Maersk might be looking to snap up Egypt’s Zafarana wind farm

Good morning, wonderful people. It’s a very busy morning in the region with climate updates across all parts of the industry. Shall we?

THE BIG CLIMATE STORIES- The Egyptian government has received an offer from Denmark's global shipping bellwether Maersk for the acquisition of the state-owned 545 MW Zafarana wind farm, less than a week after UK private equity giant Actis threw its hat in the ring to acquire the Gabal El Zeit wind farm. Also, Saudi renewables developer Acwa Power has signed financing agreements for the SAR 8.3 bn (USD 2.2 bn) Al Shuaibah 1 and Al Shuaibah 2 solar PV projects.

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

THE BIG CLIMATE STORY OUTSIDE THE REGION- A push to revive stalled US-China climate talks: US Climate Envoy John Kerry arrived China yesterday for a three-day visit that aims to restart climate talks between the world’s top greenhouse gas emitters despite a diplomatic row over other issues, including trade disputes and military tensions. Kerry said he is looking for “candid conversations” with Chinese officials and progress in slashing potent greenhouse gas methane and accelerating a transition away from coal and a faster deployment of renewable energy.

Kerry’s visit made the rounds in international press: Reuters | Bloomberg | CNN | The Financial Times | BBC | The New York Times | Deutsche Welle

ALSO- A deadly flooding in South Korea has left dozens dead: Authorities said rescuers were able yesterday to retrieve the bodies of eight people who were trapped in a flooded road tunnel after days of heavy rain caused flash floods and landslides and destroyed houses nationwide. The heavy downpour this year comes despite the country’s promise to raise readiness against torrential rains after Seoul saw last year floods caused by heaviest rain in 115 years.

The disaster grabbed headlines worldwide: Reuters | Bloomberg | The Associated Press | The New York Times | CNN | The Guardian | BBC | Deutsche Welle

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OVER IN COPLAND- We finally have some of the big items on the COP28 agenda: COP28 President Designate Sultan Al Jaber has unveiled the action plan for COP28, which includes among its major goals deploying an operational fund to compensate climate-vulnerable poor nations, Bloomberg reported on Thursday. In a climate-focused meeting in Brussels co-hosted by the European Commission, Al Jaber said delegates should outline targets to triple renewables capacity and double hydrogen production by 2030. He said a phasedown of fossil fuels was “inevitable” and “essential,” adding that companies must “attack all emissions” including Scopes 1, 2, and 3, which focus on direct and indirect emissions.

Some are singing the same tune: Several countries led by Germany and Canada have called on the UAE to focus on the phaseout of all unabated fossil fuels, The Financial Times reported on Thursday. They warned that the world was seeing “catastrophic human, environmental and economic losses” without an urgent intervention. “In the face of killer heatwaves, raging wildfires and torrential floods, we must all do more, faster to mitigate and adapt to the climate crisis,” the environment ministers said in their letter. They said a landmark loss and damage fund agreed in COP27 last year in Egypt needs to be up and running, they said.

Not everyone is on board just yet: “There’s a large number of other countries that are not yet on board,” COP28 Director-General Majid Al Suwaidi told Bloomberg. “There’s a lot of debate over whether a timeline is useful, or even realistic,” Al Suwaidi added. His statements come amid concerns of a lack of consensus on a phaseout of fossil fuels at COP28 after top oil producers like Saudi Arabia blocked the effort at COP27 last year.

Everyone will be feeling the pressure: Countries participating in COP28 this year must face how they’re falling behind climate change targets and agree on a plan to get on course, Reuters quotes Al Jaber as saying. “We must be brutally honest about the gaps that need to be filled, the root causes and how we got to this place here today,” he told the event in Brussels. “Then we must apply a far-reaching, forward-looking, action-oriented and comprehensive response to address these gaps practically.”

ALSO- Climate reparations is a big no for the US: The US will not pay climate reparations to developing nations impacted by climate-driven disasters, Reuters reported on Thursday, citing statements by US Special Envoy on Climate Change John Kerry. “No, under no circumstances,” he said during a hearing on the US State Department's climate agenda. The US is among one of the main backers of the loss and damage fund, which does not yet have a mechanism on who should be paying into the fund or how funds would be disbursed to developing countries.

