Tabreed continues its Indian expansion efforts

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OUR TOP CLIMATE STORIES- The UAE’s National Central Cooling Company (Tabreed) has been named preferred bidder for a long-term district cooling concession for the Hyderabad Pharma City in Telangana and Egypt’s Pathfinder Energy Group is planning to set up 500 EV charging stations in Jordan at a total investment of USD 470 mn in partnership with the country’s Energy and Mineral Resources Ministry and Egypt’s East Gas Company.

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

HAPPENING TODAY- The COP27 Transitional Committee is kicking off today in the Dominican Republic and running until Friday, 1 September. The meeting aims to establish institutional arrangements, modalities, governance structures, and terms of reference for the landmark Loss and Damage Fund while expanding sources for climate funding under the program.

THE BIG CLIMATE STORY OUTSIDE THE REGION- It’s quiet on the climate front, but a move by youths to sue governments over climate change received backing from the UN. The UN Committee on the Rights of the Child said that all countries have a legal obligation to protect children from environmental degradation, including the climate crisis, Reuters reported yesterday. In an updated document, the UN body described environmental degradation as "a form of structural violence against children," stating countries should give access to justice for children, by “removing barriers for children to initiate proceedings themselves.”

While non-binding, the guidance remains notable with some 16k children from over 100 countries consulted during a broad dialogue during the two-year drafting period. It comes at a time when children are finding themselves at the forefront of climate lawsuits as they become more aware of their rights. Some of the most notable youth-led lawsuits include a recent landmark win to youths plaintiffs in Montana in a climate change case and an upcoming case by six youths from Portugal taking 32 European countries to court after deadly wildfires in their country in 2017.

The finding by the UN body also got coverage from The New York Times.

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WATCH THIS SPACE #1- Egypt wants to up green cooperation with BP: Egyptian President Abdel Fattah El Sisi said his country hopes to boost its existing cooperation with oil giant BP on the energy transition, emissions reduction, and the production of green hydrogen, according to a statement. CEO Bernard Looney said BP plans to invest USD 3.5 bn in investments in exploration and development in Egypt in the coming three years, the statement noted.

WATCH THIS SPACE #2- Africa could become the EU’s answer to SAF: The European Union is looking at Africa to support Europe’s clean jet fuel projects under its Global Gateway infrastructure fund, Reuters reports, citing statements by European Commission spokesperson Stefan De Keersmaecker. The EU plans to launch a EUR 4 mn capacity-building project by 31 December to back sustainable aviation fuel (SAF) feasibility studies and certification in 11 African nations and India, he said, with a possible draw up of funds for selected projects under the Global Gateway later.

REFRESHER- The EU agreed earlier this year to set binding targets for European aviation to boost its use of SAF to decarbonize the industry. The proposal aims to increase the use of SAF by ensuring fuel suppliers have 2% of the fuel accessible at EU airports as SAF in 2025, rising to 6% in 2030, 20% in 2035, and 70% in 2050. The EU carbon market is set to provide about EUR 2 bn to help airlines switch to SAF. Some 1.2% of fuels must also be synthetic fuels starting 2030, rising to 35% in 2050. Aviation is a difficult sector to decarbonize and net zero aircrafts are not expected for another 10 years.

Regional SAF production is heating up: The Egyptian Company for Solid Waste Recycling (ECARU), Qalaa Holdings, and France’s Axens signed a cooperation protocol last month to conduct technical and economic studies for a second-generation biofuel and SAF production project. The US private sector is looking to tap Egypt for SAF production, Regional Minister Counselor for Commercial Affairs Keith Kirkham told Enterprise Climate back in June. US companies are currently exploring cooperation pathways with both the private and public sectors of Egypt to jointly produce SAFs.

