Monday, 28 November 2022

Emirates Global Aluminium gets serious about decarbonization with clean energy certificates

TL;DR

WHAT WE’RE TRACKING TODAY

Good morning, ladies and gents, and welcome to a relatively slow start to the workweek as everyone’s attention seems to be devoted to the World Cup.

THE BIG CLIMATE STORY- UAE’s Amea Power is adding 20 MW of capacity to its solar project in Togo to reach 70 MW. After the completion of the expansion, the Mohammed bin Zayed solar power plant in Togo will be the largest in West Africa. Closer to home, aluminum conglomerate Emirates Global Aluminium has purchased clean energy certificates for 1.1 mn MWh of electricity in a bid to certify production of around 80k tons of its solar-powered aluminum.

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

THE BIG CLIMATE STORY OUTSIDE THE REGION- Europe’s summer heatwave may have caused 20k deaths: Western Europe saw some 20k “excess” deaths due to soaring summer temperatures that would have been “virtually impossible” without climate change, according to data (pdf) released on Thursday by the World Weather Attribution group. The analysis looked at the difference between the number of deaths seen over the summer and those expected based on historical trends, with covid-19 deaths excluded. These included over 10k in France, over 4.6k in Spain, some 4.5k in Germany, and over 3k in England and Wales. Summer 2022 was the hottest summer on record, according to the EU’s Copernicus climate change service. The story has been picked up by Reuters, Bloomberg, and The Guardian.


enterprise

Some of the biggest names in Egypt’s climate industry are appearing at our inaugural Enterprise Climate X Forum, which takes place on Tuesday, 6 December at the Grand Egyptian Museum. Are you?

Hydrogen: What is it, what does a “hydrogen economy” look like and how will we know it’s becoming real? Jorgo Chatzimarkakis, CEO of industry association Hydrogen Europe, is flying in to help us unpack it.

Three industry leaders will talk about climate as the biggest (and most important) business opportunity of our generation: Mohamed Mansour is co-founder and CEO of Infinity. Amr Allam is co-CEO of Hassan Allam Holding. Jointly and seprately, they’re building and operating GW worth of renewable energy projects, charging stations, desalination, wastewater, and more. They’ll be joined on stage by Sherif El Kholy, partner and head of MENA at private equity giant Actis, who has a passion for investing in green businesses — and for helping conventional businesses put ESG at the core of what they do.

How are we going to pay for it all? Todd Wilcox, CEO and deputy chairman of HSBC Egypt; Tarek El Nahas, group head of international banking at Mashreq; Khaled Hamza, director and head of Egypt at the European Bank for Reconstruction and Development (EBRD); and Nader Abushadi, group treasurer at Dar Group, will help us get our heads around topics including green, sustainability-linked, blended, and concessional finance, as well as how much you need to know about your supply chain.

We’ll also be meeting Shift EV’s Aly El Tayeb and Algebra’s Karim Hussein, the guys who want to be Egypt’s first climate bn’aires. They’ll be talking with USAID Egypt Mission Director Leslie Reed as well as EFG Hermes Head of Strategy Simon Kitchen, who’s flying in from London to talk with us about how business leaders across frontier and emerging markets are getting their heads around climate.

** Have you confirmed your attendance? We’ll be sending you on Sunday, 4 December the QR code you’ll need to gain admission to the Grand Egyptian Museum, along with a Google Maps link and some other pointers.

Tap or click here for the full agenda.

HAPPENING TODAY-

The South Africa Green Hydrogen Summit is kicking off today and will run through Thursday in Cape Town. Hosted by Infrastructure South Africa, the event will showcase the country’s potential as an investment destination. Egypt, Mauritania, and Morocco — all members of the Africa Green Hydrogen Alliance — will be attending the summit to present their national agendas for green hydrogen projects.

THE WORLD CUP TODAY- It’s day nine of the tournament, and these are the Group G and H teams facing off (all times CLT):

  • Cameroon v Serbia (12pm)
  • South Korea v Ghana (3pm)
  • Brazil v Switzerland (6pm)
  • Portugal v Uruguay (9pm)

WATCH THIS SPACE #1- Egypt will announce its low-carbon hydrogen strategy by the end of the year, according to a cabinet statement. The strategy was drafted in partnership with the European Bank for Reconstruction and Development and forecasts Egypt’s green hydrogen market will grow sevenfold by 2025 — contributing USD 10-18 bn to its GDP. This will enable Egypt to produce 8% of the world’s green hydrogen, according to Electricity and Renewable Energy Minister Mohamed Shaker.

