EBRD greenlights USD 275 mn loan for Acwa + HAU mega wind farm

WHAT WE’RE TRACKING TODAY

TODAY: Fresh financing for Acwa and HAU mega wind farm + Saudi may get a new e-SAF plant

Good morning, folks. It’s a big day for new projects and fresh financing, with a pile of updates flowing in from Egypt, KSA and Morocco. Let’s kick the updates off with new projects on the horizon for UAE’s Amea Power…

WATCH THIS SPACE-

#1- Amea Power is mulling venturing into desalination and green hydrogen projects in Morocco, lining up plans to invest at least USD 100 mn in a desalination project through Spain’s Cox, a water and energy solutions firm in which the Emirati company acquired a stake during its recent IPO, Amea Chairman Hussain Al Nowais told Asharq Business (watch, runtime: 2:30). The company is also in the early stages of exploring a green hydrogen production project with a potential capacity of up to 1 GW in southern Morocco.

The move expands the company’s current portfolio in Morocco, which includes four renewable energy projects with a total capacity of more than 200 MW.

#2- A fresh green hydrogen project for Egypt? Egypt’s Suez Canal Economic Zone (SCZone) is in the process of inking a framework agreement for a USD 7.5 bn green hydrogen project, SCZone head Walid Gamal El Din said during a meeting with Egyptian Prime Minister Moustafa Madbouly. The project will have a production capacity of 1.3 mn tons annually. The agreement will follow the signing of 12 other framework agreements for green hydrogen production.

ON A RELATED NOTE- Egypt launched its first platform for green hydrogen exchange connecting public and private stakeholders from the industry, according to a statement. The platform — to be functional for at least the next two years — was conceived in a workshop coordinated by the Egyptian-German Green Hydrogen Partnership and the Ministries of Energy and Petroleum, with the German Agency for International Cooperation as a sponsor.

#3- Maaden + Alba extends non-binding investment agreement to 2025: Saudi mining company Ma’aden has extended its non-binding agreement with Aluminium Bahrain (Alba) exploring Maaden’s potential investment in the company, according to a Tadawul disclosure. The agreement — originally set to expire on 31 December — was extended until 30 April 2025.

REFRESHER- The companies have been exploring a merger: Maaden and Alba’s non-binding Heads of Terms agreement was signed in September and it is exploring an arrangement in which Maaden would swap its full share capital of subsidiaries Maaden Aluminum and Maaden Bauxite and Alumina for new shares in Alba. The agreement is also exploring a cross-listing of Alba’s shares on Tadawul.

#4- The EU’s green bonds rules are live: The European Green Bond Standard (EUGBS) entered into effect over the weekend, Bloomberg reports. The new voluntary rules — formally approved in November 2023 — outline strict criteria for issuances to be classified as “European green bonds” in an attempt to address greenwashing in the market.

have limited the pool of eligible borrowers.

What are the criteria? The new criteria necessitate that at least 85% of a bond’s proceeds are aligned with the EU’s green taxonomy, a separate set of sustainability rules. All qualified projects must also stick with a “do no significant harm” condition and be certified by an EU green bond reviewer delegated by the European Securities and Markets Authority.

The impact: The strict nature of the rules may deter issuers from taking up the European standards, and many will opt to adopt the more lenient International Capital Market Association’s Green Bond Principles, bankers told Bloomberg. However, issuers with obvious green assets like renewable projects. Those targeting investors with green mandates may also opt-in, given the projected lower borrowing costs associated with the EU standards. “EU sovereigns, supranationals and agencies, together with pure-play green companies” are expected to be the first movers, Bloomberg said, citing an analysis by law firm A&O Shearman.

#5- BloombergNEF triples its 2050 forecast for green hydrogen prices: Despite politicians and business leaders placing their bets on green hydrogen, the energy source will remain much more expensive than expected for decades, Bloomberg reports, citing a new analysis by its research arm. While the sector is slowing demand due to regulatory uncertainty and infrastructure challenges, the higher-than-expected costs of electrolyzer technology are cited as the main reason for the projection.