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WATCH THIS SPACE #3- Debate still continues over who should pay up for shipping emissions: Shipping companies want to see oil and commodities traders paying up the financial cost incurred if ships are downgraded under a new carbon indicator introduced in January by the UN’s International Maritime Organization (IMO), The Financial Times reports. Major commodities groups are holding out against such attempts to force legal obligations on traders for shipping emissions. The shipping industry delivers nearly 90% of all global goods and is almost entirely dependent on fossil fuels, accounting for nearly 3% of greenhouse gas emissions worldwide, according to the OECD data.

Some fear impacts on the market: Shipping groups are concerned of a market impact resulting from the first mandatory ratings of IMO’s Carbon Intensity Indicator — a rating system that grades individual ships depending on their operational carbon intensity. Industry giants including Amazon, Unilever, and Ikea have pledged to use zero-emission ships by 2040. The first ratings are set to be recorded next year.

REMEMBER- The IMO’s member countries approved in July a revised greenhouse gas strategy that outlines a net zero emissions goal for the shipping industry by mid century. They agreed to reach net zero “by or around, i.e., close to 2050, taking into account different national circumstances.” They also approved “indicative checkpoints” to help lower total annual greenhouse gas emissions from the global shipping industry by at least 20% while aiming for 30% by 2030 compared with 2008 levels. They also seek reducing such emissions by at least 70%, while striving for 80% by 2040.

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WATCH THIS SPACE #4- Kerry wants Big Oil to get serious on climate strategies: US climate envoy John Kerry is on a mission to lobby fossil fuel players to lay out strategies aimed at pushing down carbon emissions, reaching out to KSA Energy Minister Prince Abdulaziz bin Salman and BP CEO Bernard Looney among others, The Financial Times reports. The US climate envoy has reportedly scheduled a meeting with KSA oil conglomerate Aramco in a bid to explore the corporation’s climate mitigation plans and is urging fossil fuel producers to chart out a course to push down greenhouse gas output throughout their supply chains, nudging them to earmark investments for clean energy. As part of his climate mitigation strategy, Kerry has also been bidding big oil firms to expand carbon capture and storage capacity, the news outlet notes.

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NON-CLIMATE REGIONAL HEADLINES:

• KSA: PIF-backed ADES Holding has announced a plan to proceed with an initial public offering (IPO) on Tadawul. (Asharq Alawsat)
• Egypt: Statistics agency Capmas plans to begin a survey in early 2024 to determine the number of refugees residing in Egypt. (Al Shorouk)

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CIRCLE YOUR CALENDAR-

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.

Tabreed continues its Indian expansion: The UAE’s National Central Cooling Company (Tabreed) has been named preferred bidder for a long-term district cooling concession for the Hyderabad Pharma City in Telangana, a disclosure (pdf) to the DFM read on Monday. The agreement is set to close in 4Q 2023 with construction set to begin “as soon as possible,” The National reports.

What we know: The district cooling project’s initial phase will see the construction of district cooling facilities supplying 2.5k refrigeration tons (RT) at an approximate project cost of AED 36.2 mn. The project will be expanded in phases depending on cooling demand, with total concession loads reaching up to 125k RT.

Who’s paying what: The first phase of the project will see a funding mix of 75% in local financing and 25% in equity paid in line with construction milestones, The National writes, citing statements by Tabreed. “Additional investment will be required to fund construction of additional cooling infrastructure in line with project requirements as needed to meet demands,” the company said.

Not Tabreed’s first Indian rodeo: Tabreed made its grand entry in India under a partnership in May with Tata Realty and Infrastructure Limited (TRIL). The agreement with the real estate and infrastructure development arm of Indian conglomerate Tata Sons includes a AED 44.34 mn investment in TRIL’s Intellion Park special economic zone development in Gurugram. It began commencing its first operations in the country last month.

Tabreed has big plans for the country: Tabreed finalized a significant five year strategic partnership with the International Finance Corporation (IFC) to invest up to USD 400 mn for its expansion in India. Tabreed and the IFC have been targeting a portfolio of c. 100k RT servicing industrial, commercial, and retail developments across the country.

