Mubadala Energy partners with Pertamina + Chevron to explore Indonesia’s geothermal potential

Good morning, ladies and gents. It will be a brisk morning read, but first, we have a small announcement to make…

We’re fine-tuning our publication schedule. Starting today, we’re going to be dispatching Enterprise Climate a few hours later. Climate will hit your inboxes at 9am CLT. (Add one hour for our readers in Saudi and two for our readers in the UAE.)

Why the change? In our ideal world, folks wake up and start their days with EnterpriseAM — and then read an industry vertical if it is meaningful to their work lives or simply interests them.

THE BIG CLIMATE STORY- The UAE’s Mubadala Energy signed an agreement with Indonesia's Pertamina Geothermal Energy and US oil-giant Chevron to explore potential geothermal energy projects in

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

HAPPENING TODAY: The MENA Solar Conference is kicking off today in Dubai and running through to Saturday. The event will offer a full program on PV materials and devices, future technologies, and forecasting for performance assessment. The conference will also touch on how developments in system operations, concentrated solar power, and the grid integration necessary for the green transition.

THE BIG CLIMATE STORY OUTSIDE THE REGION- The world on track for a 9% emissions hike by 2030: Even if countries meet their current carbon slashing targets under Nationally Determined Contributions (NDCs), greenhouse gas emissions are on track to rise 8.8% from 2010 levels by 2030, according to a new UN report. The UN predicts the world’s carbon output may peak by the end of the decade due to a projected 2% fall in emission levels compared to 2019, but says forecast global greenhouse gas volumes by 2030 are still a far cry from the 43% cut from 2019 levels the UN Intergovernmental Panel on Climate Change says is needed to avert crossing the Paris-agreed 1.5 warming threshold. The report analyzed the updated NDCs of 200 countries — some submitted as recently as September — and says minor carbon planning improvements have been made that brought down the 10.6% emissions increase from 2010 levels it had predicted last year by about 2%.

The story made headlines in the international press: The New York Times | Washington Post | Reuters | CNN | Bloomberg | The Financial Times | France 24 | Deutsche Welle

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WATCH THIS SPACE #1- Hydrom eyes USD 20 bn worth of green hydrogen investments: Hydrogen Oman (Hydrom) is looking to raise USD 20-30 bn in investments from its second round of auctions for green hydrogen projects in the Dhofar region, Muscat Daily reports, citing an interview with Hydrom managing director Abdulaziz Al Shidhani. Hydrom will award three plots of land for companies to establish green hydrogen and ammonia plants.

REMEMBER- Hydrom started the first round of the auctions for hydrogen projects last year, as part of Oman's strategy to boost investment in green hydrogen to USD 140 bn by 2050. Hydrom also signed six agreements in March with several regional and international developers for the production of green hydrogen.

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WATCH THIS SPACE #2- Masdar is plotting big acquisitions for its global expansion: Abu Dhabi's renewables giant Masdar is considering making “transformative” acquisitions in the US and Europe as it looks to expand its global presence, Masdar CEO Abdulaziz Alobaidli told The National. Alobaidli did not clarify the exact nature of investments, but said Masdar’s main focus lies in solar and both onshore and offshore wind projects. The company has also dipped in other sectors including geothermal, waste-to-energy, and hydropower on an “opportunistic” basis. Masdar plans to continue funding projects through green bond issuances and is open to expanding in China given the right conditions, Alobaidli added.

Masdar is already expanding globally: Masdar inaugurated the 230 MW Garadagh Solar Park in Azerbaijan last month and acquired a 50% share in EDF Renewables North America’s 128 MW Big Beau solar plant in California back in April. The company completed a USD 750 bn green bond offering in July to fund its projects.

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WATCH THIS SPACE #3- Germany unveils hydrogen core network plan: Germany presented its plan for a core network for hydrogen fuel which will cost EUR 20 bn (USD 21 bn) and span over 9.7k km, Reuters reports, citing comments made by the chairman of FNB Gas. Existing natural gas pipelines will make up 60% of the network and will connect industries, ports, storage units, and power plants.

REMEMBER- Germany's Uniper partnered with Masdar in January to develop a green hydrogen plant in the UAE powered by 1.3 GW of solar energy and the EU wants to import the clean fuel produced at the facility. Germany and Algeria also discussed converting an Algeria-EU natural gas pipeline to a green hydrogen corridor to eventually export from the country. Germany also plans to modernize and expand the gas pipelines through Tunisia, Italy, and Austria so that it can trade and import green hydrogen to southern Germany.

IN OTHER EU NEWS- The EU set to issue rules aimed at reducing methane emissions: The EU is in the final round of negotiations over an agreement that would see the bloc crack down on energy importers leaking methane into the atmosphere, Bloomberg reports. If passed, the rules will oblige energy companies to regularly inspect pipelines and oil wells to check for methane leaks.

