Good morning, nice people. It’s a busy morning in the regional climate industry on the heels of the WEF special meeting concluding in Riyadh, we have a full recap below. We also have green hydrogen and solar energy project updates from Oman and Masdar, along with new green policy emerging from Qatar. First, an update from the G7…

THE BIG CLIMATE STORY OUTSIDE THE REGION- A significant shift away from coal: G7 energy ministers reached a technical agreement to shut down coal-fired power plants by 2035 marking a significant step away from fossil fuels. The agreement is expected to be sealed today via an official communique breaking down commitments by the group towards the decarbonization of their economies. Nuclear energy and biofuels will also be mentioned in the final document, along with the need to increase battery capacity six-fold by 2030 to ensure ready access to renewable energy.

The story grabbed ink in Reuters, Bloomberg, The Financial Times, and CNN.

WATCH THIS SPACE-

#1- The UAE may exceed its goal of tripling renewable energy capacity by 2030, the country's Energy Minister Suhail Al Mazrouei said during a panel session at the World Economic Forum (WEF) special meeting in Riyadh, The National reports. The push comes on the back of falling clean energy prices and an increased demand for solar to power green hydrogen projects under development, Al Mazrouei explains, adding that the nation can now say for certain that their current goal will be reached. UAE aims to produce 1.4 mn tonnes of green hydrogen annually by 2031 and 15 mn tonnes by 2050 and is planning for two hydrogen hubs by 2031, the news outlet adds.

UAE is already making progress: UAE's renewable energy capacity increased67% to6 GW in 2023. Solar energy led the boom, as it saw a 65% rise to 5.9 GW. The country also added 104 MW of wind energy to its portfolio in operation.

#2- Egypt will secure the sale of two of its wind farms this quarter, IMF says: The International Monetary Fund (IMF) predicts that Egypt’s sovereign fund will complete the long-awaited sale of its Gabal El Zeid and Zafarana wind farms in the next couple of months, according to a staff report (pdf). The sales are expected to reel in a total of USD 639 mn — USD 339 mn of which will come from the Gabal El Zeit farm, and the other USD 300 mn either from the Zafarana wind complex or an unnamed desalination station. The deals were initially set to conclude before the end of March, Egyptian Planning Minister Hala El Said said on two separate occasions this year. The IMF did not disclose specific buyers.

What we know so far about the sales: Danish shipping company Maersk began due diligence for the 545 MW Zafarana wind farm back in February as it paves the way to submit a final offer to acquire half of the asset. UK-based private equity giant Actis also reportedly wrapped up due diligence on the 580 MW Gabal El Zeit wind farm back in February. A number of local and foreign investors had shown interest in the two farms, including Saudi Arabia’s Acwa Power, the UAE’s Alcazar Energy, and our friends at renewables firm Infinity.

#3- TotalEnergies to complete Iraqi solar project by 2025: France’s TotalEnergies is set to begin operating the first phase of its solar power project in Iraq “within the next year”, TotalEnergies CEO Patrick Pouyanné told Iraqi Prime Minister Mohammed Al-Sudani during a meeting held in Riyadh, according to a statement. Details on the name, capacity, or investment ticket of the project were not mentioned.

REMEMBER- TotalEnergies previously inked an agreement for solar projects in Iraq: Iraq's government has granted land to TotalEnergies to establish a 1 GW solar plant and PowerChina to establish a 750 MW solar plant last November. The Iraqi government and TotalEnergies finalized an agreement for a USD 27 bn cluster of energy projects in the country back in July, including this 1 GW solar power plant.

#4- Sabic aims to convert 1 mn tons of waste into feedstock by 2030, Mubasher reports, citing statements by Sabic CEO Abdulrahman Al Faqih during a session at the WEF meeting yesterday. “We have adopted an alternative energy [source] from plastic waste, which we have used to begin manufacturing petrochemicals. We aim to have 1 mn tons by 2030,” he said. He highlighted Sabic’s commitment to sustainability, saying that the leading petrochem firm was able to slash its carbon footprint by 12.7% last year under a goal to reach net zero by the end of the decade.

#5- Global airline carriers are lobbying the EU to scale down plans requiring the industry to track non-CO2 emissions and disclose their impact on global warming, The Financial Times reported earlier this week, citing a letter it has seen. The EU is planning to enforce emissions tracking and reported requirements for flights taking off from within the bloc beginning January 2025. Non-CO2 emissions cannot be tracked with accuracy and that the science needed to measure such emissions and assess their impact is still immature, IATA director general Willie Walsh said. “The proposal risks creating a regulatory burden that will require airlines to provide large amounts of data for all flights, with an insufficient potential for positive environmental impact,” Walsh added. Environmental groups have countered claiming the IATA is only citing scientific uncertainty as a way to shield airlines from environmental regulations, the FT said.

SPEAKING OF EMISSIONS- Red Sea disruptions and subsequent reroutes around the Cape of Good Hope are causing ships to emit mns of additional tons of carbon, Bloomberg reports, citing data from procurement consultancy Inverto. The detour has incurred an added 13.6 mn tons of CO2 emitted over the past four months, equal to emissions from some 9 mn cars over the same period. The spike in emissions endangers decarbonization pathways mapped out by shipping companies across supply chains.

