios, Bloomberg reported on Tuesday, citing an unnamed source it says is familiar with the matter. The NZBA has about four weeks to vote on the proposal drafted by the group’s governing entity.

ICYMI- Four Canadian banks reportedly exited the group earlier this year in an exodus led by major US financial institutions including Goldman Sachs, Wells Fargo, Morgan Stanley, and JPMorgan Chase. European banks have also reportedly been reconsidering their obligations to the NZBA.

#2- Financing pledges to support energy transitions in top polluting developing nations are moving forward despite the US pulling the plug on climate funding, Bloomberg reported here and here last week. A USD 9.3 bn Just Energy Transition Partnership (JETP) agreement to help South Africa shift away from coal remains on track despite the US withdrawing its pledged USD 1 bn in commercial loans and USD 56 mn in grants, Bloomberg reported, citing UK climate envoy Rachel Kyte. The UK, France, Germany, Netherlands, Denmark, and the EU continue to back the agreement. The World Bank-linked Climate Investment Funds could also trigger a USD 2.6 bn green finance package, Bloomberg reported last Thursday, citing people familiar with the matter.

Similar JETP agreements in Indonesia and Vietnam — worth USD 15.5 bn and USD 20 bn — could also be moving ahead despite the US exit as more countries renew their commitment, Bloomberg reported on Friday. Japan has confirmed its continued support for Indonesia’s decarbonization efforts, with Germany stepping in as co-leader.

Could it fill the vacuum? JETPs were initially celebrated as a breakthrough in 2021 for bringing together public and private capital to phase out coal in major developing economies. By providing financial incentives, the agreements aimed to accelerate coal plant retirements and expand clean energy, but slow financing, political shifts, and the complexity of decommissioning plants have stalled progress. However, even with these efforts, global energy transition funding remains far short of what’s needed, with USD 2 tn investment recorded last year, just 37% of the annual financing required to reach net zero by 2050, according to BloombergNEF calculations.

DANGER ZONE-

South Sudan’s recent heat wave spurred by climate change: At least one week of South Sudan’s February heat wave – which shut down schools for two weeks after students collapsed from heat stroke – was made 10 times more likely and 2°C hotter by climate change, the New York Times reported last week citing a study by the World Weather Attribution found. During the heat wave, temperatures surpassed 42°C in some areas, and it was the second time in less than a year that schools had to shut down.

REMEMBER- Climate change has adverse impacts on education: Climate change is predicted to impact education outcomes negatively as a result of increased school closures, disease, stress, and conflict. During extreme weather events such as heat waves or flooding, schools close around 75% of the time and sometimes for prolonged periods when infrastructure is affected or evacuation is needed. Sudden temperature and rainfall change has also been shown to increase violence amongst students by 14%. These negative impacts could translate into lower future earnings and productivity, especially for lower income students.

PSA-

Oman’s mining players can now manage their licenses digitally via Taqa — the Energy Ministry’s digital services platform for its mining and energy sector, Oman News Agency reported on Wednesday. Businesses can manage their mining licenses, use a newly-minted automatic bidding system, be informed about application procedures, and stay updated via a message and notifications center.

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CIRCLE YOUR CALENDAR-

The UAE will host the Middle East Energy conference from Monday, 7 April until Wednesday, 9 April in Dubai. The event will target six product sectors, including smart solutions, transmissions and distribution, renewable and clean energy, critical and backup power, energy consumption and management, batteries, and eMobility.

The UAE will host theSolar Energy Storage Future MENA conference on Tuesday, 8 April in Dubai. The conference aims to empower solar energy and storage in the MENA region to align with net zero goals. Planned events include a panel on navigating competitive markets and financing energy efficiency upgrades.

Turkey will host the International SolarEX Istanbul Fair from Thursday, 10 April until Saturday, 12 April in Istanbul. The event will bring together investors from 125+ countries along with over 200 world-renowned companies and 500+ brands in the solar sector. The fair will feature firm conferences and seminars covering financing, investment, and production in the solar industry.

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

Morocco taps investors for USD 33 bn green hydrogen projects

Morocco has chosen five investors as possible developers for six green hydrogen projects with a total investment of MAD 319 bn (c.USD 33 bn), according to a statement issued last week. The government will offer each project up to 30k hectares of land in the southern region after a preliminary agreement is inked. No timeline for finalizing the agreements nor the projects was disclosed.