Still some sticking points to get through during talks: Negotiators from parliament and member states are still discussing differences over how big a leak needs to be to require repair, and some have expressed concerns over the potential implications on energy security.

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WATCH THIS SPACE #4- The UK may enforce a CO2 border tax starting 2026: The UK is following in the EU’s footsteps and is planning to implement levies on imported carbon-intensive goods, the Financial Times reports. This comes in efforts to keep local green industries competitive relative to regions with lower carbon costs, as well as avoid the risk of the country becoming a “dumping ground for carbon-intensive products facing levies by the EU,” the FT writes. The levy will support the energy transition of local green industries such as steel, as it protects them from being outcompeted by high-emission imported goods, director-general of trade body UK Steel Gareth Stace told FT.

REMEMBER- The EU is ahead in rolling out climate laws: In one of the world’s boldest moves in facilitating the green transition, the EU launched the first phase of its carbon border mechanism last month, requiring importers to report emissions from products sold in Europe or risk fines, and will eventually begin charging pollution fees on those products by 2026.

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WORTH READING- The oil-dependent Gulf region needs to repurpose its domestic energy supply to rely more on renewables: As Gulf countries face warming at a rate twice as fast as the global average, the need to revamp its domestic energy supply to increase the share of renewables has become essential, Bloomberg writes. Despite major progress in green policy and projects, Gulf countries are still “significantly behind” the clean energy rush in the developed world with renewables accounting for less than 1% of power generation in Bahrain, Saudi Arabia, Qatar, and Oman, and 7% in the UAE — compared to 70% in Norway.

Still betting on oil: The GCC has the major challenge of diversifying its economy away from oil and gas, which remains the foundation of its economy despite efforts to grow other sectors, founder of Dubai-based consultancy Qamar Energy Robin Mills told Bloomberg. Gulf countries are betting on being the last fossil fuel exporters left in the game, Bloomberg writes, pointing to the oil and gas expansion plans of the UAE’s state-owned oil giant Adnoc.

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CIRCLE YOUR CALENDAR-

The UAE will host the Aviation and Alternative Fuels conference from Monday, 20 November to Friday, 24 November in Dubai. The event will bring together senior government officials and international organizations to assess progress in the development and deployment of sustainable aviation fuels (SAFs) and lower-carbon aviation fuel (LCAF) measured according to the targets outlined in the 2050 Vision for SAF, agreed upon at the last Aviation and Alternative Fuels conference in 2017.

The UAE will host the Abu Dhabi Finance Week (ADFW) from Monday, 27 November to Thursday, 30 November in Abu Dhabi. The event will gather government officials, banks, financial institutions, and VCs to delve into today’s economic, technological, and sustainability conversations.

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

Mubadala Energy is in on Indonesia's geothermal potential: The UAE’s Mubadala Energy signed an agreement with Indonesia's Pertamina Geothermal Energy and US oil-giant Chevron to explore potential geothermal energy projects in Kotamobagu city in Indonesia’s North Sulawesi province, according to a statement. The joint study will look into the development of the Kotamobagu Geothermal Working Area. The Southeast Asian country aims to add 3.3 GW of installed geothermal capacity by 2030.

There’s already a geothermal plant underway in Kotamobagu: Pertamina Geothermal Energy is developing a 410 MW geothermal power project located in North Sulawesi. The project is expected to start commercial operations by 2025, according to Global Data.

REMEMBER- Pertamina is backed by Masdar: Masdar acquired an undisclosed stake in the geothermal unit of Pertamina back in February. The Indonesian geothermal firm controls 82% of Indonesia's installed geothermal energy capacity and manages 13 geothermal energy projects which generate 1.87 GW of electricity.

IN OTHER PERTAMINA NEWS- The company is supporting Chevron + Exxon’s carbon capture plans: Pertamina signed agreements with Chevron to share data it collected in the East Kalimantan province to help the oil company identify suitable locations for carbon capture and storage (CCS) projects, Reuters reports. The information to be shared will include geological and geophysical data, maps, and other relevant commercial guidance. It also updated its agreement terms with Exxon in order to move forward with evaluations on a potential 3 gigaton CCS project in the Java Sea, estimated to cost over USD 2 bn.

More CCS to come in Indonesia: Indonesia is in the process of finalizing regulations to incentivise the development of CCS schemes across industries, as well as allowing imported greenhouse gasses to be stored in the country’s carbon sinks.

All the eVTOLs at the Dubai Airshow: The biennial aviation summit Dubai Airshow kicked off earlier this week bringing companies together to showcase their latest tech offerings in aviation. Among the latest developments getting notable attention at the event is eVTOLs with new offerings from UK-based Bellwether Industries and Crisalion Mobility. The event will run until next Sunday.

The Oryx: Launched under Bellwether Industries’ Volar category of aircrafts, the multirotor vertical take-off and landing Oryx — announced last year — has an 80 km flight range on a 20 minute charge (watch, runtime: 00:05). The Oryx is also expected to have a 140 km/h top speed (watch, runtime: 00:39). The wingless eVTOL currently has a 2-passenger capacity with plans to expand future models to accommodate four. The company says the eVTOL was designed with urban transport in mind to facilitate green intercity travel.

