Good morning, ladies and gents. It’s a compact read this morning as we slide into the weekend, with the latest on Acwa’s renewables projects in Uzbekistan and some financing updates from our friends at Hassan Allam Utilities. First, a health check on the UK green transition…

THE BIG CLIMATE STORY OUTSIDE THE REGION- Energy firms pledge GBP 70 bn to upgrade UK power grid: Owners of the UK and Wales high voltage power system — National Grid, SSE, and ScottishPower — have pledged to spend up to GBP 77 bn from 2026 to 2031 to support the country’s energy transition. The investments will “nearly double the amount of energy that can be transported around the country [and] support the electrification of the industries,” National Grid executive John Pettigrew said.

Why it matters: The UK is currently experiencing a backlog of connection requests, especially from offshore wind which had cost the country GBP 1 bn of waste payments and raised prices on consumers. Such capacity expansion will allow households to save on energy bills by minimizing money paid to producers to turn off their projects when the power grid is overwhelmed.

The story grabbed some ink in the int’l press: Reuters | Financial Times | Wall Street Journal | The Guardian

WATCH THIS SPACE-

#1- Egypt to fast track Amea’s Benban solar plant: UAE’s Amea Power will receive a golden license from Egypt for its 1 GW solar power plant with 600 MWh battery storage system in Benban after the cabinet approved the move. The project will see investments of USD 850 mn and will be carried out across two phases, the first will start operations next August and see 300 MW of power and half the battery storage capacity come online and the second will kick off operations in April.

Remember: AMEA inked the purchase power agreement for the project with the Egyptian Electricity Transmission Company in September. The project is expected to be the continent’s largest.

Amea’s been busy: 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. Earlier this month, Amea inaugurated its 500 MW Abydos solar plant in Kom Ombo.

IN OTHER EGYPT NEWS- A financing boost for those switching to EVs: The Egyptian cabinet approved a draft law amending the Traffic Law to include expand the list of those eligible for financing under the fund granting support to those who purchase green vehicles to include those retrofitting vehicles — only those manufactured in the past 20 years — to run on clean energy as well as for purchasing eco-friendly vehicles.

#2- A Saudi research team is preparing to launch a commercial pilot project to extract lithium from brine samples in Aramco oilfields, KSA’s vice mining minister Khalid al-Mudaifer told Reuters. The project is spearheaded by Lithium Infinity (Lihytech), a startup from King Abdullah University for Science and Tech (Kaust), in collaboration with Ma’aden and Aramco. The startup will deploy its own direct lithium extraction technology developed by Kaust.

Why it matters: Extracting lithium from oilfield brine remains more costly than traditional salt flat extraction methods, but KSA believes rising lithium prices could make the process commercially viable in the future. KSA and the UAE have been exploring lithium extraction from oil runoff — a strategy being mirrored by other oil giants like Exxon Mobil and Occidental Petroleum, which are investing in tech to filter lithium from brine.

#3- Sonelgaz taps GE Vernova for potential renewables collaboration: Algeria’s state-owned Sonlegaz’s CEO and President Mourad Adjal paid a visit to GE Vernova in Atlanta to discuss expanding their renewables collaboration. The two parties explored the possibility of adding a production line for transformers under their joint venture GE Algeria Turbines (GEAT) to be used for renewable energy projects at home or for exports, according to a press release (pdf).

REMEMBER- Sonelgaz placed a major order of electricity grid equipment from GE Vernova through GEAT to support the integration of renewables to Algeria’s grid. GEAT will install high voltage equipment, components, and grid automation solutions for 134 substations by 2028 at Sonelgaz’s facility in Ain Yagout. Sonelgaz and GE Vernova signed an agreement earlier this year to expand GEAT towards high and extra-high voltage substations.

#4- Ecuador has closed its second debt-for-nature swap, unlocking USD 460 mn to fund conservation efforts in its Amazon rainforest, NGO The Nature Conservancy (TNC) said. The deal will help protect 4.6 mn hectares of existing protected areas, 1.8 mn hectares of forests and wetlands, and 18k km of rivers through the Amazon Biocorridor Program.

The financials: The program is refinancing around USD 1.5 of Ecuadorian bond debt and is generating over USD 800 in net fiscal savings by 2035 via a USD 500 mn savings over 17 years and reduced debt stock of USD 527 mn. The transaction was managed by BoA Securities, ad was supported by USD 1 bn in political risk ins. from the US Development Finance Corporation and a USD 155 mn partial credit guarantee from the Inter-American Development Bank.

The breakdown of conservation payments: The program is expected to generate USD 23.5 mn annually over 17 years, with USD 19 mn directed to conservation efforts and USD 4.5 mn set aside in an endowment fund.

This is not the first debt-for-nature swap for Ecuador: The first swap — of USD 1.6 bn for conservation efforts in Galapagos islands — was under investigation in September by the Inter-American Development Bank’s oversight body after complaints from local groups over transparency.

#5- US graphite industry petition may trigger major tariffs on Chinese imports: A trade association representing the US graphite industry filed petitions with two federal agencies to investigate alleged anti-dumping violations made by Chinese graphite producers, Bloomberg reports. The group — which hopes their petition could trigger 920% tariffs on graphite imports from China — argues that subsidies in China give its producers an unfair advantage by enabling them to lower their prices artificially. A decision will not be made until well into 2025.

The consequences: The US does not produce its own synthetic graphite at present, and battery production in the US is already 20% more expensive than in China. With graphite accounting for 10% of the cost of EV making, a 900% tariff could double the prices of US-made EVs, says Guidehouse Insights analyst Sam Abuelsamid. Tesla — a major supporter of the incoming administration — would also be hit hard by the tariffs but had previously successfully lobbied for an exemption when Trump was first in office.

And it’s hard to source graphite from outside China: Tesla had claimed that only China producers can meet its required specifications. LG and SK Battery America — two South Korean battery makers with plants in the US — have also said that they are struggling with alternatives.

ICYMI- The US is taking the graphite war seriously: The US just approved a conditional loan of USD 755 mn to fund the Australian battery materials company Novonix’s graphite factory this week. The factory — set to be North America’s largest synthetic graphite facility — will be able to produce enough graphite to supply 325k EVs annually by 2028. The new loan is part of the Biden administration’s last hurrah to funnel money from the Inflation Reduction Act into ventures that aim to combat China’s dominance on critical minerals.

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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.