Egypt moves forward with its mega desalination program

Good morning, ladies and gents. It’s a quiet morning on the news front, save for some key updates from Egypt and a smattering of regional updates elsewhere. Let’s jump in.

THE BIG CLIMATE STORY- Seventeen regional and international consortiums — including our friends at Infinity — have been prequalified for the tender process for several desalination plants in Egypt as part of the first phase of the government’s desalination program.

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

THE BIG CLIMATE STORY OUTSIDE THE REGION- No single story captured the full attention of the foreign press yesterday, but Mitsubishi Corp and MUFG’s launch of their USD 1 bn decarbonization fund, and reports the US may table regulations encouraging automakers to source electricity from renewable natural fuels both got coverage. Japanese trading titan Mitsubishi Corp, Mitsubishi UFJ Financial Group, and other companies will earmark USD 1 bn to support Western startups’ clean energy projects, especially for offshore wind power developments and sustainable aviation fuel projects by EU and US-based companies, according to Reuters. Meanwhile, across the pond, the US government is reportedly looking to postpone the passage of legislation that would provide tradable credits to automakers open to charging their EVs with electricity sourced from renewable natural gases and/or from methane sourced from landfills and cattle, the newswire notes.

WATCH THIS SPACE #1- Kuwait racing to meet this year’s renewables target: Kuwait is in talks with renewable energy “specialists” as it aims to meet this year’s national target of having renewables provide 15% of the country’s electricity needs, the Kuwait News Agency reports, citing Electricity, Water, and Renewable Energy Minister Mutlaq Burguba. Kuwait is also looking to set up an organizational unit that would be tasked with handling matters related to the renewable energy sector, the outlet said, adding that the ministry plans to source 10% of the power used by its headquarters from renewables.

WATCH THIS SPACE #2- Will Istanbul issue its first green bond? Istanbul is looking to raise between EUR 500-600 mn from its first green bond issuance — subject to approval from market authorities — to finance its planned USD c.963 mn metro line in southwestern Istanbul, General Secretary of Istanbul Can Akin Caglar told Reuters. Caglar did not specify the green paper’s offering date. The Turkish government is also looking to establish a solid waste incineration facility which will need EUR 500 mn in funding from a separate green bond issuance, Caglar said.

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THE DANGER ZONE- Poor rainfall is putting farming in Jordan at risk: Rainfall in Jordan this season averaged 168 mm, taking a heavy toll on crops in the already water scarce country, The National reports, citing data from Jordan’s Meteorological Department. Although this season’s rainfall is 88% more than last season, it still remains well below the average of 210 mm. Some areas are more affected than others, with agricultural region Jerash seeing rainfall this season amounting to only 57% of its average 340 mm, according to the data. The water supply crisis is causing a disparity in the kingdom, with desert regions to the east of Jerash producing high quality crops due to being irrigated by wells dug into water reservoirs. The dwindling water supply has pushed some farmers to turn to growing strawberries, which consume less water than other crops cultivated in the kingdom, The National reported in a separate story.

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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.

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CIRCLE YOUR CALENDAR-

Turkey is hosting the International 100% Renewable Energy Conference this Thursday, 4 May to Saturday, 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 Global Green Future Fuel conference from next Monday, 8 May to Wednesday, 10 May in Dubai. The green energy-focused business event brings together policymakers, renewable energy generators, project developers, and chemical and mobility industry representatives to define a new energy future shaped by hydrogen.

Egypt is hosting The Solar Show MENA next Tuesday, 9 May and Wednesday, 10 May in Cairo. The conference brings together policymakers, financiers, and others to develop and futureproof the region’s energy sector as one of the emerging players in developing clean energy solutions and energy infrastructure.

The UAE is hosting The Airport Show on Tuesday, 9 May to Thursday, 11 May in Dubai. The forum’s 22nd edition will bring together over 200 aviation companies and more than 100 buyers from 23 countries. It will shed light on leading innovations in airport sustainability, digitalization, and urban air mobility to facilitate the industry’s path towards sustainable and collaborative airport infrastructure development and operational transformations.

