Morocco wants to launch 5k charging stations by 2028 to shore up EV expansion

Good morning, wonderful people. The news cycle has slowed in a mid-week slump, but we still have a few stories to dive into.

THE BIG CLIMATE STORY- Morocco will add 2.5k EV charging points over the next three years and double the number to 5k stations by 2028 at a total cost of USD 140 mn. Meanwhile in Saudi Arabia, a US-Chinese delegation is on a visit to the kingdom to explore establishing a Riyadh-based global alliance of multinational companies to invest in the green economy and efforts to reach net zero.

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

THE BIG CLIMATE STORY OUTSIDE THE REGION- Heads of state gather in Paris for UN treaty talks on ending plastic pollution: Debate is growing between countries and the petrochemicals industry on curbing plastic production as UN-brokered talks began in Paris yesterday in a bid to agree on a global treaty that would bring an end to plastic pollution. Ahead of the talks, many countries said the agreement should focus on circularity to eliminate the need for the production of new plastic products, while members of the petrochemicals industry say the focus should be on recycling. The 55-nation High Ambition Coalition to End Plastic Pollution is demanding a strong treaty that puts limitations on particularly hazardous materials and bans on plastic products that could be difficult to recycle.

OUR SOUNDBITE OF CHOICE- “Recycling infrastructure is unable to cope with today’s volumes. Waterfalls of virgin plastic are cascading into the system at one end. Our recycling systems are akin to running around with pots at the other end, catching only a fraction of this torrent to put back into the system. Simply investing in bigger pots and more people to carry them will not fix the problem. Only a determined elimination of unnecessary plastic, a full redesign of the products that we envelop in plastic and a full market transformation that drastically reduces the flow of virgin plastics can do that,” UNEP Executive Director Inger Andersen said at the opening plenary of the second meeting of the intergovernmental negotiating committee.

REMEMBER- The UN Environment Program outlined a plan to reduce the world’s plastic waste levels by nearly 80% in less than two decades earlier this month. The report — released two weeks before the talks in Paris — champions policy shifts geared toward keeping produced goods in circulation for as long as possible under “reuse, recycling, and alternative materials” strategies.

The story made the rounds yesterday: Reuters | Bloomberg | France 24 | Deutsche Welle Washington Post.

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OVER IN COPLAND- OPEC has expressed its “unwavering support” for the UAE’s COP28 presidency and President-Designate Sultan Al Jaber, according to a statement. OPEC said that Al Jaber’s experience in leading the state-owned Abu Dhabi National Oil Company (Adnoc) and UAE renewables player Masdar “should be viewed as a recipe for successfully enabling inclusive and fair discussions at COP28, with the UAE best suited to make it a COP of action and results.” The show of support comes amid calls by some in the West to replace the top oil executive as COP28 president over his ties to the fossil fuel industry.

ALSO- The UAE plans to host over 150 heads of state and 1.2k officials during COP28 this year, Zawya reports, citing statements by organizers. The event’s world leaders summit will be held on 1-2 December, while side sessions covering a range of topics like funding, transport, health, and cities will start on 3 December until the event concludes, Anca Westley, head of Event Strategy and Sponsorship at COP28, was quoted as saying.

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THE DANGER ZONE- Methane is on the rise in the UAE: High concentrations of methane (CH4) — a potent greenhouse gas — have been caught by satellites over the UAE, according to a study (pdf) by researchers at Khalifa University published in Frontiers in Environmental Science. Satellite data shows CH4 concentrations rising rapidly over the last five years. The largest concentrations are in coastal regions, where sabkhas and landfills are present, and along the Al Hajar mountains, where agricultural activities and microhabitats exist. The rising methane levels in the UAE are twice as high as those in the Arctic and Argentina, the study showed.

Why this matters: Methane absorbs roughly 80 times more energy over a 20-year period than the same mass of carbon dioxide, the study showed, contributing heavily to a warming planet.

No surprise here: “Landfill sites and industrial sites in general are the most significant contributors to anthropogenic emissions and, therefore, they are the key sources to focus on when it comes to strategies towards net-zero targets,” Diana Francis, one of the study’s authors and assistant professor in earth sciences at Khalifa University, told The National.