And another big no: Abatement technologies that include carbon capture and storage (CCS) should not replace necessary fossil fuel cuts, the EU and several countries said in a statement seen by Reuters. “Abatement technologies must not be used to green-light continued fossil fuel expansion,” said the statement by the EU and 17 countries including Germany, France, and climate-vulnerable island states. They said that such technologies “must be considered in the context of steps to phase out fossil fuel use, and should be recognised as having a minimal role to play in the decarbonization of the energy sector.”

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WATCH THIS SPACE #1- KSA will reportedly sign a joint investment agreement with Japan to develop minerals critical to the energy transition, Reuters reported on Saturday, citing Japanese financial newspaper Nikkei. The agreement will be signed during Prime Minister Fumio Kishida's visit to the region, which officially kicked off yesterday. Japan also plans to support Saudi Arabia’s development of copper, iron and zinc — minerals that are essential for EV and battery storage production. Partnerships to exchange technologies needed for the energy transition will also be discussed during Kishida’s visit, a senior Japanese Foreign Ministry official told reporters last week. Other potential investments in mining will be discussed during a roundtable discussion between the two countries, Asharq Al Awsat reported.

REMEMBER- KSA is betting big on critical mineral exploration: The kingdom is looking to unlock an estimated USD 1.3 tn in mineral reserves and aims to become a global hub for metals and minerals needed in the energy transition. It says it also has large untapped reserves of metals — including copper, zinc, phosphate, and gold — and it plans to attract some USD 32 bn in investments in its mining and mineral sector and award more than a dozen mining exploration licenses to international investors.

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WATCH THIS SPACE #2- Iraq is close to selecting a developer for a new 700 MW solar energy project, Iraq’s Electricity Minister Ziad Ali Fadel told Baghdad Today on Thursday. He said the government plans to approve the contract tomorrow, without providing details about the project or the company that will be awarded the project. Fadel said the last contract awarded by Iraq was for the 750 MW solar plant with PowerChina last month.

REMEMBER– Iraq has a 2023 renewables plan: Iraq wants to produce 5 GW of solar power in 2023. The country signed solar power agreements over the past two years with several companies, lining up a total generation capacity of 7.5 GW.

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WATCH THIS SPACE #3- Egypt’s NWFE is getting love from the EIB: The European Investment Bank (EIB) plans to commit EUR 4 bn in funding for development projects in Egypt until 2030 under the government’s flagship Nexus for Water, Food and Energy (NWFE) climate adaptation program, International Cooperation Minister Rania Al Mashat said last week in a virtual speech at the EIB MED Conference. She did not provide details about the projects that could be benefiting from these funds.

About NWFE: The Egyptian International Cooperation Ministry’s program aims to raise blended finance for nine climate adaptation and renewables projects worth a combined USD 15 bn. These include a massive energy project worth US 10 bn, five projects in agriculture and food security, and three in irrigation and water resources. The program was launched ahead of last year’s COP27 climate summit and has been garnering support since.

Other backers: The African Development Bank (AfDB) said earlier this year that it has mobilized USD 2.2 bn to improve Egypt’s water security under the program. The European Bank for Reconstruction and Development — the lead partner on NWFE’s energy pillar — has allocated USD 200-300 mn to the energy track of the program. The International Fund for Agricultural Development (IFAD) is committing USD 200 mn to the food track, while a number of other organizations partnering with IFAD are providing another USD 775 mn.

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WATCH THIS SPACE #4- IDB extends funds to Irena’s accelerator platform: The Inter-American Development Bank (IDB) has committed USD 100 mn to the International Renewable Energy Agency’s Energy Transition Accelerator Financing platform (ETAF), according to a statement released last week. IDB’s funding package will be geared toward financing renewables projects in Latin America and the Caribbean. ETAF — supported by the UAE government — has already surpassed its initial target of amassing USD 1 bn by 2030 by some USD 250 mn, Irena notes.