An improvement on earlier designs: Last year, the company completed the flight testing campaign for a prototype of the Oryx (watch, runtime: 00:11). The prototype, although “ridiculously good looking,” was met with some criticism for its “wobbly” takeoff system. The company has reportedly made improvements, installing a “cognitive flight control system” and an adaptive electric propulsion system to address earlier design issues, Aviation International News (AIN) reports.

Bellwether is expanding with an eye on MENA: The UK company has two research and development centers, one in the UK and the other Taiwan, and is currently looking to set up an office in MENA to expand regionally, AIN notes.

The Integrity: Spanish sustainable transport solutions startup Crisalion Mobility — which recently raised EUR 15 mn in its Series A round — also debuted its Integrity eVTOL, which can accommodate up to five passengers, AIN reports. The eVTOL has a 100 km flight range at a cruise speed of 180 km/h, the news outlet notes. Crisalion aims to close another funding round by 1Q 2024.

Other local offerings: Emirati green tech company Eanan is also showcasing its locally manufactured small cargo S-120 and S-700 eVTOLs at the airshow. The S-120 has a one-hour/30 km flight range with a flying speed of 60 km per hour and a capacity to carry 50 kg of products to be delivered. The S-700 heavy cargo eVTOL has a 700 kg maximum take-off weight with a 200 kg payload capacity.

The UAE might have an eVTOL air taxi network up and running by 2026: The Abu Dhabi Investment Office signed an agreement with US-based, Mubadala-Capital backed net-zero aircraft maker Archer Aviation last month to explore the possibility of establishing an air taxi network in the Emirates by 2026, according to a statement. The company alongside Falcon Aviation and Gal-Ammroc will collaborate with the government to launch their eVTOL-based air taxi services in the country, and Archer said it would partner with Emirati aircraft makers and maintenance, repair, and overhaul (MRO) providers in Abu Dhabi to spearhead the domestic production of eVTOLs in the country under Abu Dhabi’s Smart and Autonomous Vehicle Industry (SAVI) cluster. SAVI aims to establish a smart and autonomous vehicle development hub in Masdar city in a bid to add between AED 90 -120 bn to the economy. Electric aircraft maker Joby Aviation also joined the SAVI initiative last month.

Egypt has big potential for large-scale carbon capture and storage (CCS) projects, Zawya reports, citing a study by The Global CCS Institute and Oil and Gas Climate Initiative (OGCI). The country has “significant” onshore storage capacity in saline aquifers, which allows for carbon storage without costly offshore infrastructure, according to the study. If developed, the projects can reduce up to 100 tons of CO2 annually, equivalent to 25% of Egypt’s emissions goals defined in its nationally determined contributions. The CCS infrastructure can also play an important role in the decarbonization of Egypt’s giant cement industry.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Iraq moves forward with WtE plans: Iraq’s Baghdad municipality is planning to put out a contract to turn 3k tons of waste per day into 80 MWh of energy. Last month, Iraq’s National Investment Commission invited potential investments in the country's first waste-to-energy (WtE) project in the Rusafa region in Baghdad. (Iraqi News)

Brazil pulls the trigger on its first sovereign green bond: Brazil has raised USD 2 bn from its maiden sovereign green bond in an issuance that was 3x oversubscribed, Reuters reports. The seven-year green notes were offered at a 6.5% yield and attracted significant demand from international investors, with Europe and North America accounting for 75% of subscriptions. Latin America, including Brazil, accounted for the remainder, the newswire notes. Itau BBA, JPMorgan and Santander banks served as advisors for the issuance.

Where’s the money going? The proceeds from the operation will primarily support Brazil’s Climate Fund Program under the oversight of state development bank BNDES, the newswire reports, citing government officials. The Climate Fund focuses on investments in local renewables production chains, green tech development, and waste-to-energy projects sourced from biomass and biogas.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Chinese development banks are lagging in green loans: Chinese development extended no green energy finance loans for the second year in a row last year in spite of a presidential pledge in 2021 to step up low-carbon energy financing. (Boston University)

Graphyte — a US-based startup backed by Bill Gates’ Breakthrough Energy Ventures — is using old wood to store carbon underground, Bloomberg reports. The new tech, dubbed carbon casting, involves drying and sterilizing waste biomass like discarded wood residue — which naturally captures carbon — to prevent it from decomposing and releasing the captured CO2 into the atmosphere. The collected biomass is then condensed into carbon blocks and stored underground in an engineered storage site.

Carbon casting could compete with DAC: The startup says its cost of production is USD 100 per ton, which is much less costly than other carbon capture technologies like direct air capture (DAC). Graphyte plans to buy the waste biomass from local sources, and sell carbon removal services to corporations, Bloomberg writes.