UK’s Actis is reportedly close to acquiring a 580 MW wind farm in Egypt

Good morning, friends. We have a brisk issue with you this morning with some big stories making waves in the regional climate industry.

THE BIG CLIMATE STORY- Taqa Arabia’s shares rose almost 4,000% on its second day of trading on Egypt’s bourse yesterday, with a large block transaction involving the sale of EGP 3.7 bn worth of shares by the company’s largest shareholder, Silverstone Capital Investments, to existing shareholders including Financial Holdings Investments, and Rimco EGT Investments.

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

THE BIG CLIMATE STORY OUTSIDE THE REGION- There’s no single climate story dominating international headlines this morning, but US President Joe Biden met with King Charles III for the first time since the latter’s coronation to discuss climate change during a brief stop in Britain. Biden, along with the British monarch, met with executives and philanthropists to discuss climate finance for the world’s poorest countries. “We had several USD tns of assets that are managed and deployed represented in the group that met today, all people who are deeply committed to dealing with the climate crisis,” US Special Envoy for Climate John Kerry, who attended the meeting, said.

The Windsor Castle meeting got coverage from the international press: Reuters | Bloomberg | The Financial Times | The Guardian | CNN | The Associated Press | The New York Times | The Washington Post

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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WATCH THIS SPACE #1- UAE’s Al Abjan solar farm will be awarded by year end: The Emirates Water and Electricity Company (Ewec) is set to award and execute the power purchase agreement for its 1.5 GW Al Ajban solar IPP project by 4Q 2023, according to a statement. Ewec has received four bids from Saudi renewables giant Acwa Power, France’s EDF Renewables, Japan’s Marubeni Corporation, and a consortium comprising Jinko Power and Jera for the development of the solar plant.

About the plant: Al Ajban — Ewec’s third solar power project — is expected to generate enough electricity to power c. 160k homes across the country, according to the statement. It is set to raise Ewec’s total solar power capacity to c. 4 GW and slash Abu Dhabi’s carbon dioxide emissions by up to 2.4 mn tons annually.

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WATCH THIS SPACE #2- KSA is scoping out Germany’s waste management sector: Invest Saudi, KSA’s national investment platform, is reviewing potential investments in Germany’s waste and water management sector, Arab News reports. This review of investment ventures in Berlin, Hamburg, and Dusseldorf kicked off yesterday for a five-day period. The event will involve workshops and meetings to explore unlocking potential investments in both countries’ waste management sectors.

WATCH THIS SPACE #3- OCI is banking big on blue ammonia: Dutch fertilizer manufacturer OCI is constructing a USD 1 bn blue ammonia production plant in Texas, Reuters reports. While the project has yet to secure a single offtake agreement, the large-scale facility will generate 1.1 mn tons of blue ammonia annually once operational in 2025.

Why the US? Blue ammonia production methods cost approximately USD 119 more per ton than conventional ammonia generation technologies, so OCI is benefiting from subsidies under the USD 369 Inflation Reduction Act, as well as premium payments from Asian utility firms to render the project economically feasible, the newswire notes.

A first for ammonia production: The US plant would be the first commercial facility globally to capture and store 95% of the emissions produced from ammonia production, Reuters writes.

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CIRCLE YOUR CALENDAR-

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.

Egypt will host the Egypt Mining Forum from Tuesday, 18 July to Wednesday, 19 July in Cairo. The event — organized by the country’s Oil Ministry — will gather regional players as well as global mining firms in a bid to attract regional and foreign direct investments in the country’s mining industry.

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

Taqa Arabia had a decidedly less chaotic second day of trading on the Egyptian Exchange yesterday, with the company’s shares avoiding the dramatic fluctuations seen on Sunday and only a few transactions reportedly being canceled by the Egyptian bourse. The company’s share price jumped 3,900% to close at EGP 20, a percentage change magnified by the fact they opened at their nominal value of just EGP 0.50. Shares were valued at EGP 8.90 apiece ahead of the listing. Trading was moderate, with 801k of the company’s shares changing hands via 843 transactions for a combined EGP 15.7 mn according to EGX data.

The first debut: Taqa shares closed up 83,000% on Sunday, which the EGX attributed to 75 transactions worth just EGP 395k that it said were executed by mistake. A number of local and regional outlets quoted traders saying that several trades were executed at between EGP 380 and EGP 500 which was confirmed later by EGX boss Ramy El Dokany, triggering the surge in the company’s share price.

All transactions were canceled on Monday, but one: A block transaction was executed on Monday involving the sale of EGP 3.7 bn worth of shares by the company’s largest shareholder Silverstone Capital Investments — an entity controlled by Taqa parent Qalaa Holdings — to existing shareholders including Financial Holdings Investments, and Rimco EGT Investments, according to three separate disclosures to the EGX (here, here and here — pdfs).

