Infinity Power, Germany’s Conjuncta team up on mega hydrogen plant in Mauritania

Good morning, wonderful people. We have a hefty issue this morning packed with regional updates. Let’s dive right in.

THE BIG CLIMATE STORY- A global consortium comprising our friends at Infinity Power Holding — a JV between Egypt’s Infinity and UAE’s Masdar — and Germany’s Conjuncta have signed a MoU to build up a mega green hydrogen plan in Mauritania. We have all the details on this story and more in the news well, below.

HAPPENING NEXT WEEK- The German-Arab Chamber of Industry and Commerce will hold its first high-level committee meeting in Cairo on Sunday 12, March to discuss cooperation in renewables and green hydrogen. Egypt’s Oil Minister Tarek El Molla, Electricity and Renewable Energy Minister Mohamed Shaker, International Cooperation Minister Rania Al Mashat, and Parliamentary State Secretary at the German Federal Ministry for Economic Affairs and Climate Action Stefan Wenzel will be attending the meeting.

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THE BIG CLIMATE STORY OUTSIDE THE REGION- Denmark kicks off commercial operations for subsea carbon capture project: Denmark brought online a subsea carbon capture project with a storage capacity of 15k tons in collaboration with UK chemicals company INEOS Group Holdings and german oil producer Wintershall Dea AG. The carbon storage facility — located in the North Sea at a depleted oilfield off the coast of Denmark — sequesters carbon some 2 kilometers below the seabed. The consortium developing the project will make a final decision within 18 months whether or not to increase the facility’s yearly storage capacity to 1.5 mn tons, and potentially 8 mn tons of CO2 by 2030 if the pilot and the second phase prove successful. Denmark is earmarking EUR 1.1 bn for carbon capture and storage projects. The story was picked up by Reuters, Washington Post, and Bloomberg.

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WATCH THIS SPACE #1- COP transitional committee is zoning in on COP27’s landmark loss + damage fund: The first meeting of the COP transitional committee set to take place before the end of his month will look into “the right formulation” for the loss and damage fund that threatened to leave negotiations in Sharm El Sheikh deadlocked, Egypt’s lead climate negotiator Mohamed Nasr said in a virtual press conference attended by Enterprise Climate. He said he expects L&D to be operational by the end of the year. “We’ll get a sense [on when it could be implemented] during the first meeting of the transitional committee,” he said.

Should wealthy developing countries pay up? That’s not the way to look at it, Nasr argues. “What is important is that there are funding arrangements that can deliver rather than a [sole] focus on how much contributors will pay,” he said.

The 1.5°C warming goal should not be left to die: The ambitious global warming limit is still necessary given the severe climate catastrophes seen “while we’re only still at 1.2°C,” Nasr said. “It’s achievable if the right ingredients are in place,” he added, with those including necessary funds, technologies and others. Nasr also spoke on the controversy related to phasing out of dirtier fossil fuels, arguing that raising renewables share in the energy mix — rather than a full phasing out of the dirty fuel — could be a more realistic option.

Hand-in-hand with the UAE: The COP27 presidency is working with counterparts of COP28 host UAE to build up joint understandings on climate goals. “This step to build up on precious COPs is important to ensure continuation,” he said.

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WATCH THIS SPACE #2– The EU will establish a new authority for minerals: The European Union could launch a central agency to buy essential energy transition minerals including cobalt, lithium, and manganese on behalf of the entire bloc as part of its Critical Raw Minerals Act, a draft of which was seen by Reuters. The EU has a target to produce 10% of its mineral demands by 2030 in a bid to eliminate its dependence on China, which currently supplies 95% of the global supply, the newswire notes.

The details: The new European Critical Raw Materials Board would streamline permitting procedures for investors looking to launch mining projects in the bloc, and would provide financing for projects it deems strategic, according to Reuters. Under the proposed law, the agency would grant permits for companies looking to undertake mining projects within 24 months, with the deadline for minerals processing projects set at 12 months, the newswire notes. The CRMA draft is set to be released next Tuesday, 14 March.

