TODAY: EBRD 💚green hydrogen + It’s signed and sealed for Fertiglobe

Good morning, ladies and gents. It’s a brisk issue as the news cycle winds down in celebration of the incoming weekend, with a green financing update courtesy of Acwa and the EBRD and a deep dive into the consequences of Morocco’s drought on the banking sector. First, a sustainability update from one of our childhood favorites…

THE BIG CLIMATE STORY OUTSIDE THE REGION- There’s no single story shaping the conversation this morning, but Danish toymaker Lego said the company is on track to have recycled plastic account for half the plastic used to produce its brick toys by 2026. The company said it is willing to pay up to 70% more to boost the production of certified renewable resin in a bid to phase out the use of oil in its production process. Lego aims to completely transition to renewable and recycled plastics by 2032, having tested over 600 alternative materials. The company intends to absorb the higher expenses without passing them on to consumers. The story grabbed ink in Reuters, The Guardian, and CNN.

ALSO- Clean energy jobs in the US, including those in wind, solar, nuclear and battery storage, more than doubled in 2023, Reuters reports, citing data by the US Energy Department. Employment in the US clean industries rose by 4.2% last year, up from a 3.2% growth a year earlier. Unionization rates in the clean energy sector also surpassed that of the broader energy industry to reach 12.4%. The growth was driven by legislative measures such as the bipartisan CHIPS Act and the Inflation Reduction Act. The story also got picked up by Bloomberg.

WATCH THIS SPACE-

#1- Fertiglobe seals EU green ammonia supply agreement: UAE-based urea and ammonia exporter Fertiglobe inked a EUR 397 mn contract with Hintco, the implementing entity of H2 Global’s green hydrogen purchasing program, to supply Europe with green ammonia, according to a statement. The agreement will see Fertiglobe export 19.5k tons of green ammonia in 2027, potentially scaling up output to a cumulative 397k by 2033, “contingent on production and supply conditions”.

ICYMI- Fertiglobe was tapped by the German government’s H2Global program last month to supply green ammonia to the EU from its facilities in Egypt. The contract, which will secure 10% of Germany’s annual ammonia needs, is the result of the first among a raft of global tenders to important green hydrogen derivatives. It will produce the green ammonia at its Ain Sokhna plant in Egypt, which it is developing as part of a consortium comprising Scatec, the Sovereign Fund of Egypt, and Orascom Construction.

#2- One step closer to a carbon market in Oman: Oman’s Environment Authority has completed the final draft of a carbon markets policy framework as the sultanate eyes to become a carbon trading hub in the region, ONA reports. The 52-page document outlines plans for a national carbon registry and enhanced institutional capacity, according to Quantum Commodity Intelligence. The framework also includes a positive list of high abatement cost projects, such as carbon capture and storage, and a negative list of projects that would not be allowed export carbon credits to be finalized by the end of 2024.

What’s next: The authority plans to present the draft document to relevant stakeholders during a planned technical workshop in mid-September in Muscat, ONA reports. Oman plans to officially launch the policy during COP29 in Azerbaijan in November.

It’s a big month for carbon markets regionally: Egypt officially launched earlier this month its voluntary carbon trading market — the first in the country and in Africa. The market allows companies to issue and trade voluntary carbon certificates in Egypt and Africa, which can be bought by other companies wanting to offset their emissions.

#3- Iraq eyes first blue ammonia project: Iraq’s National Investment Commission (NIC) is set to issue an investment license to set up the country’s first blue ammonia production plant in Basra, NIC’s spokesperson Hanan Jassim told INA. The blue ammonia will be earmarked for use in renewable energy production as well as feedstock for the iron, fertilizers, and cement industries, Jassim added. The move comes after the NIC secured the oil ministry’s approval to supply the gas needed for the production, she said.

