TotalEnergies, Toyota Tsusho, Altaaqa Renewable Energy get in on Saudi solar

Good morning, ladies and gents. We hope you’re well-rested after a very appreciated Eid Al Adha break. The region got busy while we were off, and there’s quite a few climate updates to dive into this morning. But first…

MARK YOUR CALENDARS- The Enterprise Finance Forum is taking place on 18-19 September at the St. Regis Hotel in Cairo. This flagship forum is the latest in our must-attend series of invitation-only, C-suite-level gatherings that allow senior members of our community to openly and frankly discuss critical issues in key sectors of the economy.

Day one is our Banking Forum, where we’ll dive deep into topics of interest to commercial and investment bankers, from an outlook on the 12 months to come in M&A, IPO, and debt capital markets to the national, regional, and global trends that are (re)shaping our industry.

Day two is all about Fintech and Non-Banking Financial Services. We’ll take a deep dive into everything from the magic of client acquisition to the prospects of consolidation and the coming of challenger banks.

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STAY TUNED for more detail about our agenda in the weeks to come.

MISSED THE ENTERPRISE EXPORTS AND FDI FORUM? Tune in to the Enterprise Podcast to hear what went down: The Enterprise Podcast is back with another installment of our forum series, where we bring you audio recordings of what was said on stage at the Enterprise Exports and FDI Forum, which took place last May.

IN THIS WEEK’S EPISODE- We looked at how Egyptian companies can identify and pitch foreign partners and how they can identify them. We asked how do companies figure out what they’re looking for — and whether that dovetails with what they want or need. We were joined on that panel by Hossam Abou Moussa, partner at PE firm Apis, Cheick-Oumar Sylla, director for North Africa and Horn of Africa at the International Finance Corporation, and Hassan Massoud, associate director and head of private equity (Southern Mediterranean) at the European Bank for Reconstruction and Development.

Expect us to drop an episode every Sunday morning. You can listen to the Enterprise Podcast where ever you get your podcasts including: Apple Podcast | Spotify | Google Podcast | Anghami.

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OUR TOP CLIMATE STORIES- Noor Alwadi Renewable Energy Company — a JV between French oil and gas giant TotalEnergies, Japan’s Toyota Tsusho Corporation, and Saudi Arabia’s Altaaqa Renewable Energy — is set to build a c. USD 100 mn 119 MW solar plant in Saudi Arabia and China’s Guangzhou Tinci Materials Technology is planning to establish a lithium electrolyte factory in Morocco.

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

THE BIG CLIMATE STORY OUTSIDE THE REGION– A debate is rising over a proposed global levy on shipping emissions as the International Maritime Organization (IMO) summit in London kicked off yesterday. A draft document seen by Bloomberg on Friday saw the shipping industry agreeing to attempt to hit net zero “around” 2050 with a contentious proposal to levy a tax on shipping emissions, and other proposals including introducing limits to the amount of greenhouse gas emissions relative to energy used on ships.

The proposed taxation has triggered a response from China, which has urged developing nations to oppose what it described as an “unrealistic” global levy on shipping emissions. China warned that “an overly ambitious emission reduction target will seriously impede the sustainable development of international shipping, significantly increase the cost of the supply chain and will adversely impede the recovery of the global economy.” Beijing also said that rich countries were pushing the IMO to “reach unrealistic visions and levels of ambition” through a levy that would lead to a significant spike in maritime transport costs.

REMEMBER- The proposed tax was discussed during the Summit for a New Global Financing Pact in Paris in June, where French President Emmanuel Macron stressed the necessity for a global levy on shipping and aviation to help fund climate action. If applied by the IMO, the levy would help raise an annual USD 100 bn to go towards developing nations hard hit by climate change.

The story is grabbing headlines in the international press: Bloomberg | The Financial Times | Reuters | BBC | The Washington Post

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HAPPENING TODAY- The International Energy Agency will host an online event titled Climate Resilience for Energy Transitions in the Middle East and North Africa at 15:30 CLT out of Rabat, Morocco where it will release reports on Egypt, Morocco, and Oman’s climate resilience amid the clean energy transition. The event will focus on spotlighting pathways to improving energy resilience and climate risks to energy systems in the region. Register for online attendance here.

