KSA’s Badeel, Acwa Power set to build three solar plants worth some USD 3 bn

Good morning, friends and welcome to the busiest start to the week we’ve seen this year. We have a bumper issue to dive into covering every climate angle under the sun. Let’s go.

THE BIG CLIMATE STORY- KSA’s Badeel and Acwa Power signed power purchase agreements with the Saudi Power Procurement Company to develop and operate three solar energy projects worth some USD 3 bn with a 4.5 GW cumulative generation capacity.

^^ We have the details on this story and much more in the news well, below.

HAPPENING TODAY-

The Power and Energy Conference is kicking off in Muscat, Oman today and running until Thursday. The event will bring together local and global industry leaders to discuss global energy market policy updates, future demand and growth projections in the sector, integration and power grid obstacles, and growth potential associated with renewables and EV deployments.

The African Development Bank Group (AfDB) will kick off its annual meeting of the board of governors in Sharm El Sheikh, Egypt today which will run until Friday. The city will also host the Meetings of the Board of Governors of the African Development Fund during the same period. This year’s event, held under the theme Mobilizing Private Sector Financing for Climate and Green Growth in Africa, aims to provide a framework for spurring private financing domestically and globally and utilizing natural capital to help bridge the climate financing gap and promote green growth transition in Africa.

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THE BIG CLIMATE STORY OUTSIDE THE REGION- The G7’s climate-focused announcements during their three-day summit in Hiroshima snagged headlines over the weekend. The group — while reaffirming its “unwavering support to the Paris Agreement” and saying it would work on adopting trade policies aimed at upping global net-zero investments — did not explicitly commit to its 2022 pledge of fully decarbonizing its power sectors by 2035. We have all the details in the news well, below.

The story made the rounds in the international press over the weekend: Reuters | Financial Times | The New York Times | Associated Press.

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WATCH THIS SPACE #1- Egypt’s green hydrogen projects could be moving towards implementation: The government plans to sign two agreements to establish green hydrogen projects by the end of June, a source in the Electricity Ministry told Enterprise Climate, confirming a report by Al Borsa on Saturday on the planned agreements. The agreements are set to be signed with two unnamed consortiums that have previously signed MoUs on planned green hydrogen projects in the country. Our source said recent incentives approved by the government for the green hydrogen industry have stimulated involved firms to address the government to activate signed MoUs to begin implementing the planned projects. The source expects two to three others agreements activating previous MoUs for green hydrogen production to also be signed before the end of the year.

REMEMBER- The Egyptian government signed several framework agreements during COP27 with foreign companies to construct several green hydrogen and ammonia facilities in the Suez Canal Economic Zone. The facilities would cost a combined USD 83 bn and would collectively produce up to 7.6 mn tons of green ammonia and 2.7 mn tons of hydrogen a year when fully operational.

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WATCH THIS SPACE #2- France is still holding out for nuclear power: France is currently in talks with the EU’s presidency to reach an agreement over the stalled Renewable Energy Directive — the common framework for the development of energy from renewable sources in the bloc — by the end of June, Bloomberg reported on Thursday, citing a source with knowledge of the matter. The legislation has faced snags after France opposed the law on grounds that it wanted more clarity on how nuclear power would be treated. France is now negotiating with Sweden — which holds the six-month rotating Council presidency — the European Commission, and other member states to reach an agreement, the source said. They will have until the end of June to settle differences and seal an agreement under the current presidency.

WATCH THIS SPACE #3- Engie aims for big hydrogen projects in the Gulf: French energy group Engie is seeking new hydrogen projects in Saudi Arabia, the UAE, and Oman as it seeks to reach 4 GW of hydrogen capacity globally by 2030, Stephan Gobert, the group’s senior VP of hydrogen for Asia, the Middle East, and Africa told The National last week. “The Middle East region and specifically the GCC is offering great potential … that's why we established the strategic alliance with Masdar and are studying a project at the moment in Ruwais for Fertiglobe,” he said, without providing further details on the proposed project. “We hope to close the financial decision by the end of this year,” he added.

