Saudi Arabia signs spate of mining agreements worth USD 20 bn

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WHAT WE’RE TRACKING TODAY

TODAY: Saudi Arabia signs spate of mining agreements worth USD 20 bn

Good morning, ladies and gents. We have a meaty issue this morning with news all across the sector from all corners of our region, but first…

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THE BIG CLIMATE STORY-

^^ We have the details on this story and more in the news well, below.

THE BIG CLIMATE STORY OUTSIDE THE REGION- John Kerry to step down as US climate envoy: On Saturday, US Climate Envoy John Kerry informed his staff he is retiring from his position as Biden’s top climate diplomat in the coming months after speaking with President Joe Biden on his planned retirement on Wednesday, according to two administration sources. Kerry will still be assisting Biden during his re-election campaign. The Biden administration has not named the former climate chief’s successor yet.

REFRESHER- Kerry served as climate envoy for three years, and his decision comes on the heels of the COP28 summit, where he launched an international plan to accelerate global nuclear fusion energy development.

UK’s chief climate advisor is out too: The UK’s Chief Executive of the Climate Change Committee (CCC) Chris Stark is leaving his post after six years, according to a statement released on Thursday. Stark’s resignation comes amid Prime Minister Rishi Sunak’s decision to scale back green measures and promote legislation supporting oil and gas drilling in the North Sea, the Financial Times reported. The organization is yet to appoint an acting executive or permanent chair to replace Stark.

WATCH THIS SPACE-

#1- Italy approves study on green hydrogen corridor with Morocco: Italy approved financing of a study on a planned green hydrogen corridor extending from Morocco, to the port of Trieste in Italy, and then extending to Central and Eastern Europe, Morocco World News reported on Saturday. Details on the size of the cabinet’s funding package and a targeted timeline on completion were not disclosed.

REMEMBER-It’s not the first we’ve heard of a Morocco-EU green corridor: In June, Italy and Morocco said they are partnering together with Spain on a green fuels transport corridor which is planned to go through the entire EU region. The trio have decided to exclude Algeria from the project due to diplomatic tensions it holds with Madrid. Last year, the European Hydrogen Backbone initiative submitted an updated version of its vision for the infrastructure map where hydrogen is set to be transported on the project.

#2- Oman’s Manah 1 solar farm reaches financial close: The consortium led by EDF Renewables and Korea Western Power Corporation (KOWEPO) said it has reached financial close on the 500 MW Manah 1 Solar project in Oman, according to a statement published last week. The plant — under construction since September — is set to begin commercial operations by 1Q 2025. The project's funding will be obtained from equity and loan programs from local and foreign banks, including Korea’s Export-Import Bank, Société Générale, and Muscat Bank, which it secured USD 301.8 mn from last month. The UK's Clifford Chance law firm served as an advisor to the financiers on the project.

#3- Turkish steel giant will sink USD 3.2 bn into green transition by 2030: Turkish steel producer Erdemir is set to invest USD 3.2 bn to curb emissions by 25% by the end of the decade, Reuters reported on Thursday, citing its subsidiary OYAK Mining Metallurgy’s CFO Serdar Basoglu. Over 70% of Erdemir’s investment will come from foreign loans.

About Erdemir: Established in 1965, the company supplies its products to the renewables, automotive, electronics, general manufacturing, machinery, heating equipment, and shipbuilding industries, amongst others.

#4- Egypt sets 2030 hydrogen target: Egypt updated its green hydrogen production goals to 3.2 mn tons annually by 2030 and 9.2 mn tons by 2040, Al Borsa reported last week, citing a cabinet research document it has seen. The country is eying an 8% share of the global green hydrogen market — or 5.6 mn tons —by 2040. Egypt is looking to export its hydrogen to Europe, where the market is set to expand after the EU passed a directive requiring green hydrogen to reach 42% of the industrial sector’s energy mix by 2030, and 60% by 2035.

REMEMBER- The country is expanding its hydrogen goals: The Egyptian government, which said it will operate its first green hydrogen plant in 2026, previously announced the aim to produce up to 1.5 mn tons of green hydrogen annually by 2030 and to raise production to 5.8 mn tons by 2040 from 72 GW of renewable energy.

