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Monday, 24 October 2022

TODAY: Saudi Arabia launched massive supply chain initiative + Iraq is working on its waste-to-energy law

Good morning, wonderful people — there was no rest for the wicked over the weekend, the result being that we’ve got plenty of news for you this morning on everything from major investments, to policy shifts, updates to IPOs, and even a green sukuk issuance.

But first: We’re sorry to be a few minutes late in your inboxes this morning. We’ll be abck on time tomorrow. That said, let’s jump right in:

THE BIG CLIMATE STORY in our corner of the world: A whole lot of investment seems to be coming Morocco’s way. Multiple companies and a number of governments have announced plans to invest in Morocco’s renewable energy sector. The most recent of these was Indian conglomerate Adani Group, which is hoping to build around 10 GW of renewable energy capacity to feed a green ammonia plant that will export to Europe. The company is reportedly restructuring its debt with a new low-interest green bond offering. Adani Group joined Hassan Allam Holding and Orascom Investment Holding in announcing investments in the kingdom over the weekend.

ALSO- Oman is looking to shore up its own green hydrogen sector, announcing a strategy yesterday that would see it invest USD 140 bn by 2050. The strategy comes with a new regulatory framework, and a new agency that will be responsible for tendering green hydrogen projects. The strategy comes with a series of incentives along with a timeframe and other details on Oman’s next green hydrogen tender.

^^ We’ve got chapter and verse on these stories and more in the news well, below.

WATCH THIS SPACE #1- Saudi Arabia wants to be a global supply chain hub with a special focus on renewable energy. Saudi Arabia kicked off what it’s calling a global supply chain resilience initiative (GSCRI) with the hope of turning the kingdom to a key logistics and supply chain hub for a number of industries, including in the green economy, state-run SPA announced yesterday evening. The initiative will see Saudi developing its industrial, logistics and supply chain infrastructure in the hopes of drawing in some SAR 40 bn in investments.

To do this, KSA is offering some SAR 10 bn in financial and nonfinancial incentives for those looking to get into manufacturing of green metals, blue and green hydrogen, recycling and others. “Saudi Arabia also offers access to oil, gas, electricity, renewable energy and human resources at competitive costs,” SPA writes.

WATCH THIS SPACE #2- Are we a step closer to a regional green IPO? The Emirates Central Cooling Systems Corporation (Empower) borrowed USD 1.5 bn in part to fund a special dividend payment ahead of a potential IPO. The district cooling company took out a loan from Emirates NBD Bank to “optimize its capital structure” ahead of its IPO, which could begin as early as next week, sources close to the matter tell Bloomberg. Dubai Electricity and Water Authority (DEWA), which owns 70% of the company and shareholder Emirates Power Investment were paid AED 2.9 bn (USD 790 mn) in dividends, reported Bloomberg, citing a presentation shared on the company’s website.

Empower is looking to raise as much as USD 700 mn from the IPO as early as next week, Bloomberg reported last week, with the caveat that it could always kick the listing to 2023. The district cooling firm was part of 10 state-owned firms slated for listing last November by Dubai’s government as part of its privatization program.

Advisers: Empower appointed Bank of America, Citigroup and Emirates NBD as joint global coordinators on its IPO, while Moelis and Emirates NBD are acting as financial advisers.

WATCH THIS SPACE #3- First UAE blue ammonia shipment arrives in Germany: German mining company Aurubis received 13 tons of blue ammonia, courtesy of the UAE, Aurubis said on Friday. The Abu Dhabi National Oil Company’s (Adnoc) first shipment to Aurubis will be used as a fuel source in the latter’s wire rod factory. Adnoc is developing a low-carbon ammonia plant that will produce 1 mn tons per year.

WATCH THIS SPACE #4- Egypt’s rare-earth play could supply critical components for renewables, semiconductors — and it’s attracting interest from foreign investors. Australian mining firm Fortescue Future Industries is reportedly eyeing the extraction of rare earth elements in Egypt. Fortescue wants to explore investment in the country’s mining sector, with a particular interest in rare earth minerals including silica, which is used to produce solar panels. Fortescue has also expressed interest in green hydrogen as well as some 9 GW of renewable energy in Egypt.

