Saudi Arabia’s SIIG agrees to buy 24% stake in Danish sustainable protein company Unibio

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WHAT WE’RE TRACKING TODAY

TODAY: KSA’s SIIG agrees to buy 24% stake in Danish sustainable protein company Unibio

Good morning, lovely people. The weekend is on the horizon and carbon credits appear to be making a comeback in the regional climate news cycle. Let’s dive in.

THE BIG CLIMATE STORY- KSA’s Saudi Industrial Investment Group has signed an agreement to acquire a 24% stake in Denmark’s sustainable protein company Unibio International by investing USD 70 mn in the company. We have all the details on this story and more in the news well, below.

THE BIG CLIMATE STORY OUTSIDE THE REGION- US and Japan ink trade agreement on EV battery minerals: The US and Japan struck a limited trade agreement that will see minerals critical to EV battery production extracted in the East Asian country — including manganese, cobalt, nickel, lithium, and graphite — count toward the USD 7.5k EV tax credits of the Inflation Reduction Act. Under the limited trade treaty, the allies will lift export duties on rare earths, and will jointly work to minimize reliance on China’s minerals supply chain, noting they would partner on combatting “non-market policies and practices” of other countries in the sector. Earlier this month, the EU and Washington agreed to begin talks for a similar trade bargain.

WATCH THIS SPACE #1- Loss and damage talks in Luxor to conclude today: The first meeting of the COP transitional committee will conclude today in Luxor. Representatives from 33 developing and developed countries are attending the talks, which are being led by Egypt’s lead climate negotiator, Amb. Mohamed Nasr. In a recorded opening statement, COP27 President Sameh Shoukry emphasized the importance of the committee’s responsibility to implement the loss and damage agreement, and said that he will continue to support discussions in the lead up to COP28 in November.

What went down on day 2: The second day of the transitional committee’s meetings saw back-and-forth about the scope and disbursal mechanism of a loss and damage fund. A handful of speakers — including representatives from the UN Environment Program, the World Food Program, and the Intergovernmental Panel on Climate Change, as well as leaders of some developing nations — pushed for the fund to be set up in a way that would allow funds to be unlocked rapidly to effectively act as relief in the event of major climate events. The US, however, wants to see the fund be more limited in scope to focus on “slow-onset” climate events. The speakers also discussed the nature of the funding that would be disbursed through the fund, with Nasr stressing that the vast majority of funding channeled to Pakistan in the wake of its deadly floods last year were loans, rather than grants, which grew the country’s debt burden. You can watch the full day of talks here (watch, runtime: 8:13:35).

WATCH THIS SPACE #2- Clean fuel for ships courtesy of Egypt’s SCZone in 2026? The Suez Canal Economic Zone (SCZone) will begin providing green fuel for ships in 2026, SCZone CEO Walid Gamal El Din said, according to a statement. His statements come months after Egypt and Danish shipping giant Maersk said last year that they could cooperate on a USD 15 bn project to produce clean fuel for ships. The project comes under plans to turn Egypt into a main hub for supplying ships with green fuel in the region.

DATA POINT- The world is in need of USD 35 tn in investments annually for an efficient energy transition until 2030, according to a recent report (pdf) by the International Renewable Energy Agency (Irena). The report, titled the World Energy Transitions Outlook 2023 Preview, sheds light on the necessity of annual investments for energy transition more than quadrupling to over USD 5 tn to help keep the 1.5°C global warming limit alive by 2030 despite having investment in the transition reaching a new record of USD 1.3 tn last year.

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CIRCLE YOUR CALENDAR-

The UAE is hosting the International Conference on Green Energy and Environmental Technology (ICGEET) on 18 and 19 April in Dubai. The event will bring together stakeholders from academia, the healthcare industry, and the private sector to discuss energy conservation among other topics.

The first MENA Solar Conference is accepting applications from published researchers specialized in PV technology until Sunday, 30 April. The Dubai Electricity and Water Authority will be hosting the conference from 15 to 18 November, in conjunction with the Water, Energy, Technology, and Environment Exhibition and the Dubai Solar Show 2023. Researchers can submit their papers here.

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

Saudi Arabia’s SIIG acquires 24% stake in Danish sustainable protein company Unibio for USD 70 mn

KSA’s SIIG taps into sustainable protein: Saudi Arabia’s privately owned petrochemical company Saudi Industrial Investment Group (SIIG) has signed an agreement to acquire a 24% stake in Denmark’s sustainable protein company Unibio International, according to a disclosure to Tadawul. The acquisition will be made through an investment of c.USD 70 mn in the Danish company, with a 9.9% stake acquired in the first phase. The remaining stake would be acquired by SIIG in which the Saudi government owns a 13.1% stake after obtaining necessary approvals for FDI from the Danish government.

