TODAY: Africa could produce 50 Mt of green hydrogen by 2035 + Coal consumption is on the rise
Good morning, wonderful people. Are you hearing the crickets as some 2.3 bn people around the world put their out-of-office responder on to get ready to celebrate Christmas and ring in the new year?
We’re taking your cue and will be on a one-week hiatus to take in the festivities. Expect us back in your inboxes on Tuesday, 3 January at our usual time.
THE BIG CLIMATE STORY- It was a big day for Saudi Tabreed: KSA’s Public Investment Fund acquired a 30% stake in Saudi Tabreed, the local arm of UAE cooling company Tabreed, in a transaction estimated to be worth USD 250 mn. The mother company also increased its stake in Saudi Tabreed to 21.8%.
^^ We have chapter and verse on this story and more in the news well, below.
THE BIG CLIMATE STORY OUTSIDE THE REGION- No big climate story is making the rounds this morning, but Africa could produce 50 mn tons of green hydrogen worth EUR 1 tn annually by 2035, Bloomberg writes. This comes thanks to the continent’s tremendous solar potential, according to a study (pdf) published yesterday by the European Investment Bank, African Union and others. The continent would be able to produce green hydrogen at less than EUR 2 per kg, equivalent to a barrel of oil, which stands at EUR 90.
Which countries can contribute? The document combines analysis of investment potential and export capacity by 2035 with an emphasis on three hubs: Mauritania-Morocco, southern Africa, and Egypt. Mauritania and Morocco can export up to 7.5 mn tons of green hydrogen through its Spain pipeline and international shipping, while Egypt’s is set to export 12.5 mn tons through its Greece and Calabria pipeline and shipping to Japan and India. Southern Africa is looking at 2 mn tons.
WATCH THIS SPACE- Dubai still plans to spend big on clean energy: The Dubai Electricity and Water Authority (DEWA) reaffirmed its commitment to spend AED 40 bn (USD 10.89 bn) on renewable and clean energy projects over the next five years, according to the Dubai Media Office. The comments were made following a meeting between DEWA and the International Finance Corporation on Tuesday.
Background: DEWA first announced its multi-bn USD plans to expand its electricity and water projects in Dubai last July. Investments will include some AED 16 bn (USD 4.4 bn) to improve and expand the electricity and water transmission and distribution infrastructure, some AED 12 bn (USD 3.3 bn) on IPP projects including the Mohammed bin Rashid Al Maktoum Solar Park and the Hassyan Power Complex and some AED 3 bn (USD 816 mn) on expanding Dubai’s district cooling capacity and network.
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THE DANGER ZONE- Coal consumption is rising to record highs with no signs of abating until 2025 amid a continued energy supply crunch, according to a recent International Energy Agency (IEA) report. The Russia-Ukraine war’s impact on the oil market has forced countries to increase their reliance on coal as supply chain disruptions continue to hike the price of natural gas. The use of coal is set to rise by 1.2% in 2022 surpassing 8 bn tons in a world first, IEA notes.
Extreme weather also played a hand in the surge: Record heat waves this summer drove countries like China — the world’s largest coal consumer — to rely more on the energy source as droughts crippled their hydroelectric generation capacity. Authorities in China’s Sichuan province imposed a closure order on factories in mid August to maintain power supplies to homes during a surge in demand, as the province saw its hottest weather in 60 years and a shortage of water powering its hydroelectric dams.
CLIMATE DIPLOMACY- UAE and Moroccan officials discussed renewable energy ties yesterday in Rabat, according to a statement. Emirati Industry Minister Sultan Ahmed Al Jaber visited Morocco and met with Moroccan Prime Minister Aziz Akhannouch and Energy Minister Leila Benali among other officials to coordinate on energy security and promote climate action.
CIRCLE YOUR CALENDAR- Saudi Arabia will host the International Conference on Water Resources and Arid Environments next Monday, 26 December and Tuesday, 27 December in Riyadh. The conference will include panels on enhancing water conservation efforts, utilizing tech to maximize management of water resources, combating desertification and upscaling biodiversity efforts. You can register for the event here.
UAE renewable energy firm Masdar will host Abu Dhabi Sustainability Week from Saturday, 14 January to Saturday, 21 January. The event will gather eight presidents and prime ministers and 30k participants in a series of conferences and summits including the Atlantic Council’s Global Energy Forum, the World Future Energy Summit, Masdar’s Green Hydrogen Summit, The International Renewable Energy Agency’s Youth Forum, and the Abu Dhabi Sustainable Finance Forum.
The UAE is hosting the Atlantic Council’s Global Energy Forum on Saturday, 14 January and Sunday, 15 January in Abu Dhabi. The forum will discuss the ongoing global energy crisis and its impact on the green transition, energy security, and decarbonization.
Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.