G20 energy ministers fail to reach consensus on fossil fuels phasedown

Good morning, nice people. We hope some of you had a restful long weekend, because the climate industry apparently had zero chill while we were on publication holiday, giving us a meaty issue to start off the week.

THE BIG CLIMATE STORIES- Indian renewable energy company Acme Group has secured a c. USD 487.8 mn loan from Indian infrastructure financial institution REC Limited for its the green hydrogen and ammonia project it is building with Norway’s Scatec in Oman. In the KSA, Saudi sovereign wealth fund the Public Investment Fund signed an MoU with Japanese power generation company Jera to explore opportunities in the production of green hydrogen and its derivatives in the kingdom.

^^ We have more details on these stories and 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 a failure by G20 nations to reach consensus on a fossil fuels phasedown continued to get coverage by international press over the weekend as they highlighted the shortfall on climate action ahead of COP28. We have all the details on this story in the news well, below.

The G20 meeting got coverage over the weekend from: Reuters | Bloomberg | AFP | The Financial Times | The Guardian

ALSO- Greece’s raging wildfires force mass evacuations: Some 19k people were evacuated from parts of Greek island of Rhodes on Sunday on the back of wildfires caused by soaring record temperatures in southern Europe, Bloomberg reported. Around 16k tourists and locals were evacuated by land while 3k people were evacuated by sea in what is described as the largest evacuation caused by a wildfire in the country’s history.

The evacuation got coverage from Reuters, AFP, The Guardian, and CNN.

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IN THIS WEEK’S EPISODE- We ask some of the biggest multinationals and suppliers operating here — namely, in logistics, e-commerce, and FMCG — what it is they’re looking for in a local partner, product or service and what are some of the pain points they’ve had to deal with. We were joined on that panel by Khaled Morsy, CEO of DB Schenker Egypt, Omar Elsahy, General Manager at Amazon Egypt, Tarek Kamel, Chairman and CEO of Nestlé Egypt and Sudan.

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OVER IN COPLAND- Al Jaber wants more countries signing up to Global Cooling Pledge: COP28 President Designate Sultan Al Jaber has called on more nations to join a pledge aimed at delivering more sustainable cooling solutions globally, according to a statement. “We cannot expand cooling on a business-as-usual basis. Without strong policy action, emissions from the sector will rise between 7 to 10 percent from today. To solve this dilemma, we need a rapid transition to energy-efficient and climate-friendly cooling,” Al Jaber said on the sidelines of the 14th Clean Energy Ministerial alongside the G20 Energy Transitions Ministerial Meeting. “In a warming world, sustainable cooling is critical for reducing GHG emissions, protecting against heat stress, enabling productivity, reducing food loss, and enhancing access to healthcare,” he added.

About the pledge: The Global Cooling Pledge is a partnership announced between the COP28 Presidency and the United Nations Environment Program (UNEP) in January. It aims to provide incentives to governments and other stakeholders to focus on sustainable cooling in five areas, including nature-based solutions, super-efficient appliances, and district cooling.

IN OTHER COP NEWS- Stay tuned for close collaboration between COP28, IEA: The COP28 Presidency and the International Energy Agency (IEA) convened the first of high-level dialogues aimed at building consensus over a 1.5°C aligned energy transition, Wam reported on Saturday. The dialogues aimed to achieve agreement on a 1.5°C energy transition course and to create an enabling environment to achieve them. It also aims to build up momentum for the targeted energy outcomes for COP28.

AND- Trade will get special attention at this year’s summit: International trade will be given prominence during COP28 for the first time later this year, according to a statement by the World Trade Organization (WTO) last week. The WTO Secretariat is invited by the UAE Economy Ministry and the UAE Climate Change Special Envoy’s Office to co-lead the COP28 Presidency Committee on trade, bringing together the The United Nations Conference on Trade and Development, the International Chamber of Commerce, the World Economic Forum, and the Abu Dhabi Department of Economic Development to help outline discussions on trade during the program. It will be subject to a dedicated day set for 4 December under the COP28 Presidency Thematic Program.