The catch: Costs will still go down, but much less than previously predicted. At the current projection, the price of green hydrogen will decrease from today’s range of USD 3.74 to USD 11.7 per kg to a range of USD 1.6 to USD 5.1 in 2050. The hike will impact hard-to-abate sectors the most, whose decarbonization plans are largely dependent on green hydrogen.

Some regions will be exempt: China and India will likely see more cost-competitive green hydrogen prices, with a predicted average rate of USD 1.6 per kg. This rate will be similar to the prices of the fossil-dependent gray hydrogen, which currently sells at a range of USD 1.1 to USD 2.4.

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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.

EBRD greenlights USD 275 mn loan for Gulf of Suez mega wind farm

EBRD approves financing for Gulf of Suez mega wind farm: The European Bank for Reconstruction and Development (EBRD) approved a USD 275 mn syndicated loan to Saudi renewables giant Acwa Power and Hassan Allam Utilities’ 1.1 GW wind farm in the Gulf of Suez — the largest wind project in both Africa and the Middle East, according to statements here and here.

We knew this was coming: We first heard about the loan back in November, when the two companies were said to be in talks with the EBRD over the funding.

Everyone is pitching in: The EBRD is contributing USD 200 mn and the remaining USD 75 mn will be coming from Arab Bank (USD 60 mn) and Standard Chartered (USD 15 mn). The USD 1.1 bn project is also backed by a USD 170 mn loan from the African Development Bank, a USD 40 mn loan from the OPEC Fund for International Development, the British International Investment, Deutsche Investitions und Entwicklungsgesellschaft, and the Arab Petroleum Investments Corporation.

Is financing on track? The two companies are reportedly set to secure close to USD 900 mn in financing by the end of the year for their 1.1 GW wind farm in the Gulf of Suez, a source with knowledge of the matter told EnterpriseAM in September.

IN OTHER EBRD NEWS-

Turkey’s Kavram Enerji gets USD 42 mn loan for solar production: Turkey’s Kavram Enerji — a subsidiary of Fiba Renewables — has secured a USD 42 mn (EUR 39.7 mn) loan from the European Bank for Reconstruction and Development (EBRD), according to a press release. The money will go towards building solar power plants in Isparta and Balikesir.

About the plants: A 55 MW hybrid solar power plant will be built in Isparta, and another 20 MW plant will be built in Balikesir. Together, the plants will reduce emissions by 37k tons annually.

EBRD 💚 Fiba: The loan is part of a first round of investments in a partnership between EBRD and Fiba focusing on scalable hybrid solutions in Turkey. The bank hopes that the partnership will work as a “catalyst” for the large-scale expansion of hybrid renewables projects, which combine two or more renewable sources, usually with the support of a battery storage system and a shared connection point, to increase efficiency and reliability.

Turkey, too: EBRD is a major supporter of Turkish leasing and lending companies, providing multiple facilities to support on-lending for green projects. In the last few months, it announced three loans totaling EUR 100 mn from its Green Economy Financing Facility II (GEEF II) to finance on-lending for green projects. It also extended a EUR 55 mn loan to Turkish renewable energy firm Borusan EnBW Enerji in September to build a 116 MW onshore wind energy project in Sivas and Tekirdağ. EBRD’s total investments in the country since 2009 have hit the EUR 20 bn mark.

Saudi and Oman to build SAF plants

Norwegian sustainable aviation fuels (SAF) producer Nordic Electrofuel has received Saudi government approvals to develop an e-SAF plant in Jubail, Chief Executive Gunnar Holen told Argus Media. Land and solar energy assets have been set aside by the Kingdom for the project, Holen added.

The details: The company plans to use energy from solar assets and green hydrogen to annually produce around 350 mn litres of e-SAF, with a 2029 launch date if the project is fast-tracked. Solar energy will come from existing assets in the region, while the company plans to produce its own green hydrogen in the Kingdom.

SOUND SMART- SAF is an alternative fuel made from non-petroleum feedstocks — raw materials or biomass other than traditional crude oil like cooking oil and waste, which are chemically and physically identical to conventional jet fuel. Since it is a drop-in fuel — meaning it can be used in the existing fuel systems — SAF bypasses concerns of incompatibility with existing fuelling infrastructure and can be blended at levels between 10-15%.