Who’s being tapped? The ORNX consortium — comprising American Ortus, Spanish Acciona, and German Nordex — will invest in ammonia production. UAE’s Taqa and Mubadala-owned Spanish Moeve — formerly known as Cepsa — will develop ammonia and synthetic fuel projects. Moroccan energy firm Nareva is set to produce ammonia, synthetic fuel, and green steel. Saudi’s Acwa Power and a Chinese consortium of UEG and Three Gorges will each focus on ammonia production.

Adding to a long pipeline of possible projects: Dubai-based H2 Global Energy completed initial studies last month for a planned green hydrogen and ammonia plant in southern Morocco, with an expected annual production capacity of 1 mn metric tons of green ammonia. French majors TotalEnergies and Engie are also considering their own green hydrogen and ammonia production projects as part of agreements the companies inked back in October.

Part of a bigger plan: Morocco’s Green Hydrogen Offer, launched in March last year, aims to establish the country as a key producer and exporter, allocating up to 1 mn hectares for renewable and hydrogen projects, backed by shared infrastructure like ports, grids, pipelines, and storage. The initiative also offers a combination of investment incentives and regulatory support.

Scatec signs PPA for Egypt Aluminium’s renewables project

Scatec signs solar + BESS PPA with Egypt Aluminium: Norwegian renewables developer Scatec has signed a 25-year USD-denominated Power Purchase Agreement (PPA) with Egypt’s largest aluminium producer Egypt Aluminium for a 1.1 GW solar PV plant and a 100 MW/200 MWh Battery Energy Storage System (BESS), according to a press release from Thursday. Scatec will be responsible for the project throughout its lifecycle, including EPC, management, operations, and maintenance.

Financing and ownership: The project is expected to cost USD 650 mn, which will be 80% financed through non-recourse project debt, while the rest will be covered by equity from Scatec and partners. Scatec will be sole owner initially, but it is planning on offloading some stakes to other equity investors on the long-term.

This has been in the works: Scatec was in talks with the Public Enterprise Ministry to set up the plant to power Egypt Aluminium’s production complex in Qena’s Nagaa Hammadi as early as January 2024.

What’s next? Scatec will work to secure land, finalize grid connection, and source funding for the project, the press release adds. The renewables major expects to reach financial close and begin construction within the next 12 months.

Egypt Aluminium wants to decarbonize exports: Egypt Aluminium wants to use this project to help decarbonize its aluminum production, 60% of which is exported to Europe. The decarbonization efforts come as an attempt to meet the EU’s Carbon Border Adjustment Mechanism rules which will come into effect in 2026.

Egypt to get USD 1.3 bn in climate financing from the IMF

The IMF Executive Board approved some USD 1.3 bn in climate financing to Egypt under the Resilience and Sustainability Facility, Egypt’s Finance Minister Ahmed Kouchouk said during the annual ministry Iftar on Monday. The decision comes in tandem with the board’s completion of the fourth review of its Egypt’s USD 8 bn loan program.

More than expected: The initial announcement of the climate financing agreement back in March 2024 stated that Egypt would be eligible to lock in USD 1-1.2 bn in climate financing funds.

We have an idea of what projects could receive financing: The funds are set to be directed towards climate-related projects in Egypt, especially those focused on the expansion of renewable energy, emission reduction, water projects, and combating desertification, IMF executive director and Egypt’s former finance minister Mohamed Maait told EnterpriseAM. This comes as part of the government’s efforts to address climate change, he added.

The sizes of the tranches, as well as the disbursement and repayment mechanisms, remain unknown, Maait told us, adding that they will be determined with the Egyptian government at a later stage.

Egypt is also securing financing for green projects through other means: The Finance Ministry has been planning to issue USD 1-1.5 bn worth of eurobonds or green bonds in international markets, followed by an issuance of sovereign sukuk, to take advantage of rising investor interest in Egyptian debt, a senior government official told EnterpriseAM back in January. The Madbouly government has been holding discussions with international offering advisors to identify the best options for debt issuances in the coming period, the source added.