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WATCH THIS SPACE #3– Italy backs the thumbs down on EU combustion engine ban: Italy welcomed the postponement of the Tuesday EU vote to terminate the sale of fossil fuel-powered vehicles by 2035 after Germany backtracked on February’s pre-agreed target, Bloomberg reports. Italian Energy Minister Gilberto Pichetto Fratin — who said his country would vote against the bill last month — said “electric cars cannot be the only solution for the future,” Reuters reports. Germany generates some EUR 411 bn per annum as Europe’s top automaker, Bloomberg notes, and has been lobbying for a flexible approach that would not see an outright prohibition of fuel-powered cars.

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CLIMATE DIPLOMACY- Egypt, US discuss energy transition and curbing emissions: Egyptian Oil Minister Tarek El Molla and US Secretary of Energy Jennifer Granholm met to discuss the energy transition and emissions reduction on the sidelines of CERAWeek, according to a statement. The two parties addressed potential bilateral cooperation and US technical support to help fossil fuel production facilities enhance carbon reduction and environmental sustainability.

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COME TO OUR NEXT ENTERPRISE FORUM-

We are delighted to share with you that the Enterprise Exports & FDI Forum will be taking place on 15 May at the Four Seasons Hotel at Nile Plaza in Cairo.

DO YOU WANT TO ATTEND? The first wave of invites is going out soon. If you’re a C-suite exec, exporter, investor, official, banker, or someone who should be part of the conversation, please click here to request a spot at this exclusive event.

What’s the Enterprise Exports & FDI Forum? It is the latest in our series of must-attend, invitation-only gatherings for C-suite-level business leaders. The Enterprise Exports & FDI Forum will discuss the critical topics of exports and foreign direct investment (FDI) in Egypt.

We will be taking an in-depth look into some of the most vital industry topics, including:

• How to effectively break into new export markets
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Why now? Exports and foreign direct investment (FDI) have never been more important to Egypt’s economy — or businesses — than in the wake of the float of the EGP. We think we have a once-in-a-lifetime chance to build an export-led economy that makes Egypt a magnet for FDI, and all the benefits that will come with it.

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CIRCLE YOUR CALENDAR-

Oman will host Oman Sustainability Week from 12-16 March in Muscat. The event aims to create discourse amongst leaders to drive change, and movement within businesses and communities towards adopting a sustainable lifestyle.

The UAE will host the Arab Aviation Summit from 14-16 March in Ras al Khaimah. The event will bring together global stakeholders to address sustainability in the aviation industry among other topics.

Germany will host The Infrastructure Investor Global Summit from 20-24 March in Berlin. The four-day event will gather industry leaders from the global infrastructure sector to map out a course for the industry to upscale its ESG-focused operations and investments. 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.

The first MENA Solar Conference is accepting applications from published researchers specialized in PV technology until Sunday, 30 April. The Dubai Electricity and Water Authority will be hosting the conference from 15 to 18 November, in conjunction with the Water, Energy, Technology, and Environment Exhibition and the Dubai Solar Show 2023. Researchers can submit their papers here.

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

Big news from Mauritania: A global consortium comprising our friends at Infinity Power Holding — a JV between Egypt’s Infinity and UAE’s Masdar — and Germany’s Conjuncta have signed an MoU with Mauritania to build up a mega green hydrogen plant in the West African country, according to a joint press release (pdf).

The details: The plant — located near the northeast of capital Nouakchott — will produce up to 8 mn tons of green hydrogen or its equivalent in other hydrogen-based end products annually, and have an electrolyzer capacity of up to 10 GW. The project will be implemented over four phases, with the first phase of the plant set to be operational by 2028 with a potential capacity of 400 MW.

Exports in the pipeline: The renewable fuels produced will be used for export, according to the statement, although the destinations have not been disclosed. Conjuncta CEO Stefan Liebing says Germany could be “a potential offtaker of green energy,” the statement notes.

What they said: “This green hydrogen plant … will provide not only the North-West but the entire continent of Africa with a clean, renewable energy source that will in turn foster a cleaner, greener future for us all,” Infinity Power Chairman Mohamed Ismail Mansour said. Liebing said the project was “by far the largest bilateral investment project ever.”

