Egypt might snap up stakes ranging between 20% to 25% in foreign-built green hydrogen projects

Good morning, friends. We have another busy day with some significant updates on the booming green hydrogen pipeline of projects currently underway in Egypt.

THE BIG CLIMATE STORIES- Egypt will reportedly be eligible to grab stakes ranging from 20% to 25% in green hydrogen projects being developed by foreign companies, three government sources told Enterprise Climate. On the supply chain side, Hydrogen Egypt is partnering up with China’s Peric Hydrogen Technologies to explore the manufacturing and assembly of electrolyzers critical for green hydrogen production in the country.

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

THE BIG CLIMATE STORY OUTSIDE THE REGION- Gone with the wind could mean something different soon: A dry cargo ship fitted with special sails that can harness wind power has set sail from Singapore to Brazil to study how wind energy can cut carbon emissions, according to a statement. The Cargill-owned vessel is retrofitted with 37.5 meters wind sails — produced by Norway’s Yara Marine Technologies — expected to cut fuel costs up to 30% on new-build vessels, Cargill notes. “It is risk taking. There is no assurance that the economics are going to work,” President of Cargill’s Ocean Transportation Division Jan Dieleman said. “If we are not going to get any real surprises, we are definitely going to scale this,” Dieleman added. The global shipping industry emits around 2.9% of global greenhouse gas emissions.

The cargo ship’s maiden journey is getting ink from international press: Reuters | Bloomberg | The Financial Times | BBC

---

OVER IN COPLAND- We’re 100 days out to COP28 and here’s where we stand: UAE’s turn to host COP is entering its final stretch and this year’s summit is shaping up to be a crucial one in the climate fight, with climate change-driven weather events mounting pressures on governments to ensure progress on mitigation and adaptation. In the run up to the summit, COP28 President Designate Sultan Al Jaber has given some hints on what to expect.

The needs of developing countries will be put first: COP28 aims to deliver an ambitious and practical action plan that is “focused on results that address the needs of the Global South,” Al Jaber said in a virtual address at the G77+ China ministerial meeting in Havana in July. In the same month, Al Jaber attended a G20 Energy Ministerial where he stated that the group must show clear signals of their commitment for energy transition at COP28, adding that one of the summit’s major goals is deploying an operational fund to compensate climate-vulnerable poor nations. The president-designate has also called on donor countries to “show him the money” when it comes to the long overdue USD 100 bn annual climate finance pledge that developed countries have promised developing economies.

Multilateral banking systems will also be in the spotlight: Policy recommendations for a more equitable and efficient climate finance system — prepared by top economists, private sector leaders, and the UN Climate Change High-Level Champions — will be presented during COP28. Al Jaber stated his support for Barbados Prime Minister Mia Mottley’s Bridgetown Initiative which presents ways to reduce “excessive risks” that developing countries have to take to borrow to fund green investments, especially in Africa.

The fossil fuel phase out continues to be a contentious topic: Al Jaber urged the world to be “laser-focused on phasing out fossil fuel emissions,” a phrasing that brought controversy as climate groups flagged the use of the word emissions as a way to divert away from reducing reducing production of fossil fuels, to a focus on carbon capture technology instead. Al Jaber did note later that a “phase down of fossil fuels is inevitable,” but stressed that it “cannot be irresponsible,” and will have to be driven by “how quickly we phase up zero carbon alternatives.”

And there’s little movement on a consensus: Countries participating in COP28 have not reached a consensus on whether a phaseout of fossil fuels should be on the agenda at COP given that a large number of countries that are not yet on board. The last G20 energy ministers meeting failed to reach a consensus on a fossil fuel phasedown after a group of countries led by Saudi Arabia blocked the effort. China and India also pushed back against fossil fuel phase down during a two-week preparatory meeting for COP28 at Bonn.

Progress on the Loss and Damage Fund is expected: Al Jaber and UN Climate Chief Simon Stiell said that the upcoming summit aims to define a global goal on adaptation and kickstart operations on COP27’s landmark loss and damage fund. COP27 Transitional Committees have been meeting to establish institutional arrangements, modalities, governance structures, and terms of reference for the landmark Loss and Damage Fund to expand sources for climate funding under the program. By COP28, there will be “some sort of a structure of governance and identification as well of the sources of funds,” special envoy for the UN secretary-general and UN high-level climate champion at COP27 Mahmoud Mohieldin told Enterprise Climate last month.

