Good morning, folks. We have a bumper issue this morning packed with updates across the region in every subsector of the industry as the week comes to a close.

THE BIG CLIMATE STORY OUTSIDE THE REGION- No single story is dominating the headlines this morning, but a couple of headlines caught our attention. US nonprofit Environmental Democracy Project has filed a lawsuit against EV giant Tesla, alleging violations of the Clean Air Act at its Fremont, California plant. Tesla has been accused of emitting harmful pollutants – including nitrogen oxides, arsenic, and cadmium – primarily through its paint shop operations since 2021. The nonprofit is seeking an injunction to stop excess pollution and civil fines of up to USD 121.3k per day per violation. The story grabbed ink in Reuters, Bloomberg Law, and CNBC.

Also, extreme temperatures are calling India’s response to climate change into question as several regions face 11 heat wave days this month compared to the typical three, Bloomberg writes in an in-depth feature this morning. The mercury has hit 47.2C in the nation’s east, according to the India Meteorological Department, and inconsistent planning coupled with a lack of investments in climate change readiness has left India’s population of 1.4 bn vulnerable to more frequent, longer heat waves sweeping the country.

PSA-

UAE introduces the Blue Residency: Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum approved a new ten-year Blue Residency for professionals working in the field of environmental sustainability, Wam reports. The residency will be granted to anyone who has made “extraordinary contributions” to “environment protection, whether in marine life, land-based ecosystems, or air quality, sustainability technologies, the circular economy, or related fields,” Sheikh Mohammed said.

WATCH THIS SPACE-

#1- Saudi Energy Minister Prince Abdulaziz bin Salman signed an energy cooperation roadmap with US Energy Secretary Jennifer Granholm, the Energy Ministry said in a post on X. The roadmap outlines a timeline for cooperation in “critical projects” in renewables, green hydrogen, energy efficiency and more.

Importantly, the roadmap also checks-off mention of nuclear power. A nuclear energy pact is one of three cornerstone agreements (along with one on defense and a third on AI and advanced technologies) that could be part of a grand accord that sees Saudi take steps to normalize relations with Israel.

#2- QIA is eyeing semiconductor industry investments: The Qatar Investment Authority (QIA) plans to make an anchor investment in France’s Ardian Semiconductor fund, according to a statement. The move is part of QIA's strategy to increase investment in the semiconductor industry, which is crucial for digital and green transformations across sectors like artificial intelligence, mobility, and consumer technology, the statement said. The expected investment ticket was not disclosed. Established by French private equity firm Ardian last year, the semiconductor platform aims to boost investment across the semiconductor value chain with a focus on Europe. The initiative will both work to provide capital solutions and operational expertise.

QIA has been expanding its interest in semiconductors: QIA acquired a minority stake in Japan-based semiconductor manufacturing giant Kokusai Electric Corporation in June 2023. This came on the back of increasing demand for the tech from high-growth industries such as data centers and AI.

Not the first in the region to eye semiconductors: KSA’s King Abdulaziz City for Science and Technology signed agreements to establish a center of excellence in AI tech and to develop the country’s semiconductor industry in March. The UAE is also seeking support from the US to become a producer of advanced semiconductors, in a bid to position itself as a regional heavyweight in artificial intelligence.

REMEMBER- Semiconductors are also a key component for clean energy sources: Semiconductor tech is crucial in helping national grids maintain stable power delivery as more renewable energy sources like wind, solar, wave, and tidal power — which are intermittent in production by nature — are added. By controlling power generation and grid connection, they enable efficient energy conversion in renewable plants and facilitate power transmission to the grid.

#3- UAE renewables giant Masdar is aiming to “meet and exceed” its target to produce 1 mntons of green hydrogen by 2030, Masdar’s head of business development for green hydrogen Faye Al Hersh told The National on the sidelines of the World Hydrogen summit in Rotterdam. The industry is moving from a period of “overhyped expectations” to a point of “maturation in the market,” Hersh said, adding that this is happening on the back of an expected decline in electrolyzer costs in parallel to an anticipated rise in demand from “early movers” — likely from shipping, and aviation sectors which cannot be connected to the national grid. Steelmakers are also predicted to be part of the early transition to hydrogen.

Removing obstacles is critical: Electrolyzers typically use the rare and expensive metals platinum and iridium which adds a large hurdle to its manufacturing. “The key to this innovation wave, which I believe is going to happen quite quickly, is to get those metals out of the system,” chief executive of metals and energy company Fortescue Mark Hutchinson said at the summit.

ON A RELATED NOTE- Is green hydrogen stuck in a rut? Thyssenkrupp Nucera, the hydrogen arm of the German industrial engineering giant, “has reported a drop in demand for the equipment it supplies to develop green hydrogen, the latest evidence that the nascent technology aimed at cutting emissions risks losing momentum,” The Financial Times writes this morning.

The issue: Would-be clients in Europe and North America are basically waiting for governments to finalize incentive packages (and, more sustainably, help create a market) that will make their projects commercially viable. They’re looking for a mix of direct subsidies and, in some cases, offtake agreements at set prices that lock in their margins on the still-nascent technology. (Regulatory questions on issues such as mass balancing are also factors, as are national commitments to decarbonization targets.)

#4-Italy-Tunisia interconnector takes a big step forward: Italy's Environment and Energy Security Ministry has officially authorized the Elmed electric interconnection project with Tunisia, according to a statement. The interconnection line will be established by Italian utility company Terna and the Tunisian public grid operator Société Tunisienne de l'Électricité et du Gaz (STEG) with an investment of around EUR 850 mn — EUR 307 mn of which will be provided by the European Commission's Connecting Europe Facility.

Tunisia recently authorized a loan for the project: Tunisia’s House of Representatives approved a USD 268 mn loan extended by the World Bank’s International Bank for Reconstruction and Development to STEG in February. The 600 MW subsea interconnector will transport 400-600 MW of clean power generated from hydroelectricity and is targeting an operational launch by 2028.

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CIRCLE YOUR CALENDAR-

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 in line 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.

Saudi Arabia will host the Future Aviation Forum from Monday, 20 May to Wednesday, 22 May in Riyadh. The event, organized by the General Authority of Civil Aviation, will see the Kingdom showcasing some USD 100 bn worth of investment options in the aviation and logistics sector at large.

The UAE will host the Bonds, Loans & Sukuk Middle East event from Tuesday, 4 June to Wednesday, 5 June in Dubai. Billed as the Middle East's largest corporate and investment banking event, it serves as a key meeting point for those active in the region's capital markets. Over 1.4k governments, corporates, investors, banks, law firms, regulators and service providers as well as more than 75 expert speakers will be in attendance.

Turkey will host the International Conference on European Energy Market, from Monday, 10 June to Wednesday, 12 June in Istanbul. The three-day event will gather experts from scientific, industry, and policy sectors for discussions on various energy market-related topics. The conference covers themes including energy modeling, market design, regulatory policies, and climate change.

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