WATCH THIS SPACE #2- Qatari investments in London at risk over advertising squabble: Qatar is reconsidering GBP 10 bn worth of investments — including renewable energy — in London after the British capital’s transport authority banned the country’s advertisements on trains over alleged abuse of migrant workers and LGBTQ rights, the Financial Times reports. Qatar pledged to invest GBP 10 bn over five years into various sectors in London back in May and is now reconsidering diverting the funds to other cities in the UK.

WATCH THIS SPACE #3- H2 Industries’ waste-to-hydro plans in Egypt moving forward: US-based H2 Industries is reportedly in discussions with offtakers for its planned USD 3 bn waste-to-hydrogen facility in Egypt, Zawya quoted CEO Michael Stusch as saying. The plant could produce 300k tons of hydrogen annually, and H2 is also eyeing a USD 1.4 bn waste-to-hydrogen facility in Oman.

WORTH READING- A recap to ease our eco-anxiety: Euronews compiled an exhaustive list of positive climate-related events and news in 2022 to comfort us when “climate doom” sets in. A couple of highlights? New research suggests that plants can teach their offspring how to be more climate resilient by reading their DNA sequence differently and a rare bird — the black-naped pheasant pigeon — thought to be extinct for 140 years popped back up in Papua New Guinea.

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THE DANGER ZONE- Will searing heat irrevocably change our ability to undertake massive construction projects in MENA? The days of large-scale construction in the Gulf may be numbered due to climate change-driven extreme heat, Time Magazine wrote last week. Gulf countries are poised to see up to 250 “dangerous heat” days a year by 2050, while severe heat stress will also be endemic within parts of Africa and South Asia by 2100, according to a recent study cited by Time. Though countries like Qatar are investing in tech to reduce the heat danger to outdoor construction workers — including clothing that can keep them cool — construction as we know it could be impossible to sustain under these conditions, the magazine notes.


CLIMATE DIPLOMACY- Pakistan is open for investment: Pakistan is stumping for investment to advance its 10 GW solar power scheme and slash its USD 27 bn energy import bills, Prime Minister Shehbaz Sharif said, according to the Nation. The country is working on creating a cooperative environment to facilitate investments with less bureaucratic obstacles, Sharif said, name-checking Turkey — which signed a USD 5 bn MoU with the country to expand bilateral trade by 2025 — but also Qatar, Saudi Arabia, and the UAE as potential investors.

CIRCLE YOUR CALENDAR-

Oman will host a two-day green hydrogen summit next Monday, 5 December at Oman’s Convention and Exhibition Center in Muscat. The summit will discuss all aspects of the hydrogen value chain including production, transportation, and storage challenges.

UAE will host the Big 5 global construction impact summit on Wednesday, 7 December at the Dubai World Trade Center, bringing more than 2k exhibitors from 60 countries, as well as regional and global construction industry leaders together to discuss ways to meet local and global net zero and waste reduction targets.

FURTHER DOWN THE LINE- Dubai will host the food and sustainability Middle East challenge on 2 March, 2023. The Rome-based European Institute of Innovation for Sustainability is partnering with SDG Global to bring a six-month long, online interactive course to align the region’s food industry with ESG sustainability and development targets. You can register interest in the for-pay course here.

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

SOLAR

Amea Power is spending USD 25 mn on solar expansion in West Africa

The UAE’s Amea Power is adding 20 MW of capacity to its solar project in Togo to reach 70 MW, according to a company statement released last week. The expansion of the Mohammed bin Zayed solar power plant will include a 4 MWh battery storage system to provide power overnight. After the completion of the expansion, the plant will be the largest in West Africa.

Funding and construction: The Togolese government is set to receive a USD 25 mn loan for the third phase of the expansion project from the Abu Dhabi Exports Office, according to the statement. Amea Technical Services — a subsidiary of Amea Power — will undertake the construction of the latest phase of the plant.

About Amea Power: The Dubai-based renewable energy company previously developed the first two phases of the Mohammed bin Zayed solar power plant, which became operational in June 2021. The company’s portfolio includes a USD 800 mn, 500 MW green hydrogen plant in the Suez Canal Economic Zone in Egypt, a USD 100 mn, 100 MW solar plant in Tunisia, a 100 MW wind project in Morocco and a 500 MW wind project in Egypt with Japan’s Sumitomo, among others. The company also has 6 GW of renewables projects in 15 countries in the pipeline.

M&A WATCH

UAE waste management company Averda looks to sell majority stake sale

Dubai-based waste management company Averda International is looking to sell a majority stake in its business, Reuters reports, citing sources close to the matter. The firm hired investment bank Moelis and Co. to arrange the sale, the sources said, but did not provide further details on the size of the transaction or the expected timeline.