So how will the agenda tackle all of the above? The first high-level draft revealed that the presidency has planned the summit into 12 thematic days, according to the COP28 website. The program includes 12 key themes: Health; Relief, Recovery, and Peace; Nature, Land Use, and Oceans; Food and Water Systems; Just Energy Transition; Industry; Trade; Youth, Education, and Skills; Finance; Gender Equality; Cities, Regions, and Urbanization; and Transport. Each day will also incorporate themes that are actionable and deliverable including tech and innovation, inclusion, frontline communities, and finance.

What to expect between now and then: All eyes are on the two-day G20 Leaders’ Summit in September, which according to Mohiedin will set the stage for the level of consensus at the COP negotiations. “The work is basically in the hands of negotiators, and 80% of emitters happen to be within the G20. If we see progress and some consensus during the G20 discussions in September, that’s great news,” Mohiedin said. The Dominican Republic is also hosting the third and final COP27 Transitional Committee later this month where attendees will draft a recommendation for the operationalisation of the loss and damage fund to be presented at COP28. The Green Climate Fund is also hosting a conference on private investment in climate in Kenya next month, which will determine much of the conversation on climate finance during COP and the next transitional meetings.

---

WATCH THIS SPACE #1- A global tender for solar in Egypt is happening: The Egyptian Electricity Holding Company (EEHC) has launched a global tender for the construction and operations of five concentrated solar power (CSP) plants to generate electricity and produce potable water on Egypt’s North Coast, a tender notice by the EEHC showed. The facilities will be constructed under a 25-year BOO structure, with bidders asked to submit their offers by no later than 27 September, according to the notice.

What we know: The five CSP plants— which will see investments of USD 270 mn — will have an overall capacity of 250 MW and would be utilized for seawater desalination projects in areas at the western North Coast, Al Mal reported, citing unnamed sources in Egypt’s Electricity Ministry. The BOO structure would see the Electricity Ministry purchasing electricity from the plants and connect it to the national grid, they said, adding that the facilities would help desalinate over 400k cubic meters per day.

---

WATCH THIS SPACE #2- Dubai is aiming to reuse 100% of its water by 2030 under a long-standing water reclamation program, according to a statement. It said the program, which has been in force for over five decades, saw the city achieve a water reuse rate of 90% and cut dependency on desalinated water and groundwater. It now plans to curb the use of desalinated water and related power consumption by 30% and double its production of recycled water to over 8 bn cubic meters by 2030, the statement notes. The water reclamation project has helped Dubai save c. AED 2 bn annually, it added.

WATCH THIS SPACE #3- The WMO wants to predict extreme weather more accurately: The World Meteorological Organisation (WMO) wants to introduce high-resolution modeling to more accurately predict extreme weather around the world, The National reported last week, citing comments by president and director general of the UAE’s National Centre of Meteorology Abdulla Al Mandous. The model would provide more exhaustive weather predictions, especially for flash floods, tropical storms, tornadoes, and rising sea levels, Al Mandous said. The proposal would see climate models go from the current 50 km resolution to a 1 km resolution, enabling both better understanding of small-scale phenomena and enhancing the assessment of patterns and trends. The WMO has already identified an initial 30 countries to roll out the new technology, including Ethiopia, Somalia and South Sudan.

The UAE is leading the way in monitoring and prediction: “Expanding the UAE’s successful rain enhancement programme — which is conducted through cloud-seeding — to other countries in the Middle East region would help improve groundwater levels,” Al Mandous told the National. The UAE also had an important role in pushing for a UN-led initiative called Early Warning For All (EW4ALL), setting a goal of ensuring global access to early warnings of weather, water or climate hazards by the end of 2027.

And weather phenomena like El Niño require it: With the current El Niño cycle predicted to be a strong one, developing models that can better predict the region’s climate patterns has become an essential climate adaptation tool for managing the region’s water and agricultural resources, like prioritizing growing crops with less water requirements based on models fit to do so.

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.

Do you want to become a commercial partner? Ping a note to Moustafa Taalab, our head of commercial.

Get Enterprise Climate

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- 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.

***

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-

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 to increasing Africa’s climate resilience and serve as a platform to inform and frame 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.

Egypt will reportedly be eligible to grab stakes ranging from 20% to 25% in green hydrogen projects being developed by foreign companies, three government sources told Enterprise Climate. The stakes have already been agreed upon in the inked MoUs between Egypt and the companies, and would be split evenly between three governmental bodies which include the Egyptian Electricity Transmission (EETC), the Sovereign Fund of Egypt (SFE) and the entity governing the project site like the Suez Canal Economic Zone (SCZone), the sources added.

