{"id":85741,"date":"2024-07-31T00:00:00","date_gmt":"2024-07-31T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2024\/07\/31\/today-tunisia-%f0%9f%92%9a-green-hydrogen-ewec-reviews-four-bids-for-swro-desalination-project\/"},"modified":"2024-07-31T00:00:00","modified_gmt":"2024-07-31T00:00:00","slug":"today-tunisia-%f0%9f%92%9a-green-hydrogen-ewec-reviews-four-bids-for-swro-desalination-project","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2024\/07\/31\/today-tunisia-%f0%9f%92%9a-green-hydrogen-ewec-reviews-four-bids-for-swro-desalination-project\/","title":{"rendered":"TODAY: Tunisia ? Green hydrogen + Ewec reviews four bids for SWRO desalination project"},"content":{"rendered":"

Good morning, nice people. <\/strong>It\u2019s a busy morning for the Tunisian green hydrogen sector with six fresh development agreements making waves as the country angles to make itself a power player for exports. We have all the details in the news well below.<\/p>\n

THE BIG CLIMATE STORY OUTSIDE THE REGION- Carbon credits are largely <\/strong>\u201cineffective\u201d: <\/strong>The Science-Based Targets initiative (SBTi) \u2014 the world\u2019s leading arbitrar on corporate net-zero targets \u2014 said it would maintain its restrictions<\/a> on the use of carbon credits for corporate climate targets, citing insufficient scientific support for broader use. The decision aligns with a preliminary draft reported earlier by Reuters<\/a> indicating SBTi's continued resistance to pressures from carbon offset advocates. SBTi's current policy allows carbon offsets only after companies have exhausted other emission reduction efforts, focusing primarily on direct emission cuts. The story made headlines in <\/strong>Reuters<\/a><\/strong>,<\/strong> Bloomberg<\/a><\/strong>, and<\/strong> The Wall Street Journal<\/a><\/strong>.<\/strong><\/p>\n

\n

\n

WATCH THIS SPACE-<\/p>\n

<\/strong><\/a>#1- <\/strong>Saudi Arabia <\/strong>sees potential in lithium imports from Chile\u2019s Codelco despite hurdles <\/strong>facing the state miner<\/strong>, Saudi Industry and Mineral Resources Minister Bandar Al Khorayef told Bloomberg<\/a> during a visit to Chile\u2019s capital Santiago. Saudi is examining the means to import lithium from Chile and process it domestically allowing lithium batteries sales both at home and overseas, with talks in Chile for partnerships still at an early stage, Al Khorayef said. Saudi\u2019s interest in Codelco comes as it sees a series of blows at its projects and mines as it continues to suffer from a lack of adequate financing.<\/p>\n

Why this matters: <\/strong>Lithium is a critical component<\/a> of both modern consumer electronics and the green transition, factoring into everything from rechargeable batteries for phones and computers to electric vehicles and grid storage. Saudi will continue to source lithium from abroad as part of its plans for the nascent EV sector as securing domestic supplies were still at an early stage, Al Khorayef said in April<\/a>.<\/p>\n

And that\u2019s not all:<\/strong> The Kingdom is also interested in exporting fertilizers to strengthen Chile\u2019s farming activities and food security, the minister said.<\/p>\n

REMEMBER-<\/strong> Al Khorayef is leading a delegation that first stopped in Brazil<\/a> last week to look at potential investments in mining and manufacturing amid a global mining push.<\/p>\n

<\/strong>#2- China explores development work on upgrading Egypt\u2019s national grid: <\/strong>Egyptian Electricity and Renewable Energy Minister Mahmoud Esmat met with senior execs from Chinese state-owned electric utility State Grid Corporation to discuss strengthening cooperation in electricity and renewable energy, according to a statement<\/a>. The group discussed developing the national grid to accommodate generated energy from renewable sources and connect it to the grid and reviewed a planned 10 GW solar project<\/a> between the Egyptian Electricity Transmission Company and China Electric Power Equipment and Technology (CET) \u2014 a wholly-owned subsidiary of State Grid, the statement notes.<\/p>\n

About the project:<\/strong> CET expects to complete the 10 GW solar plant in multiple phases over five years under a build, own, operate agreement. The utility-scale solar farm \u2014 expected to be established in Upper Egypt \u2014 will span 160 sq km, and once completed, will offset 14 mn tons of carbon emissions annually, saving some USD 1 bn of gas-powered energy costs per year. The solar farm is expected to cost some USD 10 bn.<\/p>\n

<\/strong>#3- <\/strong>BP <\/strong>has up to ten green hydrogen projects in the pipeline: <\/strong>British oil giant BP aims to set up five to ten low-carbon hydrogen projects this decade to produce clean fuels and cut greenhouse emissions, CEO Murray Auchincloss told Reuters<\/a> in an interview. The green hydrogen will be used to produce sustainable aviation fuel and to decarbonize BP's refining operations. \"We will be focused on five to 10 construction projects this decade starting with the first two in Europe,\" Auchincloss said. The ambitious plan will start with the Castellon refinery in Spain and the Lingen refinery in Germany, according to a separate Reuters<\/a> report. BP already greenlit the Castellon project and is finalizing the final investment decision for the 100 MW project in Germany by the end of the year.<\/p>\n

Capitalizing on Spain\u2019s green hydrogen boost? <\/strong>Spain\u2019s government approved earlier this<\/a>month<\/a> EUR 794 mn in subsidies for large green hydrogen projects, targeting an electrolysis capacity of 652 MW. The country recently updated its 2030 hydrogen electrolyser target to 11 GW, up from the previous 4 GW.<\/p>\n

