Beeah wants to build the region’s first waste-to-hydrogen plant in the UAE to produce vehicle-grade fuel

Good morning, ladies and gentlemen. Before we get things started, we have to tip our hats to Morocco’s national football team, which — despite losing to France 2-0 in yesterday’s semi-final match — put on a spectacular performance throughout the entire World Cup. We were sad to see them walk off the pitch yesterday, but congratulate the Atlas Lions for making history as the first Arab and African team to ever make it this far in the championship.

Back to our regularly scheduled programming: It’s quite a busy news day on the climate front, so let’s jump right in.

THE BIG CLIMATE STORY in our corner of the world: The UAE is looking to build its first waste-to-hydrogen plant, courtesy of Bee’ah, Chinook Sciences and Japanese gas conglomerate Air Water. The plant will be MENA’s first facility of its kind, producing 18k of the fuel per day.

Amea Power is making its debut in South Africa: UAE’s Amea Power will build a USD 120 mn solar energy plant in South Africa, with a capacity of 120 MW. This is the company’s first project in the country.

ALSO- Sungrow Power Supply and Acwa Power signed an agreement to build a 536 MW battery storage system in Neom. The MoU was one of several signed during the China-Arab Summit hosted in KSA last Friday.

---

THE BIG CLIMATE STORY GLOBALLY- HSBC will stop providing financing to new oil and gas fields, multiple news outlets reported yesterday. The bank will no longer fund oil and projects approved after the end of last year. It will, however, finance energy companies that are looking to shift to cleaner energy sources. “Covering everything from biomass projects to hydrogen, nuclear and thermal coal, the policy was aimed at driving progress across regions with different energy systems,” HSBC CSO Celine Herweijer told Reuters. (Reuters | Bloomberg | Wall Street Journal | Financial Times)

HSBC will continue to finance existing oil and gas fields as part of vision to help manage down hydrocarbon supply, Reuters quotes Herweijer as saying: “It’s not no new fossil fuel investment as of tomorrow. The existing fossil fuel energy system needs to exist hand-in-hand with the growing clean energy system,” she said. It will also continue to provide investment banking services to the industry.

SOUND SMART- HSBC was the second-largest European lender to oil and gas companies in the period since the Paris climate agreement was inked in 2015, deploying more than USD 110 bn, Bloomberg notes.

REMEMBER- HSBC is looking to hit net zero carbon emissions as a bank by 2030 and make its portfolio net zero by 2050, HSBC Egypt CEO and Deputy Chair Todd Wilcox told EnterpriseAM previously.

ALSO- HSBC-backed investment manager raises USD 650 mn to invest in nature-focused projects: UK-based “natural capital” investment manager Climate Asset Management (CAM) has closed over USD 650 mn in funding from institutional investors and corporates for investment in green projects, according to Reuters. Part of the fund will go into regenerative agriculture and forestry projects in developed markets through its Natural Capital Fund, targeting a 10% return before fees. It may also sell carbon and biodiversity credits. The other part will invest in nature-based carbon projects in developing economies, for which investors will receive carbon credits instead of financial returns, Reuters notes. CAM was established as a joint venture between HSBC Asset Management and climate change advisory firm Pollination Group.

---

WATCH THIS SPACE #1- NASA is delivering the world’s first global water survey from space: A NASA-led international advanced satellite mission — dubbed SWOT (Surface Water and Ocean Topography) — will collect detailed data measurements from the earth’s oceans, lakes, and rivers, Reuters reports. The data will enhance ocean-circulation models, help predict weather and climate forecasts and patterns, and aid in managing water scarcity in drought-stricken areas.

Why this is important: A major objective of the mission is to help climate scientists better understand the natural process by which oceans — estimated to have absorbed over 90% of the excess heat trapped in Earth’s atmosphere — absorb atmospheric heat and carbon dioxide to moderate global temperatures and climate change. This information will help determine the turning point at which oceans will start releasing heat back into the atmosphere and contribute to global warming rather than mitigate it, a SWOT scientist tells the newswire.