The company has regional ambitions: Another e-SAF plant in Oman is also in the works for Nordic Electrofuel, with plans to use green hydrogen purchased from Oman’s planned mega production projects. The company — which is set to benefit from the region’s cost-competitive renewable energy — also plans to use its initial production to supply regional airlines to avoid the EU’s criteria on renewable fuel of non-biological origins.

REMEMBER- Oman has its sights on e-fuel production: In June, Omani OQ Group’s green unit OQ Alternative Energy signed two agreements to explore developing e-fuels in Oman. One agreement signed with Belgium’s Tree Energy Solutions (TES) will see the pair assess the viability of electric Natural Gas (e-NG) production, and the other was signed with Dutco, Sumitomo, Automobili Lamborghini, and Airbus for a joint feasibility study to evaluate the production of e-Gasoline and e-SAF.

KSA as well: Saudi oil giant Aramco is investing “ hundreds of mns of USD ” in multiple SAF demonstration projects in the Kingdom and abroad, including one that was inaugurated in UK’s Oxford Airport in August and another two that are planned for launch in Neom in 2025. Another e-fuels demonstration plant with Spain’s Respol was said to be in the works to produce 8k liters per day in Spain.

Trinasolar to supply BESS solutions for Amea’s Adydos solar plant

Amea partners with Trinasolar partners on Egypt’s Abydos: Amea Power has partnered with the global solar and battery storage producer Trinasolar to supply 300 MWh of battery energy storage system (BESS) solutions for the Adydos 1 project, according to a press release. The BESS capacity will be integrated into the existing 500 MW Abydos Solar PV power plant that was inaugurated earlier this month in Kom Ombo, Aswan.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

The tech: Trinasolar will provide its Elementa 2 Elevate BESS utility-scale modules, with a 5MWh capacity each. The tech offers a “Cell-to-AC” solution to enhance grid stability with several efficiency and safety features.

About Abydos: In September, Amea Power secured agreements to develop the next phase of the project, Abydos 2, which will add an additional 1 GW of power capacity and 600 MWh of BESS capacity. After the additions, the project is set to be the largest in Africa, offsetting 782.3k tons of CO2 emissions and powering about 300k households. Last week, Egypt’s Cabinet granted phase 2 of the project the country’s golden license to streamline its development.

Amea has another major Egypt development in the pipeline: The firm is working to set up a USD 600 mn, 5 GW wind power project in the Gulf of Suez in cooperation with the Egyptian Electricity Transmission Company and the New and Renewable Energy Authority.

Green finance, manufacturing, and energy efficiency updates from Qatar, UAE, and Saudi

GREEN FINANCE-

Al Rayan Bank and HSBC partner on ESG-linked Islamic repo: Qatari Islamic bank Al Rayan Bank (Masraf Al Rayan) and HSBC have completed what the pair described as the “first Islamic ESG KPI-linked” repurchase agreement (repo), according to a disclosure (pdf). The exact size of the repo wasn’t disclosed.

What we know: The deal will support the Sustainable Performance Targets (SPTs) that Al Rayan Bank must meet over the next three years as part of its Sustainable Finance Framework (pdf), which was launched in 2022 to support Qatar’s net zero goals and the Qatar National Vision 2030. The bank currently offers a range of Environmental, Social, and Governance (ESG) products, such as EV financing and green deposits.

GREEN MANUFACTURING-

Drydocks opens advanced infrastructure-making facility: Offshore construction services company Drydocks World has opened its South Yard manufacturing expansion, Wam reported on Monday. The new 75k sqm facility — powered entirely by solar energy — will allow the company to expand its fabrication capacity by 40%. Designed to support Drydocks in expanding its renewable energy infrastructure manufacturing capacity, particularly for offshore wind developments, the expansion will also allow the company to handle multiple complex, large-scale fabrications simultaneously.