IN OTHER DEBT WATCH NEWS-

UAE’s Aldar Investment Properties has raised USD 500 mn through a 10-year green sukuk issuance, according to a press release (pdf) issued Thursday. The issuance was 7.2x oversubscribed and received USD 3.6 bn worth of orders — 39% of which came from international investors and 61% from regional ones. The sukuk was priced at 110 basis points over US Treasuries with a 5.25% coupon rate. The proceeds will go towards projects under the company’s green finance framework.

ADVISORS- JP Morgan and Standard Chartered are joint global coordinators and lead managers, and will also step in as book runners with Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Ajman Bank, Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, KFH Capital, Mashreq and Sharjah Islamic Bank.

Not their first: The company issued USD 500 mn 10-year green sukuks back in May 2024 — then the company’s second issuance of its kind — at 110 basis points per share over US treasuries. The issuance attracted USD 1.9 bn in orders then, and took place under Aldar’s USD 2 bn trust certificates programme.

ALSO- In January, Aldar Properties raised AED 9 bn (USD 2.45 bn) in a sustainability-linked syndicated senior credit facility. The facility — structured as an unsecured committed multi-tranche revolving credit — stands as the largest sustainability-linked, syndicated transaction by a real estate company in the Middle East.

Multiply Group mulls sale of district cooling unit

Abu Dhabi-based and ADX-listed investment firm Multiply Group is said to be mulling the sale of its district cooling unit Pal Cooling Holding, Bloomberg reported on Monday, citing sources familiar with the matter. The firm has enlisted Standard Chartered to advise on the potential transaction which could see it rake in some USD 1 bn in proceeds, the people said.

About Pal Cooling Holding: Founded in 2006, the Abu Dhabi-based firm owns and operates a portfolio of central cooling plants that supply chilled water for air conditioning at various stages of development, according to its website. Pal has long-term contracts to supply over 600k tons of refrigeration (TR) of cooling. The company is currently constructing a cooling plant in Najmat with 49k RT installed capacity.

District cooling acquisitions history in UAE: Big players in the UAE market have been expanding their market share through acquisitions. Mubadala-backed Tabreed acquired an 80% stake in Emaar Properties’ district cooling unit in 2020, and DFM-listed Dubai-based Empower snapped up the Dubai International Airport’s district cooling assets in 2023 and has recently been on an acquisition spree for more district cooling units across the country.

IN OTHER M&A UPDATES-

Mubadala offloaded its indirect stake in Calisen — a UK-based provider of smart meters and small-scale energy transition infrastructure, according to a press release published on Monday. The move caps a four-year PE investment cycle alongside a consortium of other investors who took the company private for GBP 1.43 bn in 2020. It’s noteworthy that Private equity firm EQT and Singapore’s sovereign wealth fund GIC purchased a majority stake in Calisen in December 2024 from the consortium, valuing the company at around GBP 4 bn at the time. Information about the value of the exit gain wasn’t disclosed.

Austrian companies reportedly eye WtE investments in Egypt

Austria eyes WtE investments in Egypt: A consortium of unidentified Austrian companies is reportedly planning on developing four waste-to-energy (WtE) plants in Egypt with an investment ticket of EUR 150-250 mn each, renewable energy expert Al Gohary Al Shebiny told Al Borsa earlier this week on the sidelines of the Arab Forum for Pioneers in Economics, Investment, and International Cooperation. The companies have preliminary plans for plants in Cairo, Giza, Gharbia, and Dakahlia — which together can meet up to 30% of the country’s electricity demand, Al Shebiny said.

Things are already in motion: The Austrian investors have already conducted feasibility studies for the projects, which they plan to submit to the Egyptian government, Al Shebiny added. They are hoping to reach a 20-25 year usufruct agreement for the projects to allow time to recover from the high investment costs.

About the plants: The WtE plants would burn non-recyclable solid waste and the heat produced triggers the rotation of a steam turbine to generate energy. Each plant would operate for up to 8.5 k consecutive hours before pausing for periodic maintenance. Filter systems are included to purify 99.9% of exhaust fumes — a feat making the facilities suitable for residential areas. Around 70% of the production line components would be manufactured locally.