Silverstone offloads 60% of its shares in Taqa Arabia: Silverstone’s ownership decreased to 49%, down from 80%, after selling 192.4 mn shares to Financial Holdings Investments whose ownership increased to 17.8%, up from 3.6%. Silverstone also sold 194 mn shares to Rimco whose ownership rose to 14.5%, up from 0.2%. Both transactions were executed at EGP 8.9 per-share.

Advisors: EFG Hermes quarterbacked the transaction, while Zulficar & Partners provided counsel. Baker Tilly was the independent financial advisor and PwC was the auditor.

Will Actis snap up a 580 MW Egyptian wind farm? UK private equity giant Actis is reportedly inching closer to acquiring the 580 MW Gabal El Zeit wind project in Egypt’s Gulf of Suez after submitting the best technical and financial bid to the Sovereign Fund of Egypt (SFE), Asharq Business reports, citing three government sources it says have knowledge of the matter. The financials of Actis’ bid were not disclosed, nor were the details on other bidding companies.

The project: The first phase of the three-phase EGP 12 bn (c. USD 388 mn) Gabal El Zeit project — owned by Egypt’s New and Renewable Energy Authority (NREA) — comprises 120 turbines with a 240 MW generation capacity, according to a statement. One hundred of the aforementioned turbines have already been connected to the national grid, the statement notes. In 2022, Siemens Gamesa was awarded the five-year contract to operate and maintain the 220 MW second phase of the project — dubbed Gabal El Zeit 2. Siemens Gamesa, Vestas, and Voltalia were among companies planning to bid for a five- to seven-year operation and maintenance contract for the 120 MW Gabal El Zeit 3 plant. The entire project is being built under an engineering, procurement, and construction contract with several international and local institutions, the UN Department of Economic and Social Affairs Sustainable Development notes.

Actis also has big plans for green hydrogen production in Egypt: Actis signed an agreement back in October with the Egyptian government to establish green fuel production plants worth USD 1.5 bn with a production capacity of 200k tons annually in the Ain Sokhna Industrial Zone.

The company has been investing in MENA’s renewables sector: Back in May 2021, Actis pledged to double its energy investments in Egypt and other African countries to USD 2 bn within five years. Further afield, the company contributed to the USD 400 mn raised by UAE-based renewables firm Yellow Door Energy from shareholders back in October, marking the second time Actis invested in the company after it poured in an undisclosed sum to help the firm scale up its operations back in July.

And is looking to expand its foothold in Africa: Actis could be pouring up to USD 300 mn annually into renewables in Africa “if the opportunity presents itself,” Lisa Pinsley, Actis’ head of energy in the Middle East and Africa, said back in November.

More solar power on the way for Morocco: Six consortiums have been pre-qualified to establish the 400 MW solar plant Noor Midelt II in the Atlas Mountains, Moroccan renewable energy agency Masen said, according to Reuters. Among the companies in the six pre-qualified consortiums: Spain’s Cobra Servicios, Comunicaciones y Energia, Iberdrola, France's EDF Renewables, Italy's Enel Green Power, Belgium's International Power, and Saudi Arabia's Acwa Power.

About the project: Noor Midelt II is part of the Morocco’s second concentrated solar power (CSP) technology complex Noor Midelt, which consists of two solar plants combining thermosolar and PV technology to produce 800 MW of renewable energy with a storage capacity of five hours, according to Masen.

Some obstacles on the road: In 2019, Masen awarded a consortium led by EDF Renewables and UAE renewables giant Masdar the first phase of the project. The first phase is still not completed due to disagreements over concentrated solar power (CSP) technologies, sources told Reuters.

SOUND SMART- CSP uses steam generated from heated water to produce electricity, and requires collector and generator systems. Its biggest advantage is that it can store power, helping to resolve the issue of peak energy demand, which is often at night or early in the morning when there is no sunlight. However, CSP is often more expensive and water-intensive than photovoltaic tech.

All under part of Morocco’s renewables push: Morocco has been pushing to position itself as a hub for renewable energy due to its major solar and wind capabilities. Morocco aims to have 50-52% of its energy come from renewables by 2030, up from the current 38%, the country’s prime minister said earlier this year.

Amea Power gets fresh funding: UAE renewable energy developer Amea Power has signed a USD 75 mn equity funding round from Japan’s SoftBank Group (SBG), according to a statement. The investment represents the Emirati firm’s first external equity funding after years of being privately funded by its founding shareholders, the Al Nowais family.

What we know: The all-equity capital raise from SBG will allow both firms to “explore a mutual partnership, which will lead to maximizing the value creation of Amea Power mainly in the Asia Pacific, Middle East and Africa (AMEA) region,” the statement read. “The funds raised will enable us to accelerate our strategic ambitions, materialize further projects in the power, water and green hydrogen sectors, and to continue to further expand our presence in target markets,” Amea Power Chairman Hussain Al Nowais said.