ENERGY EFFICIENCY-

Bahrain’s tech firm Beyon extends sustainability partnership with Ericsson: Swedish telecommunications company Ericsson and Bahraini technology group Beyon have renewed their sustainability partnership to boost circular economy practices and energy efficiency in Bahrain’s telecom networks, according to a press release. The partnership — launched in early 2024 — has helped the Beyon-owned telecom company Batelco cut its energy consumption by 30% using Ericsson’s 5G technology and energy-saving software, Zawya reported. The pair also launched an e-waste recycling initiative to support circular economy practices.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

UAE joins ATS: The UAE has acceded to the Antarctic Treaty System, allowing it more involvement in polar research through its Emirates Polar Programme, including on polar marine conservation. The ascension will allow the country to attend the Antarctic Treaty Consultative Meeting, participate in research, and establish a physical presence in the polar region. (Wam)

US oilfield cuts methane emissions by 26% in 2023

US’ largest oil field cuts methane emissions: Methane emissions from the Permian Basin, America’s largest oilfield, dropped by 26% in 2023, according to S&P Global’s report (pdf). This reduction came as companies step up efforts to find and fix leaks following recent regulations from the Biden administration targeting methane, the Financial Times reported.

Methane drop signals progress: In 2023, producers in the basin released 96 bn cubic feet of methane, down from 131 bn cubic feet in 2022. The efforts to cut emissions are seen as effective, driven by both regulatory pressure and industry incentives to make profit from captured methane by selling it instead of letting it escape into the atmosphere.

Challenges ahead, but methane progress likely to continue: While the progress is significant, there are concerns about setbacks under Trump. However, companies are still expected to continue with the efforts due to external pressurers, such as new EU rules on methane emissions, and shareholder commitments, S&P analyst Kevin Birn told Financial Times.

IN OTHER NEWS ACROSS THE POND- US Republicans are after yet another climate investment group: The US’ Republican-led Judiciary Committee is investigating around 60 US asset managers — including BlackRock, State Street, and JP Morgan Asset Management — for their involvement with the global Net Zero Asset Managers (NZAM) initiative, Reuters reports. In a letter sent to NZAM members, the committee asked the companies to disclose more information on their activities in the climate coalition, citing possible violations of antitrust law. NZAM has over 325 signatories and manages USD 57.5 tn.

REMEMBER- An anti-ESG movement is growing in the US: US corporations are facing mounting scrutiny from US Republicans who have harshly criticized companies they perceive as climate-friendly, accusing them of “colluding” with climate advocacy groups and forming a “ climate cartel.” This week, Wells Fargo withdrew from the Net-Zero Banking Alliance (NZBA) without giving reasons for the exit, just weeks after Goldman Sachs removed itself from the alliance. Last month, asset management giants BlackRock, Vanguard, and State Street were hit by an antitrust lawsuit filed by Texas and 10 other Republican-led states over their climate-related practices. You can read more about the impact in our deep dive into ESG divestment.

Rwanda cracks down on motorbikes: Rwanda is planning to phase out the registration of gas-powered motorbikes — about 55% of the country’s vehicles — through new rules set to start on 1 January, Bloomberg reported. The policy won’t apply to existing bikes, but the government hopes to encourage the switch to e-bikes through its 2021 policy incentives — including consumer tax breaks and VAT cancelation for EVs and their spare parts — lowering the cost of purchasing EVs.

E-bikes are booming: With a big motorbike market of more than 100k gas-powered bikes, e-bike companies like Ampersand and Spiro are expanding their e-fleets to meet the demand as more consumers shift to EVs. Spiro is planning to raise up to USD 100 mn investments over the next few months to grow its fleet from 1.3k bikes to 20k by 2025, its CEO Kaushik Burman told Bloomberg. Ampersand, with a fleet of 4k e-bikes, has raised USD 21.5 mn since 2023, and is preparing for another funding round to support its expansion.

Big Tech places bets on geothermal energy to feed AI data centers

Big Tech turns to geothermal for AI energy needs: Geothermal energy startups are gaining traction among Big Tech companies like Meta and Google, eager to power their energy-hungry AI data centers, Reuters reported last week. While the size of investments in the sector remains lower than needed — a USD 700 mn in financing since 2022, more than 60 startups have come to life in this time, the executive director of the industry association Geothermal Rising told Reuters.

The benefits: Unlike wind and solar energy’s intermittent nature, geothermal provides consistent, reliable, carbon-free electricity. It also can scale faster than nuclear energy, given its dependence on the mature tech of oil and gas drilling.