We knew something of the sort was in the works: Gobert’s statements come nearly a week after Fertiglobe CEO Ahmed El Hoshy said that a consortium of Fertiglobe, UAE renewables player Masdar, and Engie was considering a 100-200 MW green hydrogen project in Abu Dhabi. The potential cooperation comes a year after the three renewables players signed an agreement to study co-developing a “globally cost-competitive” 200 MW green hydrogen facility in the UAE to back the production of green ammonia. They plan to have the facility operational in 2025, with Fertiglobe serving as the sole long term off-taker.

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CIRCLE YOUR CALENDAR-

Germany will host the second meeting of the COP27 Transitional Committee from Thursday, 25 May to Saturday, 27 May in Bonn. The meeting will build on the loss and damage fund established during COP27 with the aim of establishing institutional mechanisms and governance structures for financing, and will bring together a host of international financial institutions to discuss pathways to increasing funding capacity for climate vulnerable countries.

The UAE will host the Electric Vehicle Innovation Summit from Monday, 29 May to Wednesday, 31 May in Abu Dhabi. The conference will bring together state representatives, industry players from the EV sector, as well as engineers and researchers to discuss policy trends and tech innovations in the industry and provide attendees with networking opportunities across value chains.

Qatar will host the Carbon Capture, Utilisation and Storage (CCUS) Forum from Monday, 29 May to Thursday, 31 May in Lusail City. The event aims to spotlight MENA’s CCUS regulations and policies, map out paths and business models that would bring down CCUS project costs, promote regional and international cooperation to advance the international carbon capture sector, and discuss the role CCUS will play in helping Gulf countries meet their net zero targets.

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

KSA’s Badeel, Acwa Power to build three solar projects in Saudi Arabia: Badeel and renewables giant Acwa Power signed power purchase agreements with the Saudi Power Procurement Company to develop and operate three solar energy projects with a 4.5 GW cumulative generation capacity at an investment ticket of SAR 12.2 bn (c. USD 3.25 bn), according to a statement. The three solar farms — all to be established in KSA — will be jointly owned by Acwa Power and Badeel.

The details: Badeel — owned by KSA’s sovereign wealth fund the Public Investment Fund (PIF) — and Acwa Power will jointly own the 2 GW Ar Rass 2 solar farm, the 1.12 GW Saad 2 PV plant, and the 1.42 Al Kahfah solar project, the statement notes. The projects — expected to achieve financial close by 3Q 2023 — will power some 750k households in the kingdom once operational in line with the country’s Energy Ministry’s target to have renewables comprise 50% of the country’s energy mix by the end of the decade. The projects are part of the kingdom’s National Renewable Energy Program (NREP), and PIF has been tasked with developing 70% of the program’s target capacity. A timeline on the projects’ completion and commercial launch was not disclosed.

PIF is bankrolling five other solar projects in the kingdom: The sovereign wealth fund is currently developing two other renewables plants — the Sudair solar project and the USD 1.75 bn 2 GW Shuaibah 2 solar energy project — bringing its pipeline clean energy portfolio to 8 GW.

G7 countries have expressed support for “temporary” gas investments as they wean off Russian energy, according to the final communiqué of the three-day G7 summit in Hiroshima, Japan released on Saturday. G7 countries agreed that “investment in the gas sector can be appropriate as a temporary response to address potential gas market shortfalls,” referring to the energy crisis brought about by Russia’s invasion of Ukraine. The communique did not mention a timeline for phasing out gas. This comes as Germany, Japan, and the United States are pushing to protect their “long standing investments in the fossil fuel industry,” the New York Times reported.

Japan and Germany keep gas and coal phase out deadlines out: The G7 ministers opted to reaffirm the commitment made in last year’s G7 statement to achieve a “fully” or “predominantly” decarbonized power sector by 2035 — leaving the door open for new gas and coal investments, the Financial Times reported. This comes following a long tussle between the G7 countries during a summit in Sapporo, Japan last month where Germany was initially pushing against Japan to restrict gas investments but ended up joining them instead.

