Scatec and Egypt agree to jointly build the country’s first green methanol plant

Good morning, friends, and welcome to what is shaping up to be a busy week. We have plenty of regional climate news to jump into, but first…

The Enterprise Exports and FDI Forum is taking place today at the Four Seasons Nile Plaza. The event will see CEOs, top execs, bankers, and development finance folks attempt to solve the biggest economic issue of our time: How do we get out of our FX crunch by boosting exports and raising foreign direct investment.

We are very grateful for the interest we’ve seen from many of you and we cannot wait to meet those attending.

** Attendees who have confirmed and RSVP'd to their personal invitations do not need a QR code to enter the venue, but please do bring a business card you can give us in exchange for your name tag and lanyard.

The event kicks off with an 8am networking breakfast, with the opening panels starting at 9am.

Who can you expect to see there? Our friend Mohamed El Gebely, team leader at USAID Trade: Mohamed El Gebely is going to be speaking at the forum on how SMEs can be part of an export-oriented economy through the vehicle of industrial clusters. He is joined on stage for that discussion by Shady William, managing director of IDG, and Nada El Ahwal, CSO of Transmar, who will explain how Egypt can better leverage industrial clusters to boost exports.

Who else is speaking (in no particular order)? Hossam Abou Moussa, partner at Apis, Hassan Massoud, associate director and head of private equity (Southern Mediterranean) at the EBRD, Tarek Kamel, CEO of Nestle Egypt; Omar Elsahy, general manager of Amazon Egypt; Khaled Morsy, CEO of DB Schenker; Mohamed Talaat Khalifa, CEO of Concrete; Mark Wyllie, CEO of Beyti; Kareem Abou Ghaly, chairman and CEO of Pasta Regina; Yasmine Khamis, chair of the Orientals Group, Cheick-Oumar Sylla, director for North Africa and Horn of Africa at the IFC; Hossam Sallab, CEO and vice-chairman of Sallab Group and Royal Ceramica; Tarek Hosny, head of investments and projects at Fertiglobe; Helmy Ghazi, deputy CEO of HSBC Egypt; Shams Eweis, corporate affairs director, Egypt, North Africa and Levant at Mars; Nadia El-Tawil, investment officer at AfricInvest, Mostafa Bedeir, CEO of Giza Seeds and Herbs, Abdallah Sallam, CEO at Madinet Masr; and Yassir Zouaoui, partner at McKinsey.

Topics and live interviews will include:

• How to attract foreign partners and figure out what they are looking for;
• What lessons can we draw from food, fertilizers, and garments exporters who have increased our exports;
• What are the fundamentals to creating an export and / or FDI strategy;
• What it takes to secure a place in a multinational’s supply chain.
• How industrial clusters could expedite exports, FDI and possibly be an avenue for SME development;
• What are the industries of tomorrow around which we can export and bring in FDI.

Tap or click here to explore the full agenda.

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THE BIG CLIMATE STORY- Egypt’s Alexandria National Refining & Petrochemicals signed a cooperation agreement with Norwegian renewables developer Scatec to jointly establish the country’s first green methanol production facility and Taqa Morocco — a subsidiary of Abu Dhabi National Energy Company (Taqa) and Morocco’s largest private electricity producer — launched Taqa Morocco Green, a new subsidiary which will manage the company’s solar projects and produce green hydrogen.

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

THE BIG CLIMATE STORY OUTSIDE THE REGION- US announces first emission slashing plan for existing plants: The US Environmental Protection Agency (EPA) unveiled a proposal on Thursday setting quotas for emissions from operational power plants across the US. If approved, the new proposal would compel energy companies to use carbon capture, utilization and storage (CCUS) infrastructure to push down their CO2 emissions in a bid to mitigate some 617 mn tons of CO2 equivalent between 2028 and 2042, according to EPA projections. Coal-fired plants operating past 2040 will be required to adopt CCUS tech no later than 2030 under the new plan. The EPA says its climate action proposal — which has been in the works for 18 months — would also prevent some 300k pollution-induced asthma attacks and an estimated 1.3k premature deaths in 2030 alone.

The story got widespread coverage in the international press over the weekend: Reuters | Bloomberg | Financial Times | Washington Post | New York Times | Wall Street Journal | Associated Press | The Guardian

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OVER IN COPLAND- Marshalling the big polluters to “co-create the future”? COP28 President-Designate Sultan Al Jaber called on representatives of the oil and gas industry and other top-emitting industries to work collectively to find tangible solutions for decarbonization and emission reduction, Wam reported on Thursday. He made the statements at a CEO roundtable on the sidelines of the UAE Climate Tech forum, where he asked stakeholders to support the decarbonization efforts of other industries and adopt frameworks for reporting and verifying emissions.