WATCH THIS SPACE #2- Morocco is setting up its green action plan: Morocco’s government is planning to rework regulatory frameworks to encourage more private sector investment in the country’s renewable energy industry, Energy Transition Minister Leila bin Ali said on Tuesday, Al Yaoum 24 reported. The government is also looking to expedite projects already in the pipeline that will produce some 4.6 GW of renewable energy and is separately working on a roadmap for energy generation from biomass and waste water.

WATCH THIS SPACE #3- With nearly a year to go, the activist set is turning its sights on COP28, with carbon capture, use and storage (CCUS) tech in one group’s sights. NGO Carbon Market Watch is complaining that CCUS was too prominent in talks at COP27 and is warning against increased use of the term in EU and UN climate policies, according to Argus Media.

The UAE has a “deep interest” in CCUS, the group says (no surprise there), arguing that carbon capture comes with risks and is often not tied to clear emission-reduction targets.

SIGN OF THE TIMES- Green steel is gaining momentum in MENA: Creating low-emission steel production and supply chains was front and center during discussions at the Middle East Iron and Steel Conference in Dubai earlier this week. CEOs of some of the region’s most prominent steel companies said reducing CO2 emissions and see-sawing energy prices have made greenifying steel a priority for regional industry leaders, according to Egyptian daily Al Mal.

Get Enterprise Climate

***
YOU’RE READING ENTERPRISE CLIMATE, the essential regional publication for senior execs who care about the world’s most important industry. Enterprise Climate covers everything from finance and tech to regulation, products and policy across the Middle East and North Africa. In a nod to the growing geographical ambitions of companies in our corner of the world, we also include an overview of the big trends and data points in nearby countries, including Africa and southern Europe.

Enterprise Climate is published at 4am CLT / 5am Riyadh / 6am UAE Monday through Thursday by Enterprise, the folks who bring you Enterprise Egypt, your essential 6am and 3pm read on business, finance, policy and economy in Egypt and emerging markets.

Subscribe to Enterprise Climate here or reach out to us on climate@enterprisemea.com with comments, suggestions and story tips.

***

CIRCLE YOUR CALENDAR-

The UAE will host the Sharjah Entrepreneurship Festival this Saturday, 17 December and Sunday, 18 December at the Sharjah Research Technology and Innovation Park where leading entrepreneurs will engage in over 50 panels covering sustainable innovation, clean mobility, and solar-powered vehicles.

UAE renewable energy firm Masdar will host Abu Dhabi Sustainability Week from Saturday, 14 January to Saturday, 21 January. The event will gather eight presidents and prime ministers and 30k participants in a series of conferences and summits including the Atlantic Council’s Global Energy Forum, the World Future Energy Summit, Masdar’s Green Hydrogen Summit, The International Renewable Energy Agency’s Youth Forum, and the Abu Dhabi Sustainable Finance Forum.

The UAE is hosting the Atlantic Council’s Global Energy Forum on Saturday, 14 January and Sunday, 15 January in Abu Dhabi. The forum will discuss the ongoing global energy crisis and its impact on the green transition, energy security, and decarbonization.

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

The UAE is getting MENA’s first waste-to-hydrogen plant: Emirati waste management company Bee’ah has signed an MoU with US- and UK-based waste-to-energy focused tech company Chinook Sciences and Japanese gas conglomerate Air Water to form a consortium aimed at setting up a waste-to-hydrogen plant in Sharjah, according to a Bee’ah statement yesterday. The plant will be the first of its kind in MENA, producing 18k kg per day, according to WAM. The proposed timeframe for the project was not disclosed.

The fuel cell grade green hydrogen will be used to power vehicles: The green hydrogen produced by the planned waste-to-hydrogen plant will be produced to specific international standards that will allow it to be used in PEM fuel cells — which are being developed primarily for a fleet of large trucks and buses — the statement notes.

How will it work? The plan is to convert non-recyclable waste wood and plastic to fuel-cell grade green hydrogen using Chinook Sciences’ patented pyrolysis process — where hydrogen is produced through the decomposition of methane — and Air Water’s hydrogen refinement technology, the statement says. Syngas — synthetic gas containing hydrogen, CO2, and carbon monoxide — will be produced by the pyrolysis and gasification process, then funneled into the hydrogen refinement system.