More investors incoming? Several unnamed international institutional strategic corporate financial investors are considering potential investments in Amea Power, the statement said, without providing further details.

Amea has an ambitious pipeline: Amea Power currently has a generation capacity — operational and under construction — of around 1.45 GW, with a clean energy pipeline of nearly 6 GW across 15 countries, according to the statement. It is considering expansions into more regions in the Middle East including Kazakhstan, Uzbekistan, and Azerbaijan, as well as Southeast Asia, it added.

And several projects are well on their way: Amunet — an Egyptian special purpose vehicle that is 60% owned by Amea Power and 40% owned by Japan’s Sumitomo — is building the USD 709 mn Ras Ghareb wind farm in Egypt. Construction of the project began in March and is expected to be completed by 2025. Amea is also among companies and consortiums bidding for several desalination plants in Egypt as part of the first phase of the government’s desalination program. The company was awarded a concession and power purchase agreement for Tunisia’s 100 MW Kairouan solar plant in March 2022.

France’s b:bot looking to set up shop in Tunisia, UAE: French plastic recycling robotics company b:bot plans to expand to Tunisia and the UAE after raising EUR 20 mn to boost its robot network and enter new markets, Tech EU reported earlier this week.

Ironing out the details: The French startup raised EUR 20 mn from Paris-based investor and asset manager Eiffel Investment Group and the group’s long-committing shareholder Crédit Agricole Normandie-Seine Participations. The funds will be directed to doubling the size of the startup’s robot workforce by the end of 2023, international expansion, and begin recycling cans.

About the company: Founded in 2021, b:bot is a machine and digital ecosystem that collects PET plastic bottles and shreds them into plastic flakes, according to EU data. B:bot’s machines, which take up less than 1 m2 of space, have a storage capacity of 3k bottles. Consumers get points or cents for each bottle inserted into the robot, and can exchange their points for funds that can be used at supermarkets or donated to charities. It currently has over 500 robots and has collected 130 mn bottles to date, according to Tech EU.

A toolbox of tips for decarbonizing end-use sectors: The International Renewable Energy Agency (Irena) has unveiled 100 innovative solutions governments can use to reduce emissions and decarbonize the electrification of end-use sectors, according to a recent report (pdf). The report offers a number of green tech investment suggestions for governments looking to set up decarbonization targets to meet their NDC targets.

What are end-use sectors? These sectors directly consume primary energy from power sources including electricity and natural gas and include a range of services including the transportation, industrial, commercial, and residential sectors. Global investments in energy transition tech reached a record of USD 1.3 tn last year, but annual investments in the sector must quadruple to over USD 5 tn to stay on the 1.5°C pathway, Irena notes.

Smart electrification of mobility: The report lays out 35 suggestions for electrifying transport and reducing emissions from the sector, including innovations in EV model evolution and EV batteries. It calls for repurposing spent battery cells — bringing down EV costs — and increasing EV charging points, as well as adopting new charging mechanisms including wireless charging, overhead charging, and portable charging stations.

And innovative pricing: Irena also recommends different pricing for electricity according to the time of day, allowing consumers to pick their preferred electricity consumption periods and charging modes. A single bill for EV charging at home and on-the-go should also be adopted by policy makers to bring down electricity consumption fees and encourage the transition to EVs, the report notes.

There are some tech hacks for cooling and heating: The report outlines over three dozen solutions for electrifying the global cooling and heating sector, including the use of low-temperature heat pumps, hybrid heat pumps, waste heat-to-power tech, and high-temperature electricity-based applications for industry. Irena also suggests the adoption of circular energy flows in cities, allowing the heat from solar panels, data centers, and other sources to be rerouted for use in space heating and warm water in buildings.

And using flexible agreements tied to demand: Irena also called for flexible power purchase agreements to enable companies or grid operators to secure their electricity demands without being restricted by fixed terms during times of low demand.

A toolbox for the HtA sector: The report includes 30 innovations to help decarbonize hard-to-abate sectors (HtA) by increasing the use of green hydrogen. The deployment of compressed hydrogen storage and liquefied hydrogen storage tech, as well as establishing hydrogen leakage detection mechanisms, is paramount. Applying carbon contracts for difference — which aim to reduce costs and risks of clean energy investments — are also needed to establish a standard for carbon pricing and bring down hydrogen costs for consumers. Establishing renewable energy power purchase agreements for green hydrogen production is also necessary as are cost-effective electricity tariffs for hydrogen developers and setting up a regulatory framework for green hydrogen networks, Irena notes.