ALSO-Egypt aims to increase renewable energy use to nearly 12% this year: Egypt’s Ministry of Electricity and Renewable Energy has set a new goal of sourcing 11.8% of the country’s energy mix from renewables, Youm7 reported on Thursday. The current total renewable energy capacity is 7 GW. In 2022, Egypt sped up its short-term renewables goals, setting a goal to reach 42% renewables by 2030 instead of the initial 2035 timeline. This however comes in contradiction to its downward revision of its 2040 renewables goal from 60% to 50% by 2040 last June.

#5- Is PIF-backed US EV maker Lucid underperforming?Deliveries by Lucid fell 10% y-o-y to a record low 1.7 vehicles in 4Q 2023 on weak customer demand, according to a company statement released on Thursday. The automaker’s production has also fallen 31% to y-o-y to 2.4k vehicles in the same quarter. Lucid’s shares fell 38% last year. The EV maker said it will release its 4Q 2023 earnings release on 21 February.

REMEMBER- Lucid has big plans for the Kingdom: Lucid plans to produce 155k EVs yearly in the kingdom once full-fledged production capacity is achieved by 2025. Once fully operational, Lucid’s production plant is expected to net the EV manufacturer USD 3.4 bn over 15 years.

#6- Tesla + Volvo hit by Red Sea shipping crisis: EV giant Tesla and Swedish carmaker Volvo have suspensed some production in Europe over a shortage of components due to the ongoing Red Sea shipping crisis, Reuters reported on Friday. Tesla says it is facing a component shortage due to its shipments being rerouted around the southern tip of Africa, following the recent attacks by Houthi fighters on commercial vessels headed to Israel or Palestine via the Red Sea. This pushed Tesla to suspend the majority of car production at its Berlin factory from 29 January to 11 February, the company told Reuters. Similarly, Volvo is suspending production for three days at its Ghent plant in Belgium due to delayed gearbox deliveries. Tesla shares have already dropped 3.7% in New York trade, while Volvo Car shares fell 2.8% in Stockholm.

DANGER ZONE-

#1- Global renewable energy needs to grow faster to meet 2030 goal: The International Energy Agency (IEA) is ringing the alarm that global renewable energy capacity is not growing fast enough to meet the goal of tripling it by 2030 as agreed upon at COP28, according to its newly released Renewables 2023 report (pdf). Renewable capacity added in 2023 increased by 50% from the previous year to 510 GW, but this amount needs to more than double by 2028 to reach the 2030 target of 11 TW. China — which accounted for nearly 60% of new renewable capacity last year — is expected to contribute 56% of the renewable energy capacity additions, or almost 2 TW from 2023 to 2028, followed by the EU at 429 GW and the US at 337 GW. India is also set to contribute 203 GW while the Association of Southeast Asian Nations will add roughly 63 GW, the report added.

#2- Natgas going strong despite global energy transition efforts: Almost all the world’s regions are investing heavily in the infrastructure needed to increase the use of natural gas in power generation despite the global efforts to transition energy systems away from fossil fuels, Reuters reported on Thursday, citing a report (pdf) by Global Energy Monitor. Gas pipelines that are planned or under construction will see investments of more than USD 720 bn and an additional USD 190 bn on facilities to handle LNG imports. This ensures that fossil fuels will have a role in key power systems beyond 2030. The report identifies the largest investors in gas infrastructure as East Asia, South Asia, and North America, which will see major growth in their gas network length and import capacity.

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CIRCLE YOUR CALENDAR-

The UAE will host the Management and Sustainability of Water Resources Conference from Monday, 26 February to Wednesday 28 February in Dubai. Water availability in arid and semiarid regions, global water issues, and future water and environmental challenges are all on the agenda.

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

KSA signs spate of mining agreements worth USD 20 bn + launches USD 182 mn mineral exploration incentive program

KSA secures USD 20 bn in exploration agreements: Saudi Arabia inked 75 agreements with a total value of USD 20 bn over the course of The Future Minerals Forum which came to a close last Thursday. The kingdom also signed bilateral knowledge transfer and capacity building agreements with four countries including Egypt and Morocco, launched a USD 182 mn mineral exploration incentive program, and reported potential drill targets on the Arabian Shield.