Where’s the money going? Unibio will use the proceeds to increase global production capacity, boost operating capabilities, and ramp up innovation, according to a statement by Unibio on the acquisition.

Sustainable protein what? Sustainable protein focuses on developing new sources of protein through new food-technology alternatives in a bid to address the food security crisis and ensure sustainable feed without use of arable land and low water usage, according to Unibio’s website. The Uniprotein feedstock acts as a replacement protein source for animal and fish feed mixes, and production of the protein for direct human consumption is still underway, according to the statement.

Advisors: Ernst & Young acted as advisor for SIIG, while Bank of America advised Unibio International on the transaction.

UAE’s Blue Carbon partners with Liberia on setting up carbon offsetting frameworks

UAE’s Blue Carbon will help reduce GHG emissions in Liberia: UAE-based carbon offsetting company Blue Carbon signed an agreement with the Liberian government to offset greenhouse gas emissions from the country’s forestry sector, according to Gulf News.

Scope of the agreement: The partnership agreement will see Blue Carbon conduct feasibility studies and secure accreditation for a nature-based carbon offsetting framework, and develop strategies for carbon market regulation and audits for carbon emissions across the country, according to Gulf News.

What they said: “This bilateral association marks another milestone for Blue Carbon to enable government entities to define their sustainable frameworks and help transition to a low-carbon economical system … reaching their Net Zero goals in compliance with the transferability of credits under Article 6 of the Paris Agreement,” Blue Carbon Chairman Sheikh Ahmed Dalmook Al Maktoum said.

The agreement follows similar projects in Tanzania and Zambia: Blue Carbon signed a partnership agreement in February with the Tanzanian government to jointly register and conserve some 8 mn hectares of forest land in the African country — including 56k hectares of mangroves — as part of the first phase of a biodiversity protection program that will see Blue Carbon list the forest resources it conserves in the country as carbon credits, Gulf Newsreported. That same month Blue Carbon inked a similar agreement with the government of Zambia, targeting the conservation of 8 mn hectares of the country’s forest resources to generate carbon credits.

About Blue Carbon: Launched in 2022 by the Private Office of Sheikh Ahmed Dalmook Al Maktoum, Blue Carbon invests in nature-based solutions that offset carbon emissions such as mangroves and seagrass meadows, according to its website.

Qatar’s Global Carbon Council set to issue carbon credits on Egypt’s EGX

Qatar’s GCC is eyeing Egypt’s bourse: Egypt’s stock exchange — the EGX — will list carbon credits issued by Doha-based international provider Global Carbon Council (GCC) on its planned carbon market under a MoU signed by the two sides, it said in a statement (pdf) this week.

REFRESHER- The EGX is set to launch Africa’s first voluntary carbon market (VCM) in mid-2023 and is partnering with the Agricultural Bank of Egypt and Enara Group’s Libra Capital to establish Libra Carbon, the Egyptian company that will supply carbon offsets to the VCM.

What they said: “EGX's collaboration with GCC will help in achieving global climate goals besides creating new business opportunities for the African continent through a transparent and fair ecosystem, this collaboration will increase the liquidity in the market and give investors access to high quality carbon credits which they can use to offset their residual emissions and take their steps towards achieving net‐zero goals,” EGX Executive Chairman Rami El‐Dokany noted in the statement.

Who are GCC? The GCC is a Qatar-based voluntary carbon offsetting program that works with groups in the MENA region and beyond to offset carbon emissions. It issues carbon credits for a range of emission-reduction projects, and has been approved by international organizations including UN International Civil Aviation Organization and the International Carbon Reduction and Offset Alliance.

But their business model has been drawing criticism: GCC — which sold carbon credits offsetting some 1.8 mn tons to Qatar in a bid to help push down emissions generated in the wake of Fifa’s 2022 World Cup in Doha — approves projects that fail to meet global environmental standards. The program greenlights projects in middle-income countries like India and Turkey that incentivize developers to build renewables projects with the promise of additional revenue from carbon credit sale, Bloomberg reported last year, adding that such incentives are no longer needed as the steep drop in the cost of renewable power over the past decade renders clean energy ventures already cost-efficient.

EMs are at risk of falling behind as the green tech revolution revs up

Green tech capabilities and their ability to export climate tech will determine economic inequalities between emerging and developed economies, according to a report released by UN Conference on Trade and Development (UNCTAD) analyzing 166 countries' readiness to use and export 17 frontier technologies. The emerging frontier technologies the report studied — which include renewables and clean energy tech such as EVs, solar, and green hydrogen — are projected to collectively generate some USD 9.5 tn by the end of the decade.