A transition that leaves no one behind: “The transition to a low and eventually no carbon economy will require a collective and concerted effort from all stakeholders. We need to reimagine the relationship between energy producers and industrial consumers, from one based purely on supply and demand to one that is focused on co-creating the future … our goal must be to hold back emissions, not progress,” Al Jaber said.

Emissions should be significantly slashed to keep the 1.5°C goal alive: Al Jaber called on attendees of the Abu Dhabi-hosted conference to accelerate the development and deployment of technological solutions to decarbonize economies and slash emissions by at least 40% by 2030 in line with a Intergovernmental Panel on Climate Change (IPCC) report, Wam reported last week. “The science is already telling us that we are way off track. The latest IPCC report has confirmed that the world must reduce emissions 43% by 2030, and that’s if we are serious about keeping the ambition of 1.5°C alive. At the same time, we know that global energy demand will continue to increase because an additional half a billion people will join us on this planet by 2030.”

MEANWHILE- Loss and damage adaptation support from G20 proof of COP27 achievements: Egypt’s UN high-level climate champion and UN Special Envoy on Financing the 2030 Agenda Mahmoud Mohieldin noted the G20’s support for COP27 outcomes on loss and damage and adaptation financing during the annual meeting of the Islamic Development Bank (IsDB) Group in Jeddah, which wrapped yesterday, Ahram Online reports. Mohieldin called for improved debt relief structures catering to climate-vulnerable countries, increased use of carbon markets as a tool to channel climate financing for development projects, and increased climate funding and targets from private sector players.

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PSA- Irena launches its NewGen Renewable Energy Accelerator: The International Renewable Energy Agency (Irena) launched its NewGen Renewable Energy Accelerator during the World Utilities Congress in Abu Dhabi on Thursday. The startup accelerator — established with help from the UAE government and nonprofits Social Alpha and Enel Foundation — will provide mentorship and investment matchmaking opportunities for young entrepreneurs and startups with climate-focused projects in areas including energy storage, grid integration, and energy efficiency. Applications are open for any climate-focused business, whether it be a startup, scale-up, or a growth business, as long as one of its founders is between 18 and 35 years old. The first cut-off deadline for applications is 9 June and the second is 8 July 2023.

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WATCH THIS SPACE #1- TotalEnergies is expected to start operations on a USD 27 bn oil, gas, and renewables project in Iraq in the second half of this year, Iraq’s deputy oil minister said on Friday, Reuters reported. The French oil giant is in the process of finalizing the side-contract with Iraq’s state-owned Basra Oil Company (BOC) to actualize the contract and begin construction of a 1 GW solar power plant to supply the Basra regional grid, a flared gas recovery system on three oil fields, and a seawater treatment plant.

REMEMBER- The agreement had been delayed for 18 months due to disagreements on project ownership between BOC, TotalEnergies, and QatarEnergy, which were resolved last month after BOC agreed to a stake of 30%, TotalEnergies secured a 45% stake, and QatarEnergy grabbed the remaining 25%.

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WATCH THIS SPACE #2- Aramco dismisses reports it is backtracking on blue hydrogen investments: Saudi oil giant Aramco says plans to produce 11 mn tons of blue hydrogen annually by 2030 are still intact, dismissing a report last week the company would focus on natgas exports due to a lack of interest in the clean energy source, the Saudi Press Agency reported on Friday. Aramco CEO Amin Nasser was quoted as saying last week that the company was having difficulties securing off-take agreements and would not sanction investment decisions for blue hydrogen exports.

WATCH THIS SPACE #3- Masdar, Irena to establish a path to tripling renewables by 2030: Masdar signed an MoU with the International Renewable Energy Agency (Irena) to establish a roadmap for tripling global renewable energy capacity by 2030, Wam reported last week. Through joint research based on region-specific data, the roadmap will outline global targets for renewable energy — including solar, wind, hydropower, geothermal, and battery storage — by 2030, and will highlight the challenges and recommendations for action ahead of COP28 in the UAE in November. The agreement was signed by Masdar CEO Mohamed Jameel Al Ramahi and Irena Deputy Director-General Gauri Singh on the sidelines of the Climate Tech project in Abu Dhabi.

