Papyrus Australia is setting up a biodegradable food packaging manufacturing factory in Egypt

Good morning, ladies and gents. The news cycle is slowing slightly as summer holidays continue, but we have a couple of key updates to note. But first…

A quick programming note: Enterprise Climate will be taking a publication holiday tomorrow, we’ll be back in your inbox at the usual time on Monday, 21 August.

OUR TOP STORIES- Green packaging tech developer Papyrus Australia has deployed the base equipment for setting up a factory for a biodegradable food packaging manufacturing factory in Egypt and UAE’s NWTN Motors will acquire a 27.5% stake in EV manufacturer China Evergrande New Energy Vehicle Group at an equity investment of USD 500 mn.

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

THE BIG CLIMATE STORY OUTSIDE THE REGION- Gabon leads the way for Africa’s debt-for-nature swap: Gabon has wrapped up a USD 500 mn debt-for-nature swap that would pave the way for a refinancing of a small chunk of its debt and fund marine conservation. The transaction — a first of its kind in Africa — saw Gabon buy back USD 436 mn of its international bonds then switch the debt for a new longer-term USD 500 mn "blue bond" with a lower interest rate and longer maturity. The swap is expected to generate USD 163 mn for marine conservation projects over the next 15 years.

In brief: A debt-for-nature swap is where developing nations see a portion of their foreign debt forgiven under a restructured agreement on the condition that they invest some of the savings in local conservation measures. Supporters say it effectively uses public funds to de-risk private investment and could plug the multi-USD tn financing gap for nature protection, adaptation, and decarbonization. However, critics argue that the loan terms could be vague with transaction costs expensive.

Africa’s first debt-for-nature swap is dominating coverage in international press: Reuters | Bloomberg | The Financial Times | The Wall Street Journal

---

WATCH THIS SPACE #1- The world’s first ever green methanol-powered container ship berthed in Egypt’s East Port Said Port on Monday, according to a statement by the Suez Canal Economic Zone (SCZone). The green methanol-powered vessel marked its first-ever passage through an Egyptian port on the Mediterranean during its maiden journey, which began with Asia, is passing through Africa via Egypt, and will continue to Europe, the statement added.

This could help fuel Egypt’s green hydrogen ambitions: Dutch-based chemical producer OCI Global highlighted in June a “unique opportunity for the Suez Canal to position itself as a Green Marine Bunkering Hub to proactively attract more Green Marine Traffic to the area and be ahead of nearby ports such as Fujairah, Jeddah and Morocco.” The vessel’s passage through Egypt could help kickstart demand for green hydrogen offtake and consolidate the country’s position as a green hydrogen hub.

Background: The vessel is fueled by OCI Global under a partnership announced in June with Denmark’s shipping and logistics giant AP Moller-Maersk. OCI is providing the carbon-neutral methanol to fuel the maiden voyage of Maersk’s first dual-fueled container ship on its inaugural trip to Northern Europe this summer, passing by the world’s busiest shipping routes.

---

THE DANGER ZONE- The UAE must prepare for climate-driven extreme weather and intense rainfall as the world enters a new global warming paradigm, Al Arabiya writes. The Emirates are extremely vulnerable to the impacts of climate change, with droughts, extreme heat, and increased frequency of dust and sand storms among the climatic phenomena impacting the country, according to the Climate and Clean Air Coalition. “I think we can almost say we have shifted into a new paradigm in terms of where the range of climate behavior is going to be,” Director of the Climate and Water Program at Washington-based nonprofit Middle East Institute Mohammed Mahmoud told the news outlet, referencing the global heating record broken in July. The climate crisis costs the UAE government an average of GBP 6 bn annually in increased healthcare costs already, and even minor variations in weather patterns could significantly affect the country’s economic, environmental, and social well-being, the UAE’s Climate Change and Environment Ministry notes.

---

NON-CLIMATE REGIONAL HEADLINES:

• UAE: The UAE has begun the local election process ahead of the planned vote in October. (Emarat Al Youm)
• KSA: Saudi Arabia’s inflation slowed down for a second consecutive month in July to 2.3% from 2.7% a month earlier. (Okaz)

The Enterprise Finance Forum is taking place on 18-19 September at the St. Regis Hotel in Cairo. This flagship forum is the latest in our must-attend series of invitation-only, C-suite-level gatherings that allow senior members of our community to openly and frankly discuss critical issues in key sectors of the economy.