The case for rare earth in Egypt: Egypt’s accumulation of heavy minerals — dubbed “black sands” — has important export value due to its use in everything from renewables to semiconductors. Hassan Allam Holding inaugurated Egypt’s first rare earth plant last week.

GO DEEPER- EnterprisePM’s weekly Inside Industry feature took a look at the Burullus black sands project yesterday.

THE COUNTDOWN TO COP (12 days to go)-

The African Development Bank will announce a USD 1.5 bn green facility to help African countries develop clean energy at COP27, the bank’s principal climate officer told Bloomberg. The funding will be directed at climate-related projects also pertaining to adapting infrastructure to the effects of global warming. The lender plans to raise USD 100 mn by the end of next year, and the full USD 1.5 bn by the end of 2025.

Saudi will host two climate-focused events during COP27: Saudi Arabia’s Middle East Green Initiative (MGI) will kick off on 7 November in Sharm El Sheikh, while its Saudi Green Initiative (SGI) Forum will run from 11-12 November, the Saudi Press Agency quotes crown prince Muhammad bin Salman as saying. SGI will highlight Saudi Arabia’s efforts to push down carbon emissions and will spotlight the country’s renewable energy projects. MGI will focus on charting a course for MENA’s green transition.

THE BIG CLIMATE STORY OUTSIDE THE REGION- Some scientists think global CO2 emissions from burning fossil fuels will rise by less than 1% this year, thanks to the growing renewables and EV industries, the International Energy Agency said. This would amount to an increase of 300 mn tons to 33.8 bn tons in 2022, compared to the much higher 2 bn-ton jump last year.

SMART POLICY– Iraq is preparing a bill that aims to spur investment in waste-to-energy projects: Iraq’s Environment Ministry and the country’s National Investment Commission are preparing a new solid waste-to-energy law to attract investments, the Environment Ministry's technical department head Issa Fayad was quoted as saying by the Iraqi Press Agency on Wednesday.

Not so smart: The legislation will apparently also promote the use of methane gas as an energy source, Fayad says without providing details. Methane accounts for 20% of global emissions, according to the US Environmental Protection Agency.


The Middle East Institute’s virtual keynote conference on COP27 starts today at 5:30pm UAE (3:30 pm CLT). The one-day event will see a focus on raising climate financing for climate mitigation and adaptation efforts for developing countries, and will spotlight how organizations, like the Green Climate Fund, can be more effective in mobilizing capital to aid emerging economies’ in climate adaptation. Speakers will include the executive director of the Egyptian Center for Economic Studies Abla Abdel Latif and the regional director of infrastructure for MENA at the World Bank Paul Noumba Um. Register for the online event here.

Arab Sustainability Week kicks off today, with a series of webinars on sustainable financing, smart cities, sustainable management in property and transport sectors, the circular economy and energy technologies. Organized by the Clean Energy Business Council, speakers include officials from the UAE’s energy and infrastructure ministry. You can view the agenda and get get registration details here (pdf).

The International Exhibition of Renewable Energies Clean Energies and Sustainable Development will kick off today and run through Wednesday, 26 October in Oran, Algeria. The event will focus on the role of startups in the green transition and the bankability of renewable energy projects.


ADIPEC will run from 31 October to 1 November in Abu Dhabi, UAE. Some 40 ministers from around the world, including eight from MENA, will attend the event. Those include energy and oil ministers from the UAE, Kuwait, Bahrain and Egypt. Discussions will partly focus on the transition toward carbon neutrality, a statement picked up by Zawya details. You can register as an exhibitor here, and as an attendee here.

PSA- Deadline to express interest in Al Maktoum solar park’s sixth phase extended to 1 November: Developers have until 1 November to submit their expression of interest (EOI) for Dubai Electricity and Water Authority’s (DEWA) sixth phase of the Al Maktoum solar park, WAM reported on Saturday. The AED 50 bn project — the world’s largest single-site solar park — will be completed between 2025 and 2027 and will yield 900 MW from pv panels.

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

YOU’RE READING ENTERPRISE CLIMATE, the essential regional publication for senior execs who care about the world’s most important industry. Enterprise Climate covers everything from finance and tech to regulation, products and policy across the Middle East and North Africa. In a nod to the growing geographical ambitions of companies in our corner of the world, we also include an overview of the big trends and data points in nearby countries, including Africa and southern Europe.

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