SOUNDBITE OF THE WEEK- “We know that our environment is burning. It's melting. It's flooding. It's depleting. It's drying. It's dying,” the UN High Commissioner for Human Rights Volker Turk said during the Human Rights Council’s 53rd session yesterday. Turk warned of a “truly terrifying scale of desperation and need” on the back of increased hunger due to climate change and that “no country will be spared” from growing risks of climate change, with countries most impacted set to be those with existing food insecurity crises. He urged the end to “senseless subsidies to the fossil fuel industry” and said COP28 needs to be the “decisive game-changer that we so badly need”.

OVER IN COPLAND- A holistic ecosystem for climate action? COP28 President-Designate Sultan Al Jaber has stressed the necessity for a “holistic ecosystem” to help push climate action during London Climate Action Week 2023, according to a statement released on Thursday. "If we are going to cut emissions by 43% in the next 7 years, we need a holistic ecosystem that connects policy, technology, finance and people. We need supportive policies to stimulate adoption of clean energies and incentivize decarbonization,” he said. Al Jaber also attended a roundtable focused on climate solutions with King Charles III and several British officials and stakeholders, holding talks with UK Secretary of State for Energy Security and Net Zero Grant Shapps to discuss “bolstering cooperation between the UAE and UK to support the Breakthrough Agenda agreed in Glasgow’s COP26 and shape a bold response to the Global Stocktake ahead of COP28,” according to a separate tweet.

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WATCH THIS SPACE #1- All eyes on UAE’s renewables spending spree: The UAE plans to invest between AED 150 bn to AED 200 bn in its renewable energy sector over the next seven years, UAE Prime Minister and Dubai ruler Sheikh Mohammed bin Rashid said yesterday. The Gulf country is targeting a threefold increase in the share of energy produced from renewable sources over the same period, he said. The UAE has also adopted its national strategy for hydrogen, which aims to consolidate the country’s position as a producer and exporter of low-emission hydrogen in the next eight years, he added.

ALSO- The UAE is a frontrunner in the WtE push: The UAE is set to contribute a majority of the region’s total biomass production capacity with a 571 MW share of the total 659 MW expected generational capacity pegged for 2031, Zawya reports, citing data by research firm BMI. The research firm upgraded its biomass production forecast for the region from 231 MW last year to 659 MW, with the hike attributable to the UAE’s deployment of projects with a 400 MW energy capacity, as well as a USD 120 mn 30 MW waste-to-energy plant that came online in Egypt over the past year, the news outlet notes. The global biomass energy sector is expected to generate some 31.4 GW of clean energy by 2032.

More in the pipeline for the UAE: Back in May, two international consortiums — one led by Japan’s Marubeni and the other by France’s water utility and waste recycling company Suez — 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.

WATCH THIS SPACE #2- A proposed GCC-Europe hydrogen pipeline “appears challenging but feasible,” an initial joint study (pdf) published last week by engineering consulting firms RINA and AFRY concluded. The Italian and Swedish consulting firms assessed a potential hydrogen pipeline with the ability to transport 100 TWh or 2.5 mn tons of hydrogen per year, running from Qatar to Europe via Saudi Arabia, Egypt and the Mediterranean Sea. Based on RINA and AFRY’s calculations, the pipeline could deliver green and blue hydrogen to Europe at a levelized cost of around EUR 2.7 per kg by 2030, later decreasing to EUR 2.3 per kg.

Where do we go from here? The RINA and AFRY study signals a giant potential for the region to become a global hydrogen hub, unlocking billions in foreign investments. To move forward, a Red Flag exercise is proposed — meaning an evaluation on physical limitations, asset availability, strategic hazards, and competitive advantage. The study also recommends a pre-feasibility study be initiated subsequently.

WATCH THIS SPACE #3- Bahrain wants a renewable energy boost: Bahrain plans to boost its renewable energy share to 5% of its total electricity generation by 2025, Bahrain News Agency reported last week, citing statements by President of the Electricity and Water Authority Kamal bin Ahmed Mohammed. He said that Bahrain plans to raise the target to 20% by 2035 as part of the kingdom’s National Energy Transition Plan.

Part of a larger decarbonization drive: The kingdom has pledged to reduce emissions by 30% by 2035 through decarbonization and doubling renewables targets. It is also committed to reaching net zero by 2060.

