UAE’s Taqa invests GBP 25 mn in Xlinks’ Morocco-UK interconnection project

Good morning, wonderful people. It’s been a very short (but busy) week for us at Enterprise Climate and we’re ready for the weekend. But first, there’s a couple of updates from the UAE to delve into.

THE BIG CLIMATE STORIES- The Abu Dhabi National Energy Company will invest GBP 25 mn in UK-based renewables developer Xlinks’ Morocco–UK Power Project and Emirates Steel Arkan is reportedly eyeing a minority stake in leading German conglomerate Thyssenkrupp AG’s steel unit.

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

THE BIG CLIMATE STORY OUTSIDE THE REGION- The Netherlands will spend EUR 28 bn (USD 31 bn) to finance a carbon slashing package aimed at pushing down carbon output at least 55% below 1990 levels by 2030. The government intends to hike taxes for polluting industries in a bid to push them towards clean energy sources and deploy new renewables assets to minimize its reliance on oil and gas imports from the Ruskies. “By putting a lot of effort into our own renewable energy, we make ourselves less dependent on fossil energy from dubious regimes. We have our own clean and sustainable energy supply and therefore no longer have to be blackmailed by types such as (Russian President Vladimir) Putin,” the country’s Climate and Energy Minister Rob Jetten said in an address yesterday.

The story got some coverage in the foreign press: Associated Press | The Washington Post | Reuters

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WATCH THIS SPACE #1- An interconnection link between India and the Gulf could be in the works: India is considering linking its power grid to Saudi Arabia and the UAE through undersea cables, Zawya reports, citing an interview with India’s Power and New and Renewable Energy Minister Raj Kumar Singh in Indian financial daily Mint. Once approved by the cabinet, bilateral agreements will be signed with Riyadh and Abu Dhabi and bidding on detailed project reports will proceed, with each of the involved countries assessing project feasibility.

We heard this before: Singh’s statements come months after he told Reuters that his country and the UAE were close to a "major agreement" on a renewable energy interconnection. The project would come under the One Sun, One World, One Grid initiative by several countries to create renewable energy networks, he said earlier this year.

WATCH THIS SPACE #2- UAE’s teachers set to receive training in climate education: The UAE’s Education Ministry is establishing a national framework for climate action in education to be implemented across schools in the UAE in partnership with UNESCO and UNICEF, Wam reports. The ministry will provide training for 1.4k principals and 2.8k teachers — representing around half of the country’s schools — to provide students with the climate education and green skills necessary to help them adapt to and prepare for the impacts of climate change. Once the training is completed, the schools will be awarded a green accreditation.

WATCH THIS SPACE #3- EU approves measures to boost SAF use: The EU has agreed to set binding targets for the European aviation industry to boost its use of sustainable aviation fuels (SAF) in a bid to decarbonize the industry, according to a European Parliament statement. The proposal aims to increase the use of SAF by ensuring fuel suppliers have 2% of the fuel accessible at EU airports as SAF in 2025, rising to 6% in 2030, 20% in 2035 and 70% in 2050. The EU carbon market is set to provide about EUR 2 bn to help airlines switch to SAF. Some 1.2% of fuels must also be synthetic fuels from 2030, rising to 35% in 2050. Aviation is a difficult sector to decarbonize and net zero aircrafts are not expected for another 10 years, Reuters writes.

WATCH THIS SPACE #4- VCs are banding together to make investment in tech greener: Over 20 VCs, including US-based VC giants Union Square ventures, Tiger Global Management, 2150, and Prelude Ventures launched the Venture Climate Alliance (VCA) to make investment in tech more climate friendly, according to a statement. The VCA members collectively manage USD 62.3 bn in assets, CNBC reports. Members of the UN-backed coalition must disclose their carbon-neutrality targets for 2050 as well as the decarbonization strategies of their portfolio companies. VC members of the group will have the carbon footprint of their startups routinely assessed as part of VCA’s stipulation that members must invest in green tech to effectively offset no less than 100 megatons of CO2 equivalent.

