{"id":83823,"date":"2024-04-29T00:00:00","date_gmt":"2024-04-29T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2024\/04\/29\/today-a-busy-morning-for-the-regional-climate-industry\/"},"modified":"2024-04-29T00:00:00","modified_gmt":"2024-04-29T00:00:00","slug":"today-a-busy-morning-for-the-regional-climate-industry","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2024\/04\/29\/today-a-busy-morning-for-the-regional-climate-industry\/","title":{"rendered":"TODAY: A busy morning for the regional climate industry"},"content":{"rendered":"

Good morning, folks. <\/strong>It\u2019s a very busy morning with updates coming in hot and fast from across the region, cutting across every corner of our industry. But first, an big story is developing across the pond\u2026<\/p>\n

THE BIG CLIMATE STORY OUTSIDE THE REGION- <\/strong>US <\/strong>sets new emissions rules:<\/strong> The Biden administration has finalized a pivotal climate policy to reduce emissions from US power plants. The new rules, set by the Environmental Protection Agency (EPA), impose stricter emission standards on existing coal plants and new natural gas plants, excluding current gas plants. The EPA's strategy also recommends carbon capture and storage technology, despite its high costs and limited deployment. This will be the first time federal emissions standards are enforced on the power sector. The rules mandate a 90% reduction in pollution from coal plants by 2039, with phased cuts beginning in 2032. New gas plants will be subject to these rules starting 2032. The EPA estimates a reduction of 1.38 bn metric tonnes of carbon pollution through 2047, equating to roughly one year's worth of emissions from the US power sector.<\/p>\n

The story made headlines in the international press over the weekend:<\/strong>Reuters<\/a> | AP<\/a> | The Financial Times<\/a> | Wall Street Journal<\/a> | The New York Times<\/a> | CNN<\/a> | The Guardian<\/a> <\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/a>#1- Oman completes construction for Manah transmission station: <\/strong>The Oman Electricity Transmission Company concluded the construction of its 400 kV Manah electricity transmission station in preparation to connect the 1 GW Manah solar projects<\/a> \u2014 scheduled for operation in 2025 \u2014 to the country\u2019s national grid, Oman News Agency<\/a> reports. The transmission station \u2014 which cost over OMR 11 mn (c. USD 28.6) \u2014 was under construction for 20 months, and includes 10 gas breakers with a voltage of 400 kV, 11 kW electrical transformers, and two 750 kV transformers. The lines will also connect the Manah<\/a> and Nahida<\/a> power plants and the new Manah<\/a> and Izki grid stations<\/a>. <\/p>\n

#2- Naturgy takeover getting a push? <\/strong>First Deputy Ruler of Dubai Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum met on Saturday with co-founder and co-chair of private equity firm and Naturgy major shareholder CVC Capital Partners Rolly van Rappard, discussing windows for global financial companies to expand in the region, according to the Dubai Media Office<\/a>. Officials from Dubai's Department of Economy and Tourism, Dubai International Financial Centre, and Dubai-based real estate firm Tecom also attended the meeting.<\/p>\n

REMEMBER- <\/strong>Abu Dhabi National Energy Company (Taqa) is in discussions<\/a> with Naturgy\u2019s two largest shareholders \u2014 CVC and GIP \u2014 to potentially acquire their stakes in the Spanish company. Taqa is also discussing \u201ca potential cooperation in relation to Naturgy\u201d withNaturgy\u2019s largest shareholder, Criteria Caixa, it confirmed last week<\/a>.<\/p>\n

Spain is considering its options: <\/strong>The Spanish and Algerian governments could potentially block or otherwise negotiate more preferential terms for Taqa\u2019s potential acquisition in the Spanish gas producer, with Spain\u2019s S\u00e1nchez government reportedly looking to \u201cfacilitate\u201d<\/a> Taqa\u2019s takeover bid for 100% of Naturgy, on the condition that Taqa would then sell back 10-15% of the company to the Spanish government.<\/p>\n

<\/a>#3- Jera, Japan\u2019s biggest power producer, plans to invest in low-carbon hydrogen and <\/strong>ammonia plants in the region<\/strong>, Asharq Business<\/a> reports. Jera is interested in facilities capable of producing around 1 mn annual tons of blue ammonia, alongside smaller scale green hydrogen projects, according to Jera\u2019s Australia and Middle East country head Tsuyoshi Oyama. The region currently houses some of the world's largest planned blue ammonia plants.<\/p>\n