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CIRCLE YOUR CALENDAR-

The UAE will host The Arab Green Summit on Tuesday, 13 June to Wednesday, 14 June in Dubai. The two-day summit will bring together industry players and experts for conversations on climate change and sustainability and solutions for concurrent climate-related issues in the region. Key themes to be addressed during the summit include industry decarbonization, renewable and clean energy potential and implementation, sustainable building and construction and others.

Morocco will host the Bloomberg New Economy Gateway Africa on Tuesday, 13 June to Wednesday, 14 June in Marrakech. The event will bring together stakeholders from the private and public sector to discuss the world’s most pressing topics and assess potential solutions. Those include the impact of a decelerating global economy, spiking food and energy prices, supply-chain shocks and risks of distress among sovereign borrowers.

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

Morocco set to shore up EV expansion with 5k charging stations: Morocco will add 2.5k EV charging points over the next three years and double the number to 5k stations by 2028 at a total cost of USD 140 mn, Asharq Business reports, quoting President of the country’s Intersectoral Professional Association for Electric Mobility (APIME) Omar Al-Harethi. Al-Harethi noted the financing would come from private sector financiers, but did not disclose which firms would provide the capital needed to deploy the charging stations.

Current capacity: There are currently 152 EV charging points accommodating the 500 EVs that are currently being used in Morocco, but the planned increase in EV charging points would cater to the expected uptick in adoption of the vehicles in the country within the next three years, which is expected to see some 25k electric cars up and running by 2026, according to Al-Harethi.

About APIME: The sustainable mobility body — backed by the state’s National Federation of Electricity, Electronics and Renewable Energy — was launched in January and comprises 20 firms including automakers, importers of car parts, and auto manufacturing-focused research and development companies, according to Asharq. It aims to chart a path to accelerate the transition from combustion engine cars to EVs.

REFRESHER- Morocco dominates the regional EV industry: Pundits — including Fitch and the Middle East Institute (MEI) (pdf) — agree on the country’s EV production potential. The kingdom’s mineral reserves — crucial to EV battery production, as well as its solar and wind resources qualify it to lead a “green mobility revolution.” Morocco has put together a comprehensive agenda: From developing a national master plan for electric mobility by the end of 2022, designating zones where fossil-fuel cars are banned, giving tax exemptions on EVs, to developing the infrastructure through an iSmart charging station.

Industry giants have already set up shop in Morocco: French automaker Renault will start producing EVs at its Tangier plant this year, Morocco’s Industry and Commerce Minister Ryad Mezzour said back in September. Morocco is also in talks to build an EV-battery ‘gigafactory,’ Mezzour had said, suggesting contracts should be inked by the end of 2023. Meanwhile, Renault and Stellantis already operate EV assembly facilities producing 700k cars each year. Citroen also produces around 50k EV buses per year with plans to double that output in two years. The kingdom is targeting the production of around 1 mn EVs in the next three to four years.

A global alliance for everything green in Riyadh? A US-China delegation is in Saudi Arabia to explore establishing a Riyadh-based global alliance of multinational companies to invest in the green economy and efforts to reach net zero, Saudi-owned Asharq Al Awsat reports. The visit is part of efforts by Saudi Arabia to put the kingdom on the map for green energy transition.

Who is in: US businessman Neil Bush, who is heading the delegation, told Asharq the proposed consortium includes investment management firm Atlas Renewable, energy storage solutions provider Energy Vault, Chinese environmental engineering services provider China Tianying Group (CNTY), and semi-governmental organization EIPC. Abdullah Zaid Al Meleihi, chairman of Saudi Excellence Co, the Saudi partner of the proposed alliance, said the consortium will outline a global work plan that aligns with the expected benefits of green energy.

What we know: The consortium will see US and Chinese renewables companies provide the necessary wind and solar power and energy storage equipment to support the renewables industry in Saudi Arabia’s zero carbon industrial park, Bush told the news outlet. “We will work on pumping large investments and will bring together top technologies from the US and China to implement major projects in Saudi Arabia and work on achieving its ambitious goals on carbon … Manufacturers will be brought to Saudi Arabia to produce equipment that can meet [domestic] needs in Saudi and also be exported to the region,” he added.

