MENA’s first green methanol refueling operation concludes in Egypt’s Port Said

Good morning, nice people. We have a hefty issue this morning to kick off the week with lots of climate industry updates from across the region. Let’s jump in.

THE BIG CLIMATE STORY- Dutch-based chemical producer OCI Global completed a six-hour operation refueling the world’s first green-methanol-powered container ship with 500 tons of the green fuel in Egypt’s East Port Said.

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

THE BIG CLIMATE STORY OUTSIDE THE REGION- Climate change-linked wildfires still spreading everywhere: A wildfire on Spain’s Tenerife island that forced mass evacuations remained uncontrollable yesterday despite improved weather conditions overnight. The fire was now impacting ten towns in the island located at the Canary Islands, although 11 have been evacuated as a precaution in what officials have described as the worst in Tenerife in decades. It now covers an area of over 8k hectares with a perimeter of 70 km, up from 5k hectares and a perimeter of 50km a day earlier. Some 12k residents have been evacuated, according to regional authorities. Canary Islands regional President Fernando Clavijo said authorities have confirmed that the wildfire was started deliberately, but did not provide further details.

ALSO- Evacuations are still ongoing as wildfires rage in Canada’s western province of British Columbia, Reuters reports. Over 35k residents were under an evacuation order with 30k under an evacuation alert. Record high temperatures this year on the back of worsening climate change have contributed to unusual raging and prolonging wildfires in Europe and elsewhere, including a deadly wildfire on Hawaii’s Maui island that killed over 110 people earlier this month.

The severe blazes is getting ink from the international press over the weekend: Reuters | Bloomberg | The Associated Press | The Washington Post | The Guardian

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OVER IN COPLAND- More climate finance for Africa is the only way to go: COP28 President-Designate Sultan Al Jaber stressed the necessity of scaling up financing to African nations to help them meet climate goals, Wam reported on Thursday. Speaking at the Ethiopian-hosted African Ministerial Conference of the Environment, Al Jaber said that Africa remains among the regions most impacted by climate change. "From Pakistan to Hawaii, we have seen too many lives and livelihoods devastated. Yet, Africa has been facing extreme climate conditions with greater impacts for longer than most,” he said.

Africa faces a “chronic” lack of funding: Al Jaber also highlighted the “chronic lack of available, accessible and affordable climate finance” in the continent, describing it as a significant obstacle hindering progress on climate action in Africa. "Currently, barely one tenth of global climate finance finds its way to Africa. According to the African Development Bank, almost USD 250 bn annually is needed to meet Africa’s NDC commitments through 2030. Yet, this continent of 54 countries that contributes less than 5% of global emissions, receives less than USD 30 bn a year. And private finance flows to Africa are a fraction of what is disbursed to the rest of the world. These are the realities. They need to be fixed. And they need to be fixed now,” he said.

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WATCH THIS SPACE #1- EBRD and Egypt work on improving regulation for private sector power producers: The European Bank for Reconstruction and Development (EBRD) is advising the Egyptian Electric Utility and Consumer Protection Regulatory Agency (Egyptera) on opening the local electricity market to the private sector, according to a statement released on Thursday. Funded by a grant, the multilateral lender is working with Egyptera to improve its regulatory framework to promote a more competitive market and increase the private sector’s role in producing, distributing and selling power, it said.

Why this matters: Private-sector players have long been asking for the ability to use Egypt’s electricity grid to transmit electricity to their end clients by “wheeling” — to effectively “rent” the state’s grid: Use it, for a fee, to deliver green electricity directly to their end clients. Developers operating solar and wind facilities currently generate electricity and sell it to the state under a long-term offtake agreement. Read more about this here and here.

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WATCH THIS SPACE #2- Masdar eyeing a solar expansion in Iraq: UAE renewables giant Masdar is planning to establish at least four solar energy plants in Iraq’s Maysan, Dhi Qar, Anbar, and Kirkuk governorates, Iraqi News reported following a meeting between Iraq’s Electricity Minister Ziyad Ali Fadel and a Masdar delegation last week. The generation capacities of the planned solar farms was not disclosed, nor was the expected investment ticket for the projects. Iraq has a target to generate 5 GW of solar power in 2023 and signed solar power agreements over the past two years with several companies, lining up a total generation capacity of 7.5 GW.