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THE DANGER ZONE An alert on critical minerals’ vulnerability amid geopolitical risks: Critical mineral supply chains remain vulnerable to geopolitical risks leading to a potential disruption of supply could affect the speed of energy transition, he International Renewable Energy Agency (Irena) said in a report (pdf) released last week. The industry is seeing multiple supply risks, including a geographical concentration of mining and processing activities in some countries like Australia, Chile, DRC, Indonesia, and South Africa, according to the report. Also, the world’s top five mining companies control 61% of lithium and 65% of cobalt output, it said. It added that external shocks, resource nationalism, export restrictions, and mineral cartels could augment supply shortages risks.

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

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CIRCLE YOUR CALENDAR-

Egypt will host the Egypt Mining Forum from tomorrow to Wednesday 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.

The UAE will host the International Conference on Solar Power Technology from Saturday, 22 July to Sunday, 23 July in Dubai. The conference will bring together industry leaders as well as academics and researchers to discuss trends and innovations in the solar energy production sector.

The UK will host the London Hydrogen-Africa Green H2 Investment Forum from Tuesday, 25 July to Wednesday 26 July in London. The event will gather green hydrogen developers, investors, and policy makers to discuss challenges, regulatory frameworks, and investments in Africa’s green hydrogen market.

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

Maersk is looking to snap up Egypt’s Zafarana wind farm: The Egyptian government has received an offer from Denmark’s global shipping company Maersk for the acquisition of the state-owned 545 MW Zafarana wind farm, a government source told Enterprise Climate. The global shipping giant is reportedly looking to acquire the farm to use the generated renewable energy to support its own green hydrogen projects, they said. The news was first reported by Al Mal.

What we know: The Egyptian government, the Sovereign Fund of Egypt (SFE) and the country’s Electricity Minister were currently studying the presented offer, Al Mal quotes its sources as saying. They are also assessing assets related to its leading state-owned 580 MW Gabal El Zeit wind farm and Zafarana wind farm after receiving acquisition bids from global unnamed investors.

REMEMBER- Gabal El Zeit and Zafarana were included in the list of 32 companies and assets earmarked for privatization announced by the government earlier this year. The farms have attracted significant interest among investors, including Saudi Arabia’s Acwa Power, the UAE’s Alcazar Energy, and our friends at local renewables firm Infinity.

Gabal El Zeit wind farm has been garnering interest: UK private equity giant Actis threw its hat in the ring to acquire the Gabal El Zeit wind farm last week, a government source confirmed to EnterpriseAM. An SFE-led committee including representatives from the finance, electricity, and planning ministries reviewed multiple initial offers, the source told Enterprise, with Actis getting top marks for both its financial offer and technical know-how. The UK-based EM giant will be given full access to the data and the asset ahead of making a final offer.

What’s next: The Egyptian government is looking to secure over USD 300 mn by selling the Gabal El Zeit wind project, Planning Minister Hala El Said said last week, adding that it accepted the highest bid in June after receiving a number of non-binding offers. The buyer will be given 60 days to conduct due diligence on the asset, which the government expects will see the sale wrap up by October.

Maersk was already one of Egypt’s besties: Maersk unveiled plans last year for a USD 15 bn clean fuel project in Egypt as part of the Egyptian government’s plans to position the country as a regional hub for green energy. It plans to work with the Egyptian government to set up a national network to produce and distribute green energy and fuel for ships. The Egyptian Cabinet also approved in May requests by Norwegian renewables producer Scatec and Maersk to allocate a piece of land in the Gulf of Suez for a 320 MW wind farm that will power their green projects, which include a green hydrogen plant and the USD 15-bn clean fuel project for the latter.

Is there more coming down the pipeline? The government source told Enterprise Climate he expects the government to offer other potential investments in the Gulf of Suez by December amid a growing interest by investors in renewable energy projects in the current period.

Saudi renewables developer Acwa Power has signed financing agreements for the SAR 8.3 bn (USD 2.2 bn) Al Shuaibah 1 and Al Shuaibah 2 PV projects, according to a disclosure on Tadawul yesterday. The capital was raised from a combination of long-term debt and equity financing, the disclosure noted.