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WATCH THIS SPACE #1- Oman’s sovereign wealth fund bets big on an Italian firm’s renewable energy storage: Innovation Development Oman Investments (IDO), the venture capital arm of Oman’s sovereign wealth fund, was named among new investors in Italian battery startup Energy Dome’s technologies, according to a statement released on Thursday. The size of IDO’s investment was not disclosed. The announcement comes as Energy Dome closed the second tranche of its series B funding, bringing the overall round to a total of EUR 55 mn (c. USD 60 mn). Other new investors include Dutch oil and chemicals storage firm Royal Vopak’s corporate capital arm Vopak Ventures and investors representing impact advisory firm Sagana.

About the tech: Energy Dome’s technology includes the trademarked CO2 Battery, a long-duration energy storage system that focuses on turning CO2 gas into a liquid and vice versa, the statement notes. The method does not rely on strategic raw materials, needing no need for minerals, including lithium and copper, that are currently central to much clean technology, Reuters reports.

More to come? The Milan-based firm also signed a MoU with Oman’s sovereign wealth fund to “explore potential areas of collaboration in the Sultanate of Oman,” the statement read, without providing further details on the collaboration.

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WATCH THIS SPACE #2- World’s first liquified hydrogen carrier arrives in Saudi Arabia: Saudi Arabia’s Energy Minister Abdulaziz bin Salman toured Kawasaki Heavy Industries’ liquified hydrogen carrier at the Jeddah Islamic Port last week, the Saudi Gazette reported on Thursday. The 116 meter, 19 meters wide ship has a 1.25k cubic meters storage capacity storing hydrogen at -253°C.

ALSO- KSA will join Clean Energy Ministerial’s Hydrogen Initiative: Saudi Arabia is reportedly set to join the multi government Hydrogen Initiative spearheaded by India-based clean energy forum Clean Energy Ministerial, Reuters reported on Friday. The initiative aims to connect hydrogen producing and importing countries to discuss international trade of the green fuel.

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WATCH THIS SPACE #3- Dutch emissions laws could be putting green investments at Rotterdam at risk: A strict cap on nitrogen emissions in the Netherlands could put c. EUR 10 bn of green tech and renewables investments at Europe’s biggest port Rotterdam “at risk,” outgoing Rotterdam port CEO Allard Castelein told The Financial Times in an interview last week. He revealed that permits for developers to emit nitrogen oxides and nitrates during the construction process have become difficult to obtain after a court ruled that the country has breached sustainable emissions levels. “All these manufacturing sites need to be up and running in the next few years. There is a 2030 climate target. We have no time to lose. We need a long-term solution,” Castelein said.

Why this matters: The issues facing Europe’s biggest port could put a wrench in some regional players’ plans. Those include a planned green hydrogen maritime corridor by Spanish oil company Cepsa — which is majority owned by UAE sovereign fund Mubadala. Saudi oil giant Aramco is also one of several energy firms mulling the establishment of a large-scale ammonia cracking plant at the port.

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CIRCLE YOUR CALENDAR-

The UK will host the London Hydrogen-Africa Green H2 Investment Forum from tomorrow to Wednesday 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, national holidays and news triggers.

A deadlock on fossil fuels phasedown at G20: A meeting of G20 energy ministers failed to reach consensus on Saturday at the Energy Transitions Ministerial Meeting on a fossil fuels phasedown as several major fossil fuel producing nations led by Saudi Arabia blocked the move, the Financial Times reported. Talks held in the coastal province of Goa in India were intended to set the tone on energy transition ahead of the G20 meeting next September and the COP28 in December, but the resulting deadlock could be the latest sign of trouble on the use of fossil fuels ahead of a decisive COP28 later this year in the UAE.

What we know: The impasse led to officials only issuing an outcome statement and a chair summary instead of a joint communique which is usually issued when a complete consensus is reached between member countries on all issues. In a summary document released on Saturday, G20 countries said that some member states had stressed on the necessity to scale down the use of fossil fuels without the capture of emissions “in line with different national circumstances,” according to the FT. Yet, others “had different views on the matter,” opting to focus on the development of technology to capture greenhouse gas emissions instead. Two sources told Reuters that officials failed during the four-day meetings to reach agreement over curbing “unabated” use of fossil fuels and disagreed over the language to be used to describe the path to slash emissions.