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WATCH THIS SPACE #4- The world’s first ammonia-powered car engine is here: State-owned China’s Guangzhou Automobile Group (GAC) have developed the world’s first ammonia-powered car engine, Bloomberg reported last week. Given ammonia’s low flammability and high nitrogen oxide emissions, it is considered an alternative fuel in industries better positioned to handle toxic substances such as trucking and shipping, Bloomberg explains. While some automakers are willing to allocate resources to overcome the difficulty in handling the fuel and building refueling infrastructure, others see it as a “hellish” task, with head of transport and automotive analysis at BloombergNEF Colin McKerracher claiming he “can’t see it taking off in passenger cars.”

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CIRCLE YOUR CALENDAR-

Morocco will host the International Conference on Water and Climate on Thursday, 6 July and Friday, 7 July in Fez. The conference will bring together state representatives, relevant stakeholders, and UN agencies to discuss water resource management and governance in a five-session programme.

Thailand will host the second workshop on addressing loss and damage from Saturday, 15 July to Sunday, 16 July in Bangkok. The workshop will see discussions on pathways to increasing funding for climate-induced loss and damage. The workshop is being held in preparation for the third meeting of the COP27 Transitional Committee in August. The committee is tasked with operationalizing the Loss and Damage Fund, to be approved during the fourth transitional meeting in October.

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

TotalEnergies-led consortium set to build KSA solar farm: Noor Alwadi Renewable Energy Company — a JV between French oil and gas giant TotalEnergies, Japan’s Toyota Tsusho Corporation, and Saudi Arabia’s Altaaqa Renewable Energy — is set to build a 119 MW solar plant in Saudi Arabia, according to a statement released last Wednesday. The project is expected to become operational in March of 2025 and is expected to cost c. USD 100 mn, the statement notes.

The details: The solar farm will be built by Chinese infrastructure company Sepco in Wadi Al-Dawasir, 500 km south of Riyadh. The project broke ground last month and is expected to be completed by 2025, the statement notes. The consortium will build, own, and operate the solar farm. The Saudi Power Procurement Company (SPPC) will be the sole offtaker of the clean energy the project will produce.

Who owns what: TotalEnergies and Toyota each hold a 40% stake in the company, while Saudi Arabia’s Altaaqa Renewable Energy owns a 20% share, according to the statement. The Arab Petroleum Investments Corporation and Riyadh Bank will both serve as lenders for the project, the statement adds, without specifying how much financing each party contributed to the solar farm.

Total has been making moves in our neck of the woods: The company inaugurated the USD 470 mn 800 MWp Al Kharsaah solar plant in Qatar last October. In November, TotalEren and SME investor Enara Capital signed an agreement for a 300k ton green ammonia facility in Egypt’s Ain Al Sokhna. More recently, the company signed an agreement with the Iraqi government to develop a 1 GW solar power plant to supply the Basrah regional grid in April. The French company said it would invite renewables giant Acwa Power to take part in the project.

Ditto for Toyota Tsusho: The Japanese firm is part of a consortium developing the USD 501 mn 500 MW Gulf of Suez wind farm in Egypt. Earlier in November, the consortium inked an agreement to build a separate 3 GW wind farm in Egypt.

And SPPC is snapping up renewable energy PPAs: The company inked power purchase agreements with KSA’s Badeel — owned by KSA’s sovereign wealth fund the Public Investment Fund (PIF) — back in May for three solar energy projects worth 4.5 GW at an investment ticket of SAR 12.2 bn (c. USD 3.25 bn).

China’s Tinci opening EV battery material plant in Morocco: Guangzhou Tinci Materials Technology (Tinci) — one of China's leading manufacturers of materials for EV batteries — is planning to establish a lithium electrolyte factory in Morocco, Morocco World News reported last Wednesday, citing Chinese media outlet Yicai Global. Once operational, the materials produced will be exported to Tinci’s European market, where demand is expected to increase as a result of recent EV tax breaks. Lithium electrolytes are a lithium salt solution that is essential for EV battery production.

What we know: The construction of the plant will cost MAD 2.8 bn (USD 282 mn) and is scheduled to launch operations by 2026. The plant will have an annual production capacity of 200k tons of lithium electrolytes using lithium extracted from Morocco’s phosphorite ore, the news outlet reports. No details on current or potential investors were mentioned.