The UAE is hosting the UAE Climate Tech forum on Wednesday, 10 May and Thursday, 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 and news triggers.

Egypt’s sovereign fund gets the ball rolling on water desalination plants: Seventeen regional and international consortiums have been prequalified for the tender process for several desalination plants in Egypt as part of the first phase of the government’s desalination program, according to a statement (pdf) by the Sovereign Fund of Egypt (SFE). The plants — built in several locations across the country — will be powered by renewable energy sources, according to the statement. SFE CEO Ayman Soliman said in statements last year that the first phase is estimated to cost USD 3 bn out of a total USD 8 bn for the project.

How it works: The tenders will be divided into four categories based on the capacity of the planned projects, the statement showed. Category A is for capacities reaching up to 1 mn cubic meters per day (cbm /d), Category B is for capacities up to 600k cbm / d, Category C is for capacities up to 400 cbm / d, and Category D will see lower capacities of up to 200k cbm / d.

Who’s throwing their hat in the ring? The statement provides a list of the prequalified companies and consortiums, with some of the names bidding on Category A (either independently or as part of a consortium) including renewables player Infinity, Public Investment Fund-backed Acwa Power, Orascom Construction, Scatec, Toyota Tsusho Corp, Acciona Agua, Metito Utilities, France’s Engie, and Hassan Allam Holding, among others. Bidders on Category B include Dubai-based renewable energy developer Amea Power, Taqa Arabia, and others. The categories with lower capacities will have bidders including DesalEgypt, Amarenco Solarize Egypt, and others.

What’s next: The SFE is planning to have three or four of these plants tendered by 3Q 2023, the Fund told EnterpriseAM. The remaining plants in the program’s first phase should be tendered in the next 18-24 months, they added.

REFRESHER- 28 bidders — including Gulf sovereign funds — have been vying for contracts to build 21 desalination plants Egypt is tendering to the private sector, Director of the Egyptian Finance Ministry’s PPP unit Atter Hannoura told EnterpriseAM late last year. He said at the time that plants are located on the Marsa Matrouh and Alamein coasts.

What we know: The ambitious water desalination program will involve the launch of several projects with a total planned capacity of 8.85 mn cbm / d by 2050 — of which 3.35 mn cbm / d is planned by 2025 as part of the first phase, according to the statement. The European Bank for Reconstruction and Development and the International Finance Corporation have been brought in to “support in structuring and implementing the first batch of water desalination projects in partnership with the private sector, which entails retaining technical and legal consultants,” the statement said.

REMEMBER- Egypt needs over 114 bcm of water annually to achieve full self-sufficiency, but only 60 bcm is available each year, according to statements by former Irrigation Minister Mohamed Abdel Atty. This has pushed Egypt to resort to alternatives despite hefty price tags, including the EGP 18 bn Bahr El Baqar wastewater treatment facility. Egypt’s USD 50 bn water plan could even grow to cost EGP 1 tn by 2037, President Abdel Fattah El Sisi previously said.

JBIC partners with Egypt on green fuels and renewables: The Japan Bank for International Cooperation (JBIC) signed a non-binding agreement with Egypt’s International Cooperation Ministry to explore cooperation in renewable energy and green fuels including ammonia and hydrogen, according to a statement. The timeline and potential investment tickets for the planned projects were not disclosed.

REMEMBER- JBIC is also funding Egypt’s 500 MW Gulf of Suez wind farm: The credit lines extended to Red Sea Wind Energy (RSWE) — the project developer of Egypt’s 500 MW Gulf of Suez wind farm — are co-financed by JBIC, Sumitomo Mitsui Banking Corporation, the Norinchukin Bank, and Société Générale. They will collectively provide green loans adding up to USD 401 mn for the project, with JBIC contributing USD 240 mn alone. The wind farm — which achieved financial close earlier in April — is being developed under the energy pillar of the Egyptian government’s Nexus of Water, Food and Energy program.