The kingdom also doubled estimates for its reserves: KSA said back in 2016 it has untapped metals and minerals — including copper, zinc, phosphate, and gold — collectively worth USD 1.3 tn, but revised estimates last week to nearly double the numbers reaching USD 2.5 tn, CNBC reports.

And wants to establish a critical minerals trading arm: Saudi Arabia’s Manara Minerals— JV between Saudi Arabia’s sovereign wealth fund (the Public Investment Fund) and state-owned mining company Ma’aden — also said on Thursday it will launch a metals trading company aimed at shoring up iron ore, lithium, copper and nickel supplies from international markets. Manara Minerals Acting CEO Robert Wilt confirmed earlier reports the company is also in talks to acquire shares in Pakistan's Reko Diq mine.

REFRESHER- Saudi Arabia aims to become a global hub for green metals critical for the energy transition under efforts to diversify its economy away from oil. This includes tapping significant amounts of uranium and titanium discovered in the country. KSA’s mining profits totalled SAR 1.5 bn in 2023, and the kingdom plans to leverage its untapped mining sector to help produce as much as 500k EVs by 2030.

Motivated investments: Saudi ministers attribute d the surge in signed agreements to the recent changes made to its investment laws, and to the substantial government spending on its mining sector.

KSA also announced preferred bidders to 716 sqkm concessions: Following a comprehensive evaluation of technical and social criteria,KSA’s Industry and Mineral Resources Ministry announced on Wednesday the Ajlan & Bros and Norin Mining consortium, Royal Roads and MSB Holding consortium, and the Sumou Holding with Kuya Silver group as the preferred bidders for the fourth series of its Accelerated Exploration Program licensing rounds, issuing permits for 716 sqkm of underexplored lands, SPA reported.

MORE DETAIL ON THE AGREEMENTS-

KSA + Egypt form mineral exploration partnership: Egypt and Saudi Arabia inked an agreement to expand cooperation and knowledge transfer in the critical minerals exploration and processing sector, including geological information, according to a statement released last week. The kingdom also signed similar agreements with Morocco’s Ministry of Energy Transition and Sustainable Development, Congo’s Ministry of Mines, and Russia’s Ministry of Natural Resources and Environment, the ministry said.

Mining giant Vale signed on to build a green iron ore plant in KSA: Brazil’s top miner Vale — which back in September said is looking to establish low-carbon iron ore “ mega hubs ” in the Middle East — signed an agreement with The Royal Commission for Jubail and Yanbu to set up a green iron ore briquettes production plant in the kingdom, Arab News reported. KSA’s Manara sealed an agreement in late July with Vale to grab a 10% slice of its base metals unit, with plans to reportedly deploy over USD 15 bn of capital for investments in the coming years.

THERE’S MORE TO COME-

Ajlan & Bros has big solo plans: Ajlan & Bros’ Al-Khunayqiyah SAR 252 mn (c. USD 67 mn) two-phase mining project is expected to be completed by the end of the year, Al Riyadh reported. The first stage, which will see the company survey just 1-5% of the site, is expected to cost about SAR 1.3 bn riyals, and is aimed at securing among other metals some 100 mn tons of zinc and copper. The company plans to establish two minerals processing plants in anticipation of the site’s deposits with a 100k ton zinc capacity, 10k tons of copper sulfide, and 200k tons of manganese.

Unlocking huge potential: The USD 20 bn in agreements signed at the forum only take into account 30% of the Arabian Shield’s full mining potential, Saudi Arabia’s Mineral Resources and Industry Bander Al-Khorayef told CNBC, adding that the country is looking to fully explore the region’s reserves.

Remember- Back in May, Saudi Arabia launched the Arabian Shield geological mapping project in partnership with the Chinese Geological Survey at a cost of SAR 777 mn (USD 207 mn), aiming to identify the region’s mineral deposits while expanding its National Geological Database. Later in August, KSA’s ASK Group and the China National Geological and Mining Corporation signed a USD 500 mn agreement for the development, financing, construction, and operation of an Arabian Shield copper mining project.