The rationale: The sources reasoned Egypt’s prospective ownership in the upcoming projects is relative to the amount of infrastructure built to accommodate them, and the services and resources spent from Egyptian coffers to aid in the projects’ implementation. For example, Egypt has spent bns to modernize and expand the infrastructure for its electricity sector to assist companies in setting up the projects — including EGP 70 bn for infrastructure in the SCZone to create a global hub for the production of green fuel, the sources added.

Dial in the consultants: A nine-month consultancy study by Belgium’s Elia Grid International to put a price on the services being extended by Egypt is nearing completion, the sources said. The study will crucially include a proposed tariff and the cost of using electricity — generated from renewables — from the EETC grid in the prospective projects, they added. The study will also include the governance mechanisms for green hydrogen in the country through the transport and storage networks while taking into account the electricity tariff from the EETC and demand for electricity in light of future interconnector projects between Egypt, neighboring countries, and the EU.

Some details still need ironing out: Assurances electricity purchased from the state will be generated from renewable sources remains unclear, and remain critical with EU exports in sight. Ensuring that the electricity is renewable-sourced is still being determined, Hydrogen Egypt CEO Khaled Naguib told Enterprise Climate. “Developers are going to be looking for commitments from the government on what type of electricity will be used from the grid,” he said, “this is still an open discussion, because the grid and electricity will need to be certified [to be labeled green].” Other questions lingering include whether the existing grid will be used for the prospective green hydrogen projects or whether there will be a “dedicated grid” for the facilities, Naguib added.

Where the EU stands now on the green label: Recurring changes by the EU in regards to green hydrogen rules and the industry — subject to supply and demand — is also fuelling the ambiguity, Naguib said. The European Commission — the EU’s executive arm — adopted final rules in June (pdf) that define what constitutes renewable hydrogen within the bloc. The strict rules aim to ensure that the green hydrogen produced is “dominantly” generated using energy from renewable projects rather than fossil-fueled power plants, adding that “evidence should be provided” regarding the source of the electricity supply used.

And that’s not all: A senior government official told Enterprise Climate that Egypt’s highly anticipated green hydrogen law is currently being reviewed ahead of submitting it to the House of Representatives in the next parliamentary session next October. It will include the cost and legislative frameworks needed to produce the green fuel, as well as outline a clear role for the involved parties and incentives for the projects, he added. The draft bill could be ready by November to activate the signed agreements and MoUs, he added.

REMEMBER- Egypt is experiencing a green hydrogen bonanza: The Egyptian government signed several framework agreements during COP27 with foreign companies to construct several green hydrogen and ammonia facilities in the SCZone. The facilities would cost a combined USD 83 bn and collectively produce up to 7.6 mn tons of green ammonia and 2.7 mn tons of hydrogen a year. Egypt also approved incentives in May to boost the country’s green hydrogen sector and lure in much-needed foreign exchange inflows.

And some fresh ones: Abu Dhabi-headquartered green fuels developer Ocior Energy has signed preliminary agreements earlier this month with the Egyptian government to build a USD 4 bn green hydrogen production plant in the SCZone. The Indian company is expected to finalize the project agreement in coming months, according to officials. Swiss renewable power group Smartenergy are also in talks to set up a USD 1 bn green hydrogen project in Egypt with agreements set to be signed in 4Q 2023, a government official told Enterprise Climate last month.

A fresh bid for locally-made electrolyzers in Egypt: Hydrogen Egypt is partnering up with China’s Peric Hydrogen Technologies to explore the manufacturing and assembly of electrolyzers critical for green hydrogen production in Egypt, CEO Khaled Nageib told Enterprise Climate. The technical cooperation — which is still in the “feasibility stage” — will see parts of the electrolyzer components sourced locally, he said. However, Peric will be providing the core component for electrolyzers “at the start,” he said.

What we know: The first phase of the partnership will see parts locally manufactured and assembled, Nageib said, and will also include training, operation, and maintenance. Nageib said a delegation from Peric will be visiting Egypt in September to determine the size of the entity or joint venture to be established for the endeavor. Details related to the feasibility of the project will be discussed before ironing out specifics about the entity to be established, including raising capital, he said.

A “Made in Egypt” electrolyzer next year? Nageib expects the partnership to yield “some products on the ground,” including locally finished electrolyzers in 1H 2024.

REFRESHER- Hydrogen is produced by passing an electric current through water (electrolysis) to split the hydrogen from the oxygen. The resulting hydrogen is “green” only if the electricity used to power this process is generated from renewables.