WATCH THIS SPACE #5- ‘Tis the year for EVs: Global demand for electric vehicles is set to rise by 35% this year to 14 mn vehicles as the industry continues to pick up pace, according to an International Energy Agency (IEA) report (pdf). The EV share of the total auto market is forecast to surge to 18% in 2023, up 4 percentage points from 14% in 2022. The growing shift to EVs could help slash global demand for oil by 5 mn barrels a day by 2030, according to IEA projections.

The big three: Most EV sales are currently concentrated in three main markets — China, Europe, and the US. China continues to dominate EV sales, with 60% of global EV sales taking place in the country in 2022, the report notes. Over half of EVs on the road globally are in China. Europe and the US come in second and third, with sales in Europe growing 15% and 55% in the US in 2022.

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THE DANGER ZONE- John Kerry warns against relying on carbon dioxide removal tech: Governments should stop relying on potential advancements in carbon dioxide removal technologies — such as direct air capture and reforestation — to solve the climate crisis, US special presidential envoy for climate John Kerry told the Guardian. Kerry argues that removal of existing CO2 from the atmosphere will not be enough to prevent the world from crossing crucial “tipping points,” adding that governments should instead accelerate investments in renewables and capturing carbon directly from industrial plants, rather from the atmosphere, of which CO2 is a small percentage. A future energy scenario modeled by Shell last month revealed that capturing carbon from the air is too energy intensive for it to play a significant role in reaching global climate goals.

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COME TO OUR NEXT ENTERPRISE FORUM-

The Enterprise Exports & FDI Forum, our latest industry-specific conference, is taking place on Monday, 15 May. The Enterprise Exports & FDI Forum will give insiders and newcomers alike the chance to talk about how to develop an export-centered business and how their companies can help Egypt build an export-led economy that makes us a magnet for foreign direct investment (FDI).

Why exports & FDI? In the wake of successive floats of EGP, exports and FDI have never been more important to our economy — or our businesses. We’re gathering some of the CEOs, top execs from local companies and multinationals, investors, bankers and finance folks to speak on how businesses can adapt their strategies to be export-oriented and what Egypt as a country can do to draw foreign investment and much-needed FX. Expect it to be heavy on lessons learned in Egypt and other global growth markets — and lots of success stories. You can learn more on our conference website here.

And what better place to discuss moving our goods than Egypt’s original logistics zone — the Nile. That’s why we’re looking forward to holding the event by the river’s vistas at the Four Seasons, Nile Plaza.

Some of the biggest names in business and finance are on board — are you? The Enterprise Exports and FDI Forum is taking place with the generous support of our friends, including:

Banking partners: Banque Misr | Al Baraka Bank | Emirates NBD | HSBC

Lead partners: DB Schenker | DP World | East Port Said Development | IDG | IFC | Madinat Masr

Event partners: Beyti | Concrete | Global Corp | Grant Thornton | Hassan Allam Utilities

WANT TO BECOME A COMMERCIAL PARTNER? Ping a note to Moustafa, our head of commercial, here.

HAVEN’T REQUESTED AN INVITE YET? If you’re a C-suite exec, business owner, DFI staff, export executive, investor or banker, please fill out the form here to signal your interest, letting us know your name, title and where you work.

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CIRCLE YOUR CALENDAR-

Germany will host the first COP27 transitional committee workshop this Saturday and Sunday, 29-30 April in Bonn. The workshop will address climate-driven loss and damage impacts, will spotlight the findings of a report prepared by the UN on current funding arrangements for climate mitigation efforts, and bring together a host of international financial institutions to discuss pathways to upping funding capacity for climate-induced loss and damage.

Turkey is hosting the International 100% Renewable Energy Conference from next Thursday-Saturday, 4-6 May in Istanbul. The event will bring together experts to discuss the integration of renewables, renewable energy technologies and applications, and the Roadmap to 2050.

The UAE is hosting the UAE Climate Tech forum on 10 and 11 May in Abu Dhabi. The event will gather over 1k policymakers, CEOs, experts, and investors to discuss collaboration on innovative technologies and economic opportunities in advancing decarbonization across all sectors.

The first MENA Solar Conference is accepting applications from published researchers specialized in PV technology until next 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.