And India is serving up potential: India expects aggregated cooling demand to grow eightfold by 2037-2038, with cooling accounting for 45% of peak energy demand nationwide by 2050, Tabreed said in May, citing data from India’s Environment, Forest, and Climate Change Ministry. The ambitious targets come a few years after the ministry set up the India Cooling Action Plan to back the growth of sustainable district cooling across the country.

Jordan’s EV infrastructure is getting a boost: Egypt’s Pathfinder Energy Group is planning to set up 500 EV charging stations in Jordan at a total investment of USD 470 mn in partnership with the country’s Energy and Mineral Resources Ministry and Egypt’s East Gas Company, VP Maii Elzomar told Zawya Projects.

Powered by renewables: The EV charging stations are expected to be powered by both solar and wind energy, Elzomar added. The project will also see collaborations with British consultancy boutique Dunhill Ventures and US-based SSK Capital Investments.

The timeline: Work on the project is set to begin by the end of the year and be finalized within three years under three phases, Elzomar said. The first phase would include 120 charging points.

REMEMBER- Jordan’s EVs segment is projected to grow: Fitch Solutions said in June it expects appetite for passenger EVs in Jordan to remain high amid reduced import taxes on EVs. It expects passenger EV sales in Jordan to grow by 45.9% this year to hit an annual passenger EV sales volume of a little under 23.4k units from an estimated 16k sold last year.

Jaguar takes steps to repurpose used EV batteries into battery storage: UK giant car maker Jaguar Land Rover (JLR) has partnered with UK renewables and waste-to-energy equipment manufacturer Wykes Engineering to develop one of the largest energy storage systems in Britain from used EV batteries, according to a statement. Wykes will use 30 second-hand Jaguar I-Pace batteries to build one unit of its storage system with a capacity up to 2.5 MWh. JLR and Wyke’s project is one of the first trials of its kind and the auto company aims to supply enough batteries to store a total of 7.5 MWh of energy — enough to power 750 homes for a day — by the end of 2023.

The storage systems will support renewables projects: Each of JLR’s battery systems will be able to supply, store, and draw power directly from the national grid, making it a crucial component in stabilizing fluctuations in the grid, especially with regards to renewables generation where weather conditions cause production to fluctuate significantly, the statement explains. “The containers are connected to the grid in such a way that they can absorb solar energy that could otherwise be lost when the grid reaches capacity,” Wykes’ managing director said.

The equipment’s design makes repurposing easy: The system is designed in a way that eliminates the need for additional manufacturing steps or the removal of battery modules when developing the storage system from the used batteries. The batteries are simply removed from the Jaguar I-PACE and slotted into racks in the containers on-site.

Recycling EV batteries has huge potential: Second-life battery supply for stationary applications, like renewable energy storage, could exceed 200 GWh per year by 2030, creating a sector with a value of over USD 30 bn, the statement said, citing a report by McKinsey. Batteries that no longer meet the standard for usage in EVs still maintain up to 80% of their usable capacity, equivalent to TWs of unused energy storage space, creating huge potential for recycling, the agency added.

Investments in grid-scale storage needed to unlock renewables potential: In the net zero scenario, installed grid-scale battery storage capacity would need to expand 35-fold between 2022 and 2030 to nearly 970 GW, according to the International Energy Agency (IEA). Jordan, Egypt, Morocco, and most Gulf states are motivated to increase storage deployment due to their ambitious renewable energy targets, the Middle East Institute writes.

Storage expansion is one of the barriers to low-carbon hydrogen scale up: Meeting the national goals for green hydrogen production would require several times the total output from all renewable energy generated today. This will add further pressures on the grid and increase the need for sufficient grid storage systems, especially if the renewables plants are far from the hydrogen production facility. 11% of participants in a DNV survey (pdf) said that advances in battery technologies pose a risk to progressing the hydrogen economy.