WATCH THIS SPACE #4- Lucid isn’t doing so well: Pessimistic quarterly results and production outlook cuts from EV maker Lucid Group — who counts KSA’s Public Investment Fund (PIF) as a majority shareholder — could undermine Saudi Arabia’s plans to build its own EV industry, Reuters reported last week. The California-based EV maker reported quarterly revenue of USD 149.4 mn, down from an average estimate by analysts of USD 209.9 mn, according to Refinitv data. Its quarterly losses widened to USD 779.5 mn, up from USD 604.6 mn in the same quarter last year, according to its earnings release. The disappointing quarterly performance has pushed the EV manufacturer to revise its annual production plan this year to manufacture over 10k of its luxury EV sedans, down from a previous production plan forecast of up to 14k.

PIF won’t be liking this: Plunging share prices on the back of the losses have pushed PIF’s stake down to c. USD 8 bn, according to Reuters calculations. PIF — which owns a 60.46% stake in the US-based company — made investments in Lucid worth USD 17.4 bn in mid-2022 and c. USD 26 bn when the company was listed in 2021, according to the business newswire.

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WATCH THIS SPACE #5- Acwa Power to complete final financing round for Neom green hydrogen project this quarter: Saudi Arabia’s Acwa Power is expecting to finish its second and final round of financing for its mega green hydrogen project in Neom this quarter, Acwa Power Executive Director of Financial Affairs Abdulhameed Al Muhaidib said in a recorded statement carried by Asharq Business last week (watch, at minute 4:45). KSA’s Neom Green Hydrogen Company (NGHC) signed several financing agreements in March worth a collective USD 8.5 bn to fund the development of its utility-scale green hydrogen facility. Al Muhaidib said the financing represents 74% of the project’s cost and was raised by 25 different banks (watch, at minute 5:10).

Acwa Power is studying 20 other projects in the region: Acwa Power is currently studying another 20 projects — half based in Saudi Arabia and the other half across 12 other countries — with the UAE and Uzbekistan securing the top spots due to their ambitious renewable targets, Al Muhaidib said (watch, at minute 4:03).

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CIRCLE YOUR CALENDAR-

Japan will host the G7 Hiroshima Summit from 19 May to 21 May in Hiroshima. One of the key topics addressed at the summit will be ensuring energy security with the goal of achieving net zero by 2050 based on the Paris Agreement.

Oman will host the Power and Energy Conference from 22 May to 25 May in Muscat. The event will bring together local and global industry leaders to discuss global energy market policy updates, future demand and growth projections in the sector, integration and power grid obstacles, and growth potential associated with renewables and EV deployments.

Germany will host the second meeting of the COP27 Transitional Committee from 25 May to 27 of May in Bonn. The meeting will build on the loss and damage fund established during COP27 with the aim of establishing institutional mechanisms and governance structures for financing, and will bring together a host of international financial institutions to discuss pathways to increasing funding capacity for climate vulnerable countries.

The UAE will host the Electric Vehicle Innovation Summit from 29 May to 31 May in Abu Dhabi. The conference will bring together state representatives, industry players from the EV sector, as well as engineers and researchers to discuss policy trends and tech innovations in the industry and provide attendees with networking opportunities across value chains.

Qatar will host the Carbon Capture, Utilisation and Storage (CCUS) Forum from 29 May to 31 May in Lusail City. The event aims to spotlight MENA’s CCUS regulations and policies, map out paths and business models that would bring down CCUS project costs, promote regional and international cooperation to advance the international carbon capture sector, and discuss the role CCUS will play in helping Gulf countries meet their net zero targets.

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

Egypt is getting its first green methanol plant: Egyptian petrochemicals firm Alexandria National Refining & Petrochemicals (ANRPC) signed a cooperation agreement with Norwegian renewables developer Scatec to jointly establish the country’s first green methanol production facility at a cost of around USD 450 mn, according to a statement. The timeline for the project’s completion has not been revealed.

The details: Scatec and ANRPC’s green methanol plant — to be built in Egypt’s Damietta Port — will have an initial yearly production capacity of 40k tons of the green fuel, and the two companies will provide 40 MW of solar energy and 120 MW of wind power respectively to power the project, the statement notes. The plant will be powered by a 60 MW electrolyzer, will source its water supplies from a yet-to-be-established desalination plant, and could see its production quota upped to 200k tons of green methanol annually, according to the government statement. The new facility — which will provide an alternative to carbon-intensive shipping fuels — is part of Egypt’s goal to expand its fuel exports, the statement says.