Who is Averda? Founded in 1964 in Lebanon, Averda is a privately-owned business serving public and private clients in segments including urban, industrial, healthcare, recycling and processing, and energy and disposal. Dubai private equity outfit Growthgate Capital has a substantial 33.3% minority stake. The company serves around 12 mn residents in eight Middle Eastern, Africa, and South Asian countries.

Averda has been trying to IPO for years now: Whispers of an IPO emerged in 2019 when Averda eyed a listing valued at USD 700 mn on the London Stock Exchange, according to Arabian Business. The company was also in talks to go public via SPAC merger with blank check company Better World Acquisition earlier this year, but the transaction fell through, according to Bloomberg. It then considered a direct listing in the UAE or the KSA.

DECARBONIZATION

Emirates Global Aluminium is upping its low-emissions aluminum production

Emirates Global Aluminium brings more solar to its energy mix with clean energy certificates: Emirati aluminum conglomerate Emirates Global Aluminium (EGA) has purchased clean energy certificates for 1.1 mn MWh of electricity from Emirates Water and Electricity Company (EWEC) in a bid to support its production of solar aluminum, according to a statement published on Thursday on WAM. These certificates will certify EGA’s production of around 80k tons of its solar-powered aluminum CelestiAL, the statement notes. The statement does not provide details on the cost of the certificates.

Uh, Enterprise? What are clean energy certificates? Renewable energy certificates (RECs) are a MWh by MWh way of proving that you own or created renewable energy. A REC is issued when one MWh is delivered to the electricity grid from a renewable energy source, the US Environmental Protection Agency (EPA) notes. RECs contain important data about the source of the renewable energy — including the kind of energy produced and its level of emissions — which play a crucial role in the tracking, accounting, and identifiable ownership tied to renewable electricity generation and use, the EPA tells us. Investopedia has more.

What do we know about the RECs purchased by EGA? They’re the only accredited way in Abu Dhabi for industrial energy consumers to prove that their electricity is coming from renewable sources. The RECs will track the use of solar power from UAE’s Noor Abu Dhabi solar plant in Sweihan, the statement says. Issued by the Abu Dhabi Department of Energy, they meet international standards and EWEC runs auctions to sell certificates for solar and nuclear-generated electricity in Abu Dhabi, the statement notes.

EGA wants to slash emissions in its aluminum production: EGA made an announcement in March that it plans to move away from using primarily natural gas in its production by selling its natgas-fired power plants to Abu Dhabi National Energy Company (Taqa) and Dubal Holding. EGA is planning on sourcing power from the grid under a long-term supply agreement — including an increasing proportion of clean energy from EWEC — and renewable energy from existing solar power assets alongside the Baraka nuclear plant, according to an earlier statement. The plan is still pending regulatory approval.

RENEWABLES

Acwa Power continues South East Asian expansion

Acwa Power eyes up more projects in Indonesia: Saudi Arabia’s Acwa Power signed an MoU with Indonesia’s state-owned electricity company, PT Perusahaan Listrik Negara (PLN), to develop renewable energy battery storage facilities and green hydrogen, according to a statement. Under the MoU, Acwa Power and PLN will look at several areas of partnership — including a possible 4 GW battery storage system and a hydroelectric-powered green hydrogen or green ammonia facility, the statement notes. The two sides will also study a project for a 600-800 MW pumped storage hydroelectricity facility.

Acwa Power has been investing heavily in a southeast Asian expansion: Acwa Power will establish a USD 7 bn green hydrogen and derivatives production project in Thailand, targeting the production of 225k tons of green hydrogen annually, it announced last week. The Tadawul-listed company was also recently tapped by PLN to develop two floating solar PV solar projects worth USD 105 mn earlier this month. Indonesia and Thailand are two markets the Saudi renewable energy company is tapping into as part of its global expansion, Acwa CEO Paddy Padmanathan said last month.

BOND PURCHASES ALSO ON ACWA’S CHECKLIST-

Acwa Power subsidiary increases cashbond purchases: Acwa Power subsidiary Acwa Power Management and Investments One (APMIOne) is increasing the maximum amount of the cashbonds it’s purchasing on the Irish Stock Exchange to USD 428 mn — up from an initial maximum amount of USD 400 mn — according to a Tadawul filing last week. Acwa Power’s senior secured bonds — issued in 2017 and due in 2039 — had a pre-amortization aggregate principal amount of USD 814 mn, the company noted in an early-November Tadawul filing, when it announced APMIOne’s tender offer to purchase the bonds. The tender offer was designed to reduce APMIOne’s debt service obligations, the filing noted.

