Australian and German firms eye Morocco-Europe green hydrogen transport chain

Good morning, friends. It’s a busy start to the week and we have a lot of ground to cover — starting with an announcement:

We’re only one week away from meeting with some of you at the Enterprise Exports and FDI Forum, taking place at the Four Seasons at the Nile Plaza on Monday, 15 May.

We’re proud to announce that our friend Hossam Sallab, CEO and vice chairman of Sallab Group and Royal Ceramica is joining us for the forum. Are you? Hossam Sallab will be speaking on the foundations of setting up an export-focused business. He will be joined on stage for that discussion by Mark Wyllie, CEO of Beyti and Kareem Abou Ghaly, chairman and CEO of Pasta Regina who will share their playbook on how to create an export and FDI strategy.

They’re not the only ones: Among the CEOs, top execs, bankers, and development finance folks speaking at the conference are: Tarek Kamel, CEO of Nestle Egypt; Omar Elsahy, CEO of Amazon Egypt, Khaled Morsy, CEO of DB Schenker Egypt; Shady William, managing director of IDG; Mohamed Talaat Khalifa, CEO of Concrete; Abdallah Sallam, CEO of Madinet Masr; Tarek Hosny, head of investments and projects at Fertiglobe; Nadia El-Tawil, investment officer at AfricInvest; Mostafa Bedeir, CEO of Giza Seeds and Herbs; Helmi Ghazi, deputy CEO of HSBC Egypt; Nada El Ahwal, CSO of Transmar; Hassan Massoud, associate director and head of private equity (Southern Mediterranean), European Bank for Reconstruction and Development (EBRD); Hossam Abou Moussa, partner at APIS; Yassir Zouaoui, partner at McKinsey; and Mohamed El Gebely, Team Leader at USAID Trade.

Topics and live interviews will include:

• Why exports and FDI are the way forward and what lessons have worked from around the world;
• How to attract foreign partners and figure out what they are looking for;
• What lessons can we draw from white goods, fertilizers, and garments exporters who have increased our exports;
• What it takes to secure a place in a multinational’s supply chain.
• How industrial clusters could expedite exports, FDI and possibly be an avenue for SME development;
• What are the industries of tomorrow around which we can export and bring in FDI.

For the full agenda please click here.

** Have you confirmed your attendance? Invitations have been sent out over the past few weeks. If you have yet to confirm your attendance and would still like to join us, please reply to the invitation with an RSVP.

WANT TO BECOME A COMMERCIAL PARTNER? Ping a note to Moustafa, our head of commercial, here.

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OUR TOP CLIMATE STORY- Australia-based renewables firm CWP Global inked an agreement with German hydrogen logistics firm Hydrogenious LOHC Technologies to conduct a feasibility study on a green hydrogen transport chain from Morocco to Europe and Saudi Arabia’s SABIC Agri-Nutrients has shipped its first 5k ton load of low-carbon ammonia to India.

^^ We have the details on these stories and more in the news well, below.

HAPPENING TODAY- The UAE is hosting the Global Green Future Fuel conference from today through to Wednesday, 10 May in Dubai. The green energy-focused business event brings together policymakers, renewable energy generators, project developers, and chemical and mobility industry representatives to define a new energy future shaped by hydrogen.

THE BIG CLIMATE STORY OUTSIDE THE REGION- Climate change may push 3 mn Brazillians into extreme poverty, according to a World Bank report out last week. The South American country could soon reach a tipping point seeing the Amazon Rainforest unable to sustain wildlife and function as a natural carbon sink due to scant rainfall as a consequence of climate change, leading to USD bns in losses. In the most extreme scenario envisaged by the World Bank, deforestation, pasture expansions, and climate-induced shocks would translate to losses adding up to some USD 184 bn by 2050 — nearly 9.7% of the country’s current GDP, with “serious consequences for agriculture, water supply in cities, flood mitigation, and hydroelectric power generation” expected, according to the bank. Extreme weather events are already being felt in Brazil, with the impacts of global warming setting back the country nearly USD 2.6 bn annually on average. The story was picked by Bloomberg and Reuters.