Why Austria? Austria already has an advanced waste management system in place that produces electricity and thermal energy for heating, Al Shebiny added. For example, the Spittelau waste-to-energy plant in Vienna processes 270k tons of waste annually to generate 500 GWh of heat, enough for 60k households. The EVN thermal waste treatment plant in Zwentendorf processes over 500k tons of household waste annually and generates around 80 GWh of electricity and 200 GWh of heat per year.

ICYMI- A delegation of representatives from more than 15 Austrian companies is visiting Cairo this month to explore cooperation in the industrial sector. Austria is also working to prepare an MoU to be signed with the Madbouly government focused on renewable energy and green hydrogen.

REMEMBER- Egypt already wants to attract more WtE investments: The Environment and Finance Ministries are working to boost WtE investments by amending laws regulating public contracts and increasing the feed-in tariff rate. Land for WtE projects has already been allocated across eight governorates for completion over the next three or four years. The government was set to sign contracts with eight local-foreign consortiums to produce a total of 1.7 TWh of electricity from municipal solid waste at a total cost of up to USD 1.2 bn in August. An initial target to generate 300 MW of electricity from WtE projects by 2025 was set in 2020.

Adnoc mulls IPO of low-carbon, chemicals arm XRG

UAE’s state-run energy firm Adnoc is reportedly weighing an IPO for its recently set up USD 80 bn renewables and chemicals arm XRG on an international exchange, Reuters reported last Friday, citing sources with knowledge of the matter.

Adnoc has been churning out IPOs for its subsidiaries since late 2017, starting with its fuel retail arm’s USD 851 mn ADX debut. Since 2021, it has taken Adnoc Drilling, Fertiglobe, Adnoc Gas, Adnoc Logistics & Services, and Borouge to the ADX, in some of the country’s largest IPOs. Combined together, the offerings drummed up more capital than Saudi Aramco’s record-breaking Tadawul IPO in 2019, excluding the USD 12 bn it raised in a follow-on offering last year, according to Reuters calculations.

Adnoc founded XRG in November 2024 with the aim of investing in lower-carbon energy and chemicals as part of a broader plan to diversify the company’s portfolio and reduce its reliance on oil revenue. The energy giant is prepping XRG to become one of the world’s top five chemical producers and capture 70% of global demand by 2050. Its portfolio already includes a majority stake in Germany’s Covestro and Borouge International. XRG’s board includes former BP chief Bernard Looney, Blackstone President and COO Jon Gray, and Egyptian bn’aire Nassef Sawiris.

Timeline + listing venues: The minority stake sale is expected to materialize in about five years with New York and London among the potential listing venues, the people said. The move could make XRG one of the largest publicly traded energy firms in the world, according to the newswire. The London Stock Exchange (LSE) — home to stocks of major oil and gas players like Shell and BP — is a strong contender for XRG’s potential IPO, one person told Reuters. However, the LSE has seen investors pull funds recently, which could be a drawback. Meanwhile, a listing on the New York Stock Exchange (NYSE) could fetch a higher valuation for XRG, making it a more attractive financial option.

But first… restructuring: Adnoc has yet to name a CEO and complete the transfer of assets to XRG before pursuing a public debut, the people said. The company — set up late last year — is due to become operational this quarter with plans to double its USD 80 bn asset value over the next decade. Just last week, Adnoc announced plans to transfer its stake in Borouge International — a newly-merged polyolefins giant — to XRG, cementing its role as a primary vehicle for the state-run energy firm’s international expansion into the chemicals industry.

ADVISORS- Bank of America is said to be advising on XRG’s strategy.

GI Water as a Service’s series A funding propels it to unicorn status

GI Water as a Service is MENA’s first water unicorn: Water treatment startup GI Water as a Service — a Saudi-based subsidiary of Germany’s GI Aqua Tech — hit a USD 1.03 bn valuation after its series A funding round in January, becoming “the first water sector unicorn in the MENA region,” according to a statement.

Funding details: The round included an “eight-figure” cash investment from Al Zamil Industry, Trade and Transport, and Alqunaibet Investment Fund for a 5.8% equity stake. The new funds will go to driving GI Water as a Service’s market expansion, accelerate R&D, and advance wastewater reuse initiatives across sectors like petroleum and poultry.