ACWA IN EGYPT-

Acwa will begin studying green hydrogen investments in Egypt, Vice Chairperson and CEO Paddy Padmanathan told Daily News Egypt last week. The company is already looking to invest USD 10 bn in Egypt — mainly through its massive on-shore 10 GW wind farm with Hassan Allam Holding — and green hydrogen projects could “greatly enlarge” these investments, he added. Some USD 1 bn will be deployed in 2023, while USD 3 bn will be invested each year from 2024-2026. Acwa is also negotiating loans and financing support from Egyptian banks to finance its local projects.

DISTRICT COOLING

Chinese firm breaks ground on seawater cooling system in Saudi Arabia + nabs construction of UAE’s Khalifa Port’s CMA terminal

KSA seawater cooling system breaks ground: Chinese firm China Harbour Engineering has begun construction of a seawater cooling system worth over USD 650 mn that will cater to Saudi Arabia’s Jizan City for Primary and Downstream Industries, Arab News reports, citing data from MEED. The project includes building two seawater supply pipelines, four hypochlorite pipelines, and a pumping station, it adds. No information was given about when it would be completed.

Seawater what, now? Seawater cooling is a type of district cooling where water is pumped from the sea or ocean through a heat exchanger then cooled in a closed loop, UAE energy solutions group Araner notes. The chilled water is then distributed through buildings to cool them down, functioning as a more energy efficient form of air conditioning.

ALSO- The Chinese firm was awarded the construction of net zero buildings in Khalifa Port’s CMA terminal, UAE-based AD Ports Group said in a statement. Under the agreement, China Harbour Engineering will be responsible for constructing the terminal’s net zero carbon administration building — which is a joint venture between majority-stake owner CMA Terminals and AD Ports.

ALSO ON OUR RADAR

Omani aluminum company to purchase biofuel for production: Aluminum sheet producer Oman Aluminium Rolling Company (OARC) has inked an agreement to purchase biofuel for use in production, GCC Business News reported last week. The B5 biodiesel to be purchased will be produced by Omani biofuels producer Wakud International — which uses waste products including recycled cooking oil — to produce biofuels, it adds. No information was given about the cost or amount of biofuel being purchased, or the time frame of the agreement.

The B5 biodiesel is still mostly diesel: The biodiesel is a biofuel blend that consists of “≤5% pure biodiesel and ≥95% petroleum diesel fuel,” notes Canadian commodities marketer Targray.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • The UAE’s Dubai Electricity and Water Authority wants to expand its electric vehicle charging station network to 1k stations by 2025. (Statement)
  • Al Waleed Philanthropies is partnering with UNESCO to promote sustainable development and “green growth” in Morocco and other African countries through a projected USD 3 mn donation. (UNESCO)
  • Oman’s Bank Nizwa signed an MoU with the Sustainable Development and Investment Company to offer Islamic finance solutions for buyers interested in Yiti, the Sultanate’s sustainable city. (Zawya)

ON YOUR WAY OUT

Samples from the 1700s could reveal more resilient varieties of wheat: Scientists are analyzing 12k specimens of centuries-old wheat collections from Britain’s Natural History Museum and more from the John Innes Center in Norwich to understand their genetic makeup, the BBC reports. The John Innes team is cross-breeding older varieties with modern ones to engineer more resilient and nutritious wheat varieties.

Why is this important? Scientists calculate that a 1°C rise in temperatures could cause a 6.4% drop in the amount of wheat grown around the world, the BBC says. The world will need more wheat as the population grows — an estimated 60% more by 2050 — so finding wheat varieties able to survive in hot and dry climates like the GCC and MENA will help increase food supply, the outlet reports.

CALENDAR

NOVEMBER

Deadline of bid submissions for the Ras Mohaisen – Baha – Makkah Independent Water Transmission Pipeline in Saudi Arabia.

28-30 November (Monday-Wednesday): South Africa Green Hydrogen Summit, Capetown, South Africa.

DECEMBER

6 December (Tuesday): Enterprise Climate X Forum, Cairo, Egypt.

7 December (Wednesday): The Big 5 Global Construction Impact Summit, Dubai World Trade Center, Dubai, UAE.

13-14 December (Tuesday-Wednesday): Seminar on EU standards for agri-food products for the Gulf Cooperation Council countries, Grand Millennium Business Bay Hotel, Dubai, UAE.

13-15 December (Tuesday-Thursday): International Renewable Energy Congress, Hammamet, Tunisia.