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OVER IN COPLAND- We have a preliminary thematic schedule: COP28 has released the first high-level draft of its program revealing its planned thematic days, according to the COP28 website. The program includes 12 key themes: Health; Relief, Recovery, and Peace; Nature, Land Use, and Oceans; Food and Water Systems; Just Energy Transition; Industry; Trade; Youth, Education, and Skills; Finance; Gender Equality; Cities, Regions, and Urbanization; and Transport. While some days have two themes scheduled, “this will not result in reduced programming for the theme,” according to the website. Each day will also incorporate themes that are actionable and deliverable including tech and innovation, inclusion, frontline communities, and finance. All stakeholders can share feedback on the draft by 28 May.

ALSO- Stakeholders at a cement and concrete decarbonization workshop organized by the UAE’s Ministry of Climate Change and Environment suggested that a cement and concrete decarbonization roadmap be set up for the climate conference in November, according to a press release.

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WATCH THIS SPACE #1- Egypt ramps up the EV push: The Egyptian government will pay EGP 50k-70k in incentives to consumers looking into buying electric vehicles as part of a strategy to promote the country’s EV industry in the country, Finance Minister Mohamed Maait told El Hekaya (watch, runtime: 31:44). It will reimburse manufacturers some 30-40% of total EV manufacturing cost under a push to develop a local EV industry.

REMEMBER- The electric vehicle industry in Egypt is still nascent, but the government is pushing with efforts to localize the industry as part of its hotly anticipated automotive strategy. Several companies, including leading global and local manufacturers, have recently announced plans to start local production.

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WATCH THIS SPACE #2- Aramco could build an ammonia cracking plant in Rotterdam: Several leading energy firms including Saudi Arabia’s Aramco, BP, ExxonMobil, Shell, and others could move ahead on a large-scale ammonia cracking plant at the Port of Rotterdam after a preliminary study (pdf) found the project technically and economically feasible. The plant would be capable of producing 1 mn tons of hydrogen per annum. The study — which was commissioned by the port authority and 17 companies in the proposed project — looked at possible setups for the storage and distribution of the ammonia imported. The next step will be a detailed licensor evaluation study for the plant including a defined location, capacity per location, and ship offloading and storage locations.

WATCH THIS SPACE #3- The EU may leave an option for member states to remain in the Energy Charter Treaty: The EU Commission will likely leave room for member states to remain in an “updated version” of the 1998 Energy Charter Treaty (ECT), Reuters reports, citing bloc proposals it has seen. A new update on the 25-year-old charter is set to be discussed this week, and is planned to leave space for countries like Cyprus, Slovakia, and Hungary — who have signaled preference to remain in a modernized version of the energy treaty — to remain in the accord, the news outlet notes. Last month, Denmark said it would quit the charter over the group’s continued protection of oil and gas projects. Although treaty members negotiated reforms last year in a bid to address climate concerns, failures to address support for fossil fuel projects have led the EU Commission to say a joint bloc exit from the agreement would be “inevitable.” France, Germany, Poland, Spain, and the Netherlands separately announced plans to exit the treaty, the news outlet notes, and Italy withdrew from the ECT in 2015.

WATCH THIS SPACE #4- The US will earmark USD 4 bn to decarbonize its ports and slash transport sector emissions, according to an Environmental Protection Agency statement. The US government is reportedly “seeking input” for its USD 3 bn Clean Ports program and the USD 1 bn Heavy Duty Vehicle initiative, the statement notes, adding that the agency is studying the feasibility of zero-emission trucks, port infrastructure, and equipment, as well as electrical charging stations and other infrastructure needed for net zero technologies.