TAP OR CLICK HERE if you want to express interest in attending. We’ll be sending out the first batch of invitations soon.

Do you want to become a commercial partner? Ping a note to Moustafa Taalab, our head of commercial, or fill out this form and we’ll be in touch.

---

MISSED OUR PREVIOUS FORUMS? The Enterprise Podcast has you covered: The Enterprise Podcast’s forum series has been bringing you audio recordings of what was said on stage at the Enterprise Exports and FDI Forum and Enterprise Climate Forum.

WANT TO LISTEN? Head to: Apple Podcast | Spotify | Google Podcast | Anghami | Omny.

IN THIS WEEK’S EPISODE- It’s the very first panel of the Enterprise Climate Forum: Egypt brought home major victories from COP27, signing framework agreements for about USD 85 bn worth of green hydrogen projects, and announcing more than USD 10 bn in funding for the Nexus for Food, Water and Energy (NWFE) program. While we have a long way to go before much of the gains from COP27 will be tangible to the private sector, the opportunities in green hydrogen and NWFE are “now.” Our panelists helped explain how these two can be made actionable. We were joined by Jorgo Chatzimarkakis, CEO of Hydrogen Europe, Khalid Hamza, Director and head of Egypt at the European Bank for Reconstruction and Development, and Khaled Naguib, CEO of Hydrogen Egypt.

Get Enterprise Climate

***

YOU’RE READING ENTERPRISE CLIMATE, the essential MENA publication for senior execs who care about the world’s most important industry. We’re out Monday through Thursday by 5am Cairo / 5am Riyadh / 6am UAE.

EXPLORE MORE OF ENTERPRISE ON THE WEB — tap or click here to read EnterpriseAM, EnterprisePM, and The Weekend Edition on our powerful new website packed with reader-friendly features.

Were you forwarded this email? Get your own subscription without charge here or reach out to us on climate@enterprisemea.com with comments, suggestions and story tips.
***

CIRCLE YOUR CALENDAR-

Sweden will host World Water Week from Sunday, 20 August to Wednesday, 24 August in Stockholm. Organized by the Stockholm International Water Institute, the event will bring together policy makers, NGOs, and private sector players to discuss innovative solutions to managing water and how to tackle food security, biodiversity, and climate change.

The US will host the International Conference on Recycling and Waste Management and the International Conference on Environmental Sustainability and Climate Change from Monday, 21 August till Tuesday, 22 August in Philadelphia. The waste management conference will gather environmental engineers, and recycling, wastewater treatment, and climate researchers to discuss trends and innovations in plastics recycling, wastewater treatment, and renewable energy. The sustainability and climate change conference will bring together researchers and industry leaders to spotlight innovations in environmental science, climatology, renewable energy, and pollution control.

The Dominican Republic will host the COP27 Transitional Committee from Tuesday, 29 August to Friday, 1 September. The meeting aims to establish institutional arrangements, modalities, governance structures, and terms of reference for the landmark Loss and Damage Fund. It also wants to expand sources for climate funding under the program.

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

Banana fiber food packaging is on its way to Egypt: Green packaging tech developer Papyrus Australia has deployed the base equipment for setting up a factory for a biodegradable food packaging manufacturing factory in Egypt, a statement notes. The plant will process 2.5k tons of banana fiber per year from plantation waste and produce around 35 mn food packages annually, according to a statement (pdf) published last November.

This has been in the works for a year: Papyrus Australia signed an agreement with Egypt’s National Authority for Military Production in October 2022 to establish the factory in the country, the statement said.

Papyrus Australia already has a presence in Egypt: Papyrus Australia manages two factories in Egypt — a banana fiber production plant in Sohag established in 2017 in a JV with the Egypt Banana Fibre Company, and a banana fiber molding plant in Sharqiyah established in 2021. Papyrus leased the Sharqiyah fiber molding facility in November 2021 to fast-track the testing and production of molded food packaging products made from banana fiber.