Japan is funding other renewable projects: The Japan International Cooperation Agency, the International Finance Corporation (IFC), and Dutch development bank FMO are collectively providing USD 500 mn for Amea Power’s 560 MW Abydos solar plant and the 505 MW Amunet wind project in Egypt. Meanwhile, a USD 800 mn wind farm is receiving USD 500 mn from the Japanese Bank for International Cooperation, the IFC, and three commercial banks — Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, and Standard Chartered Bank. During a three-day state visit to Cairo this week, Japanese Prime Minister Fumio Kishida sat down with Egypt’s President Abdel Fattah El Sisi to discuss potential partnership agreements in the renewable energy sector among other areas.

Another 200 MW of solar energy for Dubai: The Dubai Electricity and Water Authority (Dewa) has commissioned 200 MW from the 900 MW fifth phase of the Mohammed bin Rashid Al Maktoum Solar Park ahead of schedule, according to a statement. This leaves only 100 MW remaining to achieve the completion of the park’s fifth phase, with the sixth phase pegged to become operational in stages between 2024 and 2026, the statement notes. The Mohammed bin Rashid Al Maktoum Solar Park is the world’s largest single-site solar park using the IPP model.

This phase alone is expected to offset 1.2 mn tons of CO2 emissions per year: The fifth phase will power around 270k homes, stopping 1.2 mn tons of CO2 from being released into the atmosphere. The 2.3 GW of solar power commissioned from the 5 GW solar park so far represents 15.7% of Dubai’s existing energy production capacity, according to the statement. Once the 5 GW are completed, the project will slash 6.5 mn tons of carbon emissions annually.

Background: A consortium led by Saudi Arabia’s Acwa Power, in partnership with the Gulf Investment Corporation, was selected to develop the fifth phase of the project with a cost of USD 562 mn under a BOO agreement. Dewa — the sole off-taker of energy generated by the fifth phase — is buying the solar energy generated at a price of USD 1.7 cents per kWh, one of the most competitive PPA agreements to date, the statement notes.

UAE, Morocco talk renewables cooperation: UAE Economy Minister Abdullah bin Touq Al Marri and Moroccan counterpart Nadia Fattah Al Alawi discussed the importance of boosting mutual investments in renewable energy, AI, cybersecurity, and technology, Wam reports. Al Marri made the statements during a meeting in Rabat with several key Moroccan ministers and officials on the sidelines of the first session of the joint economic committee between the UAE and Morocco.

REMEMBER- Morocco has been emerging as a key renewables player in the MENA region. Last month, its ambitious UK-Morocco power cable got backing from the UAE and renewables investor Octopus Energy. The massive interconnection project saw the UK-based renewables developer Xlinks securing GBP 25 mn in funding from The Abu Dhabi National Energy Company (Taqa) and GBP 5 mn from Octopus Energy.

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IN OTHER CLIMATE DIPLO NEWS- Algeria, Zimbabwe mull cooperation in renewables and mining: Algerian Energy Minister Mohammed Arkab and Zimbabwe Parliament Speaker Jacob Mudenda discussed potential investments in renewables and electricity production and transmission, according to a statement. They also discussed potential and investment opportunities in Algeria’s mining sector, the statement added.

City dwellers are in for an Acer treat: Acer has rolled out an AI-driven single motor e-bike as it branches out to the e-mobility game, according to a statement. The Acer ebii — a “greener option” that offers seamless rides despite its minimalist design — is the latest venture by the Taiwanese company most known for its PCs.

Let’s talk specs: The 16 kg e-bike comes equipped with a 250/350 W motor and 40 Nm torque performance, allowing assisted riding of up to 25 km/hr. Its modular architecture brings together the battery pack and control box under a single compact intelligence vehicle control box.

A smart and adaptive ride: The e-bike is equipped with an AI-powered ebiiAssist function that automatically adapts to the rider’s pedaling power, riding conditions, and set level of assistance. The controller uses AI technology to automatically adjust motor output, adapting to the rider’s use over time. Riders can also use the ebiiGO companion app to be briefed on recommended routes, battery life, and riding speeds. They can also use the adaptive mission control app ebiiRide for three modes of riding: the power-saving Eco Mode, the smart balance ebii Mode, and the Boost Mode for necessary speed and motor output tweaks depending on commute conditions and distance.

