Good morning, folks. We have a compact read this morning with a pile of investment, M&A, and green financing updates from across the region. First, uplifting news from the European green manufacturing world…

THE BIG CLIMATE STORY OUTSIDE THE REGION- Stellantis + CATL to build a battery plant: Stellantis and China’s Contemporary Amperex Technology (CATL) will make a joint investment of up to EUR 4.1 bn (USD 4.3 bn) to establish a battery plant in Spain. The facility will manufacture lithium-iron phosphate batteries for Stellantis vehicles with a potential capacity of 50 GWh annually. Production is set to begin by the end of 2026.

Why is this important? The new facility will give a boost to Europe’s struggling EV sector which has been racing to build a domestic battery industry to bolster supply chains and break away from dependence on Chinese components. Spain is Europe’s second largest car producer after Germany and has been leading the way as a destination for investments in manufacturing and production due to lower energy costs.

The story made headlines in the international press: Reuters | AP | Bloomberg | Wall Street Journal | CNBC | Euronews | ABC

WATCH THIS SPACE-

#1- Amea Power’s Abydos plant will officially open this Saturday, with Egyptian Prime Minister Moustafa Madbouly and other officials set to head south for the ceremony, Al Mal reports, citing sources it says have knowledge of the plans. Amea reportedly brought the 500 MW plant online back in October after successfully concluding operational and national grid connection tests. Built at Aswan’s Kom Ombo desert over a 10k sq meters area — the plant is part of Egypt’s broader push to add 4.5 GW of renewable energy by summer 2025 to reduce the need for power load reductions.

REMEMBER- Amea is investing USD 800 mn to develop and expand solar and battery energy storage projects in Upper Egypt — adding a 300 MWh storage system to the Abydos solar plant and setting up a 1 GW solar facility with a 600 MWh battery storage system in Benban. The company is also working on a 500 MW wind farm in Ras Ghareb dubbed Amunet, which is scheduled to come online in 3Q 2025.

#2- Gulf countries eye Mongolian minerals exploration: Gulf nations ready to jump on the bandwagon of critical mineral exploration in Mongolia to bolster their supply chains, Mongolian Prime Minister Luvsannamsrai Oyun-Erdene told The National after a visit to the GCC last week. “We have abundant resources of minerals … Gulf countries have the know-how and the technology, especially in energy,” he added. Oyun-Erdene’s visit included talks with Masdar and Abu Dhabi’s sovereign wealth funds.

What does Mongolia have to offer? The landlocked country is a major copper exporter primarily to China and wants to expand critical mineral exploration to exploit nickel, lithium, and rare earth reserves, the news outlet writes. Mongolia is also home to what could become the world’s fourth-largest copper mine by the end of the decade, the Oyu Tolgoi mine — majority-owned by mining giant Rio Tinto.

#3- Qatar pushes for GCC cooperation on joint power plants: Qatar is urging Gulf nations to capitalize on the GCC interconnection project by developing joint power plants for enhanced energy security, according to Gulf Daily News report picked up by Zawya. A Qatari parliamentary delegation attending the Standing Committee on Economic Affairs and Sustainable Development of the Asian Parliamentary Assembly (APA) meeting in Bahrain proposed that Gulf countries could coordinate on the operation and distribution of generated electricity from the plants on a shared basis. “This would also enable a more balanced approach to managing peak demands and emergency scenarios across the Gulf region,” delegation head Saoud Al Buainain said.

Background: The USD 220 mn Gulf Electricity Interconnection Project stretches over 1km from Kuwait to Oman and plans to connect all six gulf countries. Iraq’s tie-up to the interconnection power grid is set to be operational in December and was agreed to in October 2023.

#4- EU countries to endorse geothermal energy: EU countries are set to promote geothermal energy as a key strategy to replace Russian gas and reduce energy prices next week, according to a draft EU document seen by Reuters. Member states intend to urge the European Commission to develop a bloc-wide plan to accelerate geothermal projects with financial guarantees to de-risk investments and simpler permitting rules. Despite its potential to cover three-quarters of the EU’s heating and cooling needs by 2040, geothermal energy currently produces less than 3% of the bloc’s energy due to high upfront costs and complex regulations.

Geothermal energy is picking up in our neck of the woods: UAE’s Adnoc and Tabreed began operations for the MENA region’s first geothermal cooling plant located in Abu Dhabi’s Masdar City last year. Masdar also acquired shares in the geothermal unit of Indonesia’s state-owned energy firm Pertamina Amea Power was set to sign a USD 800 mn agreement with Geothermal Development Co. of Kenya to develop the 200 MW Baka geothermal energy generation plant. UAE AI outfit G42 and Microsoft are also building a USD 1 bn geothermal-powered data center in Kenya.

#5- Sustainable aviation fuel (SAF) production is increasing at a disappointingly slow pace and only accounts for 0.3% of global jet fuel production, International Air Transport Association (IATA) head Willie Walsh said in a press release. SAF production volumes reached 1 mn tonnes in 2024, double the amount produced in 2023, but key SAF production facilities in the US delayed their production boost to 2025. IATA projects that by 2025, SAF production will reach 2.1 mn tonnes, still accounting for only 0.7% of total jet fuel production.

What needs to be done? IATA estimates that between 3k to over 6.5k new renewable fuel plants will be needed to reach net zero by 2050, requiring an annual average capital expenditure of about USD 128 bn. This amount is significantly less than the investments needed for wind and solar energy production. IATA calls for increased co-processing at existing refineries, diversification of SAF production methods, and the creation of a global SAF accounting framework to support the industry’s transition to sustainable aviation.

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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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