Latest News

• 
  Decarbonising steel is hard to resist

  Administrator

  29 October 2024

  Commentary
  Jennifer Aguinaldo
  Energy & technology editor

  A pilot green hydrogen plant supplying a small amount of colourless gas that will be used to extract iron from iron ore – a key steelmaking step – is not a big deal, especially given the multibillion-dollar industrial and petrochemicals investments that this region has grown accustomed to over the past decades.  

  The project can be seen as a just one element of Abu Dhabi's multi-pronged strategy to decarbonise large swathes of its economy, given that the client for this project, the newly rebranded Emsteel, holds a 60% share in the local steel industry and exports products to about 70 countries.    

  The global steel industry accounts for about 7% of annual greenhouse gas (GHG) emissions.

  On one hand, it will take a lot more than a few electrolysers to produce hydrogen that will be used to further decarbonise Emsteel's production and operations; on the other, a small first step is required to make a future big leap given the enormity and urgency of the challenge, and the vast investment it requires.

  Specific details are sparse regarding the pilot plant and the future timeline to scale hydrogen production at Emsteel's manufacturing complex in Abu Dhabi.

  However, as the executives of Emsteel and its hydrogen partner, Abu Dhabi Future Energy Company (Masdar), have said, the completion of the pilot project is a vital first step towards producing certifiable green steel, which is expected to enjoy brisk demand as pressures to decarbonise sectors such as construction increase across the globe.

  As it is, Emsteel's credentials include being the world's first steelmaker to capture part of its carbon dioxide emissions, thanks to Abu Dhabi National Oil Company's (Adnoc) Al-Reyadah carbon capture, utilisation and storage facility. This has enabled the company to operate with "45% less carbon intensity than the global average". Its utilisation of clean energy also rose above 80% last year.

  Today, from the vantage point of the stakeholders, the specific details of the pilot project matter less than what it signifies, which is that Abu Dhabi intends to become a major green steel producer, and that it can transform a hard-to-abate sector into a hard to resist one.

  

   

  https://image.digitalinsightresearch.in/uploads/NewsArticle/12812275/main.jpg

  Jennifer Aguinaldo
• 
  Neom to tender hydropower contract

  Administrator

  29 October 2024

  

   

  Neom's utility subsidiary Enowa is expected to issue the request for proposals (RFP) for a contract to develop and operate the first phase of a pumped hydropower storage (PHS) network catering to Saudi Arabia's Neom gigaproject before the end of the year.

  The planned first phase of Neom’s PHS project, known as Nestor, will have an installed capacity of 2,200MW and a storage capacity of 23.1 gigawatt-hours, or about 11 hours, according to industry sources.

  Enowa received statements of qualifications from international and local developers and investors on 30 June.

  However, it has yet to release the prequalification evaluation results. 

  "As far as we know, the RFP is set to be issued some time in December this year," a source familiar with the project tells MEED. 

  The Nestor project will be developed using a build-own-operate-transfer model that is expected to cover 40 years, excluding the construction period.

  The expected capital expenditure for the project is $2.7bn.

  Enowa received expressions of interest in bidding for the project from developers and contractors in January this year.

  PHS network

  The overall infrastructure will involve developing four PHS stations in Neom. The planned schemes will form the backbone of an energy storage infrastructure at the SR1.5tn ($500bn) development. 

  The other three planned PHS projects will be located in Al-Qimmah, Nima and Beach Mountain, and will have capacities of about 3,000MW, 1,000MW and 3,000MW, respectively.

  UK-based HSBC and US-based White & Case are advising the client on the scheme.

  The PHS independent power project will complement Neom’s planned multi-gigawatt renewable energy infrastructure, in line with its vision of being 100% powered by renewable energy by 2030.

  A PHS facility typically comprises two water reservoirs at different elevations that can generate power when water passes through a turbine and moves down or is discharged from the upper reservoir to the lower reservoir.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/12812234/main.jpg

  Jennifer Aguinaldo
• 
  TotalEnergies signs $11bn Morocco green hydrogen deal

  Administrator

  29 October 2024

  France's TotalEnergies has signed an agreement to develop an $11bn project to produce hydrogen and green ammonia in Morocco.

  It was previously reported that the planned integrated facility will be located in Guelmim-Oued Noun in southern Morocco.

  The deal is one of 22 that were signed during French President Emmanuel Macron's visit to the North African state on 28 October.

  TotalEnergies' chairman and CEO, Patrick Pouyanne, signed the agreement for the local production of green hydrogen and ammonia in the presence of Morocco's King Mohammed VI and Macron, according to local media reports.

  The counterparty includes Morocco's Energy Minister, Leila Benali; Economy & Finance Minister, Nadia Fattah; Interior Minister, Abdelouafi Laftit; and Minister Delegate in charge of Investment, Karim Zidane.

  It is understood that the project will require the development of 10GW of solar and wind energy and a land area of 187,000 hectares.