Saudi Arabia and Russia are culprits: Several people familiar with the talks told the salmon-colored paper that Saudi Arabia led the cluster of countries pushing against the fossil fuel phasedown. Along with Russia, Saudi Arabia also turned down a proposal that would see G20 countries tripling their renewable energy capacity by 2030, Reuters reported, citing three sources who attended the G20 meeting. They said that China, the world’s biggest greenhouse gas emitter, and coal exporters South Africa and Indonesia also opposed the plan. They added that India, which currently assumes the G20 presidency, took a neutral stance on the topic.

REMEMBER- G20 member nations account for over three-quarters of global emissions and gross domestic product, according to official data, with a group effort by the bloc for decarbonization decisive in the world’s fight against climate change.

What does this mean for COP28? The failure to reach consensus on a key fossil fuel phasedown sparks worries of a lack of consensus once again on a phaseout of fossil fuels at this year’s summit after top oil producers like Saudi Arabia blocked the effort at COP27 last year. The pushback comes days after COP28 President Designate Sultan Al Jaber said that a phasedown of fossil fuels was “inevitable” and “essential” during a climate-focused meeting in Brussels where he unveiled the action plan for the Dubai-hosted climate summit.

We already knew some were not fully on board: COP28 Director-General Majid Al Suwaidi revealed earlier this month that there were a large number of countries that are not yet on board. “There’s a lot of debate over whether a timeline is useful, or even realistic,” Al Suwaidi said.

Acme’s Omani green hydrogen project gets a kickstart: Indian renewable energy company Acme Group has secured a INR 40 bn (c. USD 487.8 mn) loan from Indian infrastructure financial institution REC Limited for its the green hydrogen and ammonia project it is building with Norway’s Scatec in Oman, according to a statement released on Friday. The funds will be used to break ground on the first phase of the project in Oman’s Special Economic Zone (SEZ) in Duqm.

About the project: The first phase of the project is expected to produce 100k tons of green ammonia annually. It would then be expanded at later stages to 1.2 mn tons per annum with about 3.5 GW of electrolyzer capacity powered by 5.5 GW from a solar PV plant.

REFRESHER- The project is being executed by the Green Hydrogen and Chemicals Company (GHC), a joint venture between Acme’s UK entity and Norway’s renewables giant Scatec. Last year, Oman’s Public Authority for Special Economic Zones and Free Zones (OPAZ) signed the land usufruct agreement with GHC to develop the first phase of the green hydrogen and ammonia facility.

Acme has other regional projects picking up steam: A group consisting of Egypt’s Suez Canal Economic Zone (SCZone), Orascom, and Elsewedy Electric met with India’s Acme Group in New Delhi last month where they agreed to begin construction soon on a USD 12 bn green hydrogen plant in the SCZone. The plant — announced back in August 2022 — will span 4.5 mn sqm and have an expected initial annual production capacity of 100k tons during the first phase. The plant’s generational capacity will increase to 2.1 mn tons of green hydrogen when fully operational.

It’s been a busy month for Oman: Oman’s state-owned hydrogen company Hydrom signed earlier this month an agreement with the the Hyport Duqm Consortium — a JV between DEME Concessions and OQ Alternative Energy — to build a green hydrogen production facility to produce some 1 mn tons of green ammonia. The signing came days after Hydrom awarded last month two green hydrogen blocks that are expected to rake in investments exceeding USD 10 bn.

KSA’s PIF and Japan’s Jera partner on green hydrogen production: Saudi sovereign wealth fund the Public Investment Fund (PIF) signed an MoU with Japanese power generation company Jera to explore producing green hydrogen and its derivatives, according to a statement released on Thursday.

The details: Under the agreement, both parties would conduct the necessary feasibility studies for green hydrogen production projects and their derivatives — which could include green ammonia, green methanol, and e-fuels — for both domestic and international markets, the statement notes.