The Ivanhoe-Ma’aden JV has already identified multiple potential drill targets: The JV between Ma’aden and US mineral development company Ivanhoe Electric finalized back in July has reported the initial results from a survey using Ivanhoe’s patented Typhoon exploration system, according to a statement published ahead of the forum. The JV zapped the grounds of the Arabian Shield and used machine learning to survey the region’s mineral reserves, finding three chargeability anomalies on the Umm Ash Shalahib Exploration License to the South of Ma’aden’s Al Amar Gold-Copper-Zinc Mine, the statement notes. The JV has exclusive access rights to survey approximately 48.5k km2 of underexplored land on the Arabian Shield.

More and more explorations: KSA — which issued 4.5k mining licenses in the last two years — also received bids for the 4k sqkm rare earth-rich Jabal Sayid mineral belt, developed 33 new mining sites, and is looking to issue more than 30 other exploration permits this year, SPA reported on Saturday. The kingdom is paying a particular focus to copper, and signed a cooperation agreement with China’s Jiangxi Copper Company aimed at identifying investment opportunities across its three-stage copper value chain, the news agency said.

UAE’s Tabreed terminates its EGP 1.6 bn district cooling contract with Egypt’s CapitalMed

Tabdreed’s district cooling plans for Egypt’s CapitalMed go kaput on FX crisis: UAE-based district cooling firm Tabreed has terminated its contract with Egyptians for Healthcare Services (EHCS) to build a district energy plant for the latter’s CapitalMed medical complex in Badr City, CEO Khalid Al Marzooqi told Asharq Business on Friday. The FX crisis rendered the project “financially unsustainable,” given that the project’s financial returns were pegged in EGP, he explained.

Background: Tabreed landed an EGP 1.6 bn contract to design, build, and operate a heatingand cooling plant for CapitalMed back in September 2022 — a few months after it entered the local market with a contract to provide cooling services for Marakez’s D5M shopping center in East Cairo.

How did EGP volatility impact the contract? Tabreed had asked EHCS to modify the watertariff rate set in the contract in response to the steeper-than-expected currency devaluation, but the latter declined the request, prompting the Emirati firm to withdraw from the project, Asharq reported, citing a source it says is in the know.

Not the end for Tabreed in Egypt: While Tabreed’s Chief Financial Officer Adel Al Wahedi said in July that thecompany was “slowing down” plans for additional investment in the country as it waits for a stable outlook on the EGP, Al Marzouqi told Asharq that Tabreed is “still committed to investing in the Egyptian market.”

A big blow for Egypt’s district cooling potential: Egypt is eager to join in on the regional trend — spearheaded by Gulf countries — to expand its district heating and cooling systems, in efforts to reduce energy consumption and therefore emissions. Some 50% of electric power in the North African country goes to air conditioning during the summer months, according to Alaa Olama, a UNEP consultant, and the Head of the Egyptian District Cooling Code. In 2022, UNEP completed a feasibility study on a district cooling system for Egypt’s New Alamein City which found that a district cooling system could reduce refrigerants emissions by 99% and CO2 emissions by 40%.

Project update: Acwa Power + Hassan Allam secure land for 1.1 GW wind farm in Gulf of Suez

Land secured for USD 1.5 bn mega wind farm in Egypt: A consortium led by Saudi’s Acwa Power, which includes Egypt’s Hassan Allam Utilities, signed a 25-year land usufruct agreement with the New and Renewable Energy Authority (NREA) for its 1.1 GW wind farm in the Gulf of Suez, according to a joint statement (pdf) published last week. The consortium is set to begin site studies for the USD 1.5 bn project, which is expected to reach financial close by 4Q 2024 and begin commercial operations by the end of 2026.

About the project: In June 2022, Acwa Power and Hassan Allam Holding — Hassan Allam Utilities' parent company — signed a 25-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) to develop the project under a build-own-operate framework. Once completed, the project is set to become the largest on-shore wind farms in the Middle East, and one of the largest in the world

Mega project = mega CO2 savings: The project is set to power over 1 mn households and offset 2.4 mn tons of CO2 emissions a year when operational, the statement said, adding that land use efficiency will be maximate as a result of a higher wind turbine tip height of 220 meters — the tallest in the Gulf of Suez region.

Acwa’s big ambitions: Acwa Power aims to capture a 50% share of Egypt’s renewables market by 2026, CEO Marco Arcelli said last year. Arcelli explained that a planned USD 10 bn green investments allocated for Egypt will be disbursed within three years.