“Unwavering commitment to the Paris Agreement”: The G7 Clean Energy Economy Action Plan (pdf) summarized the position of the seven economies and their role in heading the climate movement, including setting new industrial and trade policies to incentivize public and private investments that drive decarbonization, increasing total investment in the clean energy manufacturing supply chain, and working to make renewable energy technologies and energy efficiency measures an affordable and accessible option globally.

US and Australia to join forces in renewables and battery expansion: Australian Prime Minister Anthony Albanese signed a letter of intent with US President Joe Biden on the sidelines of the G7 summit to establish climate and clean energy as the third pillar of the Australia-US Alliance, according to a statement. An action plan will be developed by the end of the year to lay out the steps the two countries will take to tie their clean energy supply chains together, especially in critical materials.

G7 says it will “de-risk, not decouple” economic engagement with China in a bid to appease the manufacturing powerhouse for renewables infrastructure, Reuters reported. G7 countries said they are prepared to build “constructive and stable” relations with Beijing, while also reducing dependence on trade and diversifying to achieve economic resilience. China holds more than an 80% share in all the manufacturing stages of solar panels — such as polysilicon, ingots, wafers, cells and modules — and a 70% share of global manufacturing capacity for electric vehicle batteries.

Environmentalists alarmed: “G7 had maintained a loophole for new fossil gas investments using the Russian military conflict with Ukraine as an excuse,” said Max Lawson, head of inequality policy at activist group Oxfam, adding that the group is “far off track” from the contributions needed to meeting net-zero targets, according to Reuters. Some environmental activists have said that endorsing investment in gas is “incompatible with the pledge nations made to keep global temperature rise to 1.5°C above pre industrial levels,” the New York Times reported. One expert from Greenpeace called the G7’s endorsement of new fossil fuel investments “a blunt denial of the climate emergency,” according to Climate Action Network International.

Egypt gets a helping hand from AfDB to tap panda bond market: The African Development Bank (AfDB) has approved a partial credit guarantee of USD 345 mn equivalent in RMB to help Egypt access the panda bond market to finance green and social projects, according to a statement released on Saturday. The partial credit fund guarantee will allow Egypt to raise the equivalent of USD 500 mn in CNY-denominated bonds.

Where’s the money going? Bond proceeds will be used for clean transportation, renewable energy, energy efficiency, sustainable water and wastewater management, MSME funding, and essential health service initiatives, according to the AfDB statement. The selected sectors are all under Egypt’s Sovereign Sustainable Financing Framework (SSFF), which was launched last year to “further underline its support and commitment to use various instruments for the financing of green projects.” Other instruments include sustainable, social, blue, sukuk and others, it said.

No clear indication of when Egypt will pull the trigger: Plans to issue the panda bonds have been in the works since 2019, but were put on hold due to the pandemic. The plans were revived recently, with officials saying that Cairo would take the inaugural bond issuance to the market in early FY 2023-24. Egypt’s fiscal year begins on 1 July. Egypt’s Finance Minister Mohamed Maait said last week that Egypt was looking forward to issuing the CNY-denominated bonds in “the upcoming period” after it successfully wrapped up its inaugural green bond issuance, maiden samurai bond, and maiden sukuk issuances. He did not provide a specific timeframe for the panda bond issuance.

Paving the way for others: “A successful panda bond issuance by Egypt through the Bank’s PCG will pave the way for other regional member countries looking to diversify their funding sources and tap into the international debt capital market,” AfCB Acting Director for Financial Sector Development Ahmed Attout said in the statement.