REFRESHER- Blue ammonia is produced using a low-carbon process involving the capture of carbon dioxide to produce hydrogen which is then combined with nitrogen. Because the process is coupled with carbon capture, the blue ammonia production process can reportedly cut emissions by over 90%.

#4- Morocco defends move to import waste from Europe amid backlash: Morocco’s Energy Transition and Sustainable Development Ministry said that imports of non-hazardous waste from Europe were regulated by the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal, Map reports. The clarification comes days after a decision by the ministry to authorize the import of over 2 mn tons of rubber tyres and household waste from European countries for use as an energy source faced strong opposition.

The gov’t is standing its ground: Morocco focuses on importing waste from European nations known for their high standards in waste sorting and treatment, ensuring minimal environmental and public health impact, Hespress reports, citing statements from the ministry. The licensing process is stringent, requiring detailed documentation and approval from relevant ministries to confirm the necessity and economic viability of the imported waste for national industries. It has issued 416 licenses for companies to import non-hazardous waste for energy or industrial use since 2016.

#5- Finland’s Wartsila throws Kuwait a lifeline: Finnish marine and energy equipment maker Wartsila has reportedly submitted a proposal to construct a 1.5 GW power generation station in Kuwait amid the Gulf country’s energy crunch, Arab Times reported, citing sources it says has knowledge of the matter. The KWD 425 mn project, set to be completed within 18 months, would be fully financed by the Finnish company and be built under the Independent Power Producer (IPP) model.

A green angle: The project promises to reduce fuel consumption, lower carbon emissions, and provide electricity at a competitive rate of around 11 fils per kilowatt, sources told Arab Times. The project design would offer the flexibility to integrate solar energy and be compatible with the use of green hydrogen in the future.

REMEMBER- Kuwait has been facing a crisis since June: Kuwait’s energy crisis began in June after a 300 MW steam turbine at the 6 GW Az Zour South power complex went offline as peak load reached 16.81 GW, up 1 GW above June’s record last year. Extreme temperatures of over 50°C worsened the crisis and caused Kuwait to roll-out daily power cuts nationwide.

#6- Abu Dhabi to start unrolling first electric buses next month: Abu Dhabi will begin deploying electric and hydrogen-powered buses for public transport for the first time in September, Head of Sustainable Mobility at the emirate’s Integrated Transport Centre Anan Alamri said at a Khaleej Times forum. The size of the fleet and transport routes were not disclosed. The zero-emission buses are a part of Abu Dhabi’s target to convert 20% of public transportation to emission-free by 2030 and reach 100% by 2050.

HAPPENING TODAY-

UK-Egypt trade and investment in the spotlight: Our friends at HSBC, together with the Egyptian-British Chamber of Commerce (EBCC) and UK Export Finance (UKEF), will host a webinar this week to discuss how to support infrastructure reforms, potential partnerships in Egypt, and ways to support and connect companies around the world. The webinar takes place next Thursday (29 August) from 12-1pm CLT / 1-2pm UAE.

Want to attend? You can sign up here.

The webinar is a scene-setter for the Egypt-UK Investment and Opportunities Forum in London on Monday, 16 September.

Infrastructure is a key part of the forum. The gathering — which follows on from a June infrastructure mission — will focus on promoting trade and investment in infrastructure, with an emphasis on green hydrogen and renewables as well as sectors including the auto industry, food processing, and tech.

Networking: The forum will include both open panels and pre-arranged business-to-business networking. It will also give attendees the chance to meet with government officials and industry leaders. GAFI will be on hand to deliver an economic update.

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CIRCLE YOUR CALENDAR-

The UAE will host the World Utilities Congress from Monday, 16 September to Wednesday, 18 September in Abu Dhabi. The event will gather global energy leaders, policymakers, and other industry professionals from the power and water utilities value chain to discuss industry trends and challenges.

Saudi Arabia will host the EV Auto Show from Tuesday, 17 September to Thursday, 19 September in Riyadh. The show offers a platform for participants to learn about the latest EV technologies and services.

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