Peric is capitalizing on electrolyzer demand: The Chinese company has reportedly signed supply contracts worth USD 200 mn-USD 300 mn in the past few months with unnamed foreign companies coinciding with the setting up of green hydrogen projects in Egypt, Asharq Alawsat reported, citing people it says have knowledge of the matter.

The Chinese connection: Egypt is expecting Energy China to sign a framework agreement soon to build a green hydrogen plant in the Suez Canal Economic Zone. The zone said in May that the company would put pen to paper within the coming two months, a date which came and went without any announcements from either side. The planned USD 7 bn plant will produce 1.2 mn tons of green ammonia and 210k tons of green hydrogen a year.

About Peric: The Hebei-headquartered company is a wholly-owned subsidiary of Purification Equipment Research Institute of the China Shipbuilding Industry Corporation, according to its website. It focuses on the research, design, and manufacturing of hydrogen generation systems and their use in producing hydrogen energy. The company’s current annual production capability is 350 sets of alkaline type hydrogen generator and 120 sets of PEM type hydrogen generator, and it has manufactured and sold over 1k sets of water electrolysis hydrogen generation systems.

Egypt, South Korea discuss green energy cooperation: Egypt’s Oil Minister Tarek El Molla and South Korean Ambassador to Egypt Kim Yong-Hyun held talks to discuss cooperation in green and renewable energies, according to a statement. The South Korean envoy signaled a possible cooperation opportunity in green fuel bunkering in light of advanced South Korean technologies in the field.

REMEMBER- Egypt awarded four bunkering licenses last year to Coral Energy, Minerva Bunkering, and Peninsula companies following a tender under an ambitious plan to become a one-stop ship shop.The SCZone first announced plans to launch the new marine services in January 2022, as part of its 2020-2050 strategy.

ALSO- El Molla met separately with US oil producer Apache Corp CEO John J. Christmann where they affirmed the necessity of maximizing the use of solar energy in oil production sites as an alternative to traditional forms of energy to generate electricity, according to a separate statement. The plan would reportedly help cut costs and curb greenhouse gas emissions, the statement notes.

China plans strategy to tackle renewables waste: China will have a comprehensive recycling system for wind turbines and solar panels by 2030 to manage the increasing volumes of waste generated by the renewables industry, Reuters reported, citing the country’s state planning agency the National Development and Reform Commission. The agency said it will set industrial rules for the decommissioning, dismantling and recycling of wind and solar facilities, which is coinciding as the first wave of decommissioned plants as PV panels in some stations near their 25-year lifespan and are showing significant wear and tear.

Why this is important: Other than the scarcity of land to dispose of renewable energy equipment, some materials such as solar panels contain toxic elements like lead that can leak out as they break down in landfills, creating serious environmental hazards.

But it won’t be easy: China needs to recycle 1.5 mn metric tons of PV modules by 2030 and around 20 mn tons in 2050. Globally, waste from solar projects alone could reach 212 mn tons a year by 2050, the newswire writes, citing a 2022 report by the International Renewable Energy Agency.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• The meat industry is catching heat: Livestock farmers in the EU received 1.2k times more public funding than greener plant-based meat or cultivated meat groups, while US farmers received 800x more, an analysis found. The meat industry spent 190x more on lobbying in the US than the alternative industry, and 3x higher in the EU. (The Guardian)
• Could “green” regulation be warming the oceans? The three-year-old international ban on using shipping fuel with sulfur content may be contributing to warmer ocean temperatures, some scientists say. Sulfur gas has the ability to cool the climate by reflecting sunlight and increasing the formation of reflective clouds. (Bloomberg)

Oman’s NKK Investments, US firm boost hydroponic farming in GCC: Oman-based Nailesh Kanaksi Khimji (NKK) Investments has signed an agreement with US agritech firm UrbanKisaan to boost vertical and hydroponic farming in Oman, Saudi Arabia, and the UAE, the company said. The partnership aims to upscale regional farming capabilities using Urban Kisaan’s sustainable farming methodology, which relies on solar power and pushes down water consumption by 95% compared to conventional farming techniques.

Dewa wants to patent its energy storage system tech: Dubai Electricity And Water Authority (Dewa)’s Research and Development center has filed a new patent for a chemical liquid that helps ensure a safe and efficient energy storage system, Wam reports. The liquid achieves high thermal and electrochemical stability, ensuring an effective and safe solution for energy storage system operations, including lithium-ion batteries and fuel cells. The patent would help back Dewa’s commitment to promote energy security and sustainability at an international standard, Dewa’s Managing Director and CEO Saeed Mohammed Al Tayer said.

