Good morning, everyone. The news cycle has slowed down significantly, giving us a quiet morning today with a few updates from Saudi Arabia, Oman, and Kuwait. Let’s dive right in.

THE BIG CLIMATE STORY OUTSIDE THE REGION- Tropical Storm Ernesto has intensified into a hurricane level once again as it moves away from Bermuda, heading further into the Atlantic. With maximum sustained winds of 120 km/h, Ernesto is generating powerful swells affecting the Bahamas, Bermuda and that have marched up the eastern seaboard of the United States as well as Atlantic Canada.

The storm was expected to pass near southeastern Newfoundland by late Monday or early Tuesday before weakening into a post-tropical cyclone.

Why it matters: Hurricanes are becoming more intense — thanks to climate change. Forecasters have consistently warned of the role of climate change in making storms like Ernesto more powerful. While there is no evidence that climate change is increasing the frequency of hurricanes, researchers have shown that it making it more likely we’ll see storms with stronger winds and heavier rainfall.

The story made headlines in the international press: AP | Reuters | BBC | The Guardian | The NewYork Times | CBS | ABC | NBC.

HAPPENING TODAY-

The World ESG Summit gets underway this morning in Dubai. The summit will gather experts and industry leaders to explore new ways to integrate environmental, social, and governance principles into business practices. It wraps up tomorrow.

WATCH THIS SPACE-

#1- Dewa issues tender for 2.5 MW electrolyser project: Dubai Electricity and Water Authority (Dewa) has issued a tender (pdf) for the design, supply, installation, and commissioning of a 2.5 MW alkaline electrolyser project. The deadline for tender submissions is 18 September of this year, but the project’s timeline and expected value of the project were not made public.

It’s not Dewa’s first electrolyzer: Dewa — in partnership with Siemens Energy — inaugurateda 1.25 MW solar-powered polymer electrolyte membrane (PEM) electrolyser in the UAE in 2021 to produce green hydrogen at a rate of 20 kg per hour. The solar energy used for the project — the first first solar-driven green hydrogen facility in our region — originates in Mohammed bin Rashid Al Maktoum Solar Park. The UAE is using the green hydrogen from the plant to power its first green fuel station for hydrogen-powered vehicles developed in partnership with the Emirates National Oil Company Group and Al-Futtaim Toyota last year.

SOUND SMART- PEM vs alkaline electrolyzers: PEM a common type of electrolyser tech used for hydrogen production, despite being more expensive than alkaline electrolyzers, which do not require rare metals to operate. That’s because PEM tech has a faster response to fluctuations in production and can start up immediately, unlike alkaline electrolysers which take around 20 minutes to start up.

How do you choose between them? Alkaline electrolyzers dominate the market by total capacity installed — they cost less and have proven track records at larger-scale hydrogen facilities. But PEM electrolyzers are becoming more common in scenarios where fast response times and grid flexibility are crucial.

#2- Egypt becomes member of global fund for financing biodiversity projects: Egypt’s Minister of Environment, Yasmine Fouad, has been selected as a member of the Executive Board of the Global Biodiversity Framework Fund (GBFF), according to a statement. Egypt was one of 15 developing countries invited to join the board, which stands as the decision-making body and manager of the fund. The decision came on the sidelines of the minister’s visit to Canada to prepare for the next round of talks on the COP16 to the Convention on Biological Diversity, which is scheduled to get underway in Colombia from October 21 to November 1.

About the fund: GBFF was established during COP15’s Convention on Biological Diversity. The fund — which received an initial grant of CNY 1.5 bn (USD 220 mn) from China — aims to finance the implementation of the Kunming-Montreal Global Biodiversity Framework.

REMEMBER- 196 countries signed the Kunming-Montreal Global Biodiversity Framework in2022, committing to protect 30% of the planet’s oceans and lands by 2030 in a landmark agreement back in 2022 due to global warming’s impact on at least 10.96k species.