Jera has been interested in the region for some time:<\/strong> Jera signed agreements<\/a> with Taqa and Adnoc last year to investigate the feasibility of low-carbon thermal energy, ammonia, and green hydrogen projects in the region. The Japanese company also collaborated<\/a> with Saudi Arabia\u2019s sovereign wealth fund the Public Investment Fund (PIF), to explore the production of green hydrogen and its derivatives.<\/p>\n

#4- A green finance fund for the Arab world? <\/strong>The UN Development Programme (UNDP) and the Islamic Development Bank (IsDB) are in talks to set up a fund focused on green finance in the Arab world, Assistant UN Secretary General Abdallah Al Dardari<\/a> told Aleqtisadiah<\/a> on Saturday on the sidelines of the IsDB\u2019s annual meeting in Riyadh. He did not provide further details on the planned fund. Al Dardari, who also serves as director of the UNDP\u2019s regional bureau for Arab states, said failure to address climate change globally would require some USD 34 trn to address damages.<\/p>\n

IsDB has approved USD 418 mn in financing for <\/strong>sustainable development projects<\/strong> in Central Asia, Africa and Turkey, it said in a post on X<\/a>. Tajikistan will get USD 160 mn for clean energy, while Turkey is set to secure USD 120 mn in funding for infrastructure development. Some USD 70.5 mn in funds will be channeled to support Cote d\u2019Ivoire\u2019s agricultural transformation, while Benin will get USD 60.6 mn to boost food security.<\/p>\n

<\/a>#5-<\/strong>The <\/strong>UAE <\/strong>is exploring the construction of a second nuclear power plant<\/strong>, Reuters<\/a> reported on Friday, citing sources with knowledge of the matter. The country aims to tender and award four reactors this year \u2014 potentially within the next few months \u2014 and the plant will reportedly start operations by 2032, sources told the newswire.<\/p>\n

Who can bid?<\/strong> Tenders will be open to any potential bidders, including US, Chinese, and Russian firms, the sources said, adding that South Korea \u2014 which built the Barakah plant \u2014 will not be favored. The Federal Authority for Nuclear Regulation told Reuters it is set to review and hand out the necessary licenses and regulations if the government gives the green light for new plant construction.<\/p>\n

Its predecessor: <\/strong>The move comes as the 1.4 GW fourth unit<\/a> of Emirates Nuclear Energy Corporation\u2019s South Korean-built Barakah nuclear energy plant was connected to the UAE\u2019s transmission grid last month. Once it begins full commercial operations later this year, the plant is expected to offset 22.4 mn tonnes of emissions with 40 TWh of generated electricity annually. <\/p>\n

#6- We have a figure for AFC\u2019s investment in Xlinks Morocco-UK interconnector <\/strong>project: <\/strong>Infrastructure provider and developer Africa Finance Corporation<\/a> (AFC) will invest USD 14.1 mn in the Xlinks Morocco-UK interconnector project, according to a statement<\/a> published on Thursday. AFC has now joined<\/a> France\u2019s TotalEnergies, General Electric, and Abu Dhabi\u2019s Taqa in backing the 3.8k km interconnection project linking Morocco with the UK. UK-based investment company Xlinks recently updated guidance on construction costs and the strike price for the project which will now cost an estimated GBP 22-24 bn (USD 27-30 bn).<\/p>\n

#7- <\/strong>Jordan <\/strong>to issue new renewable energy infrastructure law: <\/strong>Jordan is set to introduce a revised renewable energy law aimed at supporting the building of renewables infrastructure for green hydrogen and ammonia production, Zawya Projects<\/a> reported last week, citing a report in Jordanian news outlet Alghad. The updated legislation \u2014 which has already received the cabinet\u2019s initial endorsement \u2014 is yet to be approved by Parliament. Jordan wants to source 50%<\/a> of its electricity demands from renewables by 2030 \u2014 up from the current 29% \u2014 and plans to leverage modern energy storage systems, smart meters, and improve power transmission infrastructure to facilitate energy transfer with its neighbors. <\/p>\n

Renewable infrastructure is crucial for Jordan\u2019s big green hydrogen dreams:<\/strong> The move comes after the country signed agreements with international companies to establish green hydrogen and ammonia plants, including a significant USD 1.5 bn facility<\/a> in the Southern Jordanian port of Aqaba. The project \u2014 developed by a JV between Poland-based Hynfra and Jordan-based Fidelity Group \u2014 is expected to generate between 100-200k tons annually, powered by 530 MW capacity from solar. The JV is looking to export surplus from the planned facility to EU markets.<\/p>\n

