Good morning, folks. We have a packed issue this week, with a major green mobility investment update from Saudi, as well as a spate of renewables and earnings updates from across the region. Let’s get the ball rolling.

HAPPENING NEXT WEEK-

#1- Oman will host the Oman Sustainability Week from Sunday, 11 May until Thursday, 15 May in Muscat. The exhibition, bringing together policymakers and stakeholders from the energy and sustainability sectors to explore policies and strategies to advance Oman’s journey toward a net-zero future. Speakers include Maersk’s UAE Managing Director Lisa Park, AD Ports CSO Saif Al Mheiri, and Iberdrola Middle East Managing Director Santiago Bañales.

#2- Saudi Arabia will host theInternational District Cooling Conference from Tuesday, 13 May until Wednesday, 14 May in Jeddah. The conference will spotlight district cooling solutions for the Kingdom, with a focus on policy, regulation, digital transformations, asset management, optimization, networking, and investment.

#3- Saudi Arabia will host its first Green Energy Week from Wednesday, 14 May until Thursday, 15 May in Riyadh. Over 450 attendees, 50 speakers, and 15 exhibitors will come together to discuss solar PV, energy storage and green hydrogen. Yellow Door Energy KSA Director Khaled Chebaro, Air Liquide VP Mathieu Francais, and Haala Energy Executive Director Rowan Jandu are among those speaking at the conference.

WHAT WE’RE TRACKING REGIONALLY-

#1- Regional investors are eyeing CATL’s Hong Kong listing: Qatar and Kuwait’s sovereign wealth funds are in the mix to snatch a piece of the Chinese battery-making giant CATL’s possible USD 5 bn potential listing on the Hong Kong exchange this month, Bloomberg reported on Tuesday, citing sources familiar with the matter. Chinese state-owned Sinopec, alternative asset manager Hillhouse Investment, alongside other firms have also been in talks to join the offering. Qatar Investment Authority and Sinopec are both mulling shares worth hundreds mn of the greenback, the sources told Bloomberg.

The catch: Some could buy in as cornerstone investors by securing guaranteed allocations in exchange for a six-month lock-up, while others could participate through the regular institutional tranche. Discussions are ongoing and final commitments have yet to be made, the sources added.

Where’s the money going? Much of the capital raised will go toward ramping up Europe-based production — particularly a major facility in Hungary that will produce up to 100 GWh annually to supply global clients like Mercedes-Benz, Bloomberg reported.

US attempt to torpedo the offering: US congressional committee called on advisors Bank of America and JPMorgan to ditch the sale after CATL’s pentagon blacklist earlier this year. Both banks are still involved in the offering alongside Goldman Sachs and Morgan Stanley, according to a post-listing hearing (pdf).

IN OTHER CHINA-LINKED NEWS- China’s Trina Solar is planning on doubling its business in Saudi Arabia and Egypt over the next two years, Utilities Sales Director for the Middle East and Africa Karim El-Tantawy told Zawya on Tuesday. The company’s operations are already worth USD 500 mn and USD 250 mn in Egypt and Saudi Arabia, respectively.

The company has been active in the region: Trina Solar was reported in January to be looking for a partner to help set up a USD 5 bn integrated solar power generation chain in the UAE. In 2023, the company signed an MoU with the UAE’s AD Ports and China’s Jiangsu Provincial Overseas Cooperation and Investment to build a large-scale PV manufacturing base in the Khalifa Economic Zones Abu Dhabi (Kezad) in 2023. No financial details or a timeline for the project were disclosed at the time.

#2- Pony.ai + Uber to launch autonomous ride-hailing in the region: Neom-backed Chinese robotaxi operator Pony.ai has partnered with Uber to launch autonomous ride-hailing vehicles in the Middle East on the Uber App later this year, according to a press release from Tuesday. A safety operator will be present onboard during the pilot phase until full commercial launch. The majority of autonomous vehicles are usually electric.