Part of an ongoing partnership on renewables: The Norwegian company has signed a joint development agreement for its USD 5.5 bn green ammonia plant in Ain Sokhna with Egyptian Petrochemicals Holding Company (ECHEM) and state fertilizer company Mopco. Earlier in November, Scatec began commissioning the first phase of its 100 MW green hydrogen plant in Egypt’s Ain Sokhna with SFE, OCI-Adnoc joint venture Fertiglobe, and Orascom Construction.

Scatec is also making progress on its proposed Egypt-EU interconnector project: Earlier this month, Egypt’s Cabinet approved an agreement with Scatec to conduct a feasibility study for its planned 3 GW electricity interconnector which would enable the transport of clean energy from Egypt to Europe. Scatec’s planned electricity link — first proposed in February in a meeting with Egyptian Prime Minister Moustafa Madbouly — will transmit some 3 GW of renewable power from Egypt to Europe via Italy.

Taqa Morocco launches new subsidiary to oversee renewable projects: Taqa Morocco — a subsidiary of Abu Dhabi National Energy Company (Taqa) and Morocco’s largest private electricity producer — launched Taqa Morocco Green, a new subsidiary which will manage the company’s solar projects and produce green hydrogen, the North Africa Post reports, citing Moroccan French daily Le Desk. There is no additional information on the investment tickets, locations or timelines for the green hydrogen projects.

Taqa Morocco plans to invest USD 1.6 bn in renewable energy projects by 2030, CEO Majid Iraqui said in a press conference last March. Projects include the 96 MW Noor Midelt solar generation plant, according to Iraqui, as well as a potential 200 MW of wind energy capacity for which the company is yet to determine a suitable location.

Some projects are already in operation: Taqa Morocco has 100 MW of wind energy projects in the country’s north and 600 MW in pre-development in the south, the CEO added. It is unclear whether already signed agreements will be transferred to the newly established subsidiary.

Parent company Taqa is investing in exporting renewable energy: Taqa became the largest stakeholder in UK-based renewables developer Xlinks last month after investing GBP 25 mn in a 3.8k km subsea cable that will transport 3.6 GW of renewable energy from Morocco to the UK by 2030.

Morocco agreed with Portugal to set up a “green” MAD 1 bn (c. USD 100 mn) textile recycling project partially powered by renewables, Asharq Business reported yesterday. The agreement for the project — led by Portuguese textile manufacturer Valerius Texteis — was signed on the sidelines of the 14th Portugal-Morocco High Level Meeting on Friday.

What we know: The facility, which will be built near the capital Rabat, aims to recycle fabric waste from textile factories in the country, Valerius Morocco Chairman Hammani Amahzoune told Asharq Business. Amahzoune said the project aims to manufacture 30 tons of textiles daily starting 2027 and will create 1.5k jobs. He also added the facility will be partially powered by solar energy.

Why this matters: The project will help eliminate textile waste, which is estimated at 83.2k tons annually, an International Finance Corporation (IFC) report (pdf) showed, citing 2021 data from the UNIDO and SwitchMed. Most of the waste can be recycled through modern shredding lines, according to the study.

And it’s part of wider cooperation between the two countries: Morocco and Portugal signed 12 MoUs in several key sectors during a high-level meeting held to boost bilateral cooperation, Maghreb Arab Press reported over the weekend. These include an MoU on sustainable development, including renewable energy and construction, and another on cooperating in energy transition and environmental governance, among other areas.

Saudi Arabia and the Netherlands inked an agreement to increase cooperation in renewable energy and green hydrogen production, the Saudi Press Agency reported on Friday. The agreement also aims to link both countries’ supply chains on climate-focused tech, the news agency notes.

Plans to establish KSA-EU green hydrogen corridor: Under the agreement, Saudi Arabia will establish a green hydrogen corridor to Europe with the Netherlands facilitating the entry of green fuels produced in the kingdom to the continent, Reuters reported on Thursday.

Saudi Arabia has big export plans: KSA’s Acwa Power signed an MoU with Austrian utilities firm Verbund in January to explore the establishment of green hydrogen plants in MENA, with an eye on exporting the green fuel to Central Europe. 100% of the green hydrogen produced in the USD 8.5 bn mega green hydrogen plant in Neom will be also available for export, with project co-developer US-based Air Products looking to earmark a sizable portion of Neom’s green fuels for Germany. Greece has also been exploring green hydrogen imports from Saudi’s Neom, with plans to lay a cable connecting Saudi to Europe.