What happens to the carbon? Chinook’s technology produces what it calls “high performance” activated carbon, a solid form of carbon that is used in applications including filtering drinking water, the food and beverage, and pollution abatement.

The plant has been in the works since last year: Bee’ah Group and Chinook Sciences announced plans to establish the Sharjah waste-to-hydrogen plant in May 2021, when senior officials signed an agreement outlining the terms of their partnership. The plant is intended to be “the first of many such facilities,” the May statement noted.

Other waste-to-hydrogen plans are developing in the region: H2 Industries’ plans for a USD 3 bn waste-to-hydrogen facility in Egypt — capable of producing some 300k tons of hydrogen annually — are reportedly moving forward, and H2 is also eyeing a USD 1.4 bn waste-to-hydrogen facility in Oman.

More details on a China-Arab summit agreement: Sungrow Power Supply and Acwa Power have inked an agreement to build a 536 MW battery storage system in Neom, according to a statement released this week. The MoU was one of several signed during the China-Arab Summit hosted in KSA last Friday. There are no details regarding the timeline or cost of the project.

Neom is delivering on its zero-carbon plans: Neom’s water and energy subsidiary Enowa signed an MoU last month with the King Abdullah University of Science and Technology and the Saudi Electricity Company to develop a cryogenic carbon capture pilot plant that can capture 30 tons of CO2 daily. Neom is also developing — through a JV with Acwa Power and Air Products — a USD 5 bn green hydrogen project. Additionally, Neom invested USD 175 mn in German electric vertical takeoff and landing vehicle maker Volocopter earlier this month.

Sungrow has other projects in the region: The Chinese company is supplying a battery storage system in KarmSolar’s solar microgrid for a poultry farm in Egypt’s Western Desert, and has nearly 270 GW worth of battery storage systems installed across the globe, according to their website.

Egypt has awarded a golden license for a USD 5.5 bn green ammonia plant in Ain Sokhna, the country’s cabinet said in a statement following its weekly meeting yesterday. The plant will have an annual production capacity of 1 mn tons and will create 10.6k jobs during the construction and operation phases, according to the statement.

Who’s building it? A company going by the name of the Egypt Green Ammonia Company was handed the license for the facility. We’ve been unable to obtain any information about the company or its ownership.

That’s not all: The 100 MW green hydrogen plant being developed by Fertiglobe, Scatec and Orascom Construction also received a license from ministers yesterday. The companies last month began commissioning the first phase of the USD 135 mn plant and signed a framework agreement at COP27. The facility will produce up to 15k tons of green hydrogen a year.

Part of Egypt’s push to become a regional hub for green energy: The government signed

nine framework agreements during COP27 with foreign companies to construct several green hydrogen and ammonia facilities in the Suez Canal Economic Zone. The facilities would cost a combined USD 83 bn and would collectively produce up to 7.6 mn tons of green ammonia and 2.7 mn tons of hydrogen a year when fully operational.

The plants were two of eight projects worth a combined USD 6.8 bn that were awarded golden licenses yesterday as part of government efforts to attract more investment into the industrial sector.

Golden licenses? Egypt’s golden licenses fast-track new industrial and infrastructure projects. Also known as “single approval licenses,” they allow investors to require only one approval that covers everything from establishing the project, including land allocation and building licensing, through to the operation and management of the project. You can check our guide on the golden license here.

Amea Power expands into South Africa: UAE’s Amea Power will build a USD 120 mn, 120 MW Doornhoek solar energy plant in South Africa, the company announced in a statement yesterday. This is the Emirati company’s first project in the country.

The details: The solar plant will generate over 325 GWh of clean energy, offsetting 290k tons of CO2 emissions annually. Energy produced from the plant will be sold to state-owned public utility company Eskom under a 20-year power purchase agreement. Construction is set to begin in mid-2023, with Amea Power retaining a majority stake in the plant.