More megaprojects are in the pipeline: Acwa is also building a 10 GW wind farm in Sohag governorate, which will be one of the largest in the world when it’s operational, coming second only to China’s planned 20 GW Gansu project.

A new data center powered by 200 MW of renewable energy in Egypt

Egypt has signed an MoU with Incom, SIC Investment, and Record Digital Asset Ventures to build a green data center powered by 200 MW of renewables, according to a statement released last week. The project — which will be made up of both solar and wind plants — will be implemented in two 100 MW phases.

Green data centers are gaining traction in the region: Egyptian contractor Petrojet and Huawei Digital Power signed an MoU in June to have Huawei use its newest technologies in solar energy storage and green data centers to improve energy efficiency and decrease dependence on diesel. The UAE’s 16 sqkm solar-powered data center Moro Hub was granted the award for largest data hub in 2022. The China Academy of Information and Communications Technology is also setting into motion a development framework for establishing clean energy data centers in the Chinese city of Hohhot.

Algeria’s Sonelgaz Renewables merges with renewables company Shaems

Sonelgaz Renewable merges with Shaems: As part of Algerian state-owned utility company Sonelgaz ’s restructuring process which began in 2022, the company has decided to merge its subsidiary Sonelgaz-Energies Renewables with the Algerian Renewable Energy Company (Shaems), according to a statement published last week. The statement — which also announced the mergers of Algeria Electricity with Sonelgaz-Electricity Production, and a security company for electrical equipment with Sonelgaz-Services — brings Sonelgaz’s number of subsidiaries from 34 to 11 companies since the start of the merger run, which kickstarted to ensure the employees and managers’ social benefits remain protected.

About Shaems: Prior to the merger, Shaems was 50% owned by Sonatrach and 50% by Sonelgaz. Shaems currently has a 1 GW plant under development, according to Power Technology, which predicts the start of construction by 2025, and the beginning of commercial operation by 2027. Last month, the US International Trade Administration said that US companies interested in cooperating with Algeria on green projects “will primarily interact with Shaems … created to serve as a one-stop shop for companies pursuing larger IPP renewable energy projects.” Shaems and Sonelgaz engage in long-term power-purchase agreements (PPAs), the administration added. Shaems is also overseeing the development of a 30 MW solar park that will be constructed in the town of Beni Ounif, Bechar Province, Energy Capital reported.

UAE partners with India on renewables + Jordan on EVs

Jordan partners with Saudi on energy: Saudi Arabia and Jordan have signed an agreement on energy cooperation, including in renewable energy, energy efficiency, petrochemicals, and hydrogen, AlRiyadh reported on Thursday. The agreement aims to enhance cooperation in digital transformation and innovation in the energy sector and develop partnerships to localize its materials, products, services, and supply chains. The agreement will also see them partner in the circular carbon economy and its technologies, including carbon capture, reuse, transportation, and storage.

And with UAE on EVs: Jordan's Manaseer Group signed an agreement with the UAE's W Motors, the strategic partner of NWTN Motors, to invest USD 80 mn to establish an EV factory in Jordan, the statement said. No timeline or expected capacity were disclosed.

ALSO- UAE + India partner on renewables: India and the UAE have signed an MoU to partner on renewable energy in India, Wam reported last week. The agreement will see them co-invest in the development of 60 GW of renewable energy projects.

India’s renewable goals: India aims to generate 50% of its electricity needs from renewable energy by 2030. India is also targeting 500 GW production capacity from renewables and a 45% slash in its emissions, offsetting about 1 bn tons of CO2. India estimates it will need around USD 10 tn by 2070 to reach carbon neutrality.

KSA plans to recycle up to 95% of its waste as it cracks down on its global rankings

WASTE MANAGEMENT-

KSA is taking on its massive food waste issue: Saudi Arabia’s Environment, Water and Agriculture Ministry (MEWA) intends to recycle up to 95% of its waste compared to its current rate of 3-4% — one of the lowest in the world, SPA reports, citing the ministry’s annual report for 2023. The new targets will see the ministry recycling c. 100 mn tons of waste annually and is forecast to add SAR 120 bn to the GDP, according to the ministry. The operational timeline and allocated budget were not disclosed.