Jera is also building other partnerships in the region: The company signed a strategic collaboration agreement with the UAE’s Adnoc in a bid to increase cooperation in the green hydrogen production sector, according to another statement. Back in February, Jera inked an agreement with Abu Dhabi National Energy Company (Taqa) to explore the feasibility of low-carbon green hydrogen and thermal energy production projects in MENA. Earlier in January, the company signed an MoU with UAE renewables company Masdar to explore joint hydrogen production potential.

FAB pulls the trigger on inaugural green sukuk issuance: The UAE’s largest bank First Abu Dhabi Bank (FAB) issued a three-year AED 1.3 bn (c. USD 350 mn) shariah-compliant green sukuk, according to a statement released on Thursday.

The details: The green sukuk was priced at 4.93% on Wednesday — the lowest price offering in the AED market for the bank to date, the statement notes. The issuance marks a first for the bank both in terms of green sukuk and AED-denominated issuances, it adds. FAB acted as joint lead manager and green structuring agent on the issuance, the statement notes.

FAB is a major player in the GCC’s green bond scene: Hailed as a leader in regional green financing, the bank issued a USD 600 mn five-year green bond last June, upsized from an initial target of USD 500 mn on the back of a 2.8x oversubscribed orderbook. FAB acted as one of the lead managers for Majid Al Futtaim’s most recent green sukuk issuance — which saw the UAE retailer raise USD 500 mn — and also acted as an advisor on Abu Dhabi National Energy Company’s shariah-compliant USD 1.5 bn dual-tranche green bond issuance and Dubai Islamic Bank’s second green sukuk issuance, which saw it raise USD 1 bn. The bank also served as an advisor on Saudi Electricity Company’s USD 2 bn green bond last April. In 2022, the bank raised USD 1.49 bn through three green bond issuances.

REMEMBER– Interest in green and sustainable finance issuance has been on the rise in the region in recent months ahead of COP28 in the UAE. BNP Paribas said earlier this year that it forecasts the global climate-friendly bond sales to climb up to c. USD 600 bn, outstripping 2021’s all-time high. The MENA region reported a 532% y-o-y rise in green and sustainable finance to USD 24.55 bn in 2021, up from USD 3.8 bn a year earlier, according to a report by consultancy Arthur D Little.

More Masdar green bonds coming next year: The UAE’s state-owned renewables developer Masdar is planning more green bonds sales in 2024 after it raised USD 750 mn in a debut green bond sale, Chief Financial Officer Niall Hannigan told Bloomberg in an interview last week. The debut bond sale is the first part of an ambitious push by Masdar to raise up to USD 3 bn in bonds for new renewable energy projects in UAE and abroad under a plan to grow its global portfolio to 100 GW of capacity by 2030, according to a statement released last week.

About the debut sale: Masdar announced last week it has raised USD 750 mm after its debut green bond issuance lured in over USD 4.2 bn in demand from regional and international investors, the statement notes. Net proceeds from this bond and other future offerings will be used to invest exclusively in “dark green” renewable energy projects, with most earmarked for developing economies and climate-vulnerable countries.

Where is the money going? Proceeds from the debut bond will be used to finance investments in clean energy projects in Uzbekistan and Azerbaijan, repaying two USD 250 mn bridge loans for a 230 MW solar project in Azerbaijan and 500 MW wind project in Uzbekistan, Hannigan told Reuters in a separate interview. The remaining USD 250 mn will be used for three solar projects in Uzbekistan that will see a financial close soon, he added.

Big acquisitions and expansions talk: “We plan to grow significantly in the North America market … it is very much a market where M&A is going to be absolutely critical,” Hannigan told Reuters. Masdar is in active talks over acquisition targets in the US on the back of US President Joe Biden’s USD 430 bn Inflation Reduction Act, he added. The company is also looking to expand primarily in southern Europe, the Balkans and eastern Europe, Hannigan said, with expansion pegged for existing markets including the UK, Poland, Serbia, Montenegro and Greece. KSA will also be a “huge area of growth”, he added, along with Central Asia, Asia-Pacific and Africa tapped for potential future growth by Masdar.

Masdar is eyeing an impressive portfolio: Masdar is planning to grow its global portfolio to at least 100 GW by 2030, according to its statement. It is also eyeing green hydrogen production of 1 mn tons per annum by 2030. The combined capacity for its global portfolio is estimated at 20 GW across 40 countries.