Xlinks secures funds for Morocco–UK interconnection project: UK-based renewables developer Xlinks has secured GBP 25 mn in funding from The Abu Dhabi National Energy Company (Taqa) and GBP 5 mn from UK-based energy supplier and renewables investor Octopus Energy for its Morocco–UK Power Project, according to a company statement. The interconnection project was initially estimated to cost GBP 18 bn.

Where’s the money going? Xlinks will lay 3.8k km high-voltage direct current (HVDC) subsea cable to eventually transport 3.6 GW of renewable energy — nearly 8% of the the UK’s current requirements — from a 10.5 GW solar and wind farm in Morocco’s Guelmim-Oued Noun region to Britain’s power grid in Devon, the statement said. The renewable plant will be supported by a 5 GW battery storage facility.

When will the project be operational? The project should be fully operational at its complete 10.5 GW capacity in 2030. Securing funding for the project has seen much delay, raising the question of whether the company will stick to the initial timeline set last year.

Xlinks held its second public consultation for the subsea interconnector last week: The company launched its second round of consultations as it looks to secure building permits to lay underground, high-voltage, direct-current cabling as well as an alternating current converter station in Devon, UK. This set of consultations is set to wrap up on 31 May.

Morocco has other interconnection projects in the pipeline: Spain signed 19 MoUs with Morocco last February including some in renewables as it prepares to develop a third interconnection line with a capacity to transport 700 MW of electricity, set to be operational in 2026. Morocco currently exports renewable energy to Spain and Portugal through two operational electricity interconnection links with a combined generation capacity of 1.4 GW.

Thyssenkrupp Steel may have a regional suitor: The UAE’s largest steel and building materials company Emirates Steel Arkan is mulling over a minority stake in leading German conglomerate Thyssenkrupp AG’s steel unit, Bloomberg reports, citing people with knowledge of the matter. The Abu Dhabi state-backed group could make a formal bid within the next few months, according to the business information news service.

What we know: The Emirati company is considering a minority acquisition in the steel unit as part of a business partnership, the sources said. It would manufacture products using renewable energy sources then ship the products to Germany to be shaped and finished for use in the automotive industry by Thyssenkrupp.

Not the only contender in the race: Other suitors include India’s JSW Steel and buyout firm CVC Capital partners, who have shown interest in the past months, the sources said. However, talks with the other contenders are not as active, they added.

Crunch time: The acquisition talks come as the German conglomerate’s incoming CEO Miguel Angel Lopez Borrego, who takes the reins on 1 June, is set to face the same challenge in divesting the group that three predecessors failed to overcome, Reuters reports. Growing opposition to a plan to offload the unit pushed Borrego’s predecessor Martina Merz to ask to terminate her contract five years early on the back of opposition from labor unit representatives and pushback from her management board.

Who is Emirates Steel Arkan? The company is the result of a merger initiated by UAE sovereign wealth fund ADQ between Emirates Steel Industries with Arkan Building Materials in 2021. Its steel products were used in several prominent construction projects including Dubai’s Burj Khalifa, Sheikh Zayed Grand Mosque, and Louvre Abu Dhabi, according to its website.

France’s Veolia becomes Turkey’s first WtE plant operator: The Istanbul Metropolitan Municipality Waste Management Company awarded the contract for the operation and maintenance of Turkey’s first waste-to-energy (WtE) production plant to French resource management firm Veolia last week, according to a statement. The plant — which will be located in Istanbul — is set to be Europe’s largest WtE production plant once operational, the statement notes. No financial details or a proposed timeline were disclosed in the statement.

The details: The plant will have a processing capacity of some 1.1 mn tons of non-repurposable household waste annually once fully operational. It will be equipped with a 85 MW turbine, producing nearly 560k MWh of clean energy on a yearly basis, the statement notes.

Veolia is active in MENA’s waste management sector: The French firm is part of the Masdar-led consortium which will operate and maintain the Sharjah WtE plant until 2047. The company’s Middle East division is also part of a JV including Saudi Arabia’s Vision Invest and Abu Dhabi’s ADQ, which had announced last November plans to acquire Adnoc Refining’s waste management operations.

