Good morning, everyone, and a very Merry Christmas to everyone celebrating today. It’s a brisk issue this morning with big news on Infinity Power’s expansion plans in Africa and more traction for Egypt on the solar component manufacturing side.

THE BIG CLIMATE STORY OUTSIDE THE REGION- There is no single story driving the conversation in the industry abroad, but China’s Contemporary Amperex Technology (CATL) launch of “the world’s first ultra-safe skateboard chassis” for EVs, dubbed the CATL Bedrock Chassis, grabbed some ink.The world’s biggest EV battery producer said its new product can withstand 120 km/h frontal impact without catching fire or exploding, setting “new standards” for the industry’s safety. The story got coverage in Reuters and Bloomberg.

ALSO- Jera, Marubeni, and BP were awarded offshore wind projects through Japan’s latest 1 GW auction. A consortium including Jera took a project off Aomori, and another consortium including Marubeni and BP will work on another project off Yamagata. The projects are set to begin operations in 2030, and will contribute to Japan’s goal of reaching 10 GW of offshore wind capacity by 2030 and up to 45 GW by 2040. The story grabbed some ink in Reuters and Bloomberg.

WATCH THIS SPACE-

#1- Ewec allocates land for four new renewables’ sites: The Emirates Water and Electricity Company (Ewec) has received approval to allocate four new sites for solar PV and wind energy projects, according to a statement. The solar PV sites will be located in Al Fayah, Al Khazna, and Al Zarraf, and a wind power plant will be allocated in Al Sila.

More on the projects: The projects will add 4.5 GW of clean energy to Abu Dhabi. The project sites — spanning an area of 75 sqkm — were identified and secured through collaboration with Abu Dhabi’s Department of Energy and the Environment Agency. Details on the tendering timeline and the standalone capacity of each project were not disclosed.

There’s a lot in the pipeline: Ewec has at least four known utility-scale solar projects, with a total capacity of 7 GW. The projects include the operational 2 GW Al Dhafra PV plant and the under-construction 1.5 GW Al Ajban solar PV facility, in addition to the 1.5 GW Khazna solar PV and the 1.5 GW Zarraf solar PV projects, which are both still in the tendering process.

#2- Egypt’s Suez Canal Economic Zone (SCZone) has lined up framework agreements exploring green hydrogen projects worth a total of USD 64 bn, according to a statement. So far, 30 MoUs have been signed, with 12 advancing to a ‘framework agreement’ for possible green hydrogen production totaling a capacity of 18 mn tons per year, SCZone Chairman Walid Gamal El Din said in the statement. Another framework agreement is in the pipeline, with an investment ticket of USD 7.5 bn and production plans of 1.3 mn tons annually.

#3- The UAE’s Ajman set to implement sustainability measures on petroleum trading: The Emirate of Ajman in the UAE will introduce 28 initiatives to regulate petroleum trading, ensure sustainability in energy management, and improve energy sector services over the next five years as part of a new energy strategy for 2030 approved by Crown Prince Sheikh Ammar bin Humaid Al Nuaimi, state news agency Wam reports. The strategy also involves measuring returns from energy investments and carbon emission reductions.

THE SCORECARD-

The catastrophe (cat) bond market reached an all-time high, garnering almost USD 50 bn, Bloomberg reports, citing data from the ins. and risk analysis company Artemis. USD 17.7 bn of that total were sold this year only, edging out the previous record from last year with a 7% increase.

What’s behind the surge? Ins.ers and issuers have been drawn to the debt instruments because higher inflation has made it more costly to rebuild after damage from natural disasters. The bonds are more profitable than many other fixed-income assets, with investors set to earn 16% returns this year. Investors “can expect high single-digit to low double-digit gross returns” in 2025 as well, the head of Twelve Capital AG’s cat. bond portfolio Tanja Wrosch told Bloomberg. The risk spread is another attractive feature and is expected to range between 5% to 7% next year.

REFRESHER- Cat. bonds are high-yield debt instruments designed to help ins. companies raise money in the event of a natural disaster. They are also frequently used to mitigate the financial effects of climate change by transferring a specified set of risks from a sponsor, typically an ins. company, to investors. The cat bond market was at the heart of the highest-returning hedge fund strategy last year, with a 20% value growth.

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CIRCLE YOUR CALENDAR-

The UAE will host the World Energy Summit from Tuesday, 14 January to Thursday, 16 January in Abu Dhabi. The summit will host over 350 speakers including energy industry leaders and policymakers with discussions ranging from eco-waste to sustainable cities. An exhibition will also be held for showcasing green products.

Saudi Arabia will host the Future Minerals Forum from Tuesday, 14 January to Thursday, 16 January in Riyadh. The forum will gather stakeholders from over 170 countries to discuss mineral technology and exploration. Speakers will include senior government officials and CEOs from renowned mining companies Vale, Rio Tinto, and Manara.

Bahrain will host the Sustainability Forum Middle East from Tuesday, 28 January to Wednesday, 29 January in Manama. Climate experts and decision-makers will convene to discuss a number of issues ranging from decarbonization to supporting SMEs on their path to net zero. Speakers will include GCC government officials and industry leaders from the banking and industrial sectors.

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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