REMEMBER- KSA produces the world’s largest amount of food waste on a per capita basis with over a third of food produced or imported by the kingdom going to waste, according to a 2022 study (pdf) published by King Saud University.

ALSO- Bee'ah Group has received the first Mercedes-Benz eEconic collection truck in the region from Daimler Commercial Vehicles MENA, according to a statement released last week. The eEconic, a zero-emission vehicle designed for urban waste management, is the newest addition to Bee'ah's 2k waste vehicles fleet and will help expand its operations in the UAE, KSA, and Egypt. Mercedes also debuted its first battery-electric truck in KSA in October.

Bee'ah has made strides in green mobility: The Sharjah Research, Technology, and Innovation Park (SRTIP), Bee'ah Group, and Peec Mobility partnered last month to boost the electrification of major vehicle fleets in Sharjah, starting with Peec's ReTruck initiative for Bee'ah's fleet. Bee'ah also signed an agreement with US- and UK-based Chinook Sciences and Japanese gas conglomerate Air Water during COP28 to develop a waste-to-hydrogen plant the output from which will be used for hydrogen-powered fuel cells for a fleet of large trucks and buses.

RENEWABLES-

KNPC floats tender for renewables and CCUS consultancy bids: The Kuwait National Petroleum Company (KNPC) has invited international engineering consulting firms to bid on conduct of feasibility studies aimed at quantifying the potential revenues of integrating renewable energy and carbon capture, usage and storage (CCUS) ventures to its and the Kuwait Integrated Petroleum Industries company portfolios, Zawya reports. The Supreme Procurement Committee at the Kuwait Petroleum Corporation reportedly sent out the requests for proposals to UK-based Amick Foster Wheeler Group, US- headquartered Kellogg Brown & Root Australia’s Worley Engineering, and Technip Energy of France. The firms will have until Thursday, 1 February to submit proposals for the advisory assessments on a package of projects which will reportedly include bio energy generation, green hydrogen production, wind, solar, and CCUS projects, aiming to spotlight the best investment opportunities for the Big Oil players in the green energy sector.

Kuwait is planning to ramp up renewables developments: Earlier this month, the Kuwait Authority for Partnership Projects (KAPP) invited global and local developers to bid on the 1.1 GW third phase of the Al Dibdibah Power and Al Shagaya Renewable Energy solar project. The winning bid will be tasked with financing, design, procurement, engineering, construction, testing, commissioning, operation and maintenance of the project. The country’s Electricity, Water, and Renewable Energy Ministry will ink a 30-year PPA to be the sole offtaker for the energy produced.The deadline for bid submissions is 22 February.

GREEN MANUFACTURING-

Saudi real estate developer Roshn and green tech startup Partanna Arabia signed an agreement to set up a carbon-negative concrete plant in the kingdom, according to a statement released on Thursday. Partanna uses repurposed seawater brine generated from desalination projects to create non-toxic building materials that can absorb CO2 instead of using traditional cement materials, which account for 8% of the world’s total carbon emissions.

More details: The new plant — which is expected to generate 1.3 mn carbon credits once fully operational — will potentially produce carbon-neutral blocks, tile, precast and pour-in-place solutions to realize Roshn’s target of building over 400k sustainable homes, 1k kindergartens, and 700 mosques in KSA by 2030. The company will also potentially sell CO2 offsets from the facility to Saudi firms looking to decarbonize their businesses. Roshn also signed on Tuesday an agreement with KSA’s Electric Vehicle Infrastructure Company (EVIQ) to set up EV charging stations across its properties in the kingdom.

GREEN FINANCE-

Oman’s sustainable finance framework that has earned a “Very Good” rating from Moody's Investors Services, Times of Oman reported last week. This integrated framework, evaluated within the global Sustainability Quality Score (SQS2), is the first of its kind to be implemented by a GCC state.

The details: The framework aims to reduce Oman’s reliance on fossil fuels and attract ESG investors, Reuters reports. Oman will introduce green, social, and sustainability bonds alongside loans and sukuk as part of the initiative. The proceeds will be directed towards funding and refinancing renewable energy projects. The initiative also aligns with Oman's Vision 2040 economic development plan, which aims to significantly reduce the share of oil in the country's GDP. By 2030, the goal is to cut oil's share to 16%, and down to 8.4% by 2040, down from 39% in 2017.