A durable battery: A long lasting removable battery can be used for up to 110 km with a full battery life charged in only 2.5 hours. The smart power distribution can help extend battery life to ensure a full day’s ride. The battery pack can also be used as a portable charger for other devices, thanks to an easy removal of the battery pack.

Green mobility: “As urban commuters search for convenient, safe, and greener options, the Acer ebii’s AI assistance and innovative safety features empower them to go further, faster,” Acer Co-COO Jerry Kao said in the statement.

Making an EMEA debut this year: The Acer ebii will be available in EMEA from September starting at USD 1,999.

The Oman Power and Water Procurement Company (OPWP) is accepting bids from project management consultants for its Manah 1 and Manah 2 solar plants, Trade Arabia reports. Construction of the plants — set to contribute 500 MW each to the national grid — will begin in 3Q 2023 and commercial operations will be completed by the middle of 2025 after the Authority for Public Services grants its approval.

Background: The OPWP secured a USD 458 mn investment from Korea Western Power and French EDF Renewables to co-develop the Manah 1 plant under a build-own-operate model in March. It also selected a JV made up of Singapore’s Sembcorp Utilities and China’s Jinko Power to develop the Manah 2 solar plant. The combined cost of Manah 1 and Manah 2 will amount to over OMR 300 mn (c. USD 780 mn).

ALSO- The Omani Environment Authority yesterday passed legislation requiring waste management companies to have licenses for the transport and import of waste, the Times of Oman reports. The new regulation aims to crack down on illegal dumping and support waste management activities in the sultanate, stipulating all waste imported into the country must be directly moved to recycling facilities.

India’s Serentica Renewables scores more funding: Indian decarbonization platform Serentica Renewables secured a USD 250 mn investment from US private equity firm KKR to support its plans in developing a 4 GW renewable energy portfolio, according to a statement. This brings KKRs total investments in Serentica to USD 650 bn, after a previous USD 400 mn investment last November. The statement did not disclose KKR’s ownership stake in the company.

About Serentica Renewables: Serentica is a newly founded solar, wind, and battery storage project developer that targets large-scale energy intensive industries across India’s Karnataka, Rajasthan, and Maharashtra regions. In the medium-term, it aims to install 5 GW of renewable energy, cutting 20 mn tons of CO2 emissions. It is jointly owned by KKR and Twinstar Overseas Limited.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• General Motors is halting production of its competitive Chevrolet Bolt EV in the US at the end of the year, as it prepares to launch next-generation EVs to improve the company’s production capacity, profits and market positioning. (CNBC)

Groundbreaking cement mix uses bacteria to lock up carbon: Denmark’s concrete manufacturing giant IBF and US-based startup Biomason are finalizing the development of a cement mix that replaces the conventionally used limestone base with a bacteria that traps carbon dioxide when heated for concrete production, Bloomberg reports.

How does it work? While traditional concrete relies on a cement mix called Portland — which uses limestone as a base and releases carbon dioxide — specific types of bacteria can mimic the properties of the Portland cement by drawing in carbon dioxide and converting it into calcium carbonate, according to Bloomberg. The rocks and sand known in the industry as “aggregate” are heated as normal, then combined with the biologically produced cement instead of the Portland type. The company estimates some 783 tn bacteria will be required for each production cycle, which churns out more than 725 kg of combined concrete in a process that takes three days to complete.

Big emission cutting plans: Biomason’s founder and CEO Ginger Krieg Dosier told Bloomberg that the company aims to cut CO2 emissions from global cement production by a quarter by the end of the decade. In Denmark, roughly 800 kg of CO2 is emitted for every ton of cement produced.

Shipping soon: The first batch of low-emission concrete tiles in industrial quantities will begin shipping out to Danish, Dutch, and British markets in the spring, Bloomberg writes. Among their earliest customers is department store giant H&M.

But there are still challenges ahead: The cement mix can be applied for light concrete use such as in driveways or flooring, but it does not have the tensile characteristics for application in tall buildings, the Bloomberg article explains. Significant technical challenges must be overcome before the cement can entirely replace traditional, carbon-intensive cement, according to Biomason COO Bert Bruggeman.