Wednesday, 25 January 2023

US firm nabs majority stake in Moroccan waste plastic-to-energy group

TL;DR

WHAT WE’RE TRACKING TODAY

Good morning, nice people. The news slowdown continues as the week wraps up, but we have a couple of stories from Morocco and Jordan making headlines.

Enterprise Climate will be taking a publication holiday tomorrow in observance of Egyptian Police Day and the 25 January Revolution and will be back in your inboxes at the usual time on Monday, 30 January.

THE BIG CLIMATE STORY- US firm Clean-Seas is acquiring a 51% stake in Morocco’s Ecosynergie Group, after the two companies agreed to jointly develop a commercial scale waste plastic-to-energy facility last year.

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

THE BIG CLIMATE STORIES OUTSIDE THE REGION… are actually not climate-friendly. South Africa has seen the worst of its power shortages, but careful consumption is still needed, says outgoing CEO of state power company Eskom Andre De Ruyter. South Africa’s power outage crisis — which earlier this month saw households without electricity for up to ten hours a day — is “receding,” thanks to recent maintenance work, De Ruyter says. But with power cuts set to continue for at least another two years, South African citizens need to reduce their usage where possible, De Ruyter added.

Regulatory constraints impeding private sector renewable energy provision are among the key reasons for the country’s power deficit, along with aging coal-based infrastructure, corruption and criminal activity. Eskom consumes some 90 metric tons of coal yearly to generate electricity, according to South Africa’s Energy Ministry. The story is getting some coverage: Reuters | Bloomberg

And speaking of highly-polluting fuel, Norway plans to auction a record number of oil and gas blocks in the Arctic. The country plans to offer a total of 92 oil and gas blocks in both the Norwegian and the Barents Seas to energy firms. The country’s exploration offerings in the Barents Sea are the highest since 2003, Reuters and Financial Post report.


PSA- Sustainability innovators can now nominate themselves for the UAE’s Zayed Sustainability Prize, according to a statement. SMEs, nonprofit organizations, and high schools can submit innovative sustainability solutions to compete for a USD 3 mn prize which will be divided among five categories: Health, food, energy, water, and global high schools. Applications are open for entry here until 2 May and award recipients will be announced during COP28 next November.

WATCH THIS SPACE- KSA’s Sumou Holding will produce its first electric car with China’s Enovate within 18 months, Asharq Business reports. The two companies are currently running tests on two EV models to assess their suitability for the Kingdom's climate, and conducting logistical and market studies and securing production components. Sumou and Enovate assigned an MoU last month to set up an EV factory that is expected to produce some 100k cars per year in the kingdom.

WATCH THIS SPACE #2- By 2030, importing green hydrogen into the EU will likely be more cost-effective than domestic production in many EU countries, according to a study from energy research firm Aurora Energy. The cost of producing green hydrogen in Germany — which the research uses as a case study — by 2030 would be some EUR 3.9-5 per kg, Aurora calculated. It estimates that it would cost some EUR 3.6/kg to import it from the UAE, EUR 3.2/kg from Morocco, and EUR 3.1/kg from Australia and Chile.

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CIRCLE YOUR CALENDAR-

Qatar is hosting The Indian Society of Heating, Refrigerating and Air-Conditioning Engineers (ISHRAE)’s annual energy and environment conference on Saturday, 28 January. The theme of the conference is “Dialogues in Sustainable HVACR and Architecture.”

EBRD + EU + GCF green finance event in Egypt next week: The European Bank for Reconstruction and Development (EBRD), the EU, and the Green Climate Fund will hold a green finance event on Tuesday, 31 January at the Nile Ritz Carlton Hotel in Cairo, Egypt. Check out the agenda here (pdf).

Egypt will host the CSR Forum from 2 March to 5 March in Somabay, Hurghada. The event aims to further discussions put forth during COP27 and boost private and public sector cooperation on climate action. You can register for the event here.

The Arabia CSR Awards is accepting applications until Friday, 30 June. The awardwinners will be announced during a ceremony on Wednesday, 4 October.

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

M&A WATCH

US firm nabs majority stake in Moroccan waste plastic-to-energy group

US’ Clean-Seas to acquire majority stake in Moroccan waste recycling group Ecosynergie: Clean-Seas — a subsidiary of US-headquartered investment firm Clean Vision Corporation — is acquiring 51% of Morocco-based Ecosynergie Group (ESG) in a USD 6.5 mn transaction, according to a statement. The acquisition agreement, which is expected to close in 1Q 2023, comes after the two companies signed a “binding term sheet” in April 2022 to jointly develop a commercial scale pyrolysis facility, the statement adds.

Wait, what is pyrolysis? Pyrolysis can be used to convert plastic waste into liquid oil by heating the plastic at temperatures ranging from 300–900°C, without oxygen, so that it breaks down. The hydrocarbon liquids produced through this process can then be used for energy or converted back into new plastics.