More rounds on the horizon: The company initially planned to delay additional fundraising until year-end, but now anticipates multiple rounds due to rising demand in Saudi Arabia and beyond. “We have a large pipeline of projects,” including prospects to work on major projects with Souda, Diriyah, SIRC, and Agri-Serve, CEO Sherif Desouky told EnterpriseAM.

The pitch: GI Water provides decentralized wastewater treatment through a pay-per-cubic-meter model, allowing clients to access services without upfront capital investment. Within a year, it delivered a major industrial wastewater project at Makkah’s Magaz Al Adahi slaughterhouse.

Their flagship platform G-Nano is a wastewater treatment system that is branded as compact, scalable, and energy-efficient. The system continuously treats wastewater in 3 minutes — compared to 10-24 hours for traditional plants — and can be installed in small spaces, such as the parking lot of the Samhan Marriott in Diriyah, Desouky told EnterpriseAM. The company signed an MoU with Bahrain’s Tahliya Water Treatment earlier this year to integrate the system into Tahliya’s plants.

Looking to make an international splash: While maintaining a primary focus on Saudi Arabia, GI Water is also pursuing international expansion. The company is in talks with investors from Singapore and Japan to enter East Asia, and is targeting regions with urgent water treatment needs, including India, Latin America, and Africa. “We are establishing a factory to produce G-Nano locally, which will serve as a hub for the Gulf and African markets,” Desouky added.

What’s next? The company is currently developing solutions to improve treatment quality and cut costs. Future plans include tackling oil-related and high-salinity wastewater using the G-Nano system, with hopes of eventually signing agreements with leading energy companies, Desouky told us.

MORE REGIONAL STARTUP WATCH UPDATES-

#1- OIA invests in biopolymers: The Oman Investment Authority’s (OIA) Future Generations Fund has invested an undisclosed amount in US-based biopolymer company Tidal Vision as part of the startup’s USD 140 mn Series B funding round, according to a statement published on Tuesday. Tidal Vision converts renewable natural resources into chitosan — a biodegradable and non-toxic polymer extracted from crustacean shells that can act as an alternative to traditional chemicals. Chitosan can be used in water treatments, sustainable agriculture, and decarbonization.

#2- Aramco’s global venture arm Aramco Ventures led a USD 30 mn Series A funding round for US-based climate-tech startup Spiritus, according to a press release issued last week. California VC firms Khosla Ventures and TDK Ventures, along with Tokyo’s Mitsubishi Heavy Industries America also participated in the round. The funds will be used to scale Spiritus’ direct capture technology by accelerating its three major carbon capture facilities.

Not Aramco’s first rodeo with Spiritus: Aramco inked an MoU in May of last year with Spiritus to explore potential investments in direct air capture to help address challenges related to the implementation of the technology due to its high costs.

ICYMI- Aramco Ventures is making significant investments in climate tech: Aramco Ventures participated in US-based CarbonCapture’s USD 80 mn Series A funding round in March 2024. Additionally, it invested USD 10 mn in Singapore-based renewable energy certificate service provider Redex back in November 2023, and backed new technology from American start-up Rondo Energy earlier in August 2023.

Mubadala-backed EGA’s net income drops in 2024

Emirates Global Aluminium (EGA), backed by Mubadala and the Investment Corporation of Dubai, reported a 23.5% y-o-y drop in net income to AED 2.6 bn in 2024, according to its latest earnings release issued on Wednesday. The company recorded a 3% rise in revenue to AED 30.4 bn during the period.

Behind the numbers: The net income decline was primarily driven by the suspension of bauxite exports from its Guinea Alumina Corporation (GAC) subsidiary after the Guinean government halted shipments in October 2024. This led to a reduction in bauxite exports to 10.8 mn in 2024, down from 14.1 mn wet metric tonnes in 2023. The introduction of a 9% corporate tax in the UAE at the start of 2024 also impacted earnings. Meanwhile, the rise in revenues was driven by higher aluminum prices, record hot metal and alumina production, and growing sales.

Looking ahead: EGA expects aluminum price volatility to persist in 2025 amid global trade tensions, particularly after the recent US tariffs on the metal.