UAE-based startup Sulmi debuted its Sulmi EB-One all electric motorcycle in Sharjah, according to a statement released last week. Designed and manufactured in Sharjah Research, Technology, and Innovation Park (SRTIP)’s SoiLAB, the EB-One is the first electric motorcycle wholly manufactured and designed in the Emirates. The EV is not yet available for sale and has not been priced yet.

The details: The EB-ONE packs a 10.4 KW battery, can cover 300 kilometers on a full charge, and has a 150 KM/h top speed, The National notes. The EV can recharge 80% of its battery capacity in one hour.

And there’s more EV action happening in Sharjah: Sharjah Taxi — a subsidiary of transport and logistics firm Osool Transport Solutions — began testing the all electric four seater Skywell ET5 EV at Sharjah International Airport, Wam reported last Thursday. The EV —- retailing for AED 180k — has a 520 km cruising range on a full charge.

The UAE’s EV sector is growing: The first EV assembly facility in the UAE was inaugurated in Dubai back in October. The M Glory Holding Group-owned AED 1.5 bn Al Damani Auto EV plant can currently assemble 10k cars annually, but it plans to raise the production capacity to 55k cars per annum over the coming few years. Over in Abu Dhabi, UAE-based green mobility company NWTN said last week it would establish a new integrated electric vehicle production line in the UAE and expand its EV factory in Abu Dhabi.

India’s mobility startup Pravaig Dynamics could be setting shop in KSA: India’s deep tech mobility company Pravaig Dynamics signed an MoU with EV-focused investment firm Saudi India Venture Studio (SIVS) to explore establishing an electric vehicle production facility in Saudi Arabia, according to a statement released last week.

What we know: The MoU will pave the way for both companies to co-develop, supply and service special purpose vehicles, including EVs, AI-driven solutions, advanced batteries, and energy storage solutions, the statement said. They are looking to set up a left-hand drive electric production facility with a manufacturing capacity of up to 1 mn units catering to the GCC, Europe and the US. The two companies will aim to unlock potential ventures with “a projected value exceeding USD 31 bn across international markets,” the statement added.

About the involved firms: Founded in 2011, Pravaig Dynamics is a deep tech mobility company specialized in manufacturing EVs, batteries, and artificial intelligence solutions for autonomous vehicles, according to its website. SIVS is a Saudi government-backed firm that aims to accelerate the EV market in the kingdom, according to local press.

REMEMBER- Saudi Arabia is all in for EVs: Saudi Arabia’s SNB Capital acquired an undisclosed stake worth USD 100 mn in Korean battery manufacturer SK On through the Saudi financial institution’s SNB Capital EV Batteries fund earlier this month. Saudi Arabia’s sovereign wealth fund the Public Investment Fund (PIF) owns a 60.46% stake in EV company Lucid, and provided the majority of the funds for a USD 3 bn stock offering by the US EV maker back in June. Lucid said late last year that 80% of EVs will be made in Saudi Arabia by 2030. The company also plans to produce 155k EVs yearly in Saudi Arabia once full-fledged production capacity is achieved by 2025. The PIF also became Aston Martin’s second-largest shareholder with a c. 17% stake last year as the British luxury maker shifts focus on transitioning to electric and plug-in hybrid models in the coming years.

One Moto secures funds for delivery EV vehicles expansion: British sustainable mobility startup One Moto Technologies has secured USD 40 mn in lease financing to accelerate the leasing of electric delivery vehicles throughout the UAE, according to a statement released last week. The financing round was led by sustainability funding platform Pyse, the company said.

Where the funds are going: The investment would allow One Moto to expand its offering of electric delivery vehicles to customers and further cement its network across the UAE, digital platform SME10x notes.

Plug and play: One Moto’s motorcycles will not need a charging infrastructure beyond the standard 3-pin socket, CEO Adam Ridgway told SME10x, and the bikes deployed in the UAE come with swappable battery banks. One Moto’s vans use standard type-2 chargers, which can be installed within any company facilities if needed. The company is working with various UAE EV charging companies to supplement the demand, Ridway added, and noted that One Moto’s R&D team is developing groundbreaking charging for all EVs due by 4Q 2023.