Egypt and Greece’s finance ministers signed an MoU to launch periodic dialogue in technical and financial cooperation, including interconnection plans, according to a statement. Egyptian Finance Minister Mohamed Maait expressed interest in boosting cooperation with Greece in various fields including renewable energy, with the possibility of establishing a new electrical interconnection between the two countries for the export of renewable energy.

DEWA bags UAE Energy and Infrastructure Ministry’s research and innovation accolade: The Dubai Water and Electricity company secured first place in the UAE energy and Infrastructure Ministry’s Research and Innovation Award in the government sector for its grid-integrated system, which regulates solar panel inverters and optimizes grid efficiency, Wam reports.

Saudi’s Sabic picks up five accolades at the Edison Award show: Saudi chemicals manufacturer Sabic Agri-Nutrients snagged five awards — three golds and two bronzes — in the Food and Agriculture, Material Science, and Sustainability categories of this year’s Edison Awards in the US, according to a statement.

Tunisian startup tops EBRD’s AgVenture startup competition: Tunisian green tech startup Kumulus Water earned a prize package worth EUR 90k from The European Bank for Reconstruction and Development (EBRD), according to a statement. The food tech startup will receive tailored advisory support worth EUR 80k and a EUR 10k grant to help the company expand its tech offering, the statement notes.

What does Kumulus do? Powered by an built-in solar power system, Kumulus’ water generator extracts moisture from the atmosphere, stirring it inside the machine to cool it and produce potable water. The company ultimately aims to produce 25 liters of water for USD 0.8, Kumulus notes on its linkedin profile. The Kumulus machines, which weigh around 60 kg, are designed to be portable, decentralized generators that can serve communities in remote areas. (watch, runtime: 00:02:21).

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A research team at the American University of Sharjah is developing a thermal energy storage system for the renewable energy transition, Wam reported last week. The technology uses ionic liquids to manipulate how energy is absorbed and stored then melted for energy release when temperatures drop and materials are allowed to cool and solidify. Researchers hope the new tech can be used in buildings, industrial facilities, and electronic devices to help regulate temperature, store energy, and cut down on energy consumption.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Algeria’s Sonelgaz met with a delegation from China’s Huawei to discuss potential cooperation in renewables, including producing 2 GW of energy from 15 solar plants in 11 locations. (Sonelgaz)
• Qatar’s Transport Ministry aims to have EVs comprise 35% of its fleet by 2030 and 100% of its public buses be all-electric by 2030. (Doha Directory)
• Omani women-led student company ECOF has developed filaments for 3D printers using organic waste and bioplastics. (Oman News Agency)

London's High Court has granted Greenpeace’s request to challenge the British government over granting new licenses for oil and gas exploration in the North Sea, Reuters reports. The challenge will now proceed to a full hearing, with Greenpeace challenging the government and oil and gas regulator North Sea Transition Authority to justify the expansion of drilling in the North Sea. The UK held its first oil and gas exploration licensing round since 2019 last year in a bid to shore up local energy supply after energy prices spiked.

Across the pond, US local governments come after big oil in court over climate-related damages: The US Supreme Court has decided that Exxon, Suncort, and Chevron will have to defend their climate-damaging activities in state courts, Reuters reports. The court rejected motions filed by the oil companies for the lawsuits to be moved to federal courts to state courts — which typically favor the plaintiffs. The lawsuits were filed by the state of Rhode Island and municipalities or counties in the states of California, Colorado, Hawaii, and Maryland.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Denmark has signed a five-year cooperation agreement with Ukraine to jointly rebuild Ukraine’s wind energy generation capacity. (Reuters)
• The US has designated a zone spanning some 9.8 mn acres in the Gulf of Maine for potential offshore wind energy projects. (Statement)
• The US Energy Department has announced a USD 13 mn initiative to design community geothermal heating and cooling systems in 10 states. (Statement)
• American green hydrogen startup Ohmium has raised USD 250 mn in a fresh funding round to boost its green hydrogen manufacturing capacity. (Statement)