Tinci has been on a successful profit run as demand for batteries surge: The company doubled its sales y-o-y, netting USD 3.1 bn in sales in 2022. Net profits also grew by 160% to reach nearly USD 790 mn, with 93% of its revenue generated from its lithium battery material division.

Other Chinese firms are eyeing Morocco’s lithium reserves: South Korean battery manufacturer LG Energy Solution signed an agreement with Chinese lithium compounds producer Yahua to purchase lithium hydroxide from Morocco last April. The agreement was also part of LG’s plan to export the critical mineral to the EU and the US.

And it extends beyond North Africa: China’s early efforts to secure lithium supply from Africa is reaping its benefits as Beijing looks to further consolidate its position as the world’s top EV battery producer, Bloomberg reported earlier this week. Mines across Africa are set to scale up production of lithium raw materials by over 30-fold by 2027 in comparison with last year’s volume on the back of significant investments from Chinese companies, according to S&P Global Commodity Insights. By then, Africa’s lithium supply will account for 12% of the world’s supply, compared with 1% last year. The ventures by the Chinese led to the delivery of a first shipment of lithium concentrate to Zhejiang Huayou Cobalt Co. last month from a Zimbabwe project. Other projects include the Sabi Star lithium mine in Zimbabwe which is owned by Chengxin Lithium Group and Mali’s Goulamina Mine which saw investments from Ganfeng Lithium Group.

Ma’aden delivers first blue ammonia shipment to Europe: Saudi mining company Ma’aden has delivered its first blue ammonia shipment to Europe through the Black Sea port in Bulgaria, the company said last Tuesday. The shipment — purchased by Bulgaria’s leading fertilizer producer Agropolychim — is part of the company’s efforts to provide low-carbon fertilizers for the European market. Ma’aden did not disclose details on the amount of blue ammonia shipped or the financial value of the agreement.

Some details have emerged: The size of the blue ammonia shipment is estimated at 25k tons, according to global fertilizer prices and analysis provider Profercy. Two more 25k ton shipments of blue ammonia are expected to arrive from Saudi Arabia under an agreement signed in May between Ma’aden and US-based trading and logistics firm Trammo to deliver the first certified commercial blue ammonia shipment to Europe in 2023.

REMEMBER- Ma’aden is racking up blue ammonia agreements: The company signed an agreement in May with Indian agricultural chemical maker Coromandel International Ltd for the supply of low-carbon blue ammonia. Its shipment to India followed its first shipments of low-carbon blue ammonia to Chinese petrochemical producer Shenghong Petrochemicals in May as part of an agreement to supply 25k tons of ammonia. The company has shipped 138k tons of blue ammonia products to countries including Korea, China, Japan, India, Thailand, and the EU since last year.

Acwa Power is getting a helping hand from the Chinese: Saudi renewables giant Acwa Power has secured a USD 100 mn revolving credit facility (RCF) from Chinese state-owned lender China Construction Bank, according to a statement released last Tuesday. The RCF will allow Acwa Power to boost its power and water generation portfolio across the Middle East and the Belt & Road countries in which it operates including Uzbekistan and Kazakhstan, the statement notes.

Not the first time: The Saudi renewables giant and the Chinese bank have been cooperating since 2016, with the bank financing several projects including the 2.4 GW Hassyan power plant in the UAE and the 485 MW Zarqa gas power plant in Jordan. It has also provided financing for Uzbekistan’s 1.5 GW Sirdarya CCGT power plant.

And not the only Chinese lender: Chinese lenders have contributed a total of USD 10 bn across Acwa Power’s global project portfolio since 2009 and have participated — along with Chinese EPC contractors and suppliers — in 47 of the company’s projects, the statement notes.

Belt & Road countries in the spotlight: The company signed an engineering, procurement and construction (EPC) agreement with the Energy China Group Corporation company for its 400 MW solar energy project in Uzbekistan's Tashkent in June and signed a roadmap agreement with Kazakhstan’s Energy Ministry and the country’s sovereign wealth fund, Samruk-Kazyna, for the 1 GW wind energy and battery storage facility in the same month. Acwa has already poured in a total of USD 5 bn to fund five projects it owns and operates in Uzbekistan — including onshore wind energy plants. Acwa plans to invest a total of USD 10 bn in Uzbekistan’s renewables projects over the next five years, and signed an agreement in May to establish a USD 100 mn green hydrogen plant in Tashkent which will have a 3k ton annual capacity once operational in June 2024. The company also inked financing agreements that same month worth USD 120 mn for the 100 MW Karatau wind farm — formerly known as Nukus Wind IPP, which will become operational in February 2025.