Empower acquires Dubai Airport’s district cooling plants: Emirates Central Cooling Systems (Empower) signed an agreement with the Dubai Aviation City Corporation to purchase its five cooling plants operating the Dubai International Airport, it said in a Dubai stock exchange disclosure (pdf) released on Friday. The five district cooling plants were valued at AED 1.1 bn (USD 300 mn), and will add 110k refrigeration tons (RT) of cooling capacity to Empower’s portfolio. The acquisition agreement was first signed in 2021.

Adding to an impressive portfolio: Empower’s portfolio includes some of Dubai’s most notable infrastructure spots including The Dubai International Financial Centre, Dubai World Trade Centre, Dubai Healthcare City, Meydan City, Dubai Studio City, Dubai Maritime City, Dubailand, Palm Jumeirah, Bluewaters Island, and Business Bay, the statement notes.

Acwa Power pushes forward in Uzbekistan: Saudi Arabian renewables giant Acwa Power signed an agreement to establish a USD 100 mn green hydrogen plant in Uzbekistan with the country’s state-owned chemicals firm Uzkimyosanoat, marking the first project of its kind in the country and Central Asia, according to a statement released on Friday. Acwa also signed financing agreements worth USD 120 mn for the 100 MW Karatau wind farm — formerly known as Nukus Wind IPP, the statement notes.

More about the hydrogen plant: Acwa’s hydrogen development agreement with Uzkimyosanoat will see it set up a green hydrogen production plant in Tashkent over two phases, with the initial stage aiming to generate some 3k tons of green fuel annually for 15 years once operational in June 2024. The exact power capacity from renewables powering the project was not disclosed. Acwa has a target to up its hydrogen production capacity through the second phase of the project, which is expected to have a USD 4 bn price tag, to c. 120k tons of green fuels annually, the statement notes. The second stage — to be powered by 2.6 GW of clean energy — will offset some 20 mn tons of CO2 equivalent over its life cycle and save 830 mn cubic meters of natgas.

More about the wind farm: The 100 MW wind power plant will be jointly funded by the Uzbek government, German finance company Deutsche Investitions (DEG), the European Bank for Reconstruction and Development (EBRD), and French DFI Proparco. The project will be located in the country’s Karakalpakstan region and is expected to kick off commercial operations in February 2025, the statement noted. The country’s national power grid company signed a 25-year PPA with Acwa Power to serve as the exclusive buyer of the clean energy produced.

Acwa Power is capitalizing on Uzbekistan’s renewables push: Uzbekistan aims to source 35% of its electricity from renewables by 2035. It plans to establish wind energy plants totaling 10 GW and solar energy farms that would generate 5 GW of clean power by 2030 to offset a total of 16 mn tons of CO2 per annum. Acwa signed three power purchase agreements totaling USD 2.5 bn in March with the National Electric Grid of Uzbekistan and the country’s Investment, Industry, and Trade Ministry for 1.4 GW worth of solar projects and three battery energy storage (BESS) units totalling a capacity of 1.5 GWh. Earlier in January, Acwa signed an agreement to build a green hydrogen plant and a green ammonia pilot project in the country.

And the investments will keep rolling in: Acwa plans to invest c. USD 10 bn in Uzbekistan’s renewables projects through to 2028 beyond the USD 5 bn it has already poured in to fund five clean energy it owns and operates in the country, which include the USD 658 mn 500 MW Dzhankeldy Wind Farm and the USD 690 mn 500 MW Bash Wind Plant.

IN OTHER REGIONAL ACWA NEWS- The company signed a non-binding agreement with Egypt’s Suez Canal Economic Zone (SCZone) to establish a green fuel production plant on the sidelines of the EBRD’s annual meeting in Uzbekistan last week, according to a statement released on Thursday. The SCZone did not disclose the type of green fuels, the production capacity, financials, or timeline for establishing the facility, though it did say that the MoU should be turned into a framework agreement “soon.” Egypt’s International Cooperation Minister Rania Al Mashat also met with Acwa company representatives during the EBRD meeting to discuss expanding cooperation on desalination and renewables projects, according to a cabinet statement out yesterday.