And there’s big potential: With over 70k acres of banana plantations, Egypt produces more than 6 mn tons of agri-waste per year, which is “costly for the industry to dispose of and contributes to high levels of methane emission as it breaks down,” the statement explains. According to the tech developer, Egypt has the potential to establish up to 40 banana plantation waste conversion factories.

The Sohag project is backed by EBRD: The European Bank for Reconstruction and Development (EBRD) extended a grant for the development of the Sohag plant’s five-year business plan and anticipated expansion plans, according to a statement (pdf) released in July 2022. The value of the grant has not been disclosed.

UAE’s NWTN Motors acquires strategic stake in Chinese EV company: Dubai-based green mobility company NWTN Motors will acquire a 27.5% stake in EV manufacturer China Evergrande New Energy Vehicle Group (EVGRF) at an equity investment of USD 500 mn, according to a statement. The transaction — expected to close in 4Q 2023 — will provide a lifeline for the Chinese automaker, who in its first financial report in two years, last month reported losses of USD 10 bn over 2021 and 2022.

The details: The share subscription agreement — which saw NWTN snap up 6.18 bn of Evergrande’s shares — will enable the UAE company to nominate a majority of the Chinese company’s board, Reuters reports. In a bid to aid EVGRF’s business recovery, NWTN and EVGRF also signed a support agreement for interest-free funding of RMB 600 mn (c.USD 82.4 mn) to boost the company’s production and R&D capacity, the newswire notes. The agreement is expected to be finalized following effective debt restructuring of EVGRF, confirmation of a debt repayment plan by the company’s creditors, and submission of regulatory and shareholder approvals.

NWTN will leverage the agreement to boost EV exports to MENA: EVGRF has rolled out nine EV models to date since launching in 2019, with its first mass-produced EV Hengchi5 hitting markets in 2022. NWTN will capitalize on EVGRF’s research and development and production capacity to meet MENA’s EV demands, the statement notes.

NWTN has been making moves to step up EV production: The company inked an agreement with the Abu Dhabi Department of Economic Development in July to establish a new integrated electric vehicle production line in the UAE and expand its EV factory in Abu Dhabi. In its initial phase, NWTN’s EV plant will have an annual production capacity of 5-10k semi-knocked-down EVs. In its second phase, NWTN wants to introduce several new EV models and expand the 25k sqm facility’s capacity to 50k units per year.

Bahrain is getting its biggest solar project: Bahrain has reportedly signed contracts to set up a 72 MW solar power project, the largest of its kind in the country, in Sukhair, Bahrain News Agency reported this week, citing statements by Bahrain’s Electricity and Water Affairs Minister Yasser bin Ibrahim Humaidain. The project will include rooftop, ground-mounted, and car park solar power systems, as well as electric vehicle charging stations. No details on the project’s financials, developers, or a timeline were disclosed.

All under Bahrain’s renewables push: Humaidain said the project’s capacity will account for 28% of Bahrain’s 250 MW of renewable generation capacity target by 2025. It will also help save total energy costs and lower greenhouse gas emissions, paving the way for the country to reach net zero by 2060, he added.

REMEMBER– Bahrain recently announced it plans to boost its renewable energy share to 5% of its total electricity generation by 2025. It aims to raise this target to 20% by 2035 as part of its National Energy Transition Plan. The kingdom has pledged to reduce emissions by 30% by 2035 through decarbonization and doubling renewables targets.

Coffee with: Adam Ridgway, Founder and CEO of One Moto Technologies: Ridgway (Linkedin) serves as the founder and CEO of sustainable mobility startup One Moto. Founded in 2016, One Moto seeks to electrify the last mile through a wide range of e-vehicles that include electric motorcycles, bikes and scooters among others. Prior to founding the company, Ridgway was a founder of two other Dubai-based businesses, creative media group MediaCubed and production house VideOh. Ridgway also serves as a mentor to early start-ups embarking on the entrepreneurial journey through the platform OneFounderToAnother.com.