15 December (Thursday): The UN’s 15th meeting of the Conference of the Parties to the Convention on Biological Diversity (COP15), Montreal, Canada.

JANUARY 2023

10-12 January (Tuesday-Thursday): The Future Minerals Forum, Riyadh, Saudi Arabia.

13 January (Friday): The International Renewable Energy Agency’s Youth Forum, Abu Dhabi, UAE.

14-21 January (Saturday-Saturday): Abu Dhabi Sustainability Week, Abu Dhabi, UAE.

16-18 January (Monday-Wednesday): EcoWASTE, Abu Dhabi National Exhibition Center (ADNEC), UAE.

16-18 January (Monday-Wednesday): World Future Energy Summit, Abu Dhabi National Exhibition Center (ADNEC), UAE.

January 2023: Bid submission deadline for green hydrogen projects to Hydrogen Oman (Hydrom).

FEBRUARY 2023

6-8 February (Monday-Wednesday): Saudi International Marine Exhibition and Conference, Hilton Riyadh, Saudi Arabia.

21-22 February (Tuesday-Wednesday): The Arab Green Summit, Dubai, UAE.

21-23 February (Tuesday-Thursday): World Environment, Social and Governance (ESG) Summit, Dubai, UAE.

MARCH 2023

15-19 March (Wednesday-Sunday): Qatar International Agricultural and Environmental Exhibition, Doha, Qatar.

MAY 2023

1-4 May (Monday-Thursday): Arabian Travel Market, Dubai World Trade Centre, Dubai, UAE. Register here.

29-31 May (Monday-Wednesday): Electric Vehicle Innovation Summit, Abu Dhabi National Exhibition Centre, Abu Dhabi, UAE.

JUNE 2023

Bloomberg New Economy Gateway Africa Conference, Marrakesh, Morocco.

1-3 June (Thursday-Saturday): Envirotec and Energie Expo, UTICA, Tunis, Tunisia.

SEPTEMBER 2023

Chariot Limited and Total Eren’s feasibility study on a 10 GW green hydrogen plant in Mauritania to be completed.

OCTOBER 2023

2-4 October (Monday-Wednesday): WETEX and Dubai Solar Show, Dubai World Trade Centre, Dubai, United Arab Emirates.

NOVEMBER 2023

6-17 November (Monday-Friday): The UAE will host COP28.

EVENTS WITH NO SET DATE

End-2022

KSA’s Neom wants to tender three concrete water reservoir projects to up its water storage capacity by 6 mn liters.

2023

Early 2023: Egypt’s KarmSolar to launch KarmCharge, the company’s EV charging venture.

1Q2023: Oman will award two blocks of land for green hydrogen projects in Duqm, Oman.

Mid-2023: Sale of Sembcorp Energy India Limited to consortium of Omani investors to close.

Phase C of the 900-MW of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai to be completed.

Saudi Basic Industries Corporation (Sabic) steam cracker furnace powered by renewable energy to come online.

4Q2023: Oman to award four blocks of land for green hydrogen projects in Thumrait, Oman.

2024

End-2024: Emirati Masdar’s 500 MW wind farm in Uzbekistan to begin commercial operations.

QatarEnergy’s industrial cities solar power project will start electricity production.

First 1.5 GW phase of Morocco’s Xlinks solar and wind energy project to be operational.

2025

Second 1.5 GW phase of Morocco’s Xlinks solar and wind energy project to be operational.

UAE to have over 1k EV charging stations installed.

2026

1Q 2026: QatarEnergy’s USD 1 bn blue ammonia plant to be completed.

End-2026: HSBC Bahrain to eliminate single-use PVC plastic cards.

Iraq’s Mass Group Holding wants to invest EUR 1 bn on its thermal plant Mintia in Romania to have 62% of run on renewable energy, while expanding its energy capacity to at least 1.29k MWh.

2027

MENA’s district cooling market is expected to reach USD 15 bn.

2030

UAE’s Abu Dhabi Commercial Bank (ADCB) wants to provide AED 35 bn in green financing.

UAE targets 14 GW in clean energy capacity.

Tunisia targets 30% of renewables in its energy mix.

Qatar wants to generate USD 17 bn from its circular economy, creating 9k-19k jobs.

Morocco’s Xlinks solar and wind energy project to generate 10.5 GW of energy.

2035

Qatar to capture up to 11 mn tons of CO2 annually.

2045

Qatar’s Public Works Authority’s (Ashghal) USD 1.5 bn sewage treatment facility to reach 600k cm/d capacity.

2060

Nigeria aims to achieve its net-zero emissions target.

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