And that’s not all: The alliance will establish an investment fund for low-carbon circular economy techniques in the region and a global initiative that aims to provide clean fuel solutions, Al Meleihi said. He set total investments for both initiatives at SAR 39 bn (c. USD 10.4 bn), with Saudi Arabia contributing 15% of total investments.

All part of an ambitious plan by Riyadh: Saudi Arabia aims to become the world’s biggest green hydrogen producer under efforts to diversify its economy away from oil sales. It hopes its USD 8.4 bn utility-scale green hydrogen facility in Neom will help it become a leader in clean fuel in the coming decades. Construction of the first phase of the mega plant will commence “within the next four months,” officials said this week. The plant promises to be the world’s largest utility-scale green hydrogen facility, producing 1.2 mn tons of green ammonia annually. It will source its power needs from renewable energy projects totaling nearly 4 GW and is expected to be operational in 2026. All of the plant’s output is planned for global export, mainly to the EU, specifically Germany, through an exclusive long-term agreement with Air Products.

Solar investments could overtake oil spending this year: Investments in clean energy are set to surpass spending on fossil fuels this year, with solar expected to be the “star performer” and surpass oil for the time ever, the International Energy Agency (IEA) said in its World Energy Investment report (pdf) released last week.

By the numbers: The Paris-based energy watchdog said it estimates that up to USD 2.8 tn will be invested in energy globally in 2023, with over USD 1.7 tn going to renewable energy, nuclear power, low-emission fuels, efficiency improvements, and others. The remainder will be invested in unabated fossil fuels, with 15% earmarked for coal and the rest directed to oil and gas. “For every USD 1 spent on fossil fuels, USD 1.7 is now spent on clean energy. Five years ago this ratio was 1:1,” the IEA said.

Where’s the money coming from? Over 90% of the rise in clean energy investments since 2021 have come from advanced economies and China, the report said. It added that there were “bright spots elsewhere”, including growing investor appetite in the MENA region, mainly in Saudi Arabia, the UAE, and Oman. This includes Saudi Arabia’s USD 8.4 bn green hydrogen facility in Neom, which the report said would be eight times larger than the next biggest in the world. Egypt, Oman and the UAE are also among players betting big on low-emission hydrogen exports, it added.

Solar is king: Investors will pour around USD 1 bn per day in solar this year, totalling some USD 380 bn for the whole year. “One shining example is investment in solar, which is set to overtake the amount of investment going into oil production for the first time,” IEA Executive Director Fatih Birol said in a statement accompanying the release of the report.

Spending on dirty fuel is still high: Investments in unabated fossil fuel supply will increase by over 6% this year to reach USD 950 bn. The majority of investments will be going to upstream oil and gas, where investments will rise by 7% to over USD 500 bn. This would bring the aggregate back to pre-pandemic levels.

Wastewater treatment systems that mimic nature: Lebanese urban resilience startup Mruna builds and operates modular, decentralized wastewater treatment systems — named BiomWeb — which can be installed under and overground in compact spaces and mimics water purification processes found in nature. Since their launch in 2019, the startup has expanded its presence in Dubai, Abu Dhabi, Sharjah, and Lebanon.

We spoke with co-founder Yasmine Jabaly about decentralized wastewater treatment, and how using biomimicry in design can offer more sustainable solutions.

Enterprise: Tell us more about BiomWeb, Mruna’s wastewater treatment system.

Yasmine Jabaly: BiomWeb is a modular decentralized wastewater treatment system that treats water on-site. We offer it as a service as well as a product, so we can install and operate the system or sell the equipment as a service. In Lebanon, we always consider resilience because we build big wastewater treatment facilities that are not functional. We are trying to dilute these problems by providing a nature-based, decentralized solution.

E: How does BiomWeb work?

YJ: BiomWeb is composed primarily of two tanks. The first plays the role of the settler to remove solids and the second removes organic matter. It combines IoT, microbiology, and engineering and emulates processes found in nature to clean and purify water without adding chemicals. We use bacteria, microbes, fungi, insects, and plants — which are all found in wetlands — to treat wastewater. If a client wants to use the water for irrigation, we add a sand filter to purify it further.