Storage projects are starting to take off in our region: The UAE and Turkey announced in July intentions to partner up in battery storage projects. Masdar plans to deploy up to 3-5 GW in battery storage capacity over the next five to seven years through its newly acquired renewables and BESS arm Masdar Arlington. Acwa Power inked an agreement with China’s Sungrow to build a 536 MW battery storage system in Neom. Egypt is considering utility-scale batteries as a potential solution for smoothing the integration of wind and solar-generated electricity into the national grid. Regional energy storage projects that use batteries are expected to jump from the current 7% to 45% by 2025.

But we have yet to set goals and policies to expand grid storage: While a number of projects show a growth in storage, the MENA region falls behind others in incentivising grid-storage expansion. For example, China has announced plans to install over 30 GW of energy storage by 2025, India aims to have between 51 to 84 GW of grid storage installed by 2031-32, and Australia announced funding support for a total of 2 GW of grid-scale storage capacity, the IEA report notes. The EU published a series of recommendations on energy storage, and the US’ Inflation Reduction Act includes an investment tax credit for stand-alone storage which is expected to make new grid-scale storage projects more competitive, the report added.

A warmer planet is helping pests destroy crops globally: Soaring temperatures globally are aggravating crop shortages by contributing to the spread of insects and plant disease, Bloomberg reported on Saturday. A worsening shortage is already causing the prices of goods like cocoa, olive oil, and orange juice to skyrocket. Plant diseases cost the global economy over USD 220 bn annually and invasive pests cause at least USD 70 bn in losses, according to the UN’s Food and Agriculture Organization.

Why pests spell trouble: Pests can adapt easily to higher temperatures, which allow them to generate at a quicker rate and migrate faster, according to Georgetown University entomologist Leah Buchman. As the world gets warmer, certain insect species are starting to expand beyond their native habitats. Moths native to the Americas are eating up corn and other grains in Africa and Asia, and a tropical whitefly has been causing damage to tomato plantations in Europe.

The crops are taking a hit: The fall armyworm — native to the Americas — is destroying China’s corn crops earlier than usual, Bloomberg reports. India’s output of tomatoes, cassavas, beans, and sweet potatoes took a hit due to the silverleaf whitefly transmitting plant viruses to crops. The black pod disease and the swollen shoot virus are destroying cocoa crops in West Africa — home to two-thirds of the global cocoa supply — causing wholesale prices to rise to record highs this year.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Dubai beaches attract night swimmers: A large number of Dubai residents are heading to beaches at night to avoid the daytime heat. The Dubai municipality has designated some of its coastline as “night beaches” allowing swimming 24 hours a day. (The New York Times)

China’s Sunpure supplying robotic tech for KSA solar plant: Egypt-based Elsewedy Electric has signed an agreement with Chinese intelligent PV cleaning robotics company Sunpure to use the company’s robots to maintain its 348 MW solar project in Saudi Arabia, according to a statement. Solar panel cleaning robots provide a waterless solution to remove dust and other contaminants from solar arrays in a bid to maintain PV cell efficiency and offer a safe alternative to manned panel cleaning operations. Elsewedy signed a USD 176.1 mn turn-key agreement with KSA’s Al Ghazala Energy for the project last January, and is expected to commission the solar farm next year, the statement notes. The project is expected to generate 876 GWh once operational, offsetting some 500k tons of CO2 emissions annually. Sunpure has a 4 GW pipeline across six planned solar projects in Saudi Arabia.

Robot disruption in MENA renewables: Saudi Arabia’s state-owned mining corporation Ma’aden signed an agreement last January with US-based mining solutions company Offworld to explore zero-carbon mining in the kingdom using the American firm’s robotic mining swarms. The pact would pave the way for Ma’aden to decarbonize mining, processing, manufacturing, and construction with five types of robots covering a range of functions including surveying, excavating, collecting, hauling, and bulldozing.