Looking ahead: One Moto is targeting having 50k vehicles in the UAE by 2025 as part of the UAE’s plan to have a “stricter emission target with [a] 40% cut by 2023” as stated by UAE’s Climate Change and Environment Minister Mariam Al Mheiri, according to SME10x.

About One Moto: The London-headquartered sustainable mobility startup offers a wide fleet of delivery vehicles including motorcycles, e-bikes, scooters, delivery and grocery vans, according to its website. It is currently present in the UK, UAE, Sri Lanka, Nepal, Ethiopia, Bahrain, Jordan and Chile.

The UAE and Turkey have agreed to expand cooperation in the renewables and green fuels production sectors, Wam reported last week. The UAE’s President Mohammed bin Zayed Al Nahyan and Turkish counterpart Recep Tayyip Erdogan inked an agreement that will see both countries pour in “large scale investments” across the renewable energy, green hydrogen, hydroelectric power production sectors, as well as finance transmission projects and battery storage facilities. Both countries also want to expand cooperation on nuclear energy production and emerging technologies including carbon capture, storage and utilization, the news agency notes.

Turkey has big renewables targets: Turkey revealed a new national energy plan in January, increasing the quota of renewable energy generation in its energy mix by 7 percentage points by 2035 to 23.7% — up from 16.7% in 2020. The country aims to generate an ambitious 190 GW of clean power by 2035 to help realize its net zero commitment and is eyeing a green hydrogen electrolyzer generational capacity totaling 2 GW in 2030, increasing to 5 GW in 2035.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• The Export-Import Bank of the United States (EXIM) and the Bahrain Finance and National Economy Ministry will sign an MoU to facilitate EXIM funding of US exports to the kingdom for energy efficiency, carbon capture, and energy transition projects. (Statement)

Armed forces globally are looking into how to decarbonize more effectively ahead of COP28, a British general advising on climate issues at the UK Defense Ministry told The National in an interview on Saturday. Lt. General Richard Nugee, the chief adviser for climate change and sustainability at the ministry, said the British armed forces are considering the use of nuclear power to supply bases and new fuels for warships under a plan to slash emissions.

And there’s more: Nugee says the British army is actively looking at a technology developed by Rolls Royce that could overhaul generating the energy needed by the military. Micro nuclear plants that fit into 12 meter shipping containers could produce 5 MW of clean energy over five years without refueling, which Nugee says can be used for creating water, synthetic fuel, or hydrogen. The UK Royal Navy is also considering having its next generation of warships designed to help accommodate future fuels, he added.

The elephant in the room: Emissions by armed forces globally are often not disclosed, given that they are not bound by international climate agreements to report or slash emissions. Militaries are believed to account for 5.5% of global greenhouse gas emissions, according to a 2022 estimate by international experts. It is estimated that to rebuild Ukraine will use 100 mn tons of carbon dioxide emissions, The National notes. Even in times of peace, the British military consumes about 3.5 mn tons of carbon emission annually, it adds.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• How extreme heat will reshape economies: Recording breaking temperatures are leading industry leaders to rethink how climate change will alter the way the manufacturing, agriculture, transport, tourism, and ins. sectors do business. Climate-induced heatwaves have reportedly cost the global economy c. USD 16 tn over a 21 year- period from the 1990s. (Financial Times)
• No solid accuracy on EV range estimates: The process used to determine EV ranges by the US Environmental Protection Agency and others including automakers could be flawed as they don’t take into account users’ driving methods. (CNBC)
• Are vegan diets more environmentally friendly? Vegan diets could help in cutting environmental damage, leading to 75% less climate-heating emissions, water pollution and land use than meat-rich diets, according to a recent study. (The Guardian)

UAE establishes a maritime decarbonization center: The UAE’s Energy and Infrastructure Ministry and Norwegian maritime industry advisor and classification society DNV have established a maritime decarbonization center in the Emirates, according to a statement released on Friday. The center will function as a hub for research and development of decarbonization tech aimed at pushing down the emissions generated by the maritime sector. It will also conduct joint-industry projects, incubator and accelerator programmes, foster talent development initiatives, and provide access to funding opportunities, the statement notes.