Egypt to unlock EUR 54 mn debt swap from Germany: Germany has agreed to exempt Egypt from paying debts of EUR 54 mn after the German development bank KfW signed a debt swap agreement with Egypt’s international cooperation and electricity ministries as well as the Central Bank of Egypt, according to a statement from the German Embassy in Cairo. The money will instead be used to link the new 500 MW Ras Ghareb and the 500 MW Gulf of Suez wind farms to the national grid, the statement reads. The debt swap — which International Cooperation Minister Rania Al Mashat discussed with German officials in October — is the third tranche in the second phase of an ongoing program between the two countries.

The Gulf of Suez project: The Red Sea Wind Energy (RSWE) — a JV between Orascom Construction (OC), Japan’s Toyota Tsusho Corporation/Eurus Energy Holdings Corporation, and France’s Engie — achieved financial close for the 500 MW Gulf of Suez wind farm earlier in April. The USD 501 mn project will be financed by the European Bank for Reconstruction and Development (EBRD), the UN’s Green Climate Fund, the Japan Bank for International Cooperation (JBIC), Sumitomo Mitsui Banking Corporation, the Norinchukin Bank, and Société Générale.

The Ras Ghareb farm: The USD 709 mn Ras Ghareb wind farm will be built by Amunet, a local special purpose vehicle that is 60% owned by Al Nowais subsidiary AMEA Power and 40% owned by Japan’s Sumitomo Corporation. Construction of the project began earlier in March and is expected to be completed by 2025.

More debt swaps in the pipeline? The news comes days after Egypt’s President Abdel Fattah El Sisi called on developed nations to increase debt swaps and other innovative forms of green finance to help developing countries pay for the green transition.

Greece’s Naftomar inks green ammonia offtake agreement with Dai: Greek petroleum and ammonia distribution company Naftomar signed an agreement with German consulting and infrastructure company DAI Infrastruktur (Dai) to purchase 400k tons of green ammonia per year from it’s Egyptian plant, according to a statement (pdf). The agreement will see Naftomar purchase the green ammonia for a 10 year period from Dai’s East Port Said plant — dubbed Project Ra — which is meant to reach an annual production capacity of 2 mn tons per year. The first ammonia shipment is scheduled for 1Q 2028.

This is the third offtake agreement for the plant: Dai signed a similar agreement last month with UK-based shipping company Freepan Holdings for the sale of 800k tons per year of green ammonia, also to be produced from the company’s East Port Said plant starting 1Q 2028, according to a separate statement. Another smaller agreement of 200k per year was also signed, however the company did not disclose further details, the statement notes. This brings the total offtake signatures of Project Ra to 1.4 mn tons of green ammonia per year.

Powered by renewables: In April, Egypt’s Electricity Ministry allocated 780 km sq of land to Dai to develop two wind parks and a solar farm which will provide the renewable energy needed for the German company to produce 2 mn tons of ammonia per year, according to a statement published at the time.

Agreement inked for Hyport green hydrogen project in Oman: The Hyport Duqm Consortium — a JV between DEME Concessions and OQ Alternative Energy — has signed an agreement with Oman’s state-owned Hydrom to build a green hydrogen production facility to produce some 1 mn tons of green ammonia, according to a statement. The project will deploy some 4 GW of wind and solar power over two phases to produce green ammonia for export, the statement notes. The financial details of the agreement and the expected timeline for the project’s launch have not been disclosed.

The details: The plant’s first phase — which will produce some 330k tons of green ammonia — will be powered by 1.3 GW of renewable energy, the statement notes. Hyport will build a solar energy farm and a wind power plant to power its green hydrogen production facility. The second phase of the project will deploy up to 2.7 GW of solar and wind energy projects in a bid to produce c. 650k tons of green ammonia, according to the statement. The green hydrogen the company will produce will be converted into ammonia then shipped to export markets, according to a separate statement.