The country is on a legislation roll: <\/strong>Jordan\u2019s cabinet has approved a draft law<\/a> to establish frameworks to facilitate the power purchase of renewable power generated by households and businesses in February. Jordan is said to be \u201cfinalizing\u201d its national green hydrogen strategy, which would set in motion<\/a> 13 recently signed green hydrogen and ammonia MoUs paving the way for the kingdom to realize its goal of becoming a global hub for green hydrogen exports.<\/p>\n

#8- <\/strong>G7<\/strong> to push for new global storage goal: <\/strong>The G7 nations are poised to set a global target to boost electricity storage capacity six fold to reach 1.5k GW by 2030, The Financial Times<\/a> reported on Friday, citing a draft document it has seen. The proposed expansion includes storage solutions like batteries, hydrogen, and water. The International Energy Agency (IEA) says batteries will play a critical role, and are expected to constitute 90% of new energy storage, a trend that has already kickstarted driven by a 90% cost reduction over the past 15 years, FT adds. The G7 aims to boost the development and deployment of stationary battery storage to enhance efficiency and reduce costs while ensuring a secure supply chain. <\/p>\n

LIVE FROM RIYADH- <\/p>\n

<\/a>The World Economic Forum special meeting kicked off in Riyadh yesterday <\/strong>and will wrap today. <\/strong>Climate, energy, finance, and artificial intelligence are dominating the conversation \u2014 but peace and security are also getting plenty of attention as regional tensions and the Israel-Gaza conflict will take top billing at this week\u2019s World Economic Forum special meeting in Riyadh. <\/p>\n

Some 200 heads of state and government as well as public figures <\/strong>and over 1k industry leaders are in Saudi\u2019s capital city for a gathering headlined Global Collaboration, Growth, and Energy for Development<\/a>. <\/p>\n

Here\u2019s what went down the first day:<\/strong><\/p>\n

The world will likely need \u201cevery source of energy,\u201d<\/strong> Saudi Energy Minister Prince Abdulaziz bin Salman said in a separate panel<\/a>, reiterating the Kingdom\u2019s openness to alternate sources of energy so long as their provision is economically viable. \u201cWe have no objection to partnering with everyone; we are ready to transport these particles, especially hydrogen in the form of ammonia through pipelines, but we face challenges, including the clarity of policies and incentives<\/strong>,\u201d he said.<\/p>\n

REMEMBER-<\/strong>The Kingdom\u2019s policy was (and remains) consistent:<\/strong> \u201cFossil fuels will be with us for many, many decades to come,\u201d Saudi climate envoy Adel Al Jubeir said during COP28<\/a> in Dubai last year. His statements came amid criticism of Saudi\u2019s rejection of a phase-out of hydrocarbons. Al Jubeir reiterated the Saud continues to invest heavily in green projects, strategically directing investments totaling USD 186 bn into more than 80 projects and counting.<\/p>\n

The Kingdom will continue to source lithium from abroad as part of its plans for the <\/strong>nascent EV sector<\/strong> as securing domestic supplies were still at an early stage, Industry and Mineral Resources Minister Bandar Al Khorayef told Reuters<\/a>. \"Lithium is a very important mineral that happens to be part of a very important part of the supply chain, especially for batteries,\" he said. \"There are some signs which are encouraging, but we need to do more,\" he said on sourcing lithium locally. \"For something to be economically feasible there are two things we need to look at: the size of deposits and concentration. We do not have enough evidence to say that we have the right size of deposits and concentration.\" Al Khorayef said.<\/p>\n

The Kingdom\u2019s mineral sector is aiming for the sky<\/strong>: Manara, a JV between PIF and mining giant Ma\u2019aden, is eying a stake in Zambia's First Quantum Minerals copper mines<\/a> Sentinel and Kansanshi, and is also about to close a USD 1 bn investment in Barrick Gold\u2019s Reko Diq copper and gold mining project in Pakistan. Meanwhile, Aramco is reportedly planning to extract lithium<\/a> from brine found in its oilfields. <\/p>\n

KSA\u2019s Energy Ministry and the EU are set to finalize a MoU on energy \u201cin the next few <\/strong>months,\u201d <\/strong>a statement by the Saudi Energy Ministry and the European Commission read (here<\/a> and here<\/a>). The announcement was made during a meeting between Energy Minister Prince Abdelaziz bin Salman and European Commissioner for Energy Kadri Simson. The pact will focus on accelerating private investment in the energy transition, including hydrogen, carbon capture, utilization and storage, electricity interconnection and others.<\/p>\n

On the agenda today:<\/strong><\/p>\n