Good morning, nice people. We have another calm news day as the weekend inches closer, but a rather sizable investment from Adnoc L&S’s JV with China’s Wanhua Chemical Group is making waves. Let’s dive right in.

THE BIG CLIMATE STORY OUTSIDE THE REGION- Berkshire Hathaway’s stake in BYD drops below 5%: US bn’aire Warren Buffett’s holding company Berkshire Hathaway has reduced its stake in Chinese EV giant BYD to below 5% — down from 20% two years ago. Berkshire began investing in BYD in 2008, snapping up 225 mn shares for USD 230 mn. This reduced stake may signal the end of Berkshire’s disclosure of stock sales in BYD, as Hong Kong regulations allow shareholders to stop disclosing sales when their stake falls below 5%.

Another brick in the wall? BYD experienced its slowest quarterly bottomline growth in two years as EV sales momentum slowed down, leading to a 6.1% drop in the company’s Hong Kong shares back in April. In March, Lucid Motors’ shares were down 31% since the beginning of the year, and there is a belief among some pundits that US appetite for EVs — which rose to a peak during covid — has fallen off.

The story grabbed some ink in Reuters, Bloomberg, and The Wall Street Journal.

WATCH THIS SPACE-

#1- Mining giant Ma’aden wants to grow 10x by 2040 to become one of the world’s largest mining companies, CEO Bob Wilt told Al Arabiya (watch, runtime: 3:21). “We have a very detailed roadmap on our growth … we will be spending SAR 100 bn in the next decade to grow out and fully develop the mineral resources here in the Kingdom [Saudi Arabia], based on what we know exists and based on what we think we’ll find,” he said of the company’s organic growth plans.

M&A will also be part of Ma’aden’s strategy: Wilt also pointed to an inorganic push to grow Saudi’s mining champion, referencing its investment in Vale Base Metals — through its Manara Minerals JV with the PIF — to hint at future investments overseas which are “very far along in diligence” and set to be announced by the end of this year.

IN OTHER MINING NEWS- Brics countries set up geological platform: The heads of geological survey agencies from Brics countries, including Egypt and the UAE, have agreed to establish a joint geological platform, according to a statement. The platform aims to foster knowledge exchange, technological development, and practical expertise in mineral management to cater to the growing demand for mineral exploration and extraction.

The details: The platform’s core structure will include a coordinating council, a joint projects committee, a technology transfer council, a working group on essential minerals, and a team of experts, the statement adds. Future cooperation will focus on geological exploration, regional geological studies, and strategic minerals, complemented by advancements in digital geology. The parties also discussed the supply and processing of supplementary resources and proposed creating a shared map of mineral reserves held by all member countries.

There’s more: Egypt and Russia are also planning to sign an MoU to enhance knowledge and technology exchange and improve efficiency in the mining sector.

#2- Egypt’s Ministry of Electricity and Renewable Energy is set to add 750 MW of renewable energy from two projects to the national grid by October, Asharq Business reports, citing a government official with knowledge of the matter.

The details:The 250 MW first phase of Orascom Construction, Toyota, and Engie’s mega wind plant is scheduled to open in August, while the 500 MW solar power plant in Kom Ombo underdevelopment by the UAE-based Al Nowais’s subsidiary Amrea Power is expected to be operational by October.

Egypt has more in the pipeline: Egypt was also planning to add 700 MW of solar energy to the national grid by the end of August. The energy will come from Acwa Power’s 200 MW Kom Ombo project and Amea Power’s 500 MW Abydos project in Sohag. The Egyptian Electricity Transmission Company has already signed 25-year power purchase agreements for the projects.

#3- We have another update on the SoutH2 Corridor pipeline: Germany’s VNG, Italy’s Snam and Sea Corridor, and Austria’s Verbund are scheduled to sign an MoU in September 2024 to conduct studies for the implementation of the SoutH2 Corridor pipeline, according to a press release (pdf). The decision to ink an MoU was made during a meeting earlier this week to discuss the project’s goal to supply the EU with nearly 4 mn tons of green hydrogen annually from Algeria to Germany via Italy and Austria.

Major companies are planning to use the corridor: Saudi renewables giant Acwa Power signed an MoU with the Tunisian government last month to develop a USD 6.2 bn renewables-powered green hydrogen project capable of producing 200k tons of green hydrogen, which will be exported to Europe via the SoutH2 Corridor pipeline. TE H2 — a JV between French energy giant TotalEnergies and Luxembourg’s EREN Groupe — and Austrian utilities company Verbund also signed an agreement with Tunisia in May to study the production of 200k tons of green hydrogen for export annually using the pipeline.