And Masdar is expanding renewables development in Uzbekistan: UAE renewables giant Masdar signed a joint development agreement with the government of Uzbekistan to develop renewables projects worth some 2 GW and 500 MW of battery energy storage system (BESS) facilities across multiple locations, Wam reported on Friday. The financials and timelines of the various projects that will be established in Uzbekistan were not disclosed.

Part of Masdar’s expansion plans in the Central Asian country: Masdar achieved financial close on three solar plants to be set up in Uzbekistan’s Sherabad, Samarkand, and Jizzakh that would yield c. 900 MW in April. Construction on the three projects is set to begin in 1H 2023, with the plants going live in 2024. Masdar also actively contributed to Uzbekistan’s first 100 MW IPP solar project Nur Navoi, which has been operational since 2021. Back in September, Masdar achieved financial close on the USD 600 mn 500 MW Zarafshan wind project in Uzbekistan — Central Asia’s largest wind farm. The company was also awarded the 250 MW Bukhara Solar PV project, which includes a 62 MW battery energy storage system in late 2022, according to a company statement.

ALSO- The IFC is providing a helping hand: The International Finance Corporation (IFC) will support the country in its target to up its renewables production capacity by 12 GW by 2030, and will act as lead transaction advisor for the country’s power distribution sector’s first public-private partnership with the aim of improving grid connectivity to some 700k energy customers in Uzbekistan, according to a statement. The agreement will see the IFC facilitate private sector investments in a bid to modernize the country’s aging electricity transmission and distribution infrastructure — which sees the country unnecessarily lose considerable amounts of energy — and establish a renewables-friendly grid, the statement notes.

Ma’aden sends first blue ammonia shipments to China: Saudi mining company Ma’aden has exported its first shipments of low-carbon blue ammonia to Chinese petrochemical producer Shenghong Petrochemicals as part of an agreement to supply 25k tons of ammonia, which is in line with the company’s goal of becoming a green leader globally, it said in a statement on Thursday. The amount of blue ammonia shipped was not disclosed, nor was the financial value of the agreement.

A blue ammonia spree: Ma’aden is currently the world’s largest exporter of blue ammonia since it received certification for production last year, according to the statement. It has since shipped over 138k tons of blue ammonia products to countries including Korea, China, Japan, India, Thailand, and the EU.

Another one soon? Ma’aden signed an agreement with US-based trading and logistics firm Trammo last week to deliver the first certified commercial blue ammonia shipment to Europe in 2023.

REMEMBER- MENA has big blue hydrogen ambitions: Aramco and KSA’s SABIC Agri-Nutrients shipped in November 25k tons of blue ammonia to South Korea. Ma’aden inked an MoU in March with Japanese industrial conglomerate Mitsui & Co. and another with the Taiwan Fertiliser Company that could see it become the first commercial supplier of blue ammonia to both Japan and Taiwan. Over in Qatar, state-owned QatarEnergy signed in September agreements to build the world’s largest blue ammonia plant — worth USD 1 bn — which is set to produce 1.2 mn tons of the green fuel annually.

Another UAE-Europe low-carbon hydrogen pipeline is moving forward: German oil and gas company Hydrogenious LOHC Technologies (LOHC) is nearing completion on the pre-project planning phase of its UAE-Europe hydrogen supply chain agreement with the UAE’s Adnoc, Tokyo-based electric power generation company Jera Americas, and German energy firm Uniper, Zawya reported last Thursday. The consortium remains neutral on the type of hydrogen it is looking to generate in the UAE, LOHC’s Managing Director of the Emirates’ hydrogen division Rafael Schmidt told the news outlet. Both blue and green hydrogen are promising energy sources, he added, and indicated that renewables and fossil fuels were both potential energy sources to power the project. Financial details and a timeline for operational launch were not disclosed.