The challenges: High upfront costs and slow approval processes are two major obstacles facing geothermal’s uptake. Most of the movers are also small or medium-sized companies, with energy majors adopting more of a “wait-and-watch” approach while doubling down on natural gas, CEO of Sage Geosystems Cindy Taff told Reuters.

Calendar

DECEMBER 2024

22-24 December (Sunday-Tuesday): Renewable & Sustainable Energies And Green Processes Conference, Sousse, Tunisia.

JANUARY 2025

12-15 January (Sunday-Wednesday): World Renewable Energy Congress, Manama, Bahrain.

14-16 January (Tuesday-Thursday): World Energy Summit, Abu Dhabi, UAE.

14-16 January (Wednesday-Thursday): Future Minerals Forum, Riyadh, Saudi Arabia.

18-19 January (Saturday-Sunday): Libya Energy & Economic Summit, Tripoli, Libya.

28-29 January (Tuesday-Wednesday): Sustainability Forum Middle East, Manama, Bahrain.

FEBRUARY

17-19 February (Monday-Wednesday): Egypt Energy Show, Cairo, Egypt.

23-25 February (Sunday- Tuesday): Global Water Energy and Climate Change Congress, Manama, Bahrain.

24-26 February (Monday-Wednesday): Connecting Hydrogen MENA, Dubai, UAE.

24-27 February (Monday-Thursday): Oman Climate Week, Muscat, Oman.

APRIL

7-9 April (Monday-Wednesday): Middle East Energy, Dubai, UAE.

10-12 April (Thursday-Saturday): SolarEX Istanbul, Istanbul, Turkey.

14-15 April (Monday-Tuesday): Istanbul Carbon Summit, Istanbul, Turkey.

15-17 April (Tuesday-Thursday): International Conference on Functional Materials and Renewable Energies (COFMER), Tangier, Morocco.

21-23 April (Monday-Wednesday): Electric Vehicle Innovation Summit (EVIS), Abu Dhabi, UAE.

MAY

7-9 May (Wednesday-Friday): International Renewable Energy Conference (IRENEC), Istanbul, Turkey.

JUNE

17-20 June (Tuesday-Friday): Mediterranean Water, Irrigation and Photovoltaic Exhibition, Tunisia.

OCTOBER

20-21 October (Monday-Tuesday): Sustainable Buildings and RetrofitTech Saudi Summit, Riyadh, KSA

NOVEMBER

25-26 November (Tuesday-Wednesday): Sustainable Buildings and RetrofitTech Bahrain Summit, Manama, Bahrain.

EVENTS WITH NO SET DATE

2024

End-2024: Emirati Masdar’s 500 MW wind farm in Uzbekistan to begin commercial operations.

QatarEnergy’s industrial cities solar power project will start electricity production.

November: Arab Forum for Renewable Energy and Energy Efficiency, Amman, Jordan.

2025

International Union for Conservation of Nature World Conservation Congress, Abu Dhabi, UAE.

UAE to have over 1k EV charging stations installed.

Middle East Electric Vehicle Show, Sharjah, UAE.

2026

26-29 October (Monday-Thursday): World Energy Congress, Riyadh, Saudi Arabia.

UITP Global Public Transport Summit, Dubai, UAE.

Annual Meetings of the World Bank and the International Monetary Fund, Bangkok, Thailand.

1Q 2026: QatarEnergy’s USD 1 bn blue ammonia plant to be completed.

End-2026: HSBC Bahrain to eliminate single-use PVC plastic cards.

2027

MENA’s district cooling market is expected to reach USD 15 bn.

World Water Forum, Riyadh, Saudi Arabia.

2030

UAE’s Abu Dhabi Commercial Bank (ADCB) wants to provide AED 35 bn in green financing.

UAE targets 14 GW in clean energy capacity.

Tunisia targets 30% of renewables in its energy mix.

Qatar wants to generate USD 17 bn from its circular economy, creating 9k-19k jobs.

Morocco’s Xlinks solar and wind energy project to generate 10.5 GW of energy.

2035

Qatar to capture up to 11 mn tons of CO2 annually.

2045

Qatar’s Public Works Authority’s (Ashghal) USD 1.5 bn sewage treatment facility to reach 600k cm/d capacity.

2050

Tunisia’s carbon neutrality target.

2060

Nigeria aims to achieve its net-zero emissions target.

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