One of the hydrogen projects could be in Egypt: <\/strong>BP joined forces with Infinity Power, Hassan Allam Utilities and Masdar earlier this month<\/a> for an 8 GW green hydrogen and ammonia plant. The project is currently in the feasibility study stage and will have an initial pilot phase of 300 MW to produce green ammonia. <\/p>\n

#4- <\/strong>India <\/strong>opposes the EU\u2019s carbon tax: <\/strong>India has declined the European Union\u2019s proposal to impose higher taxes on its carbon-producing industries, labelling the plan impractical and unfair, India\u2019s Economic Affairs Secretary Ajay Seth told Reuters<\/a>. The EU\u2019s Carbon Border Adjustment Mechanism (CBAM)<\/a> would significantly increase costs for India\u2019s economy, which cannot afford such expenses given its lower income levels compared to Europe, he added. \"Their suggestion is not practical. Their team had come and met us ... the solution they are offering doesn't work for a developing economy like India,\u201d Seth said. The EU\u2019s delegation, led by Gerassimos Thomas, defended the CBAM, stating its primary intent is to ensure greener goods supply to the EU market. <\/p>\n

The implications: <\/strong>Despite India\u2019s efforts to expand its renewable energy capacity, challenges remain in producing greener exports solely for the EU market. The deadlock over carbon emissions could strain bilateral trade and affect ongoing negotiations for a free trade agreement between the EU and India, analysts told Reuters. They warned that Indian products might face a 20%-35% CBAM tax in the EU, while EU products could enter India duty-free. <\/p>\n

#5- Chinese EV brands <\/strong>achieved a record 11% market share in Europe in June<\/strong>, driven by a surge in registrations ahead of newly introduced European Union tariffs earlier this month, Bloomberg<\/a> reports, citing data by researcher Dataforce. Chinese brands registered more than 23k EVs across the region, marking a 72% increase from May and its highest ever level during the month.<\/p>\n

The culprits:<\/strong> SAIC Motor, which is subject to an additional 38% fee, led the charge with its MG4 model, while BYD, which will pay 17% extra on the existing 10%, gained traction through a marketing push centered on the Euro 2024 football tournament in Germany.<\/p>\n

The tariffs are still provisional: <\/strong>After several rounds of technical discussions between China and the EU, the European Commission officially imposed tariffs<\/a> of 17.4% to 37.6% on Chinese EV imports earlier this month. The tariffs are on provisional status for the next four months before becoming \u201cdefinite\u201d as the talks between both sides continue and the EU anti-subsidy investigation continues.<\/p>\n

\n

DANGER ZONE- <\/p>\n

Forests and <\/strong>land ecosystems failed to significantly absorb carbon emissions last year<\/strong>, leading to an 86% increase in the growth rate of atmospheric CO2 compared to 2022, according to a recent study (pdf)<\/a>. Forests typically absorb about a third of annual human-caused CO2 emissions, but the extreme heat and dry conditions \u2014 including severe drought in the Amazon and record wildfires in Canada \u2014 have hampered this process. <\/p>\n

Carbon sink collapse could cause irreversible damage:<\/strong> These disruptions in the carbon sink may become more frequent, exacerbating global warming as experts warn that relying on ecosystems to mitigate carbon emissions may not be viable in the future, Reuters<\/a> reports. \"The sink is a pump, and we are pumping less carbon from the atmosphere into the land,\" one of the co-authors said. \"Suddenly the pump is choking, and it's pumping less.\"<\/p>\n

\n

THE SCORECARD- <\/p>\n

Wind turbines and solar panels helped generate 30% of the European Union's electricity <\/strong>in 1H 2024<\/strong>, surpassing fossil fuels use for power generation for the first time, according to a report (pdf)<\/a> by climate think tank Ember. This shift towards renewables within the EU led to a 17% reduction in power generation from fossil fuels, and a drop of one-third in sector emissions since the first half of 2022. The trend marks a rapid transformation in the EU's power sector, with 13 member states generating more electricity from renewables than from fossil fuels, including Germany, Belgium, Hungary, and the Netherlands. <\/p>\n

Solar power is booming:<\/strong> Solar generation increased by 21% y-o-y across the EU, with significant generation from Germany, Spain, Italy and Poland. In Hungary, growth was impressive with solar generation increasing 49% y-o-y.<\/p>\n

While wind lags behind: <\/strong>Wind generation in the EU rose by 9% y-o-y, with Germany and the Netherlands accounting for almost half of the total growth in wind generation. However, the industry has grappled with surging inflation and a pushback by European politicians, according to The Guardian<\/a>. The EU installed a record 16.2 GW of new wind power capacity last year, yet this was half of what was required to meet climate goals within the bloc by 2030, according to lobby group Wind Power Europe.<\/p>\n

ALSO- Germany set a new record for solar power generation: <\/strong>Solar power generation in Germany has hit 48.6 GW, marking a new record, Bloomberg<\/a> reports, citing data from the European Energy Exchange. Solar generation is set to rise further by 34% y-o-y over the summer due to added capacity, according to BloombergNEF.<\/p>\n

\n

THE ENTERPRISE FINANCE FORUM- <\/p>\n

Are you planning to be in Egypt on 24 September? <\/strong>You may be interested in attending our 2024 Enterprise Finance Forum. Seating is strictly limited at our flagship, invitation-only forum for C-suite executives and other senior leaders. <\/p>\n

Why attend? We\u2019re in the early days of a generational realignment of power in our <\/strong>industry<\/strong> \u2014 in our region and beyond \u2014 and on the cusp of the biggest intergenerational transfer of wealth the world has ever seen<\/strong>. With that as the backdrop, we\u2019re going to take stock of where we stand six months after the float of the EGP and ask what\u2019s next for finance in Egypt and the wider region. Among the questions we\u2019ll be asking:<\/p>\n