We can also take it off the power grid. So in Lebanon, for example, we had an energy supply problem at one location, so we installed a windmill to pump the water. That improves the project’s resilience because it doesn’t need electricity.

E: Your model is based on biomimicry, or copying nature. Can biomimicry in design inspire more sustainable solutions?

YJ: Our work combines our experience designing wastewater treatment facilities and our understanding of biomimicry. Because we know how to design a conventional wastewater treatment plant, we understand the challenge. It’s not just about designing a sustainable solution that could work. Even if you design it by the book, wastewater treatment is a complex matrix. We try to mimic conventional wastewater treatment facilities using unconventional tools. We also use modeling software to predict what the outcomes will be.

E: Who do you work with in Dubai and Lebanon?

YJ: In Lebanon, we’ve installed systems in many refugee camps that didn’t have wastewater treatment facilities before. Some of these systems have been integrated with aquaponic and hydroponic systems to irrigate nonedible plants, which improves resilience and creates value for the refugees.

In Dubai, Aldar is our main partner. We work with them as a consultant and we have a system installed on one of their projects. There, our operation removed the need for sewage trucks that used to remove wastewater and desludging — so we are also reducing emissions in that respect. The system that we have installed there is being used to irrigate a landscape that didn’t exist before.

E: What role can the private sector play in building more sustainable water systems and how is it different from the role of governments?

YJ: We have 77 wastewater treatment plants in Lebanon, but none of them are fully functional except for the one that is privately owned and managed, and this is partly due to a lack of transparency in the water sector. That's why decentralization is a key pillar for the solution. In my opinion, private companies can play an important role in the water sector because they can fill the gap that is left by governmental institutions. I think that the best way to move forward in water and sanitation in Lebanon is to privatize some of these facilities.

There is a lack of real awareness about the importance of wastewater treatment. It affects the quality of water in our rivers and streams, which we then use for irrigation. Last year, we had outbreaks of cholera and Hepatitis A due to poor water quality.

E: Are you seeing interest from investors in climate tech in the region? Where?

YJ: Yes, there is definitely interest from investors in the region. We didn’t want to give away equity at an early stage, so we leveraged grants, prize money, and research and development funding to develop our products and deliver successful proof of concepts in the markets that we operate — especially in the UAE.

We have received small funds and grants to improve manufacturing capacity, but we are waiting until we have a stronger business and maybe local manufacturing in the UAE to speak to investors.

E: How are accelerators supporting climate tech startups?

YJ: We joined the Mohammed Bin Rashid Innovation Fund and Accelerator last year and we have received valuable training from experts in product development, marketing, sales and pitching. MBRIF has connected us with clients and stakeholders and has helped us to engage with the bigger ecosystem in the UAE.

E: What are your expansion plans?

YJ: Our expansion plans are primarily in the UAE. We are working with clients and stakeholders to reimagine our relationship with urban water management and transform it from a linear to a circular process that takes into consideration the region's climate and needs. The GCC has borrowed water infrastructure strategies from water-rich countries, which don’t necessarily work for our region. In the near-term, we plan to replace sewage trucks with onsite water recycling and water reuse for gardening. In the long-term, we want to help our clients design communities around nature-based wastewater treatment systems. We also have plans to enter Saudi Arabia with Neom as a solid waste management consultant.

KSA seeks subscribers for mining incubator program: Saudi Arabia’s Industry and Mineral Resources Ministry called on SMEs and investors interested in the minerals sector to register for its Nuthree incubator program for mining exploration, the Saudi Press Agency reports. The initiative was launched in March to facilitate knowledge exchange between established companies and startups and support companies and individuals in obtaining a mining exploration license. Since February 2022, the kingdom has issued 80 new mining licenses, according to SPA.

Nuthree is helping the government attract USD 15 bn in investments: The Nuthree incubator program comes as part of a national plan to deploy over USD 15 bn of capital for investments in global mining investments in the coming years through a joint venture between Saudi mining company Ma’aden and the Public Investment Fund established in January. The kingdom says it has untapped metals and minerals — including copper, zinc, phosphate, and gold — collectively worth USD 1.3 tn.

