TODAY: Taqa, Engie and EWEC achieve financial close for “low-carbon” desalination plant
Good morning, ladies and gents. We have a brisk issue to ease you into the weekend with a couple of big stories making the headlines.
THE BIG CLIMATE STORY- The UAE’s Taqa, French utility company Engie, and the Emirates Water and Electricity Company have achieved financial close for the AED 2.3 bn low-carbon Mirfa 2 Reverse Osmosis desalination plant and Iraq has approved the construction of a USD 520.2 mn 750 MW solar plant with PowerChina in the country’s southern Muthanna province.
^^ We have the details on these stories and more in the news well, below.
THE BIG CLIMATE STORY OUTSIDE THE REGION– Chevron and Exxon shareholders voted against proposals for additional climate reporting and revised emissions reduction targets at the US oil majors’ annual meetings yesterday, showing a marked difference in voting preference versus Europe, where resolutions related to climate change and global warming earned stronger support. Only 11% of Exxon shareholders supported a petition calling for the company to set emissions reduction targets consistent with the 2015 Paris climate agreement, while a similar proposal at Chevron received less than 10% support.
The story made headlines in the international press: Reuters | Bloomberg | Financial Times
WATCH THIS SPACE #1- The UAE’s first hydrogen electrolyzer plant? The UAE’s Industry and Advanced Technology Minister Sultan Al Jaber says the country intends to build its first hydrogen electrolyzer plant, Wam reports. The plant is part of over 30 industrial projects worth over AED 6 bn announced during the second edition of the Make it in the Emirates Forum. He did not provide further details about the timeline or financial details of the electrolyser project.
WATCH THIS SPACE #2- Hydrogen-fueled buses could be hitting KSA streets next year: KSA’s Neom Green Hydrogen Company (NGHC) will begin producing green hydrogen for buses and trucks at a new plant by mid-2024, CEO Dave Edmondson told Bloomberg in an interview. A larger facility that will focus on exports is also being developed, Edmondson said. The USD 8.4 bn facility — which aims to produce up to 600 tons of hydrogen per day using wind and solar power — will start exporting the fuel in the form of ammonia in 2026, he said. A third hydrogen facility, set to begin production in 2028 or 2029, will focus on providing energy for local industry, he revealed.
REMEMBER– Saudi Arabia aims to become the world’s biggest green hydrogen producer under efforts to diversify its economy away from oil sales. It hopes its USD 8.4 bn utility-scale green hydrogen facility in Neom will help it become a leader in clean fuel in the coming decades. The plant promises to be the world’s largest utility-scale green hydrogen facility, producing 1.2 mn tons of green ammonia annually. All of the plant’s output is planned for global export, mainly to the EU, specifically Germany, through an exclusive long-term agreement with Air Products.
WATCH THIS SPACE #3- Doha Bank explores green bond market: Qatar’s Doha Bank has announced the launch of its Sustainable Finance Framework, which opens the door to issuing various ESG-aligned debt and capital instruments, The Peninsula Qatar reports. The issuances could include bonds and private placements under its Euro Medium Term Note program.
ALSO- Qatar is assessing climate vulnerability: Qatar’s Environment and Climate Change Ministry and the Global Green Growth Institute held a workshop to discuss efforts to ramp up climate vulnerability and action on six different sectors in the country, Al Sharq reports. The workshop addressed the most crucial challenges of climate change in the country and discussed creating a database on the most impacted sectors — including infrastructure, healthcare, water among others — which would allow the ministry to develop a national strategy for the environment and climate change and prepare a national action plan.
DATA POINT– A record 1Q for global wind turbine orders: Global wind order intake rose by 27% y-o-y in the first quarter of the year to 23.5 GW hitting a new record, according to analysis by energy consultancy firm Wood Mackenzie. The growing activity was spurred by a new record of 15.2 GW set by China and a record growth in Latin America to 1.7 GW, it said. The US saw a rise to 1.8 GW of activity, more than doubling the 0.8 GW in the corresponding quarter last year. All in all, global orders were up USD 3 bn y-o-y in 1Q, reaching USD 15.2 bn.
No slowdown for China: “China continues to be the overwhelming driver of global activity,” said Wood Mackenzie Research Director Luke Lewandowski. “We do not see that slowing down anytime soon. What is encouraging is seeing certain areas outside of China start to build momentum. Latin America had a record 1Q, thanks to activity in Argentina and Brazil, and the US is seeing renewed confidence and order growth, partially thanks to the Inflation Reduction Act,” he said.
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CIRCLE YOUR CALENDAR-
Saudi Arabia will host the Arab-Chinese Business Conference on Sunday, 11 June and Monday, 12 June in Riyadh. The conference will bring together CEOs, business leaders, investors, and entrepreneurs from the Middle East and China to collaborate on new trade and investment initiatives in different sectors, including renewables and minerals. A panel discussion titled Clean Energy and Renewables – Pathways to Emissions Reduction is scheduled on the first day, according to the program (pdf). The second day will focus on the localization of renewable energy and on value chain opportunities in mining.
The UAE will host The Arab Green Summit on Tuesday, 13 June to Wednesday, 14 June in Dubai. The two-day summit will bring together industry players and experts for conversations on climate change and sustainability and solutions for concurrent climate-related issues in the region. Key themes to be addressed during the summit include industry decarbonization, renewable and clean energy potential and implementation, sustainable building and construction and others.
Morocco will host the Bloomberg New Economy Gateway Africa on Tuesday, 13 June to Wednesday, 14 June in Marrakech. The event will bring together stakeholders from the private and public sector to discuss the world’s most pressing topics and assess potential solutions. Those include the impact of a decelerating global economy, spiking food and energy prices, supply-chain shocks and risks of distress among sovereign borrowers.
Check out our full calendar on the web for a comprehensive listing of upcoming news events and news triggers.