The details: LOHC, Adnoc, Jera and Uniper signed a joint study agreement back in March to launch feasibility studies for setting up a hydrogen supply chain to enable the transport of some 24 tons of green hydrogen on a daily basis from the Emirates to Germany using Uniper’s green hydrogen carrier assets. The consortium is currently in the “final stage” of completing the front-end and engineering design (FEED) phase of the project, which follows the completion of conceptual design studies to determine the feasibility of the project and a rough investment ticket for the venture.

The type of hydrogen will be dependent on market demands: “We are closely monitoring the development of certification in Europe and beyond and trying to match the project set-up to the certification scheme and the demand from different countries. The definition of the color of hydrogen or its characteristics will depend on the receiving countries,” Schmidt told Zaywa, noting the consortium is in talks with the UAE’s government and private-sector investors to determine the feasibility of clean hydrogen production. The consortium may tap into Germany's EUR 900 mn H2Global green hydrogen subsidy scheme to secure capital for the project, according to Schmidt.

There’s more to come if all goes well: The pre-project study will serve as an extended feasibility study for the consortium’s plans to have another 500 ton UAE-Germany pipeline up and running by 2030, Schmidt told Zawya, noting the recent study showed the 500 ton project would require renewables deployments nearing 500 MW.

Aldar pulls trigger on debut green bond issuance: Abu Dhabi’s Aldar Investment Properties (AIP) — a unit of Aldar Properties — has raised USD 500 mn through its debut 10-year inaugural green sukuk, it said in a disclosure to the ADX (pdf) on Thursday. The issuance comes under its Green Finance Framework, which focuses on investments in sustainable projects such as green buildings, property development to improve energy efficiency, and renewable energy sources.

The details: The 10-year sukuk was priced at a 4.875% coupon rate and is among the highest price tightening of any corporate issuance this year, according to disclosure. The issuance was 4x oversubscribed securing local, regional, and international investors with order books topping USD 2.3 bn.

All part of a sustainability push: The issuance comes under a USD 2 bn financing program by the AIP to back its growth agenda and sustainability track, and is in line with the UAE’s net zero ambitions by 2050 and AIP’s plan to become a net zero carbon firm by 2050. Proceeds from the sukuk will be used in accordance with Aldar’s Green Finance Framework to finance green initiatives and acquisitions, it added.

Advisors: HSBC and Standard Chartered Bank are acting as joint global coordinators, while Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, and Mashreq are acting as joint lead managers and joint bookrunners.

Oman and Egypt plan to explore renewables and hydrogen partnerships: Oman’s Sultan Haitham bin Tarik landed in Egypt yesterday for a two-day visit where he is expected to discuss with President Abdel Fattah El Sisi potential renewables and green hydrogen partnership agreements during the Omani-Egyptian Business Forum, according to the Oman News Agency. Oman will promote potential investments in both sectors during the high level meeting in a bid to finalize several agreements and MoUs, the news agency notes.

Egypt luring in India for its EV market: Egypt’s Trade and Industry Minister Ahmed Samir met with representatives from India’s Hinduja Group and Motherson Group to discuss setting up projects by the two companies in manufacturing electric vehicles and spare parts, according to a statement released on Saturday. Hinduja’s International Operation CEO Amandeep Singh said his company is currently exploring the possibility of establishing a factory in Egypt to serve as a manufacturing and export hub in the Middle East and Africa.

REMEMBER- India has been showing interest in Egypt’s nascent EV industry, with Indian commercial vehicle maker Ashok Leyland saying recently that it is interested in cooperating with Egypt’s state-owned El Nasr Automotive Manufacturing Company to manufacture commercial EVs in Egypt.

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The UAE and Italy discussed boosting mutual investments in renewable energy during a meeting in Milan, Wam reported on Thursday. UAE Economy Minister Abdullah bin Touq Al Marri discussed potential investments in renewable energy, logistics, and supply chains with Italian officials in addition to boosting cooperation in climate change, sustainable agriculture, food security and other fields of mutual interest.