EGA had a busy year: The company acquired an 80% stake in Minnesota-based Spectro Alloys in October. It also completed a full acquisition of German aluminum recycling company Leichtmetall Aluminum Giesserei from Leichtmetall Holding in May.

On the decarbonization front: The company is developing the UAE’s largest aluminium recycling facility in Al Taweelah, with a planned capacity of 170k tonnes per year starting early 2026. EGA is also piloting its next-gen EX smelting technology, designed to cut greenhouse gas emissions by up to 12%, with the first hot metal from the pilot expected in mid-2025.

MENA ups recycling efforts, pushes for solar capacity growth, and more this week

WASTE MANAGEMENT-

#1- Tadweeer to expand capacity with new production lines: The Saudi National Environmental Recycling Company (Tadweeer) has completed a SAR 29.4 mn (c. USD 8 mn) agreement to acquire new production lines from various European manufacturers for its factories in Riyadh, according to a disclosure issued on Wednesday. The high-efficiency lines will increase the company’s recycling capacity to 500k tons annually, focusing on recycling and producing iron, copper, aluminum, stainless steel, and precious metals. Delivery and installation are set for completion by August 2025. No further details have been disclosed.

#2- Qatar gets a new battery recycling plant: Qatar-based luxury real estate developer JMJ Group Holding has inaugurated a large-scale lead-acid battery recycling plant — dubbed Nafees Batteries — that will convert lead-acid batteries into lead alloy ingots, Trade Arabia reported last week. The plant — located in the Mesaieed region — aims to reduce waste, decrease reliance on imported materials, and increase energy efficiency.

Not JMJ’s first green project: The company’s subsidiary QD Recycling Factory inaugurated another recycling plant in 2023 for ferrous and non-ferrous scrap metal to produce a range of aluminum and copper-based alloys. JMJ also signed an MoU with the Gulf Organisation for Research and Development to expand green building practices across its projects using GORD’s Global Sustainability Assessment System.

SOLAR-

#1- One step forward for Eksim Energy’s PV park: Renewables firm Eksim Energi completed the first 45 MW phase of the 191.4 MW Şanlıurfa Viranşehir solar PV plant in southeastern Turkey has begun commercial operations, Balkan Green Energy News reported on Tuesday. The plant is located on 280 hectares of land in the southeastern Şanlıurfa province. The company was awarded the power purchase agreement and a 30-year concession for the project during a renewable energy auction in 2022. Eksim Energi wants to add 1.5 GW of renewable energy capacity to its domestic and international portfolio by 2029, targeting reaching a total of 2.2 GW capacity.

#2- KarmSolar almost triples capacity with new partnerships: Solar energy utility KarmSolar has partnered with three Egypt-based agribusinesses to nearly triple its contracted electricity supply capacity to 8.37 MW in the Farafra Solar Grid, according to a press release (pdf) published on Monday. The company has agreed to supply 2 MW of electricity to potato exporter Daltex, and 3.17 MVA to Al Mazare’ for food manufacturing and cooling, and Al Hoda for land rehabilitation and cultivation. The expansion — to be funded by equity investments — is part of a microgrid that integrates solar PV panels, battery storage, and diesel generators into a centralized distribution network.

REMEMBER- KarmSolar secured EGP 83 mn in funding in 2023 from our friends at HSBC to develop a solar grid in Farafra, the company’s second microgrid after the Marsa Alam Solar Grid. The company also signed up Juhayna and Nawa for Agricultural Investment as offtakers and secured exclusive power distribution rights for the 67k-acre stretch of land the grid is located on.

GREEN MANUFACTURING-

The National Environmental Recycling Co. (Tadweer) purchased production lines worth SAR 23.4 mn for its Riyadh factories, it said in a disclosure to Tadawul on Tuesday. The new equipment is expected to come online in August this year, allowing it to raise production and recycling capacity to 500k tons of iron, copper, aluminum, precious metals, and stainless steel.

DEBT WATCH-

The Opec Fund is providing a USD 35 mn loan to the Uzbekistan state-backed, joint-stock Asaka Bank to finance climate action and agricultural projects, according to a press release issued on Monday. The bank will on-lend the money to SMEs and agribusinesses to help them acquire more advanced technology and expand their market presence.