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Dubai looks to Japan for expertise on water treatment: A delegation from Dubai’s municipality visited Japan to explore the country’s water treatment and recycling strategies, Wam reports. Japan showcased the latest technologies it uses for sorting waste, converting waste into energy, and recycling cinders. The delegation also met with representatives of large companies and factories specialized in the water and waste sectors, including those with expertise in waste-to-energy conversions, bottom-ash recycling, and digging for wastewater and rain drainage.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Moroccan desalination plant starts operation: Moroccan state-owned fertilizer giant OCP Group has inaugurated the first phase of its 35 mn cbm per year Safi desalination plant. The plant’s output will serve OCP’s industrial needs and provide drinking water to the Safi and El Jadida neighborhoods. The first phase will produce 10 cbm per year. (Morocco World News)
• SNB Capital tapped to help Tadweeer’s move on Tadawul: SNB Capital will serve as the financial advisor for Saudi-based recycling company Tadweeer’s move from Tadawul’s parallel market (Nomu) to the main stock market. (Tadawul)

The IFC extended bns in loans to accelerate Africa’s green energy transition: The International Finance Corporation (IFC) disbursed a total of USD 11.5 bn in funding in FY 2023 to bolster Africa’s transition to clean energy, strengthen the continent’s green tech capabilities, increase intra-Africa commerce, and stimulate job creation, according to a statement.

The specifics: Between July last year and 30 June 2023, the lender extended USD 876 mn in climate funding, USD 1.7 bn to support the continent’s digitization efforts, USD 1 bn for trade-related investments, and nearly USD 2 bn for SME-focused financing. The IFC allocated USD 3.5 bn in short term loans and mobilized a further USD 3.1 bn, of which 40% were channeled toward climate adaptation financing and 48% earmarked to support low-income and conflict-stricken countries.

Green projects included: The funding package included USD 1.2 bn to expand financial institutions’ sustainability-linked lending capacity, USD 1.1 bn to finance UAE renewables developer Amea Power’s 560 MW solar plant and 505 MW wind farm in Egypt, EUR 242 mn (c. USD 261.3 mn) for Senegal's Sococim Industries under a program to boost low-carbon cement utilization, and a USD 500 mn investment in BUA Cement in Northern Nigeria to promote green cement production in Africa.

There’s more coming: Last month, Egypt’s largest private lender CIB said it is scheduled to receive a USD 100 mn loan from the IFC to help fund the bank’s climate finance endeavors. The lender also signed an agreement with Morocco’s Mohammed VI Fund for Investment (M6FI) to identify and finance green infrastructure projects in the kingdom.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Serbian copper plant expansion on deck: China’s Zijin Mining Group is planning to expand its copper mine in Serbia from a few hundred meters deep, to 2 km deep for an investment cost between USD 3.5 bn to USD 3.8 bn. Copper is a critical metal needed in battery production — a crucial component in the energy transition. (Bloomberg)

A group of scientists has identified a strain of bacteria that can “eat” low concentrations of methane gas, The Guardian reports, citing a University of Washington study. While there are many types of bacteria that can naturally convert methane to CO2 and biomass, the newly discovered strain is the first to do so with lower concentrations of methane, the news outlet explains. The researchers also found that the strain can increase its own numbers and consume methane at faster rates than other bacteria.

Why is this important? Methane has over 85 times the warming power of carbon dioxide in the first 20 years after it is released in the atmosphere, and currently accounts for at least 30% of total global heating. Now that a strain has been identified that can convert methane to CO2 at low concentrations, this can be a viable solution for removing methane from landfills, rice fields, oil wells, and other areas with higher methane concentrations compared to the atmosphere. The exhaust from the process can also be pumped into greenhouses to grow produce, earth sciences professor Euan Nisbet told The Guardian. Global heating can be reduced 0.21 C to 0.22 C by removing 0.3 to 1 petagram — or 1 gigaton — of methane by 2050.

Investments in technology and achieving commercialization: “The biggest barrier to implementation is finding ways to increase the methane treatment unit 20-fold,” lead researcher Mary Lidstrom said, adding that thousands of high-functioning reactors would be needed to implement methane-eating bacteria on a mass scale. Running field tests could be within reach within three to four years, according to Lidstrom.