Germany’s on the hunt to replace Russian energy flows: Germany has been trying to boost its renewables potential to make up for the energy crunch on the back of the Russian invasion of Ukraine. Masdar and Australian utilities company Verbund inked an agreement last month on green hydrogen, with Southern Germany among several regions set to receive green fuel exports.

And it’s not the only one in place: The agreement with Verbund follows another with Germany’s Uniper to develop a green hydrogen plant in the UAE powered by 1.3 GW of solar energy. The plant is expected to generate green hydrogen by 2026 and the EU wants to import the clean fuel the facility will generate. Germany recently announced it will join a planned green hydrogen pipeline partnership with France, Spain and Portugal in a bid to make up for the loss of Russian fuel imports.

Infinity has also been active on green hydrogen in Egypt: Infinity Power announced during COP27 last year it will build two green hydrogen production plants — one in Egypt’s Suez Canal Economic Zone and the other on the Mediterranean — as part of a consortium including Egypt’s Hassan Allam Utilities and UAE’s Masdar. The plants will produce up to 480k tons of green hydrogen a year, with the SCZone facility due to come online in 2026. They have an electrolyzer capacity of 2 GW, with a target to extend it to up to 4 GW by 2030 to produce green ammonia for export with capacity to supply to local industries.

The news also got coverage from Reuters | Zawya

Taqa Morocco is hungry for more renewables: Taqa Morocco — a subsidiary of Abu Dhabi National Energy Company (Taqa) — plans to invest USD 1.6 bn in renewable energy projects by 2030, Moroccan news outlet SNRT News reports, citing statements by its CEO Majid Iraqui in a press conference.

An ambitious plan: Taqa Morocco wants to diversify its activities in renewable energy, green hydrogen and seawater desalination as part of its ambitious expansion strategy, Iraqui said. The plan would save up some 1k MW of additional capacity and slash carbon footprint by 25%, he added.

And an accelerated pace: The Moroccan subsidiary plans to accelerate bringing online the 96 MW Noor Midelt solar generation plant, Iraqui said. Taqa Morocco has 100 MW of wind energy projects in the country’s north and 600 MW in pre-development in the south, he added. Iraqui said his company is currently on the search for suitable areas to install a further 200 MW of wind energy capacity.

REMEMBER- Morocco has been pushing with efforts to position itself as an export hub for renewable energy and green hydrogen to Europe. Spain extended a EUR 800 mn credit line to Morocco last month and signed 19 MoUs including a renewable energy development agreement with the country during a visit by Spanish PM Pedro Sanchez. Other nations have also been showing interest in the country’s potential, with Germany signing with Morocco a partnership agreement to build a 100 MW hydrogen plant in Morocco in 2020 and another agreement signed between Morocco and Portugal in 2021 to develop green hydrogen.

UAE lines up minerals exports: The Abu Dhabi Export Office (ADEX) signed an agreement with Japan’s Sumitomo Mitsui Banking Corporation (SMBC) to provide a USD 135 mn syndicated loan to Swiss metals and minerals trader Trafigura as part of its plans to increase export volumes of UAE minerals, Wam reports. ADEX will be contributing USD 125 mn of the loan, with SMBC providing the remainder and acting as the facility agent of the lenders.

About Trafigura: The Swiss-headquartered commodities trader owns lead, zinc, copper, and silver mines across four continents, producing a total of 31 product types of metals and minerals as of 2022, according to the company’s annual report.

AFC set to spend big in Egypt: The Africa Finance Corporation (AFC) has identified “an immediate project pipeline” worth over USD 1 bn in infrastructure projects in Egypt, it announced in a press release (pdf). The investments would be made in key sectors in the country including renewable energy, natgas, heavy industries tech, telecoms, banking and finance.

Could it be Lekela? AFC will primarily look to invest in firms where it has “influence and representation on the board,” Executive Director and Chief Investment Officer Sameh Shenouda was quoted as telling Al Arabiya. AFC and our friends at renewables player Infinity Group signed an agreement last year to acquire 100% of pan-African renewables firm Lekela Power from private equity firm Actis and Irish wind and solar developer Mainstream Renewable Power last summer. The transaction — which reportedly values Lekela at USD 1.5 bn — would be Africa’s largest renewables acquisition. AFC and Infinity aim to raise USD 2.5-4 bn over the next four years to double the capacity of Lekela.