The details: Acwa Power secured a total of SAR 6.1 bn (USD 1.6 bn) in senior debt, including SAR 1.7 bn (USD 450 mn) from KSA’s National Development Fund, SAR 4.4 bn (USD 1.2 bn) in a USD-denominated debt facility from Bank Saudi Fransi, First Abu Dhabi Bank, Mizuho Bank, Riyad Bank, Saudi National Bank, Standard Chartered Bank, and Saudi Investment Bank. Equity financing will provide the remainder of the capital for the project.

The projects: Al Shuaibah 1 is an independent water and power project (IWPP) whose first phase saw the construction of a 900 MW desalination plant capable of producing some 880k m3/day of desalinated water. Planned expansion will see its capacity grow to some 1 mn m3/day. The USD 1.75 bn Al Shuaibah 2 solar energy plant is set to be the largest of its kind in the region with a 2.06 GW generational capacity. It is slated to kick off commercial operations by 4Q 2025.

There is already an offtake agreement in place: In December, a joint venture between Saudi renewable energy developer Acwa Power and Badeel signed a 35-year power purchase agreement with the Saudi Power Procurement Company (SPPC) for Al Shuaibah 2.

Acwa and Badeel have a lot more in the pipeline: In May, Badeel and Acwa Power signed power purchase agreements with SPPC to develop and operate three solar energy projects worth 4.5 GW at a price tag of SAR 12.2 bn (c. USD 3.25 bn). Both companies 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.

SolarizEgypt is gearing up for its African expansion: Egypt-based renewables company SolarizEgypt is looking to invest between USD 40-50 mn in solar PV projects across Africa by the end of the year, Al Borsa quotes SolarizEgypt founder and managing director Yaseen Abdel Ghaffar as saying. The investments are part of SolarizEgypt’s expansion plans aimed at adding 80 MW to its clean energy portfolio, Abdel Ghaffar said, without providing details on specific projects or countries, or a timeline for deployed projects.

There was word on the street: Abdel Ghaffar said last January the company was interested in entering the Kenyan, Tanzanian, and South African markets.

What we know so far: The company is looking to raise 75% of the financing needed for its Africa expansion from debt agreements and 25% from equity funding, Abdel Ghaffar says. It is already in talks for financing with six banks including HSBC, CIB, QNB Alahli, Arab African International Bank, and the Bank of Alexandria, as well as undisclosed African lenders for financing, he added.

About SolarizEgypt: Last year, European solar player Amarenco Group acquired 74% of the company’s portfolio. The two companies established a JV to co-develop 300 MW worth of solar power projects amounting to EGP 4 bn over a four-year period. SolarizEgypt has a portfolio of over 50 MW of signed solar power purchase agreements with firms including Orascom Development Holding, Arabian Cement Company, Coca Cola Bottling, and others operating in various industries. Abdel Ghaffar reportedly said back in January the company would invest USD 100 mn in Egypt over the next three years as part of its target to increase business volume and build up FX stocks.

Morocco-UK Xlinks interconnector moving forward: UK-based high-voltage direct current (HVDC) cable manufacturer XLCC — the contracted supplier of the 3.8k km interconnectors that will link Morocco and the UK under the GBP 18 bn Xlinks project — has received local approval for its HVDC manufacturing plant in Scotland, Morocco World News reported on Saturday.

The project: UK-based renewables developer Xlinks is the project developer of the Morocco-UK interconnector and the renewables projects from which it will source power. The company will lay four 3.8k km high-voltage direct current (HVDC) subsea cables to transport 3.6 GW of renewable energy — nearly 8% of the the UK’s current requirements — from a 10.5 GW solar and wind farm in Morocco’s Guelmim-Oued Noun region to Britain’s power grid in Devon. The Xlinks project boasts a total size of 1.5 mn sqm — 200k sqm of solar arrays alone. The renewable plants will be supported by a 5 GW battery storage facility. The project is expected to be fully operational by 2030.