#4- Algeria advances progress on desalination plants: Construction on one of the Algerian Energy Company ’s (AEC) six solar-powered seawater desalination plants is around 68% complete, according to a statement. The project — part of the country’s 2022-2024 plan to tackle water security — aims to produce 300k cubic meters per (cbm) of potable water daily. The project is managed by AEC and executed by Sonatrach subsidiaries SARPI and ENAC.

REMEMBER- About the projects: Once all plants are operational — in addition to another five currently being built with a capacity of 1.5 mn cubic meters per day set to launch in December — Algeria’s water production capacity is expected to rise to 5.4 mn cbm in 2028 to meet 60% of the country’s drinking water needs at subsidized prices. The plants are set to become operational between 2027 and 2028.

#5- EU carbon permits might cost more than expected: Analysts have raised their price forecasts for European Union carbon permits for 2024 to 2026, Reuters reports. EU Allowances (EUAs) are expected to average EUR 67.25 per metric ton this year and EUR 76.75 in 2025, reflecting increases of 5.1% and 3.7% respectively compared to April forecasts. The average price for 2026 is projected at EUR 93.46 per ton, up 1.1% from previous estimates. However the EU could resort to issue more permits to increase supply, and reduce risk, the new outlet added. The EU’s Emissions Trading System mandates that manufacturers, power companies, and airlines pay for each ton of carbon dioxide they emit, contributing to Europe’s climate targets.

EUA auctions could affect the prices: The European Commission’s REPowerEU plan, launched to reduce reliance on Russian fuels and meet climate goals, includes raising EUR 20 bn through the auction of EUAs over the next few years. Analysts warn that the timing and size of these sales will significantly impact prices. With the average 2024 price forecast at EUR 63 per ton, additional auction volumes might be necessary to meet revenue targets, carbon certificate firm Veyt ‘s head of carbon analysis Haege Fjellheim said.

WORTH READING-

Is the Paris 2024 Olympics plan to halve emissions actually feasible? Paris 2024 Olympics organizers are aiming to cut the carbon footprint of the games in half compared to previous years, but experts claim that the sustainability plan only covers around 30% of expected emissions, Context News reported. The event — which begins on Saturday — is scheduled to host 15k athletes and bring in around 10 mn spectators, requiring significant food, transportation, and accommodation efforts.

How they’re planning to do it: Paris organizers have pledged to use existing buildings or build new ones that can be used after the games with low carbon materials, Context writes. They will use recycled plastic for seating, EVs for transportation, and renewable electricity to power the stadiums. Organizers also plan to support reforestation and renewable energy projects to offset these emissions. The largest share, nearly 40% of emissions, are expected to come from electric transport.

But a green olympics will require more effort: The games would need to reduce its emissions by 60% by 2036 to align with Paris Climate Agreement goals, according to a report by Carbon Market Watch. Environmentalists suggest downsizing and updating the model, hosting events in different countries, limiting local attendance, and rotating host cities. They also call for an independent body to monitor sustainability and exclude non-carbon-zero sports federations.

THE SCORECARD-

Sunday, 21 July was the hottest day ever recorded worldwide, with the global average surface air temperature reaching 17.09°C, Reuters reports, citing data from the European Union’s Copernicus Climate Change Service. This surpasses the previous record of 17.08 °C set in July last year. Global warming has caused temperatures in southern Europe to exceed 40°C for the past two weeks, intensifying wildfire threats, Bloomberg writes. Greece has seen 33 wildfires within 24 hours, with Athens and southern regions on high alert. Spain also faces extreme fire risks, with Seville and Cordoba expected to reach 43°C, and southern France and Italy are similarly in danger.

REMEMBER- The world is once again on track for its hottest year on record: Each of the past 12 months have surpassed the 1.5 °C threshold above pre-industrial averages, reaching an average of 1.64 °C. June was the 13th consecutive month to hit its hottest temperatures. The incoming La Nina weather circulation is expected to cool down temperatures but the broken records are an indication that the climate system is warming up fast.

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CIRCLE YOUR CALENDAR-

The UAE will host the World ESG Summit from Tuesday, 20 August to Wednesday, 21 August in Dubai. The summit will gather experts and industry leaders to explore new ways to integrate Environmental, Social, and Governance (ESG) principles into business practices.

Turkey will host the International Conference on Clean and Green Energy Engineering from Saturday, 24 August to Monday, 26 August in Izmir. The event will gather researchers and professionals to share advances in clean energy. It will also offer a platform to discuss the latest research, practices, and applications in clean and green energy engineering.

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

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