REMEMBER- This is one piece of a larger plan: Hydrom awarded two green hydrogen blocks that are expected to rake in investments exceeding USD 10 bn last month. Aside from Hyport’s project, a USD 6.7 bn contract was awarded to a consortium led by South Korea’s steelmaking company Posco Group.

The UAE has appointed two new sustainability ambassadors ahead of hosting of COP28, The National reported last Tuesday. Ali Al Shimmari (LinkedIn) and Abdulla Al Remeithi are tapped to promote sustainable practices under a one-year contract, with the duo set to provide research support and advise on best sustainable practices for the public and private sector. Al Remeithi is currently the director on environment policy, regulation, and climate change at Abu Dhabi’s Environment Agency, according to the media outlet. He is also the UAE’s lead negotiator for adaptation in the UN Framework Convention on Climate Change. Al Shimmari is an international asset manager for the GCC region at the Abu Dhabi National Energy Company (Taqa).

Growing solar power industry hikes silver demand: The global solar panel manufacturing industry’s demand for silver is expected to make up 14% of annual global silver consumption in 2023 up 9% from 2014 levels, Bloomberg writes, citing a report by The Silver Institute. Silver is used as a conductive layer for the front and back ends of solar panels. China is expected to hike the solar industry’s demand for silver on the back of its plans to install more solar panels this year than the entirety of the US. China is on track to install some 154 GW worth of solar panels in 2023 alone.

And new tech will need even more: Conventional solar cell tech — known as passivated emitter and rear contact panel manufacturing tech (PERC) — uses silver paste as an electrically conductive front contact and utilizes 10 mg of silver per watt. PERC is set to be overtaken in the next two to three years by TOPCon cells which require 13 mg of silver per watt and heterojunction production tech which uses 22 mg per watt, according to BloombergNEF data.

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Outdated electricity grids are slowing down the energy transition: The pace at which renewables can replace fossil fuels is being hindered by outdated grids ill-equipped to handle a greater volume of renewables, Bloomberg reported last Friday. Power capacity needs to increase to 39.7 GW by 2050 from 8.5 GW last year, with the proportion of that energy derived from wind and solar rising to 70% from 25%, according to BloombergNEF data. In addition to accommodating this expanded volume of energy generation, the nature of renewable energy’s unstable frequency — which constantly fluctuates depending on the availability of the wind and sunshine — provides another hurdle, Bloomberg adds. It will cost around USD 21.4 tn to adapt grids to achieve global net zero goals, requiring 152 mn km of new high voltage cables to carry renewable energy surpluses from high generation regions to meet demand elsewhere.

Seven solar parks coming to Neom? KSA’s Neom has appointed French engineering services group Assystem to conduct several pre-development studies for seven planned solar parks in Tabuk and Duba, a statement by the French company read last week. The planned parks could have the potential to generate over 20 GW in solar energy capacity, the statement said. Under the agreement, Assystem will conduct a site assessment study, preliminary design of parks and master planning, and environmental and social impact assessment study among other studies.

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Egypt updates climate goals in efforts to speed up renewables rollout: The Egyptian government has updated climate commitments under its Nationally Determined Contributions (NDCs) — which sets the country’s climate and emissions targets — to increase its renewables share to 42% by 2030 instead of 2035, according to a statement published last week. The government also upgraded its emissions slashing goal from 70 mn tons to 80 mn tons by 2030. Egypt intends to meet this target by replacing 12 gas-powered thermal power stations — with a capacity of 5 GW — with wind and solar projects worth 10 GW by the deadline, according to a separate statement. Egypt has signed four financial closure agreements for 3.7 GW out of the 10 GW target since November.

The move is a milestone to unlock funding for the government’s Nexus for Water, Food and Energy (NWFE) program, International Cooperation Minister Rania Al Mashat said.

