TODAY: Saudi Power Procurement Company inks PPAs for two solar projects in the kingdom
Good morning, wonderful people. We have a compact issue for you this morning with a mixed bag of climate updates from around the region.
THE BIG CLIMATE STORY- The Saudi Power Procurement Company signed power purchase agreements to offtake energy from the 1.1 GW Al Henakiyah Solar PV project and the 400 MW Tabarjal solar park.
^^ We have the details on this story and more in the news well, below.
THE BIG CLIMATE STORY OUTSIDE THE REGION- There’s no single story dominating the headlines, but a new report from energy research firm Wood Mackenzie has found that China’s dominance over the global solar energy supply chain will continue for much of the next decade. China has poured over USD 130 bn into its solar industry this year and intends to bring over a TW of solar wafer, cell and panel capacity online by 2024. The report findings come as the US and India subsidize local solar production in a bid to reduce the reliance on Chinese-made goods. The story got ink in Reuters.
OVER IN COPLAND- Denmark plans to launch green shipping corridors initiative at COP: Copenhagen-based independent research and development center Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping is planning to make “substantial” contributions to COP28 activities, with a focus on moving forward with plans to build green shipping corridors across Europe, CEO and CSO of the center Tanja Dalgaard said in an interview with UAE’s Iris Media. The center will collaborate with DP World and other partners to bring the green corridor initiatives to life, Dalgaard said. Lenders including the International Monetary Fund recently identified a strong need for multilateral cooperation on trade policies to safeguard the global goals of averting climate change, which can be achieved through green corridors.
More details: In efforts to decarbonize the global maritime industry, the Mærsk Mc-Kinney Møller Center is currently working on the pre-feasibility studies for a number of green corridor projects including one in Northern Europe and the Baltic Sea and another in Chile.
We have a rough timeline for the projects: Dalgaard unveiled that the first methanol ship is expected to be operational by 2026 and the first ammonia ship by 2028. However, smaller green corridors focused on specific regions and fuels will be launched sooner.
Egypt will eventually be linked to Europe’s corridors: Last month, Egypt signed a framework agreement with C2X — which is owned by AP Moller Holding and AP Moller-Maersk — worth some USD 3 bn for the production of green methanol and its derivatives. This is part of a larger plan to reach an annual production output of over 3 mn tons by 2030 by pursuing large-scale green methanol projects near the Suez Canal in Egypt and the port of Huelva in Spain, among several other planned locations.
WATCH THIS SPACE #1- Oman's Hyport expected to award PMC contract by year end: Oman's Hyport consortium is likely to award the project management consultancy (PMC) contract for its Hyport Duqm green hydrogen and ammonia project by 4Q 2023, Zawya reports, citing a source it says has knowledge of the matter. The winning company will provide technical support to develop the project and handle the design review and management through the FEED phase. Hyport signed an agreement with Oman’s Public Authority for Special Economic Zones (Opaz) last month allocating 150 sq km of land for a wind and solar energy generation project to power the production of green ammonia and other hydrogen derivatives.
Oman + Hyport 💚 green ammonia: Posco-Engie consortium also signed a land allocation agreement with Opaz last month for a green ammonia and green hydrogen derivatives plant with a production capacity of 1.2 mn tons annually. Hyport also signed an MoU in July with Hydrom to establish a green ammonia facility to be powered by 4 GW of renewables and a production capacity of 1 mn tons.
WATCH THIS SPACE #2- ADIB’s first green sukuk could happen any day now: Abu Dhabi Islamic Bank (ADIB) is planning to issue its first green sukuk soon “subject to market conditions”, the bank said in a disclosure (pdf) to the Abu Dhabi Securities Exchange (ADX). ADIB intends to issue a five-year benchmark-sized USD denominated green sukuk under its USD 5 bn Trust Certificate Issuance Programme, according to the document, adding that the issuing should follow investor meetings taking place said to have taken place yesterday.
Advisors: The Islamic lender has tapped Standard Chartered Bank as sole global coordinator, along with Emirates NBD Capital, First Abu Dhabi Bank, and Sharjah Islamic Bank as joint bookrunners and joint lead managers, according to the document. ADIB itself will also jump in as a joint bookrunner and manager.
WATCH THIS SPACE #3- Tesla is coming through with more affordable models: Tesla plans to build a EUR 25k (USD 26.8k) car at its factory in Germany in a bid to encourage more EV sales, Reuters reports, citing a source with knowledge of the matter. There is no information on when production is scheduled to start. Tesla’s move comes in light of recent consumer surveys in the EU and US revealing the price tag of EVs — in addition to high interest rates — is holding back the larger scale adoption of greener mobility. The average retail price of an EV in Europe in the first half of 2023 was over EUR 65k, Reuters said citing autos research firm JATO Dynamics.
Tesla has a different strategy than its competitors: Unlike some competitors such as Volkswagen who focus their strategy on protecting profit margins in the transition to EVs, Tesla has opted to focus its goal on mass expansion, with a goal to increase vehicle deliveries to 20 mn by 2030, of which it has delivered almost 4.9 mn of since 2016.
HELP SUPPORT GAZANS-
Want to support relief efforts in Gaza, but don’t know how? We’ve got you. More than a mn people in Gaza have been thrown from their homes and every human being there lacks access to food, water, and fuel amid the most intense bombardment any population has endured this century. The charities we’re listing below are regional organizations working on Gaza relief that we think you can trust if you want to make a donation.
#1- Egyptian Red Crescent Society is one of the nation’s leading providers of humanitarian and emergency medical services. The Egypt Red Crescent accepts donations in EGP online and is on Fawry with the service code 99981. You can also donate to the organization through this Banque du Caire account: 49/403/30 (EGP) or 1065/601/30 (USD — code: BCAIEGCX030).
#2- The Emirates Red Crescent Authority has launched the Tarahum — For Gaza campaign and is accepting donations online via What’s App, SMS, Apple Pay, credit card, or bank transfer to ADIB (AE370500000000020000417).
#3- The King Salman Humanitarian Aid and Relief Center has launched the Sahem campaign accepting donations via their website, mobile apps on Apple Store and Google Play, or bank transfer to Al Rajhi Bank (SA5580000504608018899998).
#4- UNICEF has been on the ground in Gaza since the start of the crisis, providing urgent supplies and aid. You can donate to the agency directly in your local currency using your credit card here.
ALSO- The folks at Talabat are processing donations for a range of Gaza relief appeals by charities including the Egyptian Food Bank, Misr El Kheir and the Emirates Red Crescent Authority’s Tarahum campaign. You can make the donation via the Talabat app using your credit card.
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CIRCLE YOUR CALENDAR-
Turkey will host the GCC-Türkiye Economic Forum from Saturday 11 November to Monday, 13 November in Istanbul. The forum aims to bring together key ministers and state officials from the Gulf countries and Turkey to explore areas of potential investments and commercial ties and to establish a network for joint projects in the energy, defense, banking, retail, and transportation sectors. The event is organized by the Gulf Research Center and Turkey’s International Cooperation Platform.
The UAE will host the MENA Solar Conference from Wednesday, 15 November to Saturday, 18 November in Dubai. The event will focus on all things photovoltaic, with a full programme on PV materials and devices, future technologies, PV reliability, and forecasting for performance assessment. The conference will also touch on how developments in system operations, concentrated solar power, and grid integration are necessary for the green transition. This will be the first scientific and technical conference specializing in solar energy systems in the region.
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.