More green hydrogen export corridors coming: Earlier this month, German hydrogen logistics firm Hydrogenious LOHC Technologies and Australia-based renewables firm CWP Global agreed to conduct a feasibility study on a green hydrogen transport chain from Morocco to Europe.

A solid 1Q for Tabreed: The UAE’s National Central Cooling Company (Tabreed) reported a 169% y-o-y rise in net income in 1Q 2023 to AED 236.4 mn, on the back of gaining new customers and projects, its earnings release (pdf) showed. Its revenues were up by 10% y-o-y during the first three months of the year to AED 464 mn.

The main drivers behind the success: The robust results during the first quarter of the year were “mainly driven by increases in new connections during the past 12 months and higher consumption volumes,” the release said. The first quarter saw new customers and projects, with an addition of 12k refrigerated tons (RT) across the UAE and Oman. This brings the company’s overall connected capacity to 1.276 mn RT. Additionally, KSA’s sovereign wealth fund PIF closed in February the acquisition of a 30% stake in Saudi Tabreed under the group’s continued focus on high potential growth markets, it added. Saudi Tabreed is the Saudi arm of DFM-listed Tabreed.

What they said: “For the remainder of the year, we will continue to focus on our sustainable and strategic growth plans which will see Tabreed grow its regional and international reach in close alignment with governments and legislators, and deliver strong results that benefit our shareholders, employees, partners, and the communities in which we operate,” Tabreed’s Chairman Khaled Abdulla Al Qubaisi said.

ALSO- The company plans to launch five new district cooling plants in UAE: The UAE’s National Central Cooling Company (Tabreed) plans to build five new district cooling facilities in Dubai and the Saadiyat, Yas, and Al Reem Islands in Abu Dhabi as it looks to slash carbon emissions generated by the country’s refrigeration sector, Wam reported last week, citing an interview with Tabreed CEO Khalid Al Marzooqi on the sidelines of the World Utilities Congress. The company also plans to expand its operations in Bahrain, Saudi Arabia, and Oman, Al Marzooqi told the news agency, without disclosing the number of plants it plans to build outside the UAE or providing a timeline for the projects. (watch, runtime: 01:59)

One of Japan’s top beverage makers plans to unroll a new vending machine that absorbs carbon from the atmosphere, Bloomberg reported last Thursday. The soft drink subsidiary of Tokyo-based Asahi Group Holdings plans to run a pilot phase of the machine — which houses a material that absorbs carbon dioxide as it takes in air to cool or warm the drinks inside — next month. Dubbed a potential “forest in the city,” the vending machines will contain a white powder-like material made from several calcium minerals. The absorbed CO2 can then be used for industrial purposes, including manufacturing fertilizers and algal sea beds.

More details: The pilot phase will begin with 30 units in the Kanto and Kansai regions, under a plan by the company to reach carbon neutrality by 2050. Each vending machine should absorb c. 60 kg of CO2 — or 20% of the carbon emissions it generates — annually. The firm plans to embark on a wider replacement program for its current 260k machines by next year, he said, adding that no specific target for the overall number of units has yet been determined.

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Extreme heat is testing the limits of human endurance: Climate change-driven extreme heat, which saw record highs last year in several parts of the world, is detrimental to human health and is driving countries like India to issue heat warnings weeks in advance, Bloomberg wrote in an in-depth explainer last week. One study estimates that some 90% of India’s 1.4 bn people suffered “severe health and economic effects” as a direct result of extreme weather last year, the business news service notes. Workers from developing countries like India are particularly vulnerable to global warming given that most people work outside and lack adequate cooling systems at home. The health risks associated with extreme heat include dehydration, which increases the likelihood of stroke and heart failure.

It is also taking a toll on the global economy, Bloomberg explains, noting that India’s heat woes last year hindered wheat production, leading the country to ban exports which raised fears of global food shortages. Chickpeas, rapeseed, and wheat supplies are expected to dwindle this year as well due to similarly extreme weather, Bloomberg notes. Climate change-induced heat waves, which lead to droughts, will also limit hydropower and nuclear power production, raise energy consumption and prices, and add extra stress to power grids.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• A number of US startups are foreseeing a major climate tech waste problem and are thinking ahead by constructing facilities for recycling tons of PV solar panels, wind turbines and lithium-ion EV batteries. (CNBC)

Dubai-based carrier Emirates has kicked off a USD 200 mn research and development (R&D) fund aimed at cutting emissions in commercial aviation, according to a statement released last Thursday. The funds — which will not include investments in sustainable aviation fuel offtakes or carbon credits — will be earmarked for research accelerating the adoption of sustainable fuels and other energy solutions for the aviation sector, and will be disbursed over three years, according to Emirates.