ALSO- A geological map of the KSA in partnership with China is in the works: Saudi Arabia’s Minister of Industry and Mineral Resources Bandar Al-Khorayef launched the Arabian Shield geological mapping project on Sunday, the Saudi Press Agency reported. The project will be developed in partnership with the Chinese Geological Survey at a cost of SAR 777 mn (USD 207 mn). The map sets out to locate the region’s mineral deposits while expanding the National Geological Database and national library of drilling samples to provide investors with knowledge of investment opportunities, the outlet notes.

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Algeria and KSA talk renewables, green hydrogen cooperation: Algeria’s Minister of Energy and Mines Mohamed Arkab met with a delegation from Saudi Delta Company to discuss potential investments in renewables and green hydrogen through Algeria’s state-owned oil firm Sonatrach, according to a statement. The delegation was headed by the company’s President and Director General Badr Al Aiban. Delta Group’s energy arm began investing in renewables in 2015, mostly in generating clean energy for car parks, public buildings, farm houses, and street lighting, according to their website.

REMEMBER- Sonatrach has been exploring green projects, signing two decarbonization agreements with Italy’s Eni last January, including launching studies to see how Algeria’s energy export to Europe could be improved. Sonatrach also partnered with South Africa’s petrochemicals company Sasol to establish low-carbon hydrogen production and synthetic gas generation plants equipped with carbon capture and storage tech in Sicily.

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Oman dishes out incentives for EV adoption: Electric vehicles in Oman will be exempt from value-added tax, customs tax, and registration fees nationwide starting 1 July, Oman News Agency (ONA) reported earlier this week. The exemption, which will also apply to EV spare parts, will remain in effect for three years and will be subject to renewal, according to ONA. The move is part of the sultanate’s efforts to transition to zero-emission vehicles and encourage residents to purchase EVs. It also aims to encourage car suppliers to import a wide range of EVs to ensure diversity and stability in the market.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Dubai-based multinational logistics company DP World cut direct carbon emissions from its global operations by 5% in 2022, according to its latest ESG report. (Statement)
• Egypt’s Environment Ministry held a training workshop for private sector companies on voluntary carbon markets. The workshop was held in partnership with the Egyptian-German Joint Committee on Renewable Energy, Energy Efficiency and Environmental Protection as Egypt’s regulator prepares for its soon-to-be launched voluntary carbon market. (Statement)

Ukraine deployed more wind power projects than UK in 2022 despite war: Ukraine has installed more wind turbines since the onset of Russia’s invasion than the UK, which has installed only two turbines generating 1 MW since February of last year due to a ban on the deployment of onshore wind power ventures, The Guardian writes. Since the start of the Russian invasion, Ukraine has set up the 114 MW Tiligulska wind farm, the first ever renewables project to be built in a conflict zone. In April 2016, the UK government adopted legislation effectively banning the deployment of onshore wind power power projects for fear they would raise bills for British consumers. However, according to research by the Energy and Climate Change Intelligence Unit, the ban has cost UK taxpayers some GBP 800 mn over the past winter due to rising global energy market prices. Separate research by environmental nonprofit think tank Ember notes that wind and solar energy projects installed across Europe have saved the EU some EUR 12 bn since Russia’s invasion of Ukraine.

Mineral exploration in Australia surges as US climate policy spurs EV production: Partnerships between Australian miners and US carmakers for the exploration and refining of battery metals are accelerating due to US tax incentives for EV production, Australian Trade Minister Don Farrell said in an interview with Bloomberg. Based on the US Inflation Reduction Act, tax credits on EV and low-carbon hydrogen manufacturing are granted to companies only if “a large portion of the minerals they use are extracted or processed in the US or a country with a US freetrade agreement,” which includes Australia, Farrell explains.

Australia replacing China with the US? While China is currently the biggest market for Australia’s minerals, the US has become increasingly appealing “given just how favorably treated Australia is in the Inflation Reduction Act,” Farrell said. Australia is the world’s top exporter of lithium, a key material in EV batteries, and has large reserves of nickel, cobalt, and rare earth minerals.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Japan has increased its target for wind power generation from 5 GW currently to 140 GW by 2050, which would meet a third of the country’s electricity demand. (Reuters)