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WORTH READING- Rate hikes are bad news for climate change: Interest rate hikes enacted by central banks to tame surging inflation could decelerate the renewable energy transition, The Guardian writes. High rates protect leading oil and gas producers from competition from emerging low-carbon energy producers, allowing these producers to continue expanding revenues from their decaying assets.

DATA POINT- The world will need to invest USD 600 bn by 2030 to halve oil and gas emissions, according to a new report by the International Energy Agency (IEA). Fossil fuel emissions must be halved by the end of the decade to reach the IEA’s net zero target for 2050, which will require some USD 600 bn to curb the intensity of carbon output generated by the oil and gas sector through investments in eliminating non-emergency flaring, carbon capture tech, low-carbon electrification, and increased hydrogen production, the IEA notes.

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THE DANGER ZONE- Iraq is turning to international support to help prevent its Euphrates and Tigris rivers from shrinking due to climate change-driven conditions, Bloomberg quotes Iraqi Prime Minister Mohamed Shia Al-Sudani as saying. Iraq has devised a climate strategy leading up to 2030 that includes carbon capture, offering incentives to farmers to switch to modern irrigation tech, and integrating the use of renewable energies. The government has also launched a council to create a water security strategy and is planning a seawater desalination project to supplement the short supply of fresh water from the two major rivers.

REMEMBER- Iraq is battling desertification: Iraq needs USD mns to combat desertification and is looking to raise some USD 100 mn to launch reforestation efforts and bolster food security. Nearly 70% of the country’s land mass is under threat of climate-induced desertification. Iraq will need some USD 233 bn in additional investment to pursue its green growth path by 2040.

ALSO- North Africa and Iberia both recorded climate-induced spring highs this year: Morocco recorded record-breaking highs averaging over 41°C in Marrakesh in April, according to the New York Times. Across the Strait of Gibraltar, Spain’s southern city of Cordoba recorded an April high of 38.8°C, which along with Morocco’s mercury readings, would have been “impossible” without the impacts of climate change, according to research by the World Weather Attribution cited by the news outlet.

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CIRCLE YOUR CALENDAR-

Egypt is hosting The Solar Show MENA tomorrow and Wednesday in Cairo. The conference brings together policymakers, financiers, and others to develop and futureproof the region’s energy sector as one of the emerging players in developing clean energy solutions and energy infrastructure.

The UAE is hosting The Airport Show tomorrow through to Thursday in Dubai. The forum’s 22nd edition will bring together over 200 aviation companies and more than 100 buyers from 23 countries. It will shed light on leading innovations in airport sustainability, digitalization, and urban air mobility to facilitate the industry’s path towards sustainable and collaborative airport infrastructure development and operational transformations.

The UAE is hosting the UAE Climate Tech forum this Wednesday and Thursday in Abu Dhabi. The event will gather over 1k policymakers, CEOs, experts, and investors to discuss collaboration on innovative technologies and economic opportunities in advancing decarbonization across all sectors.

The first MENA Solar Conference is accepting applications from published researchers specialized in PV technology until next 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 and news triggers.

A new Morocco-Europe hydrogen transport chain? Australia-based renewables firm CWP Global inked an agreement with German hydrogen logistics firm Hydrogenious LOHC Technologies to conduct a feasibility study on a green hydrogen transport chain from Morocco to Europe, according to a statement released on Thursday. A timeline on the study’s completion and the potential investment ticket for the project were not disclosed.

The details: The proposed hydrogen pipeline would see some 500 tons of green hydrogen transported daily from CWP’s 15 GW Amun hydrogen plant near the Moroccan city of Tan Tan to the European market using Hydrogenious LOHC Technologies’ hydrogen carrier tech, the statement notes. Though CWP’s Morocco facility is focused on green ammonia production — a green hydrogen derivative that is easier to transport — the company will opt to transport its green fuels in hydrogen form using LOHC’s hydrogen carrier tech, the statement tells us.