Mega WtE plant transfers renewable energy to Dubai’s grid: Swiss-based WtE cleantech company Hitachi Zosen Inova and Belgium’s Besix oversaw the first electricity transmission from its waste-to-energy (WtE) plant in Warsan to Dubai’s power grid earlier this month, according to a statement released last week. The plant — which is still under construction — currently receives some 2k tons of nonrecyclable waste on a daily basis. Once fully operational in 2024, the facility will treat 1.9 mn tons of waste annually and produce some 220 MW of renewable thermal electricity.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Want a green driving license? Abu Dhabi-based Emirates Driving Company and Dubai’s greentech startup CarbonSifr will enable motorists to offset emissions while issuing or renewing driving licenses. (Khaleej Times)
• The Dubai Water and Electricity Authority (Dewa) has joined the EV-focused Charging Interface Initiative as a core member, enabling Dewa to establish EV industry standards for charging systems. (Wam)
• Egypt granted a golden license to EGP 73.5 mn recycling project by Sweden-based EnviroProcess in Upper Egypt’s Minya. (Statement)
• UAE’s Adnoc has concluded drilling for the world’s first fully sequestered CO2 injection well in Abu Dhabi’s carbonate saline aquifer. (Statement)
• The Environment Agency – Abu Dhabi has outlined a comprehensive five-year plan aimed at accelerating climate action and resilience. (Wam)

The UK’s Vertical Aerospace completes first test flight for eVTOL: UK electrical vertical take-off and landing (eVTOL) aircraft manufacturer Vertical Aerospace Ltd completed the first test detached flight for its VX4 aircraft flying at some 70 km/h, Bloomberg reported last week. The company — which is looking to achieve certification for its aircraft by the end of 2026 — has already secured some 1.4k preorders for its eVTOLs from companies including Virgin Atlantic Airways Ltd, American Airlines Group Inc., and Avolon Holdings Ltd.

eVTOL taxis could be taking off in the US by 2028: The US’ Federal Aviation Administration says eVTOL taxis will begin servicing US cities as soon as 2028 by complying to pre-existing flight rules for helicopters and other low-altitude airplanes, Bloomberg reported last week. Last week, the US regulator published regulations aimed at creating a structured mechanism for building a pipeline of eVTOL-adept pilots in the country. The initial phases of eVTOL deployments will involve manned flights, as opposed to autonomous robotic controlled flights, Bloomberg writes. The global eVTOL market is expected to grow at a CAGR rate of 14.90% from USD 8.2 bn in 2021 to USD 24.9 bn in 2030, according to a report by Business Intelligence Insights.

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India’s Tata Group to build USD 5 bn gigafactory in the UK: Indian multinational conglomerate company Tata Group will invest GBP 4 bn (c. USD 5.1 bn) to build a gigafactory for EV battery production in the UK, CNBC reported last week. The EV battery production plant is expected to have an initial output capacity of 40 GWh once operational in 2026, potentially supplying half of the UK’s battery demands by 2030. The production plant will also supply Jaguar Land Rover — a subsidiary of Tata Motors — with EV batteries. The UK government is expected to pay GBP 500 mn in subsidies to support the project, the Financial Times reports.

A green British carrier next year? British green energy entrepreneur Dale Vince plans to launch Britain’s first electric airline early next year, he told The Guardian last week. Ecojet — labeled as a “flag carrier for green Britain” — will launch a 19-seater jet traveling on a Edinburgh-Southampton journey. The planets will operate initially on kerosene-based fuel for the first year, before shifting to engines that can convert green hydrogen into electricity. A second phase will be launched 18 months later with 70-seater jets capable of flying to Europe, Vince said. His company is currently applying for a license from the Civil Aviation Authority to help ensure takeoff and landing slots at airports, he added.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Japan’s Jera will invest USD 300 mn in green tech startups through its new venture capital arm Jera Ventures. (Reuters)
• The US plans to hold its first offshore wind power auction in the Gulf of Mexico next month. (Reuters)
• Venezuela is in early discussions with the EU over a USD 1.5 bn methane capture project for export to Europe as natural gas. (Bloomberg)