The pair has regional ties: Saudi Arabia’s Neom invested USD 100 mn in Pony.ai in 2023 and set up a JV to develop, manufacture, and deliver autonomous driving services, advanced vehicles, and smart vehicle infrastructure in Neom and other key markets in the MENA region. Meanwhile, Uber already offers autonomous cars in collaboration with WeRide in Abu Dhabi, with plans to expand to Dubai before adding 15 more cities.

IN OTHER GREEN MOBILITY UPDATES- Abu Dhabi is expected to make a bulk order on hydrogen-powered buses from the Templewater-owned Citybus, the Hong Kong-based Templewater ’s Chairman Cliff Zhang Kun told South China Morning Post on Thursday. The order follows a pilot project that the Emirate launched in November 2023 through its Wisdom Motor portfolio company, which concluded in the second half of this year.

#3- Saudi Arabia’s first electric public bus network comes online at Tabuk, the Saudi Gazette reported on Tuesday. A total of 30 e-buses — 25% of the total fleet — under the command of 90 Saudi drivers will be connecting 106 stations across a five-route, 136 km public transportation network under the administration of SAPTCO.

We knew this was coming: The Saudi Public Transport Company signed a SAR 84 mn, five years contract with Tabuk Municipality last August to operate and deliver e-buses to the public bus transport network in Tabuk City.

#4- Egypt takes another step toward electricity market liberalization: The recently independent Egyptian Electricity Transmission Company (EETC) has approved private electricity sale licenses for five renewable energy companies at 100 MW each, a government source told EnterpriseAM on Monday. The companies approved to obtain the licenses operate five solar and wind plants, each with a 100 MW capacity.

The details: The Electricity Ministry will establish fair pricing mechanisms to be regularly reviewed; electricity producers will pay the Egyptian Electricity Holding Company (EEHC) licensing and transmission service fees; and the Egyptian Electric Utility and Consumer Protection Regulatory Agency will oversee agreements.

ICYMI- The EETC separated from the Egyptian Electricity Holding Company (EEHC) last month as part of a broader plan to liberalize the electricity market by turning the state’s electricity companies into market regulators and opening the door for the private sector to both produce and buy electricity from each other.

Private players have been waiting for this move: Some 20 private sector energy players — including Infinity, KarmSolar, and Norway’s Scatec — voiced their interest last year in supplying electricity to other private sector companies through renewable energy projects under the peer-to-peer (P2P) system. The system enables private sector companies to produce and sell renewable energy via the national grid to companies in the private sector.

#5- Kuwait’s Electricity, Water, and Renewable Energy Ministry is exploring options for solar and battery energy storage to meet peak energy demand during summer, Arab Times reported on Monday, citing informed sources. The ministry is reportedly considering constructing four solar power plants or building ship-based power terminals with up to 800 MW of capacity. The country is already 76% done with its electricity generation unit maintenance strategy but is looking for short-term solutions ahead of the summer, such as storing excess energy during hours of low demand for use during peak consumption periods.

Masdar wraps Terna Energy buyout: Terna Energy — now a wholly-owned subsidiary of state-run renewables giant Masdar — delisted its shares from the Athens Exchange, following a successful squeeze-out of its former parent company Gek Terna for EUR 20 per share, according to a press release issued last week. The acquisition brought Masdar’s total holding in Greece’s largest renewable energy firm to 100%, up from 70% as of November of last year, valuing the company at USD 3.2 bn. Terna is eyeing an operational portfolio of 6 GW by 2030.

On a roll: The renewables giant recently secured two major Spain-based acquisitions and was reported to be eyeing up to 600 MW in assets in Portugal.

WHAT WE’RE TRACKING GLOBALLY-

CATL is in talks to secure a USD 1 bn loan for its JV in Indonesia to build a battery cell manufacturing facility in Karawang, Bloomberg reported on Tuesday, citing people familiar with the matter. The JV — set up with state-owned Indonesia Battery Corp through CATL’s subsidiary CBL International Development — plans to invest USD 1.2 bn in the Southeast Asian country.