The details: Clean-Seas is investing USD 6.5 mn in cash in the acquisition, with USD 2 mn to be paid upon closing and the remaining USD 4.5 mn to be paid within 10 months of closing, according to the statement. Clean-Seas will acquire ESG’s current assets, which include two existing pyrolysis plants with a daily capacity of 10 tons each, other pyrolysis equipment and technology, five hectares of land, and licenses to operate pyrolysis facilities, the statement notes.

What currently happens to the waste treated by ESG? ESG currently has over 10k tons of feedstock — presumably plastic waste ready to be treated through pyrolysis — ready to be repurposed into clean fuels and hydrogen, the statement notes. The company also has an offtake agreement with a local oil and gas distributor.

Expansion plans in the pipeline: Within six months of the acquisition, ESG’s pyrolysis plants’ capacity will grow to 120 tons per day. This increase will come from two new plants, each of which will have a daily production capacity of 50 tons, with one due to be installed and operational in 2Q 2023 and the other due to be operational by the end of 3Q 2023. The aim is to grow ESG’s plastic waste processing capacity to reach 350 tons daily or more within two years, the statement says.

The post-acquisition set-up: After the acquisition closes, ESG will be renamed Clean-Seas Morocco. Clean Vision’s Chief Revenue Officer, Daniel Harris, will be appointed CEO of Clean-Seas Morocco, while ESG Director Mohammed El Abbassi will serve as chairman of the Clean-Seas Morocco board — which will have five members, according to the statement.

NUCLEAR

Jordan is ramping up efforts to expand its nuclear energy production

Jordan’s Atomic Energy Commission (JAEC) is looking into building small nuclear reactors for electricity production and water desalination, JAEC Chairman Khaled Toukan said at a meeting with the Jordanian parliament’s financial committee on Monday, reports Al Ghad. The commission is seeking USD 8.45 mn (JOD 6 mn) in funding to begin manufacturing industrial components for the nuclear reactors, Attaqa quotes Toukan as saying. The country already has a Korea-built nuclear reactor, which was inaugurated in 2016, to produce isotopes for medical purposes.

Jordan is throwing a lot of weight behind nuclear energy: Jordan is looking to develop four nuclear energy projects, with one IAEA-certified project being developed in partnership with Jordan University of Science and Technology and establishing an agency for nuclear energy research, Toukan said, according to Attaqa. Meanwhile, JAEC plans to issue a USD 7 mn (JOD 5 mn) tender before the end of 2023 to import nuclear fuel shipments for a three-year period, according to Al Ghad.

It has the uranium deposits needed to support the industry: Jordan has enough uranium deposits to produce 42k tons of yellowcake (partially refined uranium) in six years, Attaqa quoted Toukan saying last year, indicating that Jordan has enough uranium to cover the country’s domestic needs with leftover ore to export regionally to Saudi Arabia and the UAE.

And there are plans to expand on yellowcake production: The commission is currently in talks with a number of unnamed Canadian companies and the Turkish Atomic Energy Authority for investments to develop commercial yellowcake factories, according to Attaqa.

Nuclear power is gaining traction in MENA: Egypt’s Dabaa nuclear facility is expected to contribute some 4.8 GW to the country’s energy capacity once it's operational and over in the GCC, Saudi Arabia is making plans to establish a nuclear power industry for domestic use and export. KSA has two reactors coming online with a combined capacity of 3.2 GW in the coming decade and is targeting 17 GW of nuclear capacity by 2040. Earlier this week, Turkey’s new energy plan to meet its 2053 net zero target included nuclear power accounting for 11% of its energy needs.

SUSTAINABLE AVIATION

Emirates Airways completes 100% SAF-fueled ground test

Emirates Airways has successfully completed ground engine testing using 100% sustainable aviation fuel (SAF), according to a statement. SAF was used on a Boeing 777 aircraft to demonstrate that the low-carbon fuel does not require special technical support or changes to the aircraft’s engine. SAF is currently permitted to be blended up to 50% with regular jet fuel.

Why is this important? Ground tests and experimental test flights analyze the specific outputs of the aircraft’s engine to test the operational performance and fuel systems during the planned test flight.

The details: Ground testing compared the performance of two engines — one fuelled with SAF and another with conventional fuel — undergoing a series of tests including a simulated take-off and climb at full flight durations running at maximum speed and intensity. The engines were then run at cruise settings for 15 minutes. Data was then reviewed after cooldown to study how the different fuels impacted the engines’ overall performance. The airline is proceeding with its first experimental test flight using 100% SAF this week, the statement notes.

Paving the way for big emissions cuts: SAF — ​​which are made of mustard seeds, soy beans, and non-edible oils — can potentially cut carbon emissions by up to 80% and contribute to the decarbonization of the aviation industry.