Xlinks has been lining up capital and UAE’s Taqa is onboard: In April, Xlinks secured GBP 25 mn in funding from the Abu Dhabi National Energy Company (Taqa) and GBP 5 mn from UK-based energy supplier and renewables investor Octopus Energy for the project. Earlier in November, German energy consultancy Conenergy invested an undisclosed sum in the project under a “financial and strategic partnership.”

KSA is partnering with Engie for the production + export of green hydrogen: French energy firm Engie signed an MoU with Saudi Arabia’s Public Investment Fund (PIF) for the joint development of green hydrogen projects and its derivatives in the kingdom, a company statement said on Thursday. The green hydrogen will be planned for export to foreign markets as the country hopes to become one of the top global exporters of the green fuel.

What’s next? PIF and Engie will evaluate the feasibility of co-developing the production facilities, and will together formulate an export strategy to secure offtake arrangements. No financial details on investments nor a timeline for the launch of projects have been disclosed.

Engie wants in on green hydrogen investments in the region: Engie owns a 25% stake in an international consortium selected by Oman’s state-owned hydrogen company Hydrom last month for the development of a USD 6.7 bn green hydrogen plant in Duqm — said to become the largest in the world. The group is seeking new hydrogen projects in Saudi Arabia, the UAE, and Oman as the group’s senior VP of hydrogen for Asia, the Middle East, and Africa Stephan Gobert told The National in May. Engie signed an agreement with Fertiglobe in 2022 to study co-developing a “globally cost-competitive” 200 MW green hydrogen facility in the UAE to back the production of green ammonia, which Fertiglobe CEO Ahmed El Hoshy suggested recently would be a 100-200 MW green hydrogen project in Abu Dhabi.

Algeria is getting axed from an ambitious European hydrogen plan: Spain is now partnering with Italy and Morocco for a European-wide hydrogen transport infrastructure that will exclude Algeria on the back of diplomatic tensions with Madrid, Spanish media outlet El Periódico de la Energía reported last week. According to the outlet, the European Hydrogen Backbone (EHB) initiative has submitted an updated version of its vision for the infrastructure map where hydrogen is set to be transported through the European Union.

What we know: An updated version of the plans reveals that Spain will no longer connect the Medgaz, a submarine natural gas pipeline between Algeria and Spain, to import or export green hydrogen in 2040 as outlined in previous updates. Instead, it plans to shift focus to H2Med, a subsea hydrogen pipeline project that is being jointly developed by France, Spain, and Portugal by 2030. Recently, Germany said it plans to join the planned green hydrogen corridor, which — once operational in 2030 — will supply an estimated 2 mn metric tons of the green fuel (c.10% of the EU’s hydrogen demand), according to officials. The corridor, which was first announced in October, is expected to cost some USD 2.6 bn.

And there’s more: Spain is also seeking a hydrogen interconnector project with Italy through a 792-kilometer long pipeline connecting Barcelona and Leghom, according to El Periódico de la Energía. The infrastructure is expected to be in place in 2040.

Some things are staying the same: Despite Algeria being axed from the Spanish plans, the connection to the Maghreb-Europe gas pipeline, which carries natural gas from Algeria to Spain via Morocco, will remain in place. The possibility of purchasing hydrogen from Morocco and transporting it to Europe through the existing pipeline is also being considered.

REMEMBER– The Maghreb-Europe pipeline was shut down in the fourth quarter of 2021 on the back of a diplomatic row between Algeria and Morocco that was exacerbated by Madrid's stance on the disputed territory of Western Sahara. However, the pipeline was reopened in June 2022 in the opposite direction with natural gas flowing from Spain towards Morocco.

IN OTHER EU NEWS- REPowerEU is getting more funding: The European Investment Bank’s board of directors has approved increasing funding for the bloc’s REPowerEU strategy — which aims to slash EU fossil fuel imports — from EUR 30 bn to EUR 45 bn, according to a statement released last week. The funds, which are expected to be mobilized by 2027, will be channeled toward funding solar energy projects, wind power ventures, green hydrogen-related investments, including in electrolyzer technologies, battery energy storage systems, biofuel generation, carbon capture and storage projects, and smart grid technology integration, the statement notes. The increase in capital is expected to mobilize EUR 150 bn in additional investments for the targeted sectors under REPower EU’s umbrella, the bank notes.