ALSO– Masdar has big EU expansion plans: The company plans to deploy up to 5 GW in wind energy capacity and battery storage volume by 2030 through its newly acquired renewables and BESS arm Masdar Arlington, the company’s CEO Matthew Clare said in an interview with Energy Voice last week. Masdar has several transactions at an “advanced stage” totalling 5 GW for offshore wind energy projects, and plans to add 3-5 GW in battery storage capacity over the next five to seven years. Masdar acquired UK energy storage firm Arlington Energy in January, and later in March committed to investing GBP 1 bn to develop UK battery energy storage system (BESS) tech. The acquisition falls under Masdar’s target to increase its BESS and renewables foothold in Europe.

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WATCH THIS SPACE #3- Ewec’s 3Q clean energy certificates auction is open: The Emirates Water and Electricity Company (Ewec) has opened registration for its 3Q clean energy certificates (CEC) auction, Wam reported on Thursday. CECs are tradeable digital certificates that verify the sources of consumed electricity to ensure reliance on clean energy. The certificates are in units of 1 MWh each, and are currently the only mechanism in Abu Dhabi guaranteeing clean energy utilization.

The last auction held a record: Ewec made its biggest single sale of CECs to UAE’s digital infrastructure developer Two Zero last May, selling 7.3 mn MWh of clean energy. The price of the purchase agreement was not disclosed.

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NON-CLIMATE REGIONAL HEADLINES OVER THE WEEKEND:

• KSA: Saudi Arabia’s Crown Prince Mohammed bin Salman met with Iran’s Foreign Minister Hossein Amirabdollahian in Jeddah as diplomatic relations between the countries improve. (Asharq Al Awsat)
• Egypt + UAE: Egypt is expected to start buying UAE-financed imported wheat in January after parliamentary approval is secured in November. (Al Bayan | Akhbar Al Youm)

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.

This is our first two-day event, which should give us plenty of time to dive into the nitty gritty of this industry we love. Our panels will see CEOs, bankers, investors and founders gather to discuss the future and trends shaping banking, finance, fintech and NBFS.

Our full agenda will be out at month’s end. Among the topics we’ll be discussing:

• Looking into the crystal ball: Top industry CEOs will join us on stage to answer tough questions on where we are as an industry, the forces that will shape all of our businesses going forward, and their views on dealflow in the year ahead.

• Surviving nuclear winter: We discuss how private equity and venture capital players are tackling challenges including fundraising and deployment in an environment in which it’s awfully difficult to price your local asset in USD terms.
• The robots are coming: We explore what the coming AI and big data means for the industry in our part of the world and what can bankers, NBFI, and fintech players do to capitalize on them.
• What do you do when nobody wants to be a banker — and when those who are already (investment or commercial) bankers are either (a) dreaming of doing their own startup or (b) moving to Dubai (or, increasingly, Riyadh)? We go deep into the weeds with industry leaders on how they’re building talent for tomorrow.
• NBFIs are a bubble. Prove me wrong: We chart the explosive rise of NBFIs and ask whether the industry is ready for a wave of consolidation. We’ll dive into whether consumer finance is starting to mature as a segment — and ask which sector is next.
• Handicapping the winners and losers in fintech in 2024: We dive deep into which categories are getting traction, where the untapped opportunities are, what business they would start today if they could, and what we can expect of the sector in the year ahead.
• What’s a bank, anyway? Wherein we talk challenger and neobanks with the players looking to shake up the brick-and-mortar industry.

** NEW: MORE NETWORKING TIME- Our agenda includes expanded networking time, including an expanded coffee break and a post-event networking room for you to interact with your peers and speak one-on-one with the team at Enterprise.

STAY TUNED for more detail about our exciting agenda in the weeks to come.

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

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IN THIS WEEK’S EPISODE- In our second panel from the Enterprise Climate Forum, We dive deep into what the business leaders in the climate industry in Egypt and the region have to say about how the private sector is adopting greentech, where they see the opportunities and what they’d like policymakers to do to encourage further participation. We were joined by Amr Allam, co-CEO of Hassan Allam Holding, Mohamed Ismail Mansour, CEO and co-founder of Infinity, and Sherif El Kholy, longtime partner and head of MENA private equity at Actis.

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CIRCLE YOUR CALENDAR-

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.

Saudi Arabia will host the Sustainable Maritime Industry Conference from Monday, 4 September to Wednesday, 6 September in Jeddah. Organized by KSA’s Transport and Logistic Services Ministry, the event will feature over 50 speakers to spotlight sustainability, new technologies, and digitization efforts in the maritime industry. Speakers will include International Maritime Organization Secretary General Kitack Lim and World Ocean Council CEO Paul Holthus.