Zimbabwe announces national carbon market strategy: Carbon credit developers based in Zimbabwe will retain 70% of revenues from carbon offsetting projects while the state will keep 30% of credit sales under an environmental tax, Reuters reports. Zimbabwe’s new voluntary carbon market regulations aim to combat what officials described as climate washing. "All existing carbon credit projects deemed null and void shall be given 60 days … to comply with the provisions," the regulations document said. The new policies will be valid for the first decade of a carbon-credit generating project’s lifecycle, with the share of proceeds being subject to renegotiation from the eleventh year.

ALSO– Mozambique plans to follow suit: Mozambique is preparing draft policies to regulate its carbon market starting 2024, Bloomberg writes, citing an inter-ministerial task team presentation. The new carbon credit policy should present the value potential of the market and attract investors, the country’s Finance Ministry Advisor Pedro Simão told Bloomberg. Mozambique has the potential to produce between 80-90 mn carbon credits annually — 4% of Africa’s total output, according to government figures. The government has not yet determined a revenue split framework between investors and the state.

The US is imposing import duties on solar panel manufacturers who complete the making of their products in Southeast Asia, Reuters reported citing a senior official from the US Commerce Department. The decision comes in efforts to stop manufacturers bypassing tariffs on Chinese-made goods through the loophole of finalizing manufacturing in neighboring countries. The decision has garnered some controversy from solar companies that rely on importing cheap equipment made overseas to make their projects competitive, the newswire said, adding that US local solar manufacturers on the other hand were relieved with the new law that will see their products become more competitive relative to Chinese ones. Late last year, the Commerce Department found that some units of Chinese companies BYD, Trina Solar, Vina Solar, and Canadian Solar were dodging US tariffs on Chinese solar panels by making minor finishes to their products in Cambodia, Malaysia, Thailand and Vietnam, before shipping them to the US market.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Economic toll of natural disasters triples: Flooding in the South West Pacific affected some 8 mn people last year and caused economic damages to the tune of USD 8.5 bn, almost triple the toll from 2021. (World Meteorological Organization)
• Tata Sons seeking technical partnerships for UK battery plant: Indian conglomerate Tata Sons is in talks with multiple start-ups to receive technical guidance on its GBP 4 bn UK battery plant, which is scheduled to begin mass production in 2026. (Bloomberg)
• “Unrealistic” global offshore wind expansion target will need bns: Governments looking to raise wind power installations to reach an annual capacity of 80 GW per year by 2030 would require investments of USD 100 bn towards their supply chain by 2026, according research firm Wood Mackenzie. The firm said annual capacity is more likely to grow by 30 GW annually by 2030, requiring USD 27 bn of secured investments by 2026. (Report)

Fog harvesting comes to the rescue in water deficient Moroccan village: A fog harvesting system — which involves collecting water droplets from fog — has been providing over 1.6k people in Morocco’s Ait Baamrane community with potable water for the last 20 years, The New Arab reports. In partnership with German NGO Wasserstiftung Water Foundation, local Moroccan foundation for sustainable livelihoods Dar Si Hmad set up the project on Mount Boutmezguida, where 21 collectors work on a farm that can collect over 22 liters of water per square meter on a foggy day.

How does it work: A specially developed mesh is strung up vertically between two poles perpendicular to the prevailing wind, which forces the fog through the mesh where it condenses into water droplets, the New Arab explains. The droplets then cling to the mesh and get bigger as more fog is pushed through, eventually dropping down into a pipe system that leads to a storage tank.

While low in cost, scalability is not feasible: While fog collection requires minimal operational costs and does not require any electricity, the volume available for harvest is relatively minimal and therefore unrealistic to scale up. In fact, atmospheric water represents only 0.004% of the total freshwater on the planet, with only a fraction of that water in fog at any given time, the news outlet explains, citing the US Geological Survey. This makes fog harvesting more suitable for local applications rather than country or region wide, especially as some scientists predict that fog will decrease as the impacts of climate change worsen, according to the news outlet.

Could this be replicated across the region? Given that the ideal conditions needed for fog harvesting are most often in mountain ranges, close to coastlines, and at a right angle to the prevailing wind, this makes its application limited to a few areas in the region. One example is the Dhofar region of Oman, where fog harvesting projects have taken place since the early 2000s. In 2018, the Dhofar project collected 350k gallons of water during monsoon season, the news outlet said.