REMEMBER- Italy is strengthening ties with the Emirates ahead of COP28: Italy and the UAE announced in March a declaration of intent to boost strategic cooperation between the two countries at the Dubai-hosted COP28 later this year. The strategic partnership would allow both countries to expand cooperation in sustainability, food and water security, renewable energy and clean technologies.

OTHER CLIMATE DIPLO STORIES WORTH KNOWING ABOUT-

• South Korea is interested in cooperating with Egypt in renewable energy and green hydrogen projects in the country. (Statement)

US-based low-carbon concrete startup CarbonBuilt aims to revolutionize the industry through its climate-friendly concrete, Bloomberg reported last week. The three-year-old startup, along with concrete masonry production partner Blair Block, kicked off commercial production for its technology, which it claims can slash carbon emissions during the lifecycle of concrete by 70% to 100%. The low-carbon concrete costs the same to produce as traditional concrete.

How it works: The technology sees most of the cement in concrete replaced with a proprietary mix of locally sourced, low-carbon material and then channeling carbon into the curing chamber to brace the blocks, according to Bloomberg. This allows carbon to be permanently stored in solid form. CarbonBuilt says such a converted production line will help avert at least 2k metric tons of carbon dioxide emissions annually. The startup’s plant will also remove over 500 metric tons of CO2 from the air per year.

But what about the region? Some companies in the region are supplying cement that emits significantly less CO2, yet the market uptake remains low. Among them is market heavyweight Lafarge, which has been trying to promote the use of its low-carbon concrete ECOPact. Last year, the ECOPart green concrete used by a UAE contractor helped slash CO2 emissions by 45%.

REMEMBER– Efforts to decarbonize concrete, which is the most heavily used construction material globally, have been slow until recently. Solutions to decarbonize the industry currently range from either costly carbon-negative technologies to lower-cost alternatives that provide limited emission curbs.

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Toyota cautions against a quick transition to EVs: Toyota Research Institute CEO Gill Pratt told reporters that a full transition to EVs would not be practical for most consumers, and called for the use of both gas-fueled cars and a mix of hybrid, fuel cell, and all-electric cars, Bloomberg reported on Thursday. Limited battery materials, EV production components, and renewables assets at the moment hinder a full transition to EVs, Pratt argued. Toyota aims to sell some 200k all-electric vehicles in 2023, as part of its wider goal of selling 1.5 mn EVs annually by 2026, and to bring 10 new battery EV models to market. The company has been pushing back against criticism that it is lagging behind in EV production, arguing that its gasoline-electric hybrids make more sense for its global customer base.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Over half of the world’s largest lakes and reservoirs have dried up since the 1990s on the back of climate change. Some of the world’s most important freshwater sources lost water at a total rate of around 22 gigatons per year for nearly three decades. (Reuters)

OPWP rebrands and makes Manah contracts official: The Oman Power and Water Procurement Company (OPWP) has rebranded to Nama and signed contract awards for the implementation of its 1 GW Manah I and II solar Independent Power Projects (IPPs), OPWP said on Thursday. The contract for the 500 MW Manah 1 was signed with Korea Western Power and French EDF Renewables. Construction on the USD 453 mn project is expected to start in November, with the completion date set for March 2025. The contract for the second 500 MW Manah 2 project was also signed with a consortium comprising China’s Jinko Power and Singapore’s Sembcorp in March.

ALSO- OPWP has issued requests for proposals (RFPs) and qualifications (RFQs) for three wind IPPs across the sultanate, Oman Daily Observer reported last week. Two of the wind farms for which OPWP issued RFPs and RFQs — the Duqm wind project and the Jalaan Bani Bu Wind — would come online in 2Q 2026, followed by the Harweel Wind project in 4Q 2026. The company has completed a year-long study to determine the potential energy generation capacity for each project, and is considering generation targets of 200 MW for the Duqm wind farm and 100 MW for each of the remaining projects, according to the news outlet.