ALSO- More funding on the way for Egypt’s food security: Egypt is receiving a USD 431 mn grant from the UN’s World Food Program (WFP) to support the country’s efforts in building a more resilient, sustainable, and climate-adaptive food systems for targeted groups by 2028, WFP Country Director and Representative of Egypt Praveen Agrawal tweeted on Sunday. The grant is part of Egypt's 2023-2028 Country Strategic Plan (pdf) which was approved during the WFP’s four-day annual executive board session in Italy last week.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Algeria’s Energy and Mining Minister Mohamed Arkab met with the President of the African Energy Chamber NJ Ayuk last week to discuss renewables-focused partnership opportunities with African countries. (Statement)
• US-headquartered Verde Hydrogen has signed an agreement to develop and commission a 2 MW green hydrogen electrolyzer project in Morocco. (Statement)
• UAE EV startup Terra Tech has completed the development of its first fleet of electric motorbikes. The bikes will undergo final testing while the company shifts towards finalizing agreements with partners in the UAE’s last-mile sector. (Trade Arabia)

World Bank extends USD 1.5 bn for India’s renewables: The World Bank Group approved a USD 1.5 bn financing package to help India achieve its USD 100 bn National Green Hydrogen Mission for 2030, according to a statement released on Thursday. The capital injection will help India upscale its renewables and green hydrogen projects as part of the country’s aim to secure USD 100 bn in green hydrogen-focused private sector investments by 2030 and generate 500 GW of clean energy by the end of the decade.

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Spain plans to almost triple its green hydrogen goal as part of a new climate and energy plan, Reuters reported on Wednesday, citing a draft of the strategy it has seen. The draft plan outlines a 2030 target of 11 GW for electrolyzers to produce green hydrogen — up from a previous 4 GW — and increases the country’s wind generation capacity targets up to 62 GW from a previous 50 GW. Solar energy generation capacity is also boosted to c. 76 GW with a power storage capacity of 22 GW.

More renewables, more funding: According to the proposed plan, renewables would generate 81% of the country’s electricity by 2030, with the new targets shooting for slashing emissions by 32% from 1990 levels compared to the previous target of 23%. Some EUR 294 bn will be needed for the plan, with the majority of investments coming from the private sector and the remainder from public funds, including the EU. Public consultation for the draft plan is set to continue until 4 September, with the final plan due by June 2024.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Norway approved 19 new oil and gas projects worth some USD 18.6 bn in a move that has sparked anger from climate activists. (France 24)
• Malaysia-based utility company Sarawak Energy plans to deploy floating solar energy projects at dam reservoirs generating 400 MW by 2030 as part of plans to export power to Indonesia, Brunei, and Singapore. (Reuters)
• China is on track to beat its renewables target five years early by nearly doubling the country’s wind and solar capacity by 2025. (Bloomberg)
• The US Environmental Protection Agency has launched a USD 7 bn grant programme to bring solar panels to low-income households. (Reuters)

The clean tech startup greenifying cement production: US-based clean tech company Sublime Systems — which has raised USD 50 mn to date — is using electricity instead of carbon-intensive heating processes to produce cement, CNBC writes.

A quick lesson: Cement powder is produced by crushing raw materials including limestone and clay with ingredients such as iron and fly ash, which is then heated to about 1.4k Celsius in a cylindrical rotary kiln, according to The Portland Cement Association. The heating process in the global cement manufacturing industry conventionally relies on carbon-intensive energy sources, accounting for some 8% of the world’s total carbon emissions.

Enter electrolyzers: Sublime’s technology substitutes the industry's traditional fossil-fuel-intensive thermal calcination process with an electrochemical process relying on electrolyzers to produce cement from a number of calcium sources at room temperature, according to Business Wire. Sublime’s process avoids both the use of fossil fuels and the release of CO2 from limestone.

Decarbonized cement is more cost-effective than carbon capture and storage: Instead of investing in carbon capture and storage projects, cement producers should aim to produce net zero products in a bid to make green cement cost-competitive, according to The Engine’s CEO Katie Rae, which has invested in Sublime. “Producing decarbonized cement directly, rather than doing carbon capture, drives both energy efficiency and eventual cost parity,” Rae told CNBC. Siam Cement Group (SCG) is backing Sublime System because its cement production method avoids costly and complicated carbon storage incorporation, venture investor at SCG Timothy McCaffery told CNBC.

Interest in decarbonizing the construction sector is picking up regionally: Saudi Arabia’s investment firm Shurfah Holding Company and France’s Hoffman Green Cement signed a preliminary agreement earlier this month to design and produce low-carbon cement. In May, the UAE’s Quazar Investment Company and UK-based Graphene Innovations Manchester (GIM) signed an agreement to establish a UAE-based JV to develop and produce low-carbon, cement-free graphene-based concrete.