Kenya will host the Africa Climate Summit from Monday, 4 September to Wednesday, 6 September in Nairobi. The event will bring together government leaders and investors to share pathways and solutions to upping Africa’s climate resilience. The summit will serve as a platform to inform, frame, and influence commitments, pledges, and outcomes, ultimately leading to the development of the Nairobi Declaration on Climatic Change.

India will host the G20 Heads of State and Government Summit from Saturday, 9 September to Sunday, 10 September in New Delhi. A G20 Leaders’ Declaration will be adopted at the conclusion of the summit, stating commitment towards priorities discussed and agreed upon during previous ministerial and working group meetings through the year, the organizers note. The last meeting of G20 energy ministers in July failed to reach consensus on a fossil fuel phasedown as several major producing nations, led by Saudi Arabia, blocked the move. Among other expected announcements, the Global Biofuels Alliance is scheduled to be launched at the summit.

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

OCI Global completes its first green methanol refueling operation in MENA: Dutch-based chemical producer OCI Global completed a six-hour operation refueling the world’s first green-methanol-powered container ship with 500 tons of the green fuel in Egypt’s East Port Said, according to a statement released on Friday. The refueling operation by OCI Global took place under a partnership with shipping and logistics giant AP Moller-Maersk.

More about the vessel: The container ship — capable of hauling 2.1k TEU shipping containers — began its maiden voyage in South Korea and passed through the Suez Canal on its way to its final destination in Copenhagen. It was fueled by OCI Global under a partnership announced in June with shipping and logistics giant AP Moller-Maersk.

What this means: It represents 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,” OCI Global said last May. The vessel’s passage through Port Said should also help kickstart demand for green hydrogen offtake and consolidate the country’s position as a green hydrogen hub.

OCI and Maersk have big green fuel targets for Egypt: Back in November, OCI and Adnoc joint venture Fertiglobe began commissioning of their 100 MW green hydrogen plant in Egypt’s Ain Sokhna, which will generate feedstock for green ammonia production once operational in 2024. Maersk said it would cooperate with Egypt on a USD 15 bn project to produce clean fuel for ships back in September.

And other players are interested: Egyptian petrochemicals firm Alexandria National Refining & Petrochemicals 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 last May. The Damietta Port plant 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

Bahrain Steel to supply iron ore pellets to KSA’s first green steel plant: Iron ore pellet producer Bahrain Steel has signed a letter of intent with Indian multinational conglomerate Essar Group to supply 4 mn tons of iron ore pellets per year to Essar’s USD 4.5 bn green steel project in Ras Al Khair, Saudi Arabia, according to a statement released on Thursday.

What we know: Essar said they submitted a proposal to the Saudi Industry Development Fund for the green steel plant back in March, with a target to produce 4 mn tons a year of casting and hot-strip steel, as well as 1 mn tons of cold-roll coil capacity and tin plates a year. The agreement will cover 50% of the raw material supply of iron ore pellets needed for the plant, the statement notes. Commercial production of the plant is expected to begin in 2027 and will cater to multiple sectors including construction, oil and gas, automotive, packaging, and general engineering.

About Bahrain Steel: Bahrain Steel is the only GCC-owned pellet producer and leading supplier of high-quality DR grade pellets to all integrated steel producers in the region, according to the statement. It is a subsidiary of Foulath Holding, an investment company focused on steel and steel-related projects in the MENA region, and which oversees more than USD 2.4 bn of assets through Bahrain Steel and its other subsidiary SULB.

The Dubai Electricity and Water Authority (Dewa) has tapped KSA’s Acwa Power to construct and operate a solar-powered desalination project in Hassyan, Wam reported last week. The AED 3.4 bn (USD 914 mn) 681.4k cbm per day facility is set to be one of the largest sea water reverse osmosis plants powered by solar energy and will begin commissioning in 2026. Acwa Power had submitted the lowest bid received by Dewa so far, with a selling price of around USD 0.34 per cbm of desalinated water produced.

No dice for UAE’s Taqa: Dewa also received a bid from the Abu Dhabi National Energy Company (Taqa) in May, but the UAE company did not make the cut given Acwa Power’s competitive offer, according to Wam. Last week, Acwa Power surpassed Taqa as world's largest water developer outside of China with 3.2 mn cbm per day of net capacity compared to Taqa’s 2.7 mn cbm per day.