REMEMBER- Emirates airways has been investing in SAF: Emirates Airways partnered with Masdar, Adnoc, and Tadweer on a joint feasibility study with BP on the production of sustainable aviation fuels (SAFs) using solid waste and renewables-sourced hydrogen back in January. The study will also explore the possibility of producing other products including renewable diesel and naphtha. Based on the results of the study, the companies could potentially set up the region’s first commercial-scale SAF production facility in Abu Dhabi. Emirates also successfully completed ground engine testing using 100% sustainable aviation fuel (SAF) that month, demonstrating that the low-carbon fuel does not require special technical support or changes to the aircraft’s engine.

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Adnoc signed an agreement with US-based energy solutions company Baker Hughes that will see it leverage Hughes’ green hydrogen tech, according to a statement released last week. The agreement will pave the way for Adnoc to use growth stage technologies — including electrolyzers, tech converting methane into hydrogen, and graphene production tech — developed by Hughes in cooperation with climate-tech company Levidian, hydrogen tech platform Ekona Power, and hydrogen tech developer Nemesys.

DID YOU KNOW? Graphene electrodes can break down water molecules, splitting them into oxygen and hydrogen and providing efficient catalysts for green fuels production, according to University of Manchester research.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Chinese power generation company Sineng Electric has signed an agreement with India’s Larsen & Toubro (L&T) to provide turnkey solar panel inverter stations for L&T’s 700 MW solar plant in Saudi Arabia. (Zawya)
• Adnoc launched its USD 1 mn Decarbonization Technology Challenge inviting scale-up companies specializing in CCUS, new energies, oil and gas emissions reduction, digital applications and advanced materials for decarbonization to apply. Finalists will receive up to USD 1 mn in piloting opportunities with Adnoc. (Statement)
• Morocco is earmarking MAD 200 mn (c. USD 22 mn) to upscale its wildfire prevention and mitigation capacity amid a heightened risk of forest fires caused by climate change. (Morocco World News)

Australia’s new budget keeps it in the global race to become a green energy superpower: Australia’s FY 2023-2024 budget report revealed that the government is planning to invest AUD 4 bn (USD 2.7 bn) to support the country in becoming a global renewable energy powerhouse, according to a statement. The AUD 4 bn represents initial steps to unlock AUD 10 bn (USD 6.7 bn) in private investment in renewable generation and storage.

Half will be allocated to low-carbon hydrogen production alone: Half of the AUD 4 bn will go to developing low-carbon hydrogen through the newly established Hydrogen Headstart program. The program aims to put Australia on course for a 1 GW electrolyser capacity by 2030 through two or three flagship projects and is planned to begin receiving proposals from hydrogen developers in 1Q 2024. The government will be looking to select candidates with a competitive offtake price per kilogram as it aims to encourage users to switch to this clean fuel.

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Tech giant Microsoft has signed an offtake agreement with US-based nuclear fusion production startup Helion to receive fusion-sourced electricity, Bloomberg reported last week. Helion will supply the clean energy to Microsoft from its Washington production plant, slated to kick off operations in 2028 with a production capacity of 50 MW after a one-year “ramp up” period, the company notes in a statement.

SOUND SMART- Nuclear fusion is a reaction that could potentially generate unlimited energy. Fusion reactions, which power stars, involve the fusing of two light atomic nuclei to release tremendous amounts of energy. The fusing process results in the formation of a single, heavier nucleus, with the leftover mass from the smaller nuclei’s fusion being converted into carbon-free power.

REMEMBER- The US made a breakthrough on nuclear fusion late last year: Scientists at a a US government lab in California briefly achieved a net energy gain — meaning more energy was produced than consumed — in a nuclear fusion experiment using lasers in December, potentially paving the way for an “abundant zero-carbon alternative to fossil fuels.” However, scientists and researchers have cautioned that it will likely be decades before the technology is commercially viable — if ever. The total addressable market for fusion stands at some USD 1 tn annually, we previously noted, referencing former CEO of fusion power company General Fusion Christofer Mowry’s interview with Bloomberg (watch, runtime: 20:38).