One Moto expanded its operations to Latin America this week, where it has entered several undisclosed regional markets with the support of the Dubai International Chamber. The startup already has agreements signed in the UAE, Bahrain, Jordan, Kuwait, and have ongoing conversations in Saudi Arabia and Morocco. It also secured USD 40 mn in lease financing in July to accelerate the leasing of electric delivery vehicles throughout the UAE and several countries in the region.

We sat down with Ridgway to discuss the story behind his startup, future plans in the Middle East, and the future of sustainable e-mobility in the region.

Edited excerpts of our conversation follow:

Enterprise: One Moto is actually a British startup that’s now based in Dubai. What drew you to the region?

Adam Ridgway: One Moto’s holding company is based in the UK, and our headquarters are located in Dubai with other offices in various different territories. The UAE has been home for the past 15 years, we decided to set up our beachhead market here because it’s a country built on the notion of change. Every day something seems to change and evolve with regards to the government and leadership. We find the UAE is all about progression, opportunity and making a difference.

E: What services does One Moto offer?

AR: We’re an EV startup that designs and builds vehicles focused on the last mile with a primary mission to decarbonize last mile delivery in each of the countries where we operate. We don't just provide the vehicles — manufacture and sell them — we also lease or lease to own the vehicles through a partner.

We also offer other services like EV batteries as a service — a swappable battery bank with a subscription-based charging — and OneCare, our after sales and workshop program where we can upskill any mechanic to become an EV Engineer.

One Distribution focuses on growing our distribution network and One Moto Manufacturing focuses on the assembly and manufacturing of units. Encompassing all of that is our mobile app that connects everything together and provides a huge amount of data for the fleet operators, riders, users, and government officials.

E: Tell us more about the partnerships the startup forges with local businesses.

AR: We have partners who help with the manufacturing process. We are not a predatory company, we don't enter a market and say everything has to be ours and force potentially negative competition. Collaboration has paved the way for growth, and we’re very close to setting up an assembly grant in the UAE. We also set up the region's first smart mobility and innovation center last year with RIT Dubai.

E: You recently secured a USD 40 mn investment led by Pyse. Where will the funding be spent?

AR: We raised USD 150 mn for the UK and European market earlier this year, and another USD 40 mn just for the UAE market. The financing rounds have enabled us to provide vehicles to our customers or the ability to lease to own those vehicles — which is an industry first for the UAE. The USD 40 mn funding could also be used regionally, spread across the UAE, Saudi Arabia, and Egypt.

E: We understand that your operations in the UAE are focused on electric delivery vehicles. Is this the case in other countries you’re operating in as well?

AR: What we push depends on the market we’re entering and we listen to the partners we have there that understand the market. 90% of our focus worldwide is the last mile because its delivery is huge globally, growing between 11% and 27% in various different countries. For example, in the UAE or most of the Middle East — with the exception of Egypt and Lebanon — motorcycles are only used for delivery or for private use, so it’s a very niche market. Head to Europe, India or other parts of Asia and you will find that motorcycles are the main form of transport and everyone has one.

E: You’re currently present in UAE, Bahrain, Iraq, Qatar and Jordan. Are you looking for expansion elsewhere in the region?

AR: We're very strategic in where we launch and build foundations in markets that really need mobilization. One Moto has sales in Saudi Arabia but no distributor yet, and we’ve been approached by a lot of North African markets. Egypt is a bit more price conscious and there are different import duties. In regards to speed, a lower range low speed vehicle is absolutely perfect in that market, so Egypt is 100% a focus.

We've also been approached by Syria and Lebanon to open up dealerships or distribution, but unfortunately due to certain events and uncertainties, stability of electricity is not ensured along with the funds issued. We have given access and the ability to allow everyone and the environment to benefit by adopting our vehicles, but there is also money that has to be made to provide sustainable mobility for everyone.

E: How do you see the future of sustainable e-mobility in the region?

AR: The future is electric and no one can deny that. Any commercial deliveries have to transition to electrification to become more sustainable and companies can provide a greater landscape for decarbonization.

I think there’s going to be a lot more collaboration and more mutual joint investment into sustainable mobility networks and the future of EVs and mobility in general will be a subscription-based model allowing drivers flexibility in paying flat fees for EV usage.