What’s this tech they speak of? Hydrogenious LOHC Technologies pioneered liquid organic hydrogen carriers (LOHC) which is a means of transporting hydrogen in liquid carriers without the need for pressurized or cryogenic carriers by binding the molecular hydrogen to a thermal oil, making it easier to transport, according to its website.

What they said: “As an option for storing and transporting hydrogen on an industrial scale, our LOHC technology has many advantages over other transport methods — particularly in terms of safety in urban areas or ports and the purity of the hydrogen achieved. We can also use the existing infrastructure for liquid fuels, further accelerating the development of the hydrogen value chain,” Hydrogenious LOHC Technologies Chief Strategy Officer Andreas Lehmann said in the statement.

REMEMBER- Morocco is well placed to become a major clean hydrogen producer: Morocco is among the five countries from our neck of the woods best placed to become major clean hydrogen producers by 2050. Just last month, Chinese state-owned energy firm China Energy Engineering Corporation inked a non-binding agreement with Morocco’s Gaia Energy and Saudi Arabia’s Ajlan & Bros to jointly build a green hydrogen production facility in the kingdom which is set to produce some 1.4 mn tons of the green ammonia and 320k tons of green hydrogen annually once operational.

IN OTHER GREEN HYDROGEN NEWS- French engineering firm Technip Energies is teaming up with Belgium’s John Cockrell on a new hydrogen focused JV, Reuters reports. The JV — in which Technip holds a 60% stake — seeks to raise some EUR 1 bn in revenues by 2030 as it looks to leverage hydrogen to transition hard-to-abate sectors away from fossil fuels.

SABIC Agri-Nutrients shipped its first 5k ton load of low-carbon ammonia to India, the Saudi Press Agency (SPA) reported last Thursday. The shipment originated from Jubail and was shipped to the Indian Farmers Fertilizer Cooperative (IFFCO). An expected date of arrival or whether the shipment is blue or green ammonia has not been disclosed.

Not SABIC’s first shipment to Asia: In partnership with Saudi Aramco, SABIC Agri-Nutrients shipped 25k tons of low-carbon blue ammonia to South Korea last November, which marked the world’s first commercial shipment of blue ammonia to the country. SABIC and Saudi Aramco also had an earlier partnership in 2020 where the companies sent a shipment of low-carbon ammonia to Japan, in cooperation with the Japan Institute of Energy Economics, according to the SPA.

GCC working hard to become a hub for low-carbon ammonia exports: State-owned QatarEnergy signed agreements last September to build the world’s largest blue ammonia plant — worth USD 1 bn — which is set to produce 1.2 mn tons of blue ammonia annually. More recently, Saudi mining company Ma’aden inked an MoU with Japanese industrial conglomerate Mitsui & Co in March, and another with Taiwan Fertiliser Company, to become the first commercial supplier of blue ammonia to both Japan and Taiwan.

Abu Dhabi is getting a mega WtE facility: Two international consortiums have submitted proposals to the Emirates Water and Electricity Company (Ewec) and the Abu Dhabi Waste Management Company (Tadweer) for the development of a 900k ton capacity greenfield Waste-to-Energy (WtE) IPP facility in Abu Dhabi, according to a statement released on Thursday.

Who is interested? A Japanese consortium comprising the trading and investment conglomerate Marubeni, the Swiss-based WtE cleantech company Hitachi Zosen Inova (HZI), and the infrastructure investment fund Japan Overseas Infrastructure Investment Corporation (JOIN), and a consortium made up of France’s water utility and waste recycling company Suez and UAE’s district cooling provider Pal Cooling are throwing their hats in the ring for the project.

What we know about the project so far: The facility will be located near the existing Al Dhafra landfill in Abu Dhabi, and will have the capacity to process 900k tons of waste, generating enough power for some 53k UAE households while cutting 1.1 mn tons of CO2 emissions. The facility will use advanced moving grate (AMG) incinerators to convert municipal solid waste into electricity. The developers of the facility will be announced in 3Q 2023 by Ewec and Tadweer with a target commercial operational launch in 4Q 2026.