ALSO- The sultanate drafts new waste sector privatization law: Under the financing framework, Oman will unveil a new law this year for the privatization of its solid waste sector, Oman Observer reported on Thursday. The new law — which will regulate all stages of waste management — mandates that only licensed companies can engage in waste management activities, and will establish a national waste management hierarchy in efforts to minimize environmental impact.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

Egypt to receive USD 19 mn in grants from Switzerland: Switzerland and Egypt have signed an agreement for two grants totalling USD 19 mn for wastewater treatment projects, including an organic fertilization plant to improve sludge management and to produce renewable energy. (Statement)
Qatar wants to triple EV charging stations by 2025: The Qatar General Electricity and Water Corporation (Kahramaa) plans to install 300 EV charging stations across the country by the end of 2024 and 600 charging stations by 2025. The company — which currently has 200 charging units in operation — launched an app called Tarsheed Smart EV Charging to help motorists locate the nearest charging stations. (Peninsula Qatar)
KSA’s Aldrees + ASX E-Mobility partner up for EV charging: Saudi petroleum retailing and logistics provider Aldrees Petroleum and Transport Services signed an agreement with EV charging company ASX E-Mobility — a subsidiary of Al Sharif Group — to develop EV charging infrastructure at several of Aldrees’s stations. (Twitter)
Ma’aden delving into CCS: KSA’s Ma’aden inkedagreements with Finnish industrial machinery developer Metso and Germany’s Thyssenkupp to develop a carbon capture and storage complex in KSA. (Twitter)
UAE’s Conares pledges net zero by 2050: The UAE’s steel manufacturer Conares intends to reach net zero by 2050 and a 50% reduction in emissions by 2040. (Statement)
Tunisia to install solar panels in all schools: Tunisia’s Ministry of Education launched a TND 100 mn initiative on Friday to install solar panels in all of the country’s educational institutions. (TAP)
QIIB publishes Sustainable Finance Framework: Qatar International Islamic Bank (QIIB) published its Sustainable Finance Framework on financing green projects last week. The bank will use the framework to issue green, social, or sustainability-labeled sukuk and other financing products for eligible projects including renewable energy, green transportation, energy efficiency, and sustainable construction. (Statement)
KAFD + SIRC partner on waste management: The King Abdullah Financial District Management and Development Company (KAFD) and the Saudi Investment Recycling Company (SIRC) signed an MoU to provide solutions for different waste types in KAFD, including construction and demolition materials and foodstuffs. (Statement)
IFC invests in Africa’s green sector, including Egypt + Morocco: The International Finance Corporation will invest USD 30 mn in the African Infrastructure Investment Fund 4 in a bid to help it surpass its USD 500 mn financial close target. A portion of the funding will be allocated toward developing renewables projects and green financial data centers in Egypt, Morocco, Senegal, South Africa, Kenya, and the Ivory Coast. (Statement)

The US to fine big oil for methane emissions

The US government has rolled out a new plan to charge oil and gas companies for their methane emissions, Bloomberg reported on Friday. The fee — mandated by Congress in the Inflation Reduction Act last year — will start at USD 900 per metric ton this year and increase to USD 1.5k by 2026. The Environmental Protection Agency (EPA) said the fee would incentivize the industry to curb methane leaks and venting.

The fee wasn't very well received: The oil and gas industry has criticized the proposal, saying it would undermine America's energy advantage and stifle innovation, according to Bloomberg. The American Petroleum Institute (API) said it supports smart federal methane regulation, but that the fee would create an “incoherent” and “confusing” regulatory regime. The API is lobbying Congress to repeal the fee, which would affect only a few hundred large-emitting facilities out of thousands that report greenhouse gas emissions to the EPA.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