#6- The Middle East is spearheading the adoption of sustainable and autonomous e-trucking technology, with the sector’s growth in the region potentially pushing others to implement such technologies on a larger scale, CEO of Swedish freight mobility outfit Einride Rober Falck told the National on the sidelines of the WEF meeting. Autonomous freight shipping is likely to be scaled in volume first in the Middle East, Falck said. While Einride has no vehicles, clients, or smart grids in KSA, it maintains a strong presence in the UAE and inked an agreement with Abu Dhabi earlier this year to deploy 1k all-electric heavy-duty trucks and 100 self-driving vehicles, along with charging infrastructure.

IT’S A WRAP IN RIYADH-

The WEF special meeting in Riyadh wrapped up yesterday with top government officials, public figures and industry leaders talking about private sector activity in a fragmented world, non-oil growth in the midst of regional tensions, and cost-efficient energy policies in emerging markets. Here are some highlights from day two:

#1- Renewables energy giant Acwa Power plans to invest USD 10 bn in Malaysia over the next decade, Malaysian state news agency Bernama reported, citing statements by chairman Mohammed Abunayyan. The proposed “energy projects” in Malaysia will be implemented with Malaysian integrated renewable energy provider Cypark Resources. Talks on the plan are set to be finalized by the end of the year, Cypark Resources executive chair Datuk Ami Moris was quoted as saying.

What they said: “Acwa Power, one of the world’s largest renewable energy companies, is keen on investing in Malaysia, implementing technology transfer and sharing its renewable energy expertise for industrial parks in Jasin, Melaka, and Kerian, Perak, to power up green data centers,” Moris said.

#2- There’s an urgent need for a “realistic energy transition program that is just and inclusive and includes everybody,” Aramco CEO Amin Nasser said in a separate panel, “The business case for the energy transition” (watch, runtime: 48:48). “We need to understand very clearly that policy without technological readiness and without economic competitiveness is not going to drive a solution. Incentives will drive a solution but it’s not sustainable,” he said, highlighting rising demand for hydrocarbons against renewable energy.

Speaking of Aramco: The state-owned oil giant is looking to invest in new types of energy outside Saudi, Reuters quotes Nasser as saying. He did not provide further details. Aramco has been pushing into both conventional and renewable energy across the world in the past 12 months.

#3- Saudi is setting an example for a circular economy: The Kingdom has been able to rally international support for its push towards a circular economy and carbon capture, Energy Minister Abdulaziz bin Salman said, according to Mubasher. Our carbon capture and storage facilities can process nearly half a mn tons of carbon, bin Salman said, urging other countries to follow with similar initiatives.

#4- The WEF’s open innovation platform Uplink will help provide Saudi early-stage startups with advanced technologies to help “reduce, recycle and remove carbon from the atmosphere,” according to a statement. They also launched a competition for local startups to help source technology to preserve marine diversity among other initiatives.

OUR NEXT CONFERENCE IN CAIRO-

Foreign investors are falling in love with Egypt again… Foreign investors we speak with (debt, equity, and strategic alike) have growing appetite for Egypt. They’re buying into local debt, eyeing promising shares, and committing bns of USD to both new ventures here and the growth of their existing businesses. They like the Egypt story that’s taking shape after the float of the EGP, and its competitive advantages are clear to many of them: It’s a massive consumer opportunity and a regional export hub of tomorrow.

The Enterprise Optimism Forum 2024 will do exactly what it says on the tin: Spark conversations about a future that sees Saudi Arabia, Egypt, and the the UAE at the heart of a more vital Middle East economy — and provide an early, actionable roadmap for those who are “long Egypt.”

We’ll be talking with you about the agenda over the coming couple of weeks. It features speakers from Egypt and abroad who are future-proofing their businesses and angling to capture tomorrow’s opportunities — and who aren’t afraid to answer some tough questions.

*** Interested in attending? Tap or click here to let us know. Seating is limited.

***
YOU’RE READING ENTERPRISE CLIMATE, the essential MENA publication for senior execs who care about the world’s most important industry. We’re out Monday through Thursday by 9am in Cairo and Riyadh and 11am in the UAE.

EXPLORE MORE OF ENTERPRISE ON THE WEB —tap or click here to read EnterpriseAM, EnterprisePM, Enterprise Climate, Enterprise Logistics, and The Weekend Edition on our powerful new website packed with reader-friendly features.

***

CIRCLE YOUR CALENDAR-

Algeria will host the Global Waste Forum from Tuesday, 7 May to Thursday, 9 May in Algiers. The forum will focus on the latest waste management technologies and bring together industry leaders to explore cooperation on circular economy strategies, renewable energies, and digitization.

Saudi Arabia will host the Saudi Energy Convention from Sunday, 19 May to Tuesday, 21 May in Riyadh. The convention will see energy and utilities industry leaders advance collaborative decarbonization efforts and identify innovation areas. It will also host the Saudi Utilities Convention and Saudi Hydrogen Convention to address the role and challenges of rolling out hydrogen, water and utility projects that are inline with the global energy transition. Over 10k energy professionals and 200 industry speakers will be present at the event.

The UAE will host The Electric Vehicle Innovation Summit from Monday, 20 May to Wednesday, 22 May in Abu Dhabi. The event will see industry leaders come together to discuss sustainable mobility and tapping into groundbreaking advancements in electric vehicles while engaging with key decision-makers.

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