Why it matters? The country’s agriculture sector accounts for 25% of its GDP, but the sector has been struggling with climate change-induced extreme weather and water scarcity, as well as limited financial support for mitigation.

The fund has been busy: The Mauritanian government and the Opec Fund for International Development signed a framework agreement last month for USD 120 mn in financing targeting sustainability and clean energy projects from 2025-27. It also signed a EUR 50 mn loan agreement with the Development Bank of Turkey to support on-lending investments into renewable energy expansion, energy efficiency, climate resilience, and technology development.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

Acwa opens first overseas innovation center in China: Saudi Arabia’s Acwa Power has inaugurated its first overseas innovation center in Shanghai’s Pudong New Area, investing USD 2.8 mn for the initial phase. The company has inked MoUs with Gulf Renewables Laboratory and Shanghai Jiao Tong University to boost technical expertise and research collaborations on solar PVs, wind, energy storage, green hydrogen, and seawater desalination. (Press release)
Iraq to transition government buildings to solar: Iraq has launched a project to switch almost 5k government buildings to a solar power system, with the first phase targeting 543 ministries, public hospitals, schools, and government offices in Baghdad. The program includes solar water heaters and will include smart meters in the future. (Iraq News Agency)
Yellow Door + SIG kick off 2 MW project in Riyadh: Emirati renewable energy developer Yellow Door Energy and Switzerland-based sustainable packaging tech provider SIG have inaugurated their 2 MW solar project in Riyadh. The 8k sqm venture boasts upwards of 3.2k solar panels and aims to reduce carbon emissions by 1.3k tons per year. (Press release)
Duqm Port explores clean energy, EV charging with OOMCO: Port of Duqm Company and Oman Oil Marketing Company (OOMCO) have inked an MoU to explore the deployment of solar energy systems, biofuels, and EV charging stations at the port. (Oman Observer)
Palm Gateway taps Empower for cooling services: Empower will provide 9.47k RT of sustainable district cooling to the Palm Gateway project in Palm Jumeirah. The project will become operational in 2Q 2026. (Press Release.pdf)

US eyes DRC’s critical minerals

WeLight to bring renewables to Nigeria: Nigeria has struck a USD 200 mn agreement — backed by the World Bank and the African Development Bank — with pan African Distributed Renewable Energy company WeLight to bring 400 renewable mini-grids and 50 MetroGrids to rural communities and areas surrounding urban centers, Reuters reported on Monday. The project would provide energy security to some 1.5-2 mn people, aligning with the country’s goal to increase renewables’ share in its electricity mix from 22% to 50%.

US + DRC in talks over minerals agreement: The US is in early discussions with the Democratic Republic of Congo (DRC) over a potential agreement granting American firms access to the African country’s critical mineral reserves, the Financial Times reported last week. The DRC — rich in copper, cobalt, and uranium — proposed an agreement last month that would allow US companies to extract resources and collaborate on a strategic mineral stockpile, according to a letter sent to US Secretary of State Marco Rubio on behalf of Congolese Senator Pierre Kanda Kalambayi, according to FT.

The catch? Washington would provide political and security support to President Félix Tshisekedi, whose government is battling M23 rebels in the country’s mineral-rich east, FT reports. The group — allegedly backed by Rwanda — has seized key mining areas in recent months, and continues to profit from the coltan trade through taxing informal mining operations to fund weapons and supplies. The group has been reportedly responsible for several human rights violations against civilian populations, some of them reduced to de facto slavery, the Wall Street Journal reports.

IN CONTEXT- The discussions follow the Trump administration’s push to secure critical supply chains after the fallout of the Ukrainian agreement last week, while also reducing Chinese resource extraction and influence in Africa. No major US mining firms have operated in the DRC since Freeport-McMoRan exited the Tenke Fungurume copper mine in 2016, the FT added.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

Cosmo to launch Japan’s first domestic SAF production in April: Cosmo Energy Holdings will kick off Japan’s first domestic production of sustainable aviation fuel (SAF) in April, using used cooking oil at its Sakai refinery in western Japan. The country’s third-largest refiner aims to produce 24k kiloliters in FY 2025, with most of the output already secured by Japan Airlines, ANA, and DHL. (Reuters)

Europe’s defense pivot to drain climate funding for emerging markets

Europe slashes climate funds to fuel military build-up: European governments are diverting EUR bns in climate finance to ramp up defense spending, putting climate aid commitments on the back burner, Bloomberg reported last week. The UK is cutting USD 7.6 bn in aid to fund military expansion, while Germany plans to slash development finance by nearly USD 1 bn. The Netherlands is also trimming USD 2.5 bn, with similar reductions reported from Finland, Sweden, and Switzerland.