Marubeni and Suez are diversifying renewable investments in the region: Marubeni signed an agreement in March with Saudi Arabia’s Public Investment Fund to jointly conduct a feasibility study for a green hydrogen production facility in KSA. The company is also the largest developer in a consortium working on the USD 1 bn green ammonia SalalaH2 project in Oman. Suez is leading a consortium for the operation of public wastewater treatment services in four Tunisian governorates, under a 10-year EUR 200 mn contract financed by the World Bank.

WtE projects are gaining traction in the region: Oman completed the technical and economic feasibility studies to establish a WtE plant last month. Egypt signed a USD 120 mn agreement in April with a consortium led by Renergy Egypt to design, build, own, and operate its new WtE factory in Abu Rawash city. US-based carbon recycling company LanzaTech signed an MoU with Tadweer last February to explore the possibility of establishing a waste to sustainable aviation fuels conversion plant.

The Oman Electricity Transmission Company (OETC) plans to link up to 2.6 GW in renewable energy to its transmission grid by 2027, its five-year annual transmission capability statement (pdf) for 2023-2027 showed. The report includes a generation plan provided by Oman Power and Water Procurement Company (OPWP) under efforts to raise the transmission capacity to meet future growth in demand and connect new rural areas.

Who’s in: The report provides a breakdown of solar and wind projects that will be connected to OETC’s transmission grid in the coming years. These include a 1 GW solar IPP project in Manah that will be completed in 2Q 2024 and go online in 2025. The pipeline also includes a 500 MW Ibri III Solar IPP to be connected to the transmission grid by 1Q 2026 and another 500 MW solar IPP proposed in the Al Kamil area by 2Q 2027. Connection applications submitted to OETC for wind farm plants include two new sites at the Duqm (200 MW) and Jalan Bani Bu Ali (100 MW) areas. Both wind farms are set to be connected to the grid by 2Q 2026. The plan also includes an addition of 100 MW to the existing Dhofar II wind farm at Harweel in 4Q 2026 and a planned 200 MW wind farm in Ras Madrakah in 2Q 2027.

And that's not all: 13 transmission projects out of the plan’s 32 projects are currently in the design phase, the report showed. These include 400kV, 220kV, and 132kV grid stations to provide significant spare capacity for the transmission systems.

Oman’s eye is on the target: Oman’s fuel diversification policy aims to have 30% of generation output from renewable energy sources by 2030 and to reach 39% by 2040, according to the report. The implementation of the plan began with the commissioning of the first 50 MW wind project Harweel in 2019 and continued with the 500MW Ibri II Solar Plant in 2021. Generation capacity from renewable energy sources will increase to 29.1% in 2027 from 5.9% in 2023, the OETC predicts.

A mixed 1Q for Empower: Emirates Central Cooling Systems’ (Empower) net income dropped 7.7% y-o-y in 1Q 2023 to AED 167.4 mn, the company’s financial statement (pdf) for the period showed. Revenues for the first quarter of the year were up by 6% y-o-y to AED 494 mn on the back of an increased appetite for district cooling in Dubai, according to its earnings release (pdf).

Empower attributed its rising revenues during 1Q to growing demand for its services across Dubai, particularly for its newly added mixed-use projects, and a rise in production and operational capacity during the period, the release notes. The growth is mainly attributed to a rise in sustainable revenues from the real estate sector, the company’s main business pillar. The projects include concession agreements with leading real estate developers in Dubai, including an agreement in February with the Dubai Maritime City (DMC) to provide district cooling services with a capacity of more than 63k refrigeration tons (RT). It also began operations at its new district cooling plant in Dubailand with a total production capacity of 47k RT, it added.