More renewables-powered desalination on the way? “By 2030, Dewa aims to produce 100% of desalinated water by a mix of clean energy and waste heat,” CEO Saeed Al Tayer said in the statement. The company inaugurated KSA’s first solar-powered desalination facility last June, the USD 650 mn Jubail 3A independent water desalination plant which has a production capacity of 600k cbm per day.

ALSO FROM ACWA- The company’s portfolio in KSA now surpasses 12 GW of combined PV capacity following the addition of the in development Al Shuaibah 1 and Al Shuaibah 2 PV projects, according to a statement. The USD 2.4 bn project — developed by Acwa Power, Public Investment Fund subsidiary Badeel and Aramco subsidiary Sapco — will have a total capacity of 2.6 GW, and commercial operations will begin in 2025.

Be’ah are drumming up funding for waste treatment plant expansion: Oman Environmental Services Holding Company (Be’ah) — which operates under the Oman Investment Authority (OIA) — is in talks to finance the construction of the second phase of its hazardous waste treatment project in Sohar, according to the OIA’s latest annual report (pdf). It did not provide details on the institutions with which Be’ah is currently negotiating or the size of financing needed.

About the Sohar project: The facility — which will be the biggest in the country — is set to be completed in 2025. The first phase of the project, which is currently operational, includes three landfills and an open and closed area for industrial waste. The in-development second phase will include a solidification plant and lab installations.

Barka gets a mention: The report also highlighted the signing of an MoU between Be’ah and the Oman Power and Water Procurement Company — now known as Nama Power and Water Procurement (PWP) — to set up the country’s first waste-to-energy project in Barka. The facility, which will have an estimated daily capacity of 4.5k tons of municipal waste, slashing the carbon footprint of landfills by 50 mn tons in 35 years, according to Be’ah. This would be equivalent to 30% of total greenhouse gas emissions currently emitted by landfill operations in the country. It will also help provide 130-150 MW from renewable sources.

And some electricity highlights: The report also highlighted an OMR 100 mn investment by Oman’s Nama Holding Group in the Ibri solar power plant — the country’s largest utility-scale solar PV IPP. The project, which was inaugurated in 2022, was developed by a consortium led by Saudi renewables giant Acwa Power. It has a production capacity of 500 MW and is expected to slash 340k tons of emissions annually. The report also said that tenders were awarded by Nama in 2022 for the development of the 1 GW solar IPP project in Manah. It also highlighted a recent restructuring of the electricity sector by the merger of supply services in a sole company and electricity distribution into a separate company.

IN OTHER OMAN RENEWABLES NEWS- The sultanate is courting RfQs for more renewables projects: Oman is issuing a request for qualification (RfQ) for five new wind energy projects, three solar PV projects, and a waste-to-energy (WtE) project before the end of the year, Oman Observer reported on Friday, citing PWP’s recently published seven-year statement for 2023-2029 (pdf). All the projects will be signed under an IPP agreement. If completed, Oman’s installed wind and solar energy capacities will increase by 4.3 GW by 2029, according to further reporting by Oman Observer.

More about the wind projects: One of the wind projects will be in Duqm and will have a capacity of 200 to 300 MW, the outlet reported. A RfP will be issued early next year, while the plant is planned for operation in 3Q 2026. A second wind project will be located in Jalaan Bani Bu Ali with a capacity of 100 MW, with operation starting in 3Q 2026. The third will be a 100 to 200 MW wind project in Dhofar. The fourth and fifth wind farms will be in Ras Madrakah and Sadah, with commissioning expected in 2027 and 2028. The former will have a capacity between 200 to 300 MW, while the latter will be sized at 100 MW.

More about the solar and WtE: The solar stations will be a 500 MW station in Ibri with commercial operation scheduled for 2026, a 500 MW solar plant in the Main Interconnected System (MIS) area scheduled for commission in 2027, and a third unknown plant that will be inaugurated in 2029, according to the news outlet. The WtE facility will be located in Barka and have an estimated capacity of 130 to 140 MW, with operations expected to launch in 2Q 2028.