How much could EMs potentially miss out on? Green technologies are expected to reach a market value of USD 2.1 tn in 2030 — fourfold higher than current market value, the reports finds, adding that developed countries are on a trajectory to ride the green tech wave on the back of strong policy action and investments. Developing countries, on the other hand, are at risk of missing out on the tech revolution and the economic opportunities that come with it due to a lack of regulations, technical and scientific know-how, infrastructure, and capital to compete with developed markets, according to UNCTAD.

A glance at the numbers: The net global exports of green technologies more than doubled from 2018 to reach over USD 156 bn in 2021, the report states. During the same period, emerging markets’ share of global exports plummeted 15 percentage points to below 33% by 2021.

Why is this important? “We are at the beginning of a technological revolution based on green technologies … Developing countries must capture more of the value being created in this technological revolution to grow their economies,” UNCTAD Secretary-General Rebeca Grynspan said. “Missing this technological wave because of insufficient policy attention or lack of targeted investment in building capacities would have long-lasting negative implications,” she added.

Who tops the list and who is lagging behind? Developed countries including the US, Sweden, Singapore, Switzerland and the Netherlands top the list on the back of solid rankings across the five metrics of the index: ICT, research and development, skills, finance indicators, and industrial capacity, UNCTAD notes, adding that countries in Latin America, the Caribbean, and sub-Saharan Africa are the most unprepared to adapt and adopt the frontier technologies that the global economy will reorient itself toward.

From our neck of the woods, the UAE comes in at number 37, followed by Saudi Arabia placing at 47, Bahrain at number 60, Oman at 64, Tunisia at 66, Qatar at 67, Morocco at 70, Lebanon at 77, Jordan at 80, Egypt at number 83, Algeria at 97, and Sudan coming last at 163.

What have the top developing countries done to rise in the ranks? Emerging countries high on UNCTADS’ list include China (35), Brazil (40), and India (46) exceeded readiness expectations by acclimating their economy to the new technological revolution through strong government policies supporting innovation, according to UNCTAD. China outperformed its emerging counterparts due to salient government policies ramping up tech advancements like the country’s 2006 renewable energy law, which boosted solar energy subsidies and introduced initiatives to increase private sector contribution in renewables, the report notes.

What needs to be done? Emerging markets will need to channel more capital toward frontier and green sectors through the introduction of policy instruments, smart specialization initiatives, and demonstration projects, according to UNCTAD. Developing economies will also have to upscale their technical skills, expand investments in ICT, infrastructure, and plug the growing connectivity chasm between small and large enterprises to enable mass production and use of green and frontier technologies, the report notes.

But where’s the capital? The international economy should play an integral role in boosting emerging economies’ green tech readiness, investing more capital to support developing countries' tech capabilities and establishing trade rules fostering competition while being aligned with the Paris Agreement on climate change, UNCTAD says.

The world’s tallest 3D printed building, courtesy of KSA’s Dar Al Arkan + Standard Chartered and Siemens Energy issue green guarantee for Qatar solar project

KSA completes its tallest 3D printed building: Saudi real estate developer Dar Al Arkan completed construction of a 3D printed 3-storey, 9.9-meter-tall villa in Riyadh using Danish construction printing solutions firm Cobod’s 3D printer, according to a company statement. The villa — which was printed over 26 days — will source its power needs from nine solar panels installed atop its roof, and is kitted with nanotechnology reflectors to deflect heat.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

Standard Chartered Bank and Siemens Energy announced the issuance of a green guarantee — an agreement that the bank will cover the borrower's debt in the case they fail to settle it — for a solar project in Qatar, without specifying the project or the value of the guarantee line. (Statement)

Geothermal heat pumping systems can reduce building emissions by 53%

A residential building under construction in New York will power its heat pumping system with geothermal energy, reducing emissions by 53%, Bloomberg reports. The 834-unit apartment building will tap into the state’s geothermal capacities stored 152 meters below ground by drilling 322 holes to extract heat energy. Construction is due to be completed by 2025 and it will be one of the biggest US residential buildings using this technology.

How does it work? A heat pump uses technology similar to refrigerators or air conditioners whereby heat is extracted from a source — such as the surrounding air or geothermal energy — then amplified and transferred to where it is needed, the International Energy Agency (IEA) explains. When geothermal energy is the heat source, cooling the building requires water to be mixed with an additive that inhibits freezing to be pumped down pipes into the holes where it gets colder and then pumped back up. To heat the building, stable underground temperatures can bring the water temperature to 13°C, then an electric heater increases warmth before distributing through the building.