What they said: “Empower is determined to continue to grab investment opportunities in the market and to maintain its outstanding performance to ensure rewarding and sustainable returns for shareholders,” company CEO Ahmad bin Shafar said. “The company will continue investments in its portfolio of assets and infrastructure to serve the growing demand in the region’s district cooling market.”

Egypt, Australia explore water treatment cooperation: Egypt’s Irrigation and Water Resources Minister Hani Sewilam met with Australian Ambassador to Egypt Axel Wabenhorst to discuss cooperation on desalination and water treatment, according to a statement. Sewilam said the ministry is also interested in upgrading water distribution systems and the assessment of hydraulic structures and their refurbishment, the statement added.

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UAE and China partner on nuclear energy: UAE state-owned Emirates Nuclear Energy Corporation (ENEC) signed three MoUs with Chinese organizations as part of its target to source 6% of its energy needs from nuclear power by 2050, Reuters reports. The non-binding agreements signed with China’s Nuclear Power Operations Research Institute, the China National Nuclear Corporation Overseas, and the China Nuclear Energy Industry Corporation cover cooperation on “nuclear energy operations, in high temperature gas-cooled reactors, and in nuclear fuel supply and investment,” according to a statement seen by the newswire.

REFRESHER- The UAE is building a 5.6 GW nuclear plant, which is set to secure 25% of the UAE’s power needs once operational in 2025. The third unit of the Barakah plant began commercial operations in February, adding 1.4 GW of clean electricity to the UAE’s national grid.

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KSA, Germany talk renewables: Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman met with German Economy and Climate Action Minister Robert Habeck to discuss cooperation on clean energy and hydrogen, according to a statement released last week. A roundtable held during the Saudi minister’s visit to Germany also saw talks on cooperation on carbon capture and storage projects under Saudi Arabia’s circular carbon economy.

REMEMBER- Aramco is set to deliver: Saudi Aramco signed last year an agreement to build one of the world’s largest carbon capture and storage hubs with the capacity to store up to 9 mn tons of carbon dioxide a year by 2027.

IN OTHER CLIMATE DIPLO NEWS-

• UAE Energy and Infrastructure Minister Suhail bin Mohammed Al Mazrouei met with Israel’s Ambassador to the UAE Amir Hayek to discuss energy, infrastructure, transport, and climate action collaboration. (Twitter)

Oman’s PDO enters CCUS technology: State-owned Petroleum Development Oman (PDO) is embarking on a plan to utilize carbon capture, utilization and storage (CCUS) methods as part of the country’s plans to achieve a net zero future, Oman Daily Observer quotes PDO Managing Director Steve Phimister as saying. The country’s largest oil and gas producer is also looking into blue hydrogen production. The two initiatives should help bring in new revenue streams for the country, Phimister said.

About the plan: PDO aims to focus on the “utilization” part of CCUS, he said. “That means building up the infrastructure and the capabilities to use that CO2, mainly for enhanced oil recovery (EOR) practices,” he said. It will then focus on carbon sequestration through several sites owned by the company, including undisclosed aquifer-based sites or depleted reservoirs, he added.

REMEMBER- We’ve been expecting this: PDO and Shell Oman signed an MoU last year for a joint study assessing CCUS opportunities in the country. The study covered technical matters, project timeframe and cost, and support for a regulatory and fiscal framework for CCUS in Oman.

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Egypt courting sustainable aviation fuel and biodiesel investments: CEO of Egypt’s Waste Management Regulatory Agency Tarek El-Araby met with representatives from state-owned Petrochemical Holding Company to discuss potentially investing USD 200 mn to recycle cooking oils to produce sustainable aviation fuel and biodiesel, according to a statement released last week. Representatives of used oil collection companies also attended the meeting, which was held as part of the Environment Ministry’s efforts to implement an integrated management system for used oils to reduce their negative effects on the waste system, the statement notes.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• KSA’s Industry and Mineral Resources Minister Bandar Al Khorayef participated in a round table discussion with over 15 Swiss companies in efforts to strengthen trade relations. (Saudi Press Agency)
• Vice President of Vietnam Vo Thi Anh Xuan met with Masdar CEO Mohamed Al Ramahi where the two discussed potential renewables collaboration. (Twitter)
• Jordanian micro mobility provider E-Ride Jo officially launched its services in the country last week. (Statement)
• Israel approved a 24 MW battery storage facility to be built at an estimated cost of USD 33 mn in a bid to store excess power in Bnei Barak. (Reuters)