Egypt also became a member: Egypt joined AFC as the first North African sovereign shareholder after making an undisclosed equity investment, according to the statement. “As the largest North African economy, Egypt’s investment leads the way for other countries and investors from the region to join AFC’s shareholders and use its platform to boost regional trade and co-investment opportunities,” the statement reads.

Beeah’s Sharjah waste-to-energy facility received the Emirati Energy Ministry’s Research and Innovation Award, the environmental management company said in a tweet. The award — given under the category of “Balanced National Energy” — recognizes the facility’s contribution to zero waste, and its support of national renewables targets.

The Dubai Electricity and Water Authority (Dewa) received the British Safety Council’s Supreme Achievement Award 2022, according to a statement last week. The UAE entity was recognized after having earned the Sword of Honor for Health and Safety and the Globe of Honour for Environment for 11 consecutive years. A delegation from Dewa visited Lithuania last month to discuss the development of a nanosatellite intended to support the digitalization of the country’s power networks and facilitate the roll-out of smart grids and EV charging stations.

Canada’s Carbon Upcycling is joining forces with the UAE’s A3&Co to boost green cement production: Canadian waste management and carbon utilization company Carbon Upcycling signed a partnership agreement with UAE-based cement consultancy A3&Co to boost decarbonization across A3’s operations, according to a company statement. The agreement will see Carbon Upcycling provide A3 with its SCM catalytic reactor, which captures carbon and minimizes clinker ratios generated in various stages of cement production. Clinker — a mix of limestones and minerals which when heated generate 825–890 kg of CO2 per ton — makes up 90% of Portland cement, the world’s most widely used type.

Saudi’s Ma’aden shores up protection against losses: Saudi-based mining company Ma’aden has been granted a captive license from the Dubai International Financial Center (DIFC), according to a statement. “The license will help Ma’aden manage retentions and deductibles associated with traditional risk transfer programmes and provide better protection against catastrophic losses and risks​​​​​​,” the DIFC said.

But Enterprise, what is captive ins.? A risk financing mechanism, a captive ins. company acts as a wholly owned subsidiary insurer for the parent company or related entities against future losses.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Emirates Water and Electricity Company is aiming to increase its total solar capacity by 600% by 2030 to reach 7.3 GW. The key energy supplier also aims to develop 300 MW of battery storage systems to facilitate its solar expansion. (Wam)
• Morocco has granted Canada’s Elcora Advanced Materials a license to extract and process Manganese in a 16 sq km mining concession. Manganese is an essential component of EV batteries. (Statement)

A battery craze is all over Australia: A transition from coal-fired power in Australia to cleaner alternatives is causing a boom in battery energy storage system (BESS) projects to store renewable energy, Bloomberg reports. Australia has at least 250 battery projects in the pipeline with a capacity of c. 130 GWh, coming next after battery-manufacturer dominant China, according to BloombergNEF data. Australia will need to pour in some USD 43 bn to build battery storage plants until 2050, with the funds part of a wide clean energy expansion plan that costs some USD 160 bn, the business information service adds.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Brazil’s Petrobras is eyeing renewables investments including seven offshore wind projects yielding up to 14.5 GW with Norway’s Equinor. (Reuters)
• Brazilian renewables company Omega Energia will enter the US market with its 265.5 MW wind farm in Texas. The company plans to contribute to the US’s projected 300 GW renewables growth within the coming decade. (Reuters)
• Malaysian companies will be able to calculate the impact of their carbon emissions starting next month, under a new centralized reporting system developed by Bursa Malaysia and the London Stock Exchange. The platform will also help unlisted SMEs track their ESG data. (Reuters)
• Germany plans to build new gas-fired facilities fit to be powered by hydrogen “in the future” in a bid to decarbonize while securing its energy supply, Chancellor Olaf Scholz says. The new facilities will have a production capacity between 17 to 21 GW. (Reuters)