#3- A growing number of clean fuel startups are struggling to stay afloat, the WallStreet Journal writes. The companies were once hailed as the future of sustainable energy, but many are struggling amid high interest rates, supply-chain disruptions, and expensive power-grid upgrades that have driven up electricity prices, making it difficult for these startups to raise funds and meet project timelines. Companies like US-based Plug Power, which recently opened one of the first green hydrogen plants in the US, have seen their stock prices plummet.

A clean fuel exodus? Or a natural market shakeup? Several high-profile ventures have collapsed, including a company backed by United Airlines, which aimed to convert trash into jet fuel, and another that's supported by Airbus, JetBlue, and GE Aerospace, which was developing hydrogen fuel for planes, WSJ adds. Major oil companies like Chevron, BP, and Shell are scaling back their biofuel projects due to similar financial pressures. The delays in government tax credits have further exacerbated the situation.

Cleantech for aviation and shipping also faces significant challenges. Shipping giant Maersk has opted to order new ships that run on liquefied natural gas and bunker fuel, citing uncertainties in green fuel development. Air New Zealand has also withdrawn its 2030 emissions target due to the limited availability of alternative jet fuels.

But some remain optimistic: Clean fuel startup LanzaJet, backed by Shell, Southwest Airlines, and Microsoft, is set to start production at a sustainable aviation fuel plant in Georgia, though construction costs were higher than expected, the news outlet notes. US’ CemvitaFactory, which uses microbes to produce fuel feedstocks, is focusing on generating cash to survive the current market conditions.

WORTH READING-

We’re not doing enough to fight climate change in our part of the world: The Middle East needs to implement more climate resilient solutions — including expanding renewables, improving water use efficiency, and optimizing agricultural practices — to avoid the “shattering effects” of climate change, according to a report (pdf) by Al Attiyah Foundation. The report outlines how the region is especially vulnerable to climate change due to its arid climate and temperature increases higher than the global average. In turn, crop yields are expected to reduce up to 30% by mid century. Decentralized renewable energy systems are highlighted as a promising means of increasing resilience to extreme weather, along with desalination and wastewater treatment to address water insecurity.

Read more about climate resilience measures MENA can take in our detailed report.

DANGER ZONE-

US data center water consumption skyrockets as AI use increases: The US’ “data centre valley” in Virginia — the world’s largest concentration of data centers — has had its water consumption increase by almost 66% since 2019, reaching 7 bn liters, according to the Financial Times. Data centers’ rapidly increasing demand for water — which is getting more scarce globally as a result of climate change-induced droughts — is predicted to continue as Big Tech invests USD bns into data centers looking to integrate power and water-intensive AI tech.

What’s the water being used for? Data centers use water to cool down computing equipment and for fuel and power generation. Google’s water consumption for example rose 14% in 2023 which it primarily attributed to “water cooling needs at our data centers,” while Amazon recently had a permit approved for the transfer of 1.4 bn gallons of water.

Water-stressed areas aren’t off limits: Several computing centers are located in water stressed areas like Virginia. Microsoft said 42% of its water came from “areas with water stress” in 2023 and Google said 15% of its freshwater cae from areas with “high water scarcity.” Virginia has been breaking records with its recent dry spells, including in the four counties where data center valley is located.

Big Tech is listening: Microsoft said it will reduce its water usage for cooling, pledging that from August, “new data centers we design for Virginia will use zero-water cooling technologies.” Amazon also said its data centers would be “water positive” by 2030.

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CIRCLE YOUR CALENDAR-

Turkey will host the International Conference on Clean and Green Energy Engineering from Saturday, 24 August to Monday, 26 August in Izmir. The event will gather researchers and professionals to share advances in clean energy. It will also offer a platform to discuss the latest research, practices, and applications in clean and green energy engineering.

The UAE will host the World Utilities Congress from Monday, 16 September to Wednesday, 18 September in Abu Dhabi. The event will gather global energy leaders, policymakers, and other industry professionals from the power and water utilities value chain to discuss industry trends and challenges.

Saudi Arabia will host the EV Auto Show from Tuesday, 17 September to Thursday, 19 September in Riyadh. The show offers a platform for participants to learn about the latest EV technologies and services.

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