And the UAE is on track to produce its own: Masdar, Adnoc, Emirates Airways, and Tadweer will conduct a joint feasibility study with BP on the production of SAFs by using solid waste and renewable hydrogen. The companies could potentially set up the region’s first commercial-scale SAF production facility in Abu Dhabi. Abu Dhabi’s Mubadala Energy, Pakistani-Arab Refinery PARCO and Austrian OMV Group are also jointly exploring sustainable aviation fuels.

FROM THE CLIMATE STORE

A hybrid Corvette will hit MENA roads by 4Q 2023

Chevrolet’s first-ever electric hybrid Corvette is coming: Chevrolet’s Corvette E-Ray will be available in MENA by 4Q 2023, according to a statement. The E-Ray is a hybrid vehicle kitted with a self-charging lithium‑ion battery that can rev the engine from 0 to some 96.5 km in 2.5 seconds, the statement notes.

The specs: The two-seater, all wheel drive vehicle has a self-charging 1.9 kWh battery and a 655 horsepower engine. The self-charging occurs through regenerative braking during deceleration — when the car is in neutral and the wheels are disengaged from the engine, according to Cnet.

Thrust and sound: For those missing a powerful rev, the Corvette’s power comes from a 6.2L LT2 Small Block V-8, giving 495 horsepower and 470 pound-foot of torque to the rear axle combined with an electric motor that gives an additional 160 horsepower and 125 pound-foot of torque through the front wheels via the battery pack located between the seats.

Batman mode: The car’s stealth mode allows drivers to cruise in complete silence in electric drive mode up to 45 mph before returning to normal driving mode.

Price tag: The car's starting retail price in the US will start at USD 103k for its 1LZ Coupe and increase to nearly USD 114k for the base model of the superior 3LZ Coupe, according to Chevrolet. It is not clear how much the model will cost

Other Chevy models are hitting the market this year: General Motors is making good on its promise of an uptick in electric-only offerings by 2035. Chevrolet is releasing electric versions of the Blazer, Equinox, and the Silverado in 2023.

ON YOUR WAY OUT

Atmospheric dust is actually tempering rising global temperatures and keeps greenhouse gasses at bay, Bloomberg reports citing a joint study led by the University of California and the University of Oslo. Global temperatures are currently 1.2°C higher than 1850 levels, and on track to hit a catastrophic 1.6°C warmer, but the increase would have been a fraction higher (0.1°F to be exact) if not for an increase in global atmospheric dust.

How they figured it out: The study used satellite and ground measurements, and data gathered from ice cores, marine sediment and peat bogs to determine that the amount of dust in the atmosphere has increased by as much as 55% since the mid-1880s. They found that atmospheric dust scatters sunlights, alters cloud cover and deposits nutrients into the ocean leading to phytoplankton growth which in turn absorbs CO2.

But it’s not good news for us: Atmospheric dust above deserts — like in our neck of the woods — increases global warming because the land surfaces already reflect sunlight.

Why is this important? Changes in atmospheric dust are not currently factored into climate modeling, and the study authors say that if we want climate projections to be as accurate as possible then the possibility that dust increase may have masked up to 8% of the greenhouse warming should be taken into account.

CALENDAR

FEBRUARY 2023

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

4-9 February (Saturday- Wednesday) International Association for Energy Economics’ International Conference, Riyadh, Saudi Arabia.

13-15 February (Monday-Wednesday): The Egypt Petroleum Show, Cairo, Egypt.

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

2-5 March (Thursday-Sunday): Egypt’s CSR Forum, Somabay, Hurghada, Egypt.

7-9 March (Tuesday-Thursday) Middle East Energy exhibition, Dubai World Trade Center, Dubai, UAE.

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

22-24 March (Wednesday-Friday): UN 2023 Water Conference, New York, NY, United States.

AVRIL 2023

6 April (Thursday): Arabia CSR Awards 2022 Clinic (online).

MAY 2023

1-4 May (Monday-Thursday): Arabian Travel Market, Dubai, UAE.

2-7 May (Tuesday-Sunday): Salon International de l’Agriculture au Maroc (SIAM), Meknes, Morocco.

16-18 May (Tuesday-Thursday): Seatrade Maritime Logistics Middle East, Dubai, UAE.

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

JUNE 2023

Bloomberg New Economy Gateway Africa Conference, Marrakesh, Morocco.

1-3 June (Thursday-Saturday): Envirotec and Energie Expo, 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, UAE.

4 October (Wednesday): Arabia CSR Gala Awarding Ceremony, UAE.

30-31 October (Monday-Tuesday): The Solar Show KSA, Riyadh International Convention and Exhibition Centre, Riyadh, Saudi Arabia.

NOVEMBER 2023

30 November – 12 December: Conference of the Parties (COP 28), Dubai, UAE.

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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