Tapping into geothermal energy can make buildings more energy efficient: Buildings account for about 8% of global carbon emissions, mostly from burning fossil fuels for heating, Bloomberg writes. The region has already rolled out a large number of district cooling projects in a bid to increase building energy efficiency. By combining its new interest in geothermal energy, with its efficient cooling systems, the region has the potential to cut down on its building emissions entirely.

CALENDAR

APRIL 2023

6 April (Thursday): Arabia CSR Awards 2022 Clinic (online).

18-19 April (Tuesday-Wednesday): International Conference on Green Energy and Environmental Technology (ICGEET), Dubai, UAE.

MAY 2023

1-4 May (Monday-Thursday): Arabian Travel Market, Dubai, UAE.

2-7 May (Tuesday-Sunday): Salon International de l’Agriculture au Maroc (SIAM), Meknes, Morocco.

4-6 May (Thursday-Saturday): International 100% Renewable Energy Conference (IRENEC), Istanbul, Turkey.

8-10 May (Monday-Wednesday): Global Green Future Fuel, Dubai, UAE.

9 May (Tuesday): World Hydrogen 2023 Summit & Exhibition, Rotterdam, Netherlands.

9-10 May (Tuesday-Wednesday): The Solar Show MENA, Cairo, Egypt.

16-18 May (Tuesday-Thursday): Seatrade Maritime Logistics Middle East, Dubai, UAE.

29-31 May (Monday-Wednesday): Electric Vehicle Innovation Summit, Abu Dhabi, UAE.

30 May-1 June (Tuesday-Thursday): Global Sustainable Development Congress, King Abdullah University of Science and Technology (KAUST), KSA.

JUNE 2023

1-3 June (Thursday-Saturday): Envirotec and Energie Expo, Tunis, Tunisia.

12-15 June (Monday-Thursday): Saudi Plastics & Petrochem, Riyadh, KSA.

13-14 June (Tuesday- Wednesday) The Arab Green Summit, Dubai, UAE.

13-14 June (Tuesday- Wednesday) Bloomberg New Economy Gateway Africa Conference, Marrakesh, Morocco.

JULY 2023

3-7 July (Monday-Friday): The 36th Conference of the International Association of Climatology, Bucharest, Romania.

AUGUST 2023

20 August-24 August (Sunday-Wednesday): World Water Week 2023, Stockholm, Sweden.

SEPTEMBER 2023

9-20 September (Saturday-Wednesday): 2023 Sustainable Development Goals Summit, New York, U.S..

11-13 September (Monday-Wednesday): Global Congress on Renewable and Non-Renewable Energy, Dubai, UAE.

Chariot Limited and Total Eren’s feasibility study on a 10 GW green hydrogen plant in Mauritania to be completed.

OCTOBER 2023

2-4 October (Monday-Wednesday): WETEX and Dubai Solar Show, Dubai, UAE.

4 October (Wednesday): Arabia CSR Gala Awarding Ceremony, UAE.

16-18 October (Monday-Wednesday): Climate Week, Rome, Italy.

31 October – 2 November (Tuesday-Thursday): World Hydropower Conference, Bali, Indonesia.

NOVEMBER 2023

9-10 November (Thursday-Friday): International Renewable Energy Agency Investment Forum, Uruguay.

30 November - 12 December: Conference of the Parties (COP 28), Dubai, UAE.

EVENTS WITH NO SET DATE

End-2022

KSA’s Neom wants to tender three concrete water reservoir projects to up its water storage capacity by 6 mn liters.

2023

Early 2023: Egypt’s KarmSolar to launch KarmCharge, the company’s EV charging venture.

1Q2023: Oman will award two blocks of land for green hydrogen projects in Duqm, Oman.

Mid-2023: Sale of Sembcorp Energy India Limited to consortium of Omani investors to close.

Phase C of the 900-MW of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai to be completed.

Saudi Basic Industries Corporation (Sabic) steam cracker furnace powered by renewable energy to come online.

4Q2023: Oman to award four blocks of land for green hydrogen projects in Thumrait, Oman.

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.

First 1.5 GW phase of Morocco’s Xlinks solar and wind energy project to be operational.

2025

Second 1.5 GW phase of Morocco’s Xlinks solar and wind energy project to be operational.

UAE to have over 1k EV charging stations installed.

2026

1Q 2026: QatarEnergy’s USD 1 bn blue ammonia plant to be completed.

End-2026: HSBC Bahrain to eliminate single-use PVC plastic cards.

Iraq’s Mass Group Holding wants to invest EUR 1 bn on its thermal plant Mintia in Romania to have 62% of run on renewable energy, while expanding its energy capacity to at least 1.29k MWh.

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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