Germany’s morass of underground cables are hindering its efforts to go green: Germany’s 5.7 mn km of unmapped underground utility cables and pipes are hindering efforts to install new high-speed cables to connect wind turbines, solar panels, and EV charging stations to the grid, Bloomberg reports. Germany — currently lagging behind its neighbors in its wind and solar expansion — lacks a central registry mapping wires and pipes for power, gas, telecom, water, and sewage. This is presenting a challenge for planners, builders, and internet providers to determine where the high-speed cables can go. The country has a target of sourcing 80% of its power generation from green sources by 2030.

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China eying Afghani lithium: China is looking to invest USD 10 bn in Afghanistan’s lithium mining sector, which is estimated to amount to USD 1 tn in value, Khaama Press reported. China is focusing on downstream investments to maintain dominance over lithium and other minerals essential for EV battery manufacturing. Chinese companies have made sizable investments in lithium mining in Latin America in the past five years including Argentina, Bolivia, Mexico, and Chile. It's also turning to Africa for mineral assets, including cobalt and copper.

China is EV king: China continues to dominate EV sales, with 60% of global EV sales taking place in the country in 2022, according to a recent report by the International Energy Agency. Over half of EVs on the road globally are in China, the report added.

REMEMBER- Copper, cobalt, nickel, and lithium — critical minerals for EV and battery storage production — are expected to see a massive jump in demand in the coming years as countries roll out their plans for energy transition.

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India still ♥️ fossil fuels: Coal is set to account for nearly 54% of India’s power mix by the end of the decade with new coal production plants needed alongside renewables assets to shore up the country’s energy needs, Bloomberg reports, referencing a report by the country’s Central Electricity Authority. India will need to source some 46 GW from fossil fuels to secure its power needs by the end of the decade in spite of its planned renewables deployments — which are expected to total 500 GW by the end of the decade, Bloomberg writes. Fossil fuels currently make up nearly three-quarters of the country’s power production capacity and Prime Minister Narendra Modi’s administration’s new strategy will weaken its previous commitment to decommission some 25 GW worth of coal assets by 2030, committing only to decommissioning 2 GW worth of assets, the business news service notes.

The report follows plans to halt commissioning of new coal plants: The Indian government is looking to amend its National Electricity Policy in a bid to remove a clause allowing the development of new coal-burning plants as the country looks to divest from fossil fuels, Reuters reports, citing sources with knowledge of the matter. The new policy would not have an effect on the 28.2 GW of new coal-based power currently in the pipeline. If approved, the new legislation would leave China as the sole remaining country with plans to install new coal-fired capacity, the newswire notes.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• The World Bank will provide a USD 300 mn no-interest loan to Kenya’s sole power distributor Kenya Power to help the utility provider repay debts and upgrade its outdated transmission network. (Business Daily)
• A delegation from UAE visited the US state of Texas to mull bilateral investment in cleantech startups and renewable energy. The UAE’s Minister of State for Foreign Trade Thani Al Zeyoudi is on a US tour meeting several key bodies and discussing potential partnerships in clean energy. (Wam)
• Indonesia plans to launch a carbon exchange in the second half of 2023 under its plan to achieve net-zero emissions by 2060. (Reuters)
• The UK will earmark GBP 80 mn (some USD 102 mn) for the Amazon Fund in a bid to help combat deforestation in the Amazon rainforest. (Reuters)