Iraq, TotalEnergies agreement is signed and sealed: The Iraqi government and French oil giant TotalEnergies officially inked the agreement on a long-delayed USD 27 bn cluster of energy projects in the country including a 1 GW solar power plant to supply the Basrah regional grid, Reuters reports. The accord had faced hurdles over its terms, but was finally closed in April when Iraq accepted taking a smaller stake than it had originally sought in the Gas Growth Integrated Project (GGIP). The agreement revives hopes of luring back foreign investments to the energy-rich country.

The details: The project will commence this summer and will see investments worth USD 10 bn over the next four years, Iraqi Oil Minister Hayan Abdel Ghani said. Per the agreement, Iraq’s state-owned Basrah Oil Company will hold a 30% stake in the GGIP — compared to the 40% initially demanded by Iraq. QatarEnergy will grab a 25% stake in the GGIP per an invitation by TotalEnergies, which will own a 45% stake.

About the GGIP: The energy projects cluster aims to boost Iraq’s natural resources to enhance electrical supply through USD bns of investments. The funds would be invested to recover flared gas on three oil fields to supply gas to power generation plants and build a seawater treatment plant to provide water injection for pressure maintenance to raise regional oil production.

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KSA’s Electromin — a subsidiary of Petromin Corporation — will establish the country’s first ultra-fast direct current (DC) charging networks for EVs, the Saudi Gazette reports. The company already has over 100 alternating current (AC) charging chargers in the kingdom and its new addition of DC networks will enable it to cater to both B2B and B2C user segments, the new outlet notes. The number of DC chargers to be established across KSA will be dependent on EV sales and customer demand, Petromin CEO Kalyana Sivagnanam notes.

What’s the difference? DC charging stations rely on electricity generated from batteries to enable fast charging for EVs, whereas alternating current charging networks depend on power generated from the grid and can be used to charge electric vehicles in residential and office settings but are slower than DC systems.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• A senior delegation from UAE renewables firm Amea Power met with JA Solar Chairman Baofang Jin to discuss potential cooperation in MENA’s renewables sector. (Statement)
• Dubai is planning to increase the city’s EV charging stations to 1k by 2025. (Statement)
• Algeria’s state-owned oil producer Sonatrach inked an agreement with TotalEnergies to increase solar-powered desalination projects and establish a low-carbon hydrogen project for export. (Statement)
• The Dubai Electricity and Water Authority is courting investment opportunities from French renewables and green hydrogen companies. (Wam)

The Danish are coming: Danish fund manager Copenhagen Infrastructure Partners (CIP) is seeking to raise EUR 12 bn (c. USD 13 bn) to invest in renewable energy, making it among the top funds looking to shift away from fossil fuels, Managing Partner Jakob Baruël Poulsen told Bloomberg. CIP reached its first close of EUR 5.6 bn for its renewable energy fund and has investors looking to more than double funding within the next 12 years.

About the fund: The new fund is the fifth of its kind by CIP since it was established in 2012, according to Bloomberg. It will be a mix of offshore and onshore wind and solar, with one-third each and a third of “niche” technologies, which would include battery storage and transmission. Most of the projects will look at utilizing 50% debt and equity from the fund, bringing total investments to c. EUR 24 bn. When fully subscribed, it is set to beat its predecessor, which kicked off with EUR 1.5 bn and grew to EUR 7 bn later.

A group of Chinese scientists are working on saving China’s top sightseeing spot Dagu Glacier from melting, Bloomberg reported last week. The scientists are looking to deploy thick rolls of white fabric over 4.3k sq feet (c. 400 sqm) of the mountain to reflect the sun’s rays back into the atmosphere.

A terminally ill glacier: The glacier has already lost over 70% of its ice over the past half century due to global warming. One of the researchers told the local press that their salvage attempt was analogous to a doctor trying to extend the lifetime of a terminally ill patient. “All the human intervention methods that we’re working on, even if they prove effective, are only going to slow down the melting,” Nanjing University associate professor Zhu Bin said.

Not a new idea, but new Chinese tech could help: This method of attempting to save the glacier is not new, as European ski resorts have been using the same approach for nearly two decades to help prevent snow from melting. But China is only getting started, with Zhu’s team experimenting with a new material that could help reflect over 93% of sunlight and help the glacier release heat. The material is produced from cellulose acetate, a natural plant fiber that could be spread by drones over less accessible glaciers in the form of small particles.

Like a band-aid on a bad wound: Most of the world’s glaciers are melting rapidly, leading to rising sea levels and deadly floods. Using sun-reflecting sheets is like putting a band-aid on a gushing wound, as Bloomberg puts it. But even if the world succeeds in keeping global warming below the 2°C threshold, less than half of the 4k glaciers in the Alps today would remain standing by the end of the century.