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Dubai completes 6 MW biogas-to-energy facility: Dubai has finished constructing its 6 MW waste-to-energy (WtE) biogas production facility at the Warsan Wastewater Treatment Plant, Wam reported on Thursday. The biogas will be retrieved from the waste emitted by the water treatment process before being turned to energy and used to treat more water. The facility can generate some 44k MWh of electricity annually — enough to cover 50% of the treatment plant’s entire operational needs — and will lower operational costs by AED 320 mn over 25 years while reducing carbon emissions by 31k tons. Out of the 57k cubic meters of biogas waste produced per day, almost 55k can be retrieved to produce energy.

Egypt ramps up green investments and funding: Egypt’s Environment Minister Yasmine Fouad discussed with European Investment Bank (EIB) Vice President Gelsomina Vigliotti the latest preparations to implement Egypt’s Green Sustainable Industry project, according to a statement released last week. Fouad said she looks forward to a final approval for the project ahead of signing the financial agreement. The project will unlock EUR 150 mn to support green industries and environmental compatibility. It will also provide concessional financing packages for both public and private industrial companies at estimated investments of up to EUR 268 mn to fund green projects, including recycling and renewable energy projects, especially in energy-intensive industries, the statement added.

More Korean investments in waste management? Fouad discussed with her South Korean counterpart Han Hwa-jin boosting Seoul’s investments in Egypt’s waste management sector, according to a statement. They also discussed potential ways for the two countries to work together to reduce the use of single-use plastic bags in cooperation with the private sector. The South Korean minister expressed interest in working with Egypt to produce energy from waste. She also expressed her country’s interest in providing Egypt with a grant to establish a center through which waste technologies can be imported.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Algeria plans to extract zinc and lead from its mining plant in the country’s Bejaïa Province starting in July and expects a commercial launch for the facility in December 2025. The plant will process c. 34 mn tons of extracted minerals from the mining site. (Statement)
• The UAE has managed to slash nitrogen oxide emissions from power generation by 20%. (Wam)
• The Saudi Environment, Water and Agriculture Ministry launched its Protect My Environment app allowing individuals to report environmental violations. (Saudi Gazette)
• Egyptian-Algerian telecommunications and fiber optics company Optiserve is entering the renewable energy market in Algeria by taking part in a tender for a solar project. (Attaqa)
• UAE’s Etihad Airways has reduced its CO2 emissions per revenue ton kilometer — the weight of passengers and cargo on a flight multiplied by distance flown — by 26% compared to a 2019 baseline. The findings were part of the airline’s 2022 Sustainability Report. (Statement)

Tesla held talks with Indian officials over incentives offered to car and battery makers who sell and export locally made vehicles and parts, Reuters reported on Thursday, citing a source with knowledge of the matter. The talks come after the US electric vehicle manufacturer proposed establishing a factory in the country to build EVs, with plans to manufacture EV batteries also discussed. The Indian government has set aside USD 6 bn under a program to boost the manufacturing and sale of EVs. Tesla is “still testing the waters and trying to understand the local policies,” the source said. The revival of the talks come a year after talks between Tesla and the Indian government faltered on the back of the EV maker’s focus on lobbying to lower import taxes on cars, which can be as high as 100%.

Spain’s Repsol to invest USD 550 mn in renewables in Italy: Spanish oil and gas company Repsol is looking to invest EUR 500 mn (c. USD 550 mn) to develop 1.7 GW of clean energy in Italy, executive managing director of the company’s low carbon division Joao Costeira told Reuters last week. Repsol is reportedly looking to allocate nearly a quarter of its capital spending to increase its renewables generation capacity from the current 2 GW to 6 GW within two years and up to 20 GW by 2030.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Boeing will roll out a data modeling tool to map out a path for the aviation industry for achieving carbon neutrality by 2050. The tool allows airlines and governments to adjust different variables — including the use of sustainable aviation fuels and electric planes — to see how these variables can help them achieve their net-zero goals. (Reuters)