Commitment issues: The spending cut follows pledges at COP29 to provide USD 300 bn of climate financing to emerging economies, a figure that is far below the USD 1.3 tn that emerging countries and experts say is needed to keep global warming below 1.5 C°. Developed countries — led by the European Union — have also blocked attempts during COP29 to raise their pledged public financing, arguing that emerging nations should also seek more debt-based private financing.

The stock market tells a similar story, with the S&P Global Clean Energy Index declining 40% since the Russian-Ukrainian conflict, while the S&P Global 1200 Aerospace & Defense index went up 64% in the same period.

CALENDAR

MARCH

27-29 March (Thursday-Saturday): ANE Global Meet and Expo on Green Energy and Environmental Technology, Dubai, UAE.

31 March-1 April (Monday-Tuesday): Climate Chance Europe Africa Summit, Marseille, France.

APRIL

2-5 April (Wednesday-Saturday): Global Youth Climate Summit, Minas Gerais, Brazil.

7-9 April (Monday-Wednesday): Middle East Energy, Dubai, UAE.

8 April (Tuesday): Solar Energy Storage Future MENA, Dubai UAE.

9-10 April (Wednesday-Thursday): Global Hydrogen Forum, Barcelona, Spain.

10-12 April (Thursday-Saturday): SolarEX Istanbul, Istanbul, Turkey.

14-15 April (Monday-Tuesday): Istanbul Carbon Summit, Istanbul, Turkey.

15-16 April (Tuesday-Wednesday): Green Energy Summit Saudi Arabia, Riyadh, Saudi Arabia

15-17 April (Tuesday-Thursday): International Conference on Functional Materials and Renewable Energies, Tangier, Morocco.

21-23 April (Monday-Wednesday): Electric Vehicle Innovation Summit, Abu Dhabi, UAE.

MAY

6-8 May (Tuesday-Thursday): Autonomous e-Mobility Forum, Ar-Rayyan, Qatar

7-9 May (Wednesday-Friday): International Renewable Energy Conference, Istanbul, Turkey.

13-14 May (Tuesday-Wednesday): International District Cooling Conference, Riyadh, Saudi Arabia

14-15 May (Wednesday-Thursday): Saudi Arabia Green Energy Week, Riyadh, Saudi Arabia

JUNE

9-13 June (Monday-Friday): UN Ocean Conference, Nice, France.

15-17 June (Sunday-Tuesday): G7 Summit, Kananaskis, Canada.

16-26 June (Sunday-Saturday): Bonn Climate Change Conference, Bonn, Germany.

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

30 June-3 July (Monday-Thursday): International Conference on Financing for Development, Seville, Spain.

SEPTEMBER

8-9 September (Monday-Tuesday): Sustainable Buildings and RetrofitTech Qatar Summit, Doha, Qatar.

9-11 September (Tuesday- Thursday): Global Water Energy and Climate Change Congress, Manama, Bahrain.

9-23 September (Tuesday-Tuesday): UN General Assembly, New York City, USA.

OCTOBER

14-15 October (Thursday-Wednesday): Egypt Energy, Cairo Egypt

20-21 October (Monday-Tuesday): Sustainable Buildings and RetrofitTech Saudi Summit, Riyadh, KSA

28-30 October (Tuesday-Thursday): EV Auto Show, Riyadh, Saudi Arabia

NOVEMBER

4-6 November (Tuesday-Thursday): World Social Summit, Doha, Qatar.

10-21 November (Monday-Friday): UN Climate Change Conference (COP30), Belém, Brazil.

22-23 November (Saturday-Sunday): G20 Leaders’ Summit, Johannesburg, South Africa.

25-26 November (Tuesday-Wednesday): Sustainable Buildings and RetrofitTech Bahrain Summit, Manama, Bahrain.

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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