Amea has bigger plans for South Africa: The energy giant has secured sites for building more renewable energy projects with a total capacity of 1 GW, the statement adds. Currently, the company has a clean energy pipeline of more than 6 GW in 16 countries.

Basrah Gas Company (BGC) is investing USD 87.5 mn to collect an additional 80 mn standard cubic feet per day (mmscf/d) of flared gas from Iraq’s Zubair oilfield, Iraqi News reports. The additional gas will be collected by adding five new compressors to the Hammar Mishref compressor station, it added. BGC is a joint venture between the Iraqi government, Shell and Mitsubishi.

REFRESHER- Oil companies worldwide flared 144 bn cubic meters of gas in 2021, resulting in massive CO2 emissions. Capturing flare gas and using it to generate power is seen as a solution to that problem.

Need a recap on why gas flaring is so bad for the environment and how flare-gas-to-energy works? We’ve got you covered.

BGC is expanding its flare gas collection project at Hammar Mishref, Iraqi News noted. The ultimate aim is to increase Hammar Mishref’s compression capacity to 147 mmscf/d, by adding a total of 11 additional compressors, Iraqi News tells us. This is a notable increase from the station’s original capacity, as it started out with four 35 mmscf/d-capable compressors, the outlet notes.

Iraq needs some USD 233 bn additional investment by 2040 to put it “on a green growth path,” the World Bank said in a report (pdf). The country must diversify its oil-reliant economy in the face of climate change-driven challenges including water shortages, pollution and desertification, the institution said. Although Iraq is financially capable of addressing these challenges, resources must be made available to implement new policies that can tackle the issues efficiently, World Bank regional vice president for MENA Ferid BelHajj was quoted as saying by Arab News.

ALSO- Jordan’s new water treatment plant is now operational: The Hashemite kingdom brought online a solar-powered water treatment plant that will help secure 11% of national water needs by 2025, Arab News reports. The new Amman facility is funded by the Newton-Khalidi Fund and was established through a collaboration by Jordanian engineering students, Jordan’s Industrial Research and Development Fund and the British Royal Academy of Engineering.

Jordan has been battling water woes: The kingdom — represented by the Jordan Valley Authority — signed an agreement with USAID earlier this month to combat water scarcity through a USD 10.45 mn upgrade of the King Abdullah Canal, Al Monitor reported. Improving infrastructure-related issues will help reduce Jordan’s water loss — a critical threat in the world’s second most water-deficient country. Jordan also inked an agreement with Israel in November to swap solar for water, agreeing to export 600 MW of solar power in exchange for 200 mn cubic meters of desalinated water.

---

US industrial software provider Aspen Technology is partnering with Saudi Aramco to identify the “most promising” prospects for carbon capture and utilization (CCU) that can help businesses to adopt carbon management strategies and boost sustainability, Trade Arabia reports. The partnership will see technology developed by Aramco — in partnership with the Korea Advanced Institute of Science & Technology — being licensed to AspenTech, according to Trade Arabia. An “optimization algorithm” will be used to model different scenarios, ultimately allowing companies to find the sweet spot between mitigating CO2 emissions and ensuring gains.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Oman’s Sultan Qaboos University signed an agreement with Smartway Investment SPC to research and advance green hydrogen production. (Statement)
• Dubai South and Evocargo signed an agreement to begin trials on electric autonomous cargo vehicles in Evocargo’s logistics district. (WAM)
• The UAE-headquartered Gulf Petrochemicals and Chemicals Association (GPCA) signed an MoU with the Singapore-based Alliance to End Plastic Waste to promote sustainable waste management in the GCC. (Statement)

Abu Dhabi marine restoration project selected as a flagship project at COP15: An Abu Dhabi marine restoration project has been selected by the UN as one of 10 World Restoration Flagships, according to a statement. The project aims to restore beds of seagrass, coral reefs and mangroves along the Gulf coast to boost coastal resilience, improving conditions for plants and animals — including some 500 species of fish, four species of turtle and three kinds of dolphin, the UN tells us. One specific focus is on safeguarding the UAE’s dugong population — the world’s second-largest, it adds.