The Rockefeller Foundation announced it would target 60 coal plants to transition into renewables by 2030, according to a press release issued on Tuesday. The newly launched program — dubbed the Coal to Clean Credits Initiative (CCCI) — could attract up to USD 110 bn in public and private investment over the next five years.

The details: The initiative is targeting the early retirement of coal-fired power plants in developing countries through carbon finance. The Foundation has already identified 1k eligible plants for the scheme, the program’s manager Joseph Curtin told Reuters on Wednesday. Around 2k coal plants need to be decommissioned from now until 2040 to meet global climate targets, but only 15% are covered by national pledges.

Methodology? To avoid misuse of carbon finance for propping up soon-to-be stranded assets, CCCI’s methodology underwent seven rounds of stakeholder consultation, Reuters adds. It is designed to select only economically viable plants owned by governments or companies with binding “no new coal” pledges.

DANGER ZONE-

Expert warns Neom’s design could disrupt local climate patterns: The Neom gigaproject’s ambitious plans — including The Line, ski fields, and islands — could disrupt local weather patterns, amplifying wind, storms, and altering rainfall, Donald Wuebbles, a climate scientist advising Neom, told the Financial Times on Sunday.

That’s not all: Cement emissions and slow progress on phasing out combustion vehicles — on which Neom has commissioned academic studies — were also flagged as concerns by Wuebbles.

Leeway for treading new ground: Despite challenges, Wuebbles praised Neom’s technological ambitions, calling it a “moonshot” and highlighting its potential to offer valuable lessons and serve as a model for future sustainable cities.

IN CONTEXT- Neom is undergoing a comprehensive review under acting CEO Aiman Al Mudaifer, who was appointed in November, with sources indicating he is likely to take on the role permanently following the departure of longtime chief Nadhmi Al Nasr. This comes amid growing pressure to deliver results as Neom faces delays or downsizing amid lower oil prices and declining foreign investment.

THE SCORECARD-

Climate adaptation solutions could generate USD 4 tn in annual revenues by 2050, up from around USD 1 tn today, according to a report (pdf) issued last week by Singapore’s sovereign wealth fund GIC and Bain & Company. The combined debt and equity value of companies offering adaptation solutions could grow from about USD 2 tn to USD 9 tn over the same period.

Behind the forecast: Adaptation solutions like backup power systems, wind-resistant building materials, advanced indoor cooling, and weather intelligence tools are expected to drive the predicted growth.

Adaptation is noted as a more attractive play than mitigation, which still attracts the bulk of climate capital but comes with heavier political baggage associated with emission cuts.

But how much would adaptation cost? The annual cost of adaptation could reach USD 565 bn in developing countries alone by 2050, up from a 2023 estimate of USD 56 bn, Bloomberg reported on Tuesday, citing UNEP’s 2022 adaptation gap report (pdf). The report also notes that adaptation is starting to draw more attention from banks and investors as a lower-risk alternative to mitigation or emission-cutting projects.

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CIRCLE YOUR CALENDAR-

The 1st African Conference on Sustainable Development of Energy, Water andEnvironment Systems will be held from Tuesday, 27 May until Saturday, 31 May in Oujda-Saidia, Morocco. The conference aims to promote policies and tech that delink economic growth from resource consumption by aligning energy, water, and environmental systems across key sectors, such as transport, wastewater, and cooling.

The UN Ocean Conference will be held from Monday, 9 June until Friday, 13 June in Nice, France. Aligning with SDG 14, the conference aims to encourage the conservation of oceans, seas, and marine resources and will be co-hosted by France and Costa Rica.

Canada’s Kananaskis will host the G7 Summit from Sunday, 15 June until Tuesday, 17 June. The annual summit brings together leaders from each of the member states — Canada, France, Germany, Italy, Japan, the UK, and the US, with the EU as a guest — to discuss their common plans. Major items on the agenda include climate change, economic growth, and technological advancement.

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