Ethiopia and the UAE partner on biofuels and carbon credits: Ethiopia’s Agriculture Ministry and the UAE’s state-owned Abu Dhabi National Oil Company have signed a letter of intent (LoI) to expand cooperation in biofuel feedstock production, carbon credit generation, and agriculture, the Abu Dhabi Media Office said on Friday. The LoI was penned during UAE President Mohamed bin Zayed Al Nahyan’s visit to Addis Ababa on Friday, which saw the two countries sign 17 MoUs, including a roadmap agreement between UAE government-owned renewables giant Masdar and Ethiopia’s Finance Ministry.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Egypt and China partner on agritech: Egypt’s Agriculture and Land Reclamation Minister Al Sayed Al Quseir and Chinese counterpart Tang Renjian signed an agreement to collaborate on developing drought-resistant and salinity-tolerant crops. The agreement falls under a three-year cooperation pact ending in 2025 aimed at advancing knowledge transfer in agricultural innovation, including in digitization, organic and biodynamic farming, and eco-friendly pest-control. (Statement)

Spain’s PVH supplies solar trackers for KSA’s Al Shuaibah project: Spanish solar energy equipment manufacturer PV Hardware (PVH) will supply 1.7 GW of solar trackers for the 2 GW, USD 2.2 bn Al Shuaibah project in KSA, according to a statement released last Thursday. The project is expected to kick off operations in 4Q 2025.

What is solar tracking? Solar tracking systems reorient PV panels to the direction of the sun, keeping panels perpendicular to the power source and effectively minimizing sunlight reflection and increasing solar energy absorption.

About Al Shuaibah: Al Shuaibah 1 is an independent water and power project whose first phase saw the construction of a 900 MW desalination plant capable of producing some 880k cubic meters (m3) of water per day. A planned expansion will see its capacity grow to some 1 mn m3/day. The USD 1.75 bn Al Shuaibah 2 solar energy plant is set to be MENA’s largest with a 2.06 GW generational capacity.

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KSA’s Ceer teams up with Siemens on EV engineering: Saudi Arabia’s first EV manufacturing company Ceer has signed an agreement with Siemens Digital Industries Software to use the company’s computer software in the design of EVs, according to a statement released last week. The agreement will allow Ceer to use Siemens’ Xcelerator industry software for vehicle design, development, validation, and manufacturing of Ceer’s EVs, the statement notes.

About Ceer: Ceer is a JV between Saudi Arabia’s sovereign wealth fund the Public Investment Fund and Taiwanese multinational electronics contract manufacturer Hon Hai Precision Industry Company (Foxconn) launched last November. The EV brand received a manufacturing license from KSA’s Ministry of Industry and Mineral Resources last June for its planned USD 96 mn EV production plant and is expected to contribute USD 8 bn to Saudi Arabia’s GDP by 2034. Late last month, the KSA automaker signed a KRW 250 bn (c. USD 196 mn) agreement with South Korean counterpart Hyundai Kefico for the supply of EV spare parts.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• KSA plans to boost local waste management: KSA’s Municipal and Rural Affairs Ministry is drafting policies to regulate the construction sector’s waste management operations. Under the new regulations, Saudi-based firms must contract licensed trash carriers to collect and transport waste to designated landfills. (Saudi Gazette)
• KSA’s Kaust teams up with Longi on solar tech: Saudi Arabia’s King Abdullah University of Science and Technology (Kaust) has signed a cooperation agreement with Chinese solar cell manufacturer Longi to boost local solar panel manufacturing capabilities, with a focus on advancing the efficiency and reliability of PV technologies to ensure they are compatible with KSA’s climate. (Statement)
• Oman completes mangrove plantation target: Oman’s Environment Authority completed its 2 mn mangroves forestation target last week, planting mangrove seedlings in the North Batinah, South Sharqiyah, and Al Wusta governorates. (Muscat Daily)
• Omani tech companies to monitor waste bins using AI: Omani tech and AI companies Rihal and Onsor Technologies will use an automated AI-based platform to monitor, inspect, and collect data from 185k waste bins across Oman, in partnership with the Oman Environmental Service Holding Company (Be’ah). (Muscat Daily)

India has put in place an emission limit of two kilogram CO2 per each kg of hydrogen produced to be labeled “green” from renewables, Reuters reported on Saturday, citing a statement by the country’s New and Renewable Energy Ministry. "With this notification, India becomes one of the first few countries in the world to announce a definition of green hydrogen," it said in the statement. The announced limit is higher than a proposed 1 kg CO2 limit for green hydrogen earlier this year, according to the newswire. It comes under an ambitious strategy by India to become a global hub for green hydrogen production by producing 5 mn metric tons of the fuel by 2030 annually.

Why this matters: Transparency on green hydrogen production is necessary given concerns about what type of energy is being used in the production process and its carbon footprint.