And an Morocco-EU green hydrogen interconnector stands to benefit: Last month, Moroccan hydrogen developer Gaia Future Energy signed a partnership agreement with Spanish hydrogen provider HyDeal that will see them form a JV — HyDeal Africa — to transport green hydrogen from Gaia Future Energy projects in Morocco and Mauritania to Europe in a bid to meet EU energy demands. The project, which aims to facilitate the transport of 1 mn tons of green hydrogen from Morocco to Europe by 2030 and 5 mn tons from Mauritania to the bloc by 2035, falls under the umbrella of Europe’s RepowerEU plan of importing 10 mn gallons of green hydrogen by the end of the decade.

Is the color of the ocean changing hues? In the past two decades, over 56% of the world’s oceans have changed colors in a manner that is not explicable by natural variability, leading experts to blame the phenomenon on climate change, CNN reported last week. The color of oceans and other waterways stems from the materials in their upper layers; a deep blue sea signifies little marine life, whereas greener waters indicate the existence of ecosystems that are dependent on plant-like organisms that contain chlorophyll known as phytoplankton, the news outlet explains.

What does this mean? Tropical oceans, which have an abundance of the phytoplankton necessary for sustaining marine life, have become greener over the past 20 years, which reflects a change in the ecosystem, according to research by scientists from the National Oceanography Center in the UK and the Massachusetts Institute of Technology in the US. The study used NASA’s earth orbiting satellite Aqua to analyze data collected between 2002-2022 to weed out differences in sea colors that are indistinguishable to the human eye.

The implications are not yet clear: While the changing of ocean colors still does not clearly indicate how ecosystems are changing, the researchers predict some regions will likely experience a shortage in phytoplankton growth, others will experience an increase, but ultimately it is probable all parts of the ocean will see alterations in the variety of phytoplankton they host as a result of climate change. Changes in phytoplankton volumes — which are natural carbon sinks that store greenhouse gasses — will hinder the ocean’s ability to store CO2 and will likely cause an imbalance in “the natural organization of ecosystems,” study co-author Stephanie Dutkiewicz notes.

Aramco and Aker is partnering up on CCUS: Saudi Arabia’s oil giant Aramco and Norway-based Aker Carbon Capture have signed a MoU to explore partnership opportunities to employ carbon capture, utilization and storage (CCUS) and industrial modularization in the kingdom, according to a statement released on Thursday. The two-year MoU is set to focus on carbon emissions reduction and removal through the technology from industries and energy solutions by providing modular carbon capture plants.

The UAE outlines its national EV policy: UAE Energy and Infrastructure Minister Suhail Al Mazrouei shed more light on the country’s strategy for electric vehicle adoption as part of a wider National Energy Strategy update released last week, Wam reported on Thursday. The policy will establish a technical and regulatory framework for EV adoption in the country including for EV battery recycling, help set up EV infrastructure nation-wide, as well as provide economic and environmental incentives to accelerate the transition from combustion engine vehicles, Al Mazrouei noted. The new strategy is part of the country’s target to have EVs comprise 50% of all vehicles on UAE roads by 2050. On the EV front, the country’s updated strategy would focus among other areas on establishing a national network of electric vehicle chargers, UAE Prime Minister Prime Minister Mohammed bin Rashid Al Maktoum had said. The policy will contribute to reducing energy consumption in the transport sector by 20% through the UAE’s Green Mobility Project.