Neom awards USD 200 mn contract for electrical substation: The Saudi Electricity Company has awarded a SAR 744 mn (c.USD 198.3 mn) contract to KSA’s Al Gihaz Contracting to develop a 380/132 KV gas insulated substation in Saudi Arabia’s net zero city Neom, Trade Arabia reports. Gas insulated substations switch, separate, transform, measure and distribute electrical energy in power systems. Earlier this month, KSA’s Arabian Electrical Transmission Line Contracting won a USD 155 mn contract to construct a 605 km-long high-voltage direct current transmission line connecting Neom to Yanbu on the country’s west coast.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• KSA’s Flynas and SIRC partner on recycling: KSA air carrier Flynas has signed a collaboration agreement with the Saudi Investment Recycling Company (SIRC) to develop tech to repurpose the airline’s refuse including e-waste such as battery cells and biowaste like spent oils. (Statement)
• KSA tests out weather-resistant wheat strains: Saudi Arabia has concluded a successful test of four high-yield bread and durum wheat strains with traits designed to withstand the kingdom’s climate. The experiment consisted of planting 20 tons of wheat seeds. (Saudi Press Agency)

BP leads in green hydrogen tech startup Advanced Ionics’ Series A round: BP Ventures, the venture capital arm of British oil and gas giant BP, was the top participant in US-based green hydrogen technologies startup Advanced Ionic’s USD 12.5 mn Series A funding round, according to a statement. Financiers including Mitsubishi Heavy Industries, Clean Energy Ventures, and Gatemore Capital Management also participated in the funding round. Advanced Ionic’s Symbion electrolyser tech taps into steam already available in industrial settings to push down electricity consumption by half compared to conventional alternatives, and enables industrial hydrogen developers to produce green hydrogen for less than USD 1 per kg, according to the company’s website. Symbion electrolyzers push down electricity to less than 35 KWh, compared to up to 50 KWh for alternatives currently available on the market. The startup — which has raised USD 19.5 mn to date — will use the proceeds to scale its small-scale water vapor-based electrolyzers to heavy, hard-to-abate sectors.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Amazon booted by climate watchdog: UN-backed corporate climate goals watchdog SBTi has removed Amazon from a list of companies taking action on climate after it failed to outline a reliable target for lowering carbon emissions. (Bloomberg)
• Solar giant Jinko shares drop after new plant announcement: Shares of China's leading solar panel maker Jinko Solar dropped 12% after the company announced plans to raise CNY 9.7 bn (c. USD 1.3 bn) for a new manufacturing facility. (Bloomberg)

Worsening drought in Tunisian wetlands disrupt migrating birds transit: Months of drought and a ferocious heatwave in Tunisia has left its Ariana lagoon parched, disrupting the flocks of migrating birds that use the wetlands as a transit between Africa and Europe, Reuters reports. Another nearby lagoon called Sijoumi — often more reliable than the Ariana lagoon — is also now half empty. Environmental activist Radhia Haddad and scientific coordinator of Tunisia's Bird Lovers Association Hicham Azafzaf both confirm that they have not seen the wetlands this dry in decades, the newswire notes.

Tunisia is located in an essential migrating route: “Tunisia is on the main migration route for hundreds of bird species and its large wetlands are a haven for wading birds that journey north across the Sahara or south from the Arctic and northern Europe,” Reuters writes. While birds usually lay their eggs on small islands in the lagoon, this year “there has been no nesting there at all,” Haddad says.

The country’s winters are becoming drier: Tunisia recorded the highest maximum temperatures on record, reaching 49.0°C, on June 23. This poses a sign of much hotter summers to come, the newswire explains. “There are several species that no longer come to Tunisia in the winter,” Azafzaf said, adding that only 400-600 white fronted geese stopped at Ichkeul National Park west of Tunis this year, compared to some 30k in previous years.

Wetlands also help control extreme temperatures: Lagoons and other wetlands are important for human residents too, regulating temperature during heatwaves and helps avert dangerous floods by absorbing rainfall from sudden storms, the newswire explains.