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Oil giant Occidental acquires carbon capture tech firm for USD 1.1 bn: 1PointFive — a wholly-owned subsidiary of US oil and gas company Occidental Petroleum — has bought Canada-based direct air capture (DAC) technologies developer Carbon Engineering for USD 1.1 bn, according to a statement. The transaction — expected to close by the end of 4Q 2023 — would see Carbon Engineering become a wholly-owned subsidiary of the oil producer’s venture capital arm Oxy Low Carbon Ventures, the statement notes. Earlier this month, the US Department of Energy named 1PointFive and Carbon Engineering among beneficiaries for a USD 1 bn grant aimed at scaling US DAC capacity. 1PointFive is developing the world’s largest DAC plant in Texas, and its parent company Occidental has plans to build another 100 DAC plants, according to Reuters.

SOUND SMART- DAC technology refers to the removal of CO2 directly from the atmosphere at any location, as opposed to carbon capture, which involves absorbing CO2 at the point of emission. Carbon dioxide removed under DAC technologies can be permanently stored in deep geological formations or be utilized in various applications.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Big green potential for ASEAN: A carbon neutrality strategy by Association of Southeast Asian Nations (ASEAN) could help unlock up to USD 6.7 tn in green investment regionally by 2050. (Statement)
• Malaysian firms to explore using palm waste for SAF: The Malaysian Palm Oil Board and state-owned oil firm Petronas have signed an agreement to explore using palm oil waste and used cooking oil to produce sustainable aviation fuel (SAF). (Reuters)

• EU emissions down almost 3% y-o-y in 1Q: The European Union’s carbon emissions dropped 2.9% y-o-y in 1Q 2023, amounting to 941 mn tons of CO2 equivalent. The largest decreases in carbon emission were recorded in Bulgaria, Estonia, and Slovenia. (Reuters)
• Brazil mulls over multi-bn low-carbon hydrogen projects: Brazil is exploring the possibility of USD 30 bn worth of low-carbon hydrogen production projects. The country has the potential to produce 1.8 bn metric tons of the green fuel per year. (Reuters)
• US investors sinking funds in solar and wind projects: Bank of America is facilitating the purchase of USD 1.5 bn worth of renewables projects for US-based Invenergy and Blackstone, along with Canada's second-largest pension fund. The investors will sell tax credits worth USD 580 mn to Bank of America, and put those funds towards buying 14 projects from American Electric Power. (Reuters)

KSA lab cultivating local algae to use for animal feed + wastewater cleaning: A pilot facility launched in the King Abdullah University of Science and Technology is cultivating different algae species to use for aquaculture feed, animal feed, and cleaning up wastewater, the Saudi Gazette reports. The purpose-built lab isolates, identifies, and characterizes algal species adapted to Saudi Arabia’s extreme temperatures, then cultivates the local strains in 22 purpose-built bioreactors that use CO2, wastewater, and algae to produce biomass and oxygen.

How it works: To determine the optimal conditions for growth for each new algae species, the scientists put every new strain “in six reactors to grow under different conditions — continuous light, day-night cycling and then one reactor each to simulate winter, spring, summer and autumn in Saudi Arabia,” said Kyle Lauersen, a specialist in algal synthetic biology and metabolic engineering and leader of the pilot facility.

Different algae serve different purposes: The researchers also characterize the algae and measure what they are producing, such as the amount of oil, protein, and carbohydrates. This “biobank” of information helps determine what species are suitable for which purpose. For example, the dairy industry produces waste water with very low pH and thus would need algae that grow at the same pH levels, Lauersen explains.

What is algae’s magical power? Algae can grow in waste waters by “converting nitrogen, phosphorus, and CO2 into a biomass that is full of oil, protein, carbohydrates, pigments and clean water,” the news outlet writes.

KSA is getting ahead of the alga(m)e: The pilot facility is one of the only dedicated algal biotechnology labs in the Arabian Peninsula, and has one of the “largest suite of bioreactors for growing algae of any academic institution in the world,” Lauersen said, adding that more than 60 strains have been isolated for further testing so far.

Why is this important? The technology holds the potential to accelerate water treatment efforts in the region. In 2019, Saudi Arabia treated 850 mn cbm of wastewater, 185 mn of which was used in agriculture irrigation, according to a study (pdf). Egypt’s Bahr El Baqar wastewater treatment plant alone treats around 5 mn cbm of water every day — or 1.8 bn cbm per year — making it the largest of its kind in the world. The UAE's total volume of treated wastewater in 2020 was approximately 770 mn cbm.