The Suez Canal Economic Zone (SCZone) is looking to roll out green methanol bunkering services before 2027, which was the initially expected timeline, Al Mal quotes SCZone chief Walid Gamal El Din as saying. The SCZone is looking to expand the scope of its bunkering services in the near future, he added, indicating that the authority has received hurried requests for services to supply ships with green methanol and green gas products.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Digital Dewa — the digital arm of the Dubai Electricity and Water Authority (Dewa) — has signed an MoU with Huawei to boost digital transformation and decarbonization as well as establish a future-oriented power communication network. (Statement, pdf)
• Egypt’s Oil Minister Tarek El Molla met with German natural gas producer Verbundnetz Gas Agbo to discuss cooperation on renewables and green hydrogen production and storage. (Statement)
• UAE President Mohamed bin Zayed Al Nahyan and India’s Prime Minister Narendra Modi have agreed to boost cooperation on renewables and green hydrogen. (Wam)
• UAE’s PureHealth has become the first health sector company in the Middle East, Africa, and Asia to commit to net zero emissions as early as 2040. (Khaleej Times)

Tesla and India have kicked off discussions about establishing an EV factory with an annual capacity of up to 500k electric vehicles, The Times of India reported on Thursday, citing government sources with knowledge of the matter. The US electric car manufacturer is also looking to use India as a base for car exports to countries in the Indo-Pacific, they added. “Tesla has come to us with an ambitious plan, and we are confident that the movement will be positive this time around, especially as it involves both local manufacturing and exports,” one of the sources said. The prices of the vehicles are set to start from INR 2 mn (c. USD 24.4k), according to the report.

A change of heart? The start of talks with the Indian government represents a shift in strategy for Tesla, whose previous talks with India were deadlocked last year after the Indian government turned down a request by the EV giant to lower import taxes on vehicles, Reuters reported on Thursday. In revived efforts, Tesla held talks in May with Indian officials about incentives offered by the latter for car and battery manufacturing.

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The German Federal Network Agency has awarded TotalEnergies and BP offshore wind farms totalling 7 GW in capacity worth c. USD 14 bn, Reuters reported last week. In an auction held last week, BP came out as the selected bidder to develop two projects worth 4 GW out of the total 7 GW, the newswire notes. BP will use the clean energy from the projects to support its biofuel, low-carbon, and green hydrogen production targets, as well as supply power for its EV charging networks. TotalEnergies earned the rights to develop the two remaining projects, which will generate 3 GW of clean energy.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Sydney-based Origin Energy has received an AUS 70 mn (c.USD 48 mn) financing package from the Australian government to develop the Hunter Valley green hydrogen production hub, which is expected to generate 5.5k tons annually in its initial phase. (Reuters)
• Chinese automaker BYD reportedly submitted a USD 1 bn investment proposal to the Indian government to develop EVs and batteries in the country. (Reuters)
• Five Norwegian projects have received a total of EUR 510 mn from the EU Innovation Fund. The projects include a green ammonia plant, a battery factory, and a synthetic graphite plant. (Reuters)

Ultra white paint, a cool solution to a warming planet: An ultra white paint developed by a team of engineers at Purdue University could reduce the need for air conditioning in buildings as the world continues to warm, The New York Times reported last week. The paint, which is a Guiness World Record holder as the world’s whitest paint, now has the world waiting. “We weren’t really trying to develop the world’s whitest paint,” said Xiulin Ruan, a professor of mechanical engineering at Purdue University. “We wanted to help with climate change, and now it’s more of a crisis, and getting worse. We wanted to see if it was possible to help save energy while cooling down the Earth.”

How it works: The paint — first unveiled in 2020 — can reflect 95% of the sun’s rays away from Earth and into space. Since that announcement, the team has developed a formula that raised sunlight reflection to 98%. The paint can make surfaces up to 8°F cooler than air temperatures at midday and up to 19°F cooler at night. This would help reduce temperatures inside buildings and slash the use of ACs by nearly 40%.

Don’t expect it to roll out soon: The paint won’t be ready for commercial use for at least a year, Ruan said. His team is also working on developing colored paints that use the ultrawhite as a base. “They will work less ideally than the white, but better than some of the other commercial colors,” he said.

Not fully-climate friendly: The standard version of the ultra white paint uses barium sulfate, which needs to be mined in a process that produces carbon emissions. However, Ruan says it creates no more damage than producing regular commercial paints, which use titanium dioxide that also has to be mined.