EVs are getting a new set of tires courtesy of Goodyear: The Goodyear Tire &Rubber Company is rolling out new tires this May with improved durability to handle the weight of EVs, which are heavier than cars with internal combustion engines. The ElectricDrive 2 tires were unveiled last week and have a 60k mile warranty compared to the average EV tire, which typically lasts from 30k to 40k miles. (Bloomberg)
Adani to invest USD 24 bn in Gujarat’s green energy sector:Indian conglomerate Adani Group is set to pump USD 24 bn into the Indian state of Gujarat’s green and renewable energy sectors in five years, according to Chairman Gautam Adani. (Reuters)
Operations begin on world’s first 100k ton green hydrogen project: The world’s first 100k ton photovoltaic hydrogen demonstration project is now operational in the Chinese region of Inner Mongolia. The project is also Inner Mongolia’s first hydrogen-producing integrated project for wind-solar hydrogen production, and it works by producing hydrogen and oxygen through solar-powered electrolysis. (Wam)

In a world first, Norway greenlights controversial deep sea mining law

Despite environmental concerns, Norway's parliament passed the world’s first bill to allow commercial-scale deep sea mining activities last week, according to a statement released last week. With the laws passing, the country can now move forward with plans to explore some 280k sq km of seabed in the Arctic waters between Norway and Greenland for minerals critical to the energy transition, including precious metals (gold, silver), metal ores (manganese, nickel, cobalt, copper), as well as rare earths critical to electric vehicle production.

Leveraging its newfound mining potential: The new law — coming a year after a Norwegian study found substantial amounts of minerals on the seafloor of the country’s continental shelf — will allow private companies to apply for drilling permits in the Norwegian sea, with the cabinet noting it will only approve projects “if the industry can demonstrate that it can be done in a sustainable and responsible manner.” The country joins a growing list of nations looking to capitalize on oceanic mineral reserves including Japan and the Cook Islands.

Biodiversity concerns: Scientists say oceanic mining comes at the expense of a substantial impact on the environment including the destruction of natural habitats and the USD 5.5 bn tuna industry, in addition to creating sediment plumes that disrupt aquatic life and the ocean’s ability to capture and sequester CO2.

REMEMBER- The UN’s International Seabed Authority (ISA) said it would begin accepting permit applications from corporations looking to launch deep-sea mining projects last July following two weeks of negotiations on standards and requirements of the new practice. A notable sticking point in the decision is the lack of a standard mining code that would guide the ISA in its application reviewing process. Back in October, the UK announced support for a moratorium on deep sea mining until the environmental impact of the practice is better understood.

CALENDAR

JANUARY 2024

13-14 January (Saturday-Sunday): Libya Energy and Economic Summit, Tripoli, Libya.

20-24 January (Saturday-Wednesday): ASHRAE Winter Conference, Illinois, USA.

FEBRUARY 2024

26-28 February (Monday-Wednesday): Management and Sustainability of Water Resources, Dubai, UAE.

MARCH 2024

4-6 March (Monday-Wednesday): International Conference on Sand and Dust Storms in the Arabian Peninsula, Riyadh, Saudi Arabia.

APRIL 2024

16-18 April (Tuesday-Thursday): World Future Energy Summit, Abu Dhabi, UAE.

16-18 April (Tuesday-Thursday): Middle East Energy, Dubai, UAE.

23-25 April (Tuesday-Thursday): Connecting Green Hydrogen MENA, Dubai, UAE.

30 April-2 May (Tuesday-Thursday): Autonomous E-Mobility Forum, Doha, Qatar.

MAY 2024

7-9 May (Tuesday-Thursday): Global Waste Forum, Algiers, Algeria.

19-21 May (Sunday-Tuesday): Saudi Energy Convention, Riyadh, KSA.

JUNE 2024

5 June (Wednesday): World Environment Day, Saudi Arabia.

OCTOBER 2024

15-17 October (Tuesday-Thursday): EV Auto Show, Riyadh, KSA.

DECEMBER 2024

2-13 December (Monday-Friday): Conference of the Parties (COP16) to the United Nation Convention to Combat Desertification, Riyadh, KSA.

EVENTS WITH NO SET DATE

2024

Early 2024: The 2023 US Algeria Energy Forum, Washington DC, USA.

12-14 February (Monday-Wednesday): Sustainable Aviation Futures MENA Congress, Dubai, UAE.

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.

2025

International Union for Conservation of Nature World Conservation Congress, Abu Dhabi, UAE.

UAE to have over 1k EV charging stations installed.

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.

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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