  It was reported that Morocco's Unified Regional Investment Commission had approved the project’s launch in November 2022.

  The other agreements signed during Macron's visit to Morocco cover financial cooperation in the rail, forestry, aviation, logistics and energy sectors, with a particular focus on decarbonisaton and energy transition.

  TotalEnergies has been exploring green hydrogen and other related projects in the Middle East and North Africa region.

  In August, the Courbevoie-headquartered firm and Abu Dhabi Future Energy Company (Masdar) signed an agreement to assess the viability of developing a commercial green hydrogen to methanol to sustainable aviation fuel (saf) project.

  It is also among the early investors in UK-based Xlinks First, which aims to deliver the $18bn Morocco-UK power interconnector project. TotalEnergies acquired a minority stake in the company following an investment of $25.4m, which was announced in November last year.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/12811486/main.gif

  Jennifer Aguinaldo
• 
  Tadweer and Japanese firms to build recycling plant

  Administrator

  29 October 2024

  

   

  Abu Dhabi-headquartered Tadweer Group is partnering with Japanese chemicals companies to build a plastic chemicals recycling facility in Abu Dhabi.

  The investment is expected to reach ¥40bn ($261.5m), with the facility set to be operational by 2026 or 2027.

  The new facility will be capable of recycling a range of plastics, including materials used in polyethylene terephthalate (PET) bottles and packaging containers, said Tadweer.

  It will also introduce advanced technology that can revert plastic waste to raw materials.

  Ali Al-Dhaheri, Tadweer Group managing director and CEO, said: "We are considering two or three Japanese companies with the necessary technological capabilities and hope to select a partner or partners for collaboration within the next three to six months."
   
  Al-Dhaheri added that the final investment will depend on the facility's processing capacity and will likely range from $100m to $300m.

  He also mentioned the possibility of a joint investment with Japanese companies, stating: “While we are reviewing technologies from other countries, it is Japan that best meets our requirements.”

  Japan is recognised for its high PET bottle recycling rate and has made significant strides in the recycling of other plastics.

  Tadweer added that it has existing partnerships with Marubeni Corporation and other Japanese companies, mainly in the power generation sector, and now plans to expand its collaboration with Japanese firms that possess advanced technology and expertise.

  Related read: Dhafra waste-to-energy work to start

  Photo credit: Pixabay

  https://image.digitalinsightresearch.in/uploads/NewsArticle/12811435/main.jpg

  Jennifer Aguinaldo
• 
  QatarEnergy to acquire 50% in Iraq 1GW solar project

  Administrator

  29 October 2024

  QatarEnergy has signed an agreement with France's TotalEnergies to acquire a 50% interest in the 1,000MW solar photovoltaic (PV) project as part of the $27bn Gas Growth Integrated Project (GGIP) in Iraq.

  TotalEnergies will retain the remaining 50% of the project. The shared ownership is subject to regulatory approvals. 

  Located in Artawi – also known as Ratawi – in southern Iraq, the solar PV project is expected to start construction soon, MEED reported on 25 October.

  In a statement, QatarEnergy said: "The project will consist of 2 million high-efficiency bifacial solar panels mounted on single-axis trackers and will, upon its completion, be capable of supplying up to 1.25 gigawatts (peak) of solar-generated power to the electricity grid in the Basra region of Iraq.

  "The project will be developed in phases that will come online between 2025 and 2027 and will have the capacity to provide electricity to about 350,000 homes in the Basra region."

  TotalEnergies Renewables awarded China Energy Engineering International Group the engineering, procurement and construction contract for the project in August.

  China Energy Engineering Tianjin Electric Power Construction, International Group and Southwest Institute will deliver the project.

  It was reported at the time that construction work is expected to start later this year, and completion is expected in early 2027.

  The project includes the design, procurement, construction and commissioning of the PV power station site and 132-kilovolt booster station, with a capacity of 1,000MW.

  In addition to the solar PV independent power project (IPP), the three main projects that make up the $27bn GGIP are:

  • A treatment facility for associated natural gas from five southern oil fields – West Qurna 2, Majnoon, Artawi, Tuba and Luhais
  • The $4bn common seawater supply project 
  • Development of the Artawi gas field 

  QatarEnergy announced in June 2023 that it had entered into a consortium to implement the GGIP in Iraq, with a 25% participating interest, together with TotalEnergies (45%) and Iraq’s Basra Oil Company (30%).

  https://image.digitalinsightresearch.in/uploads/NewsArticle/12811027/main.jpg

  Jennifer Aguinaldo
• 
  Kuwait tenders main Saad Al-Abdullah substation contract

  Administrator

  28 October 2024

  Kuwait's Public Authority for Housing Welfare (PAHW) has tendered a contract to construct a main substation project at South Saad Al-Abdullah Residential City.

  The selected bidder will supply, install, implement and maintain the planned 11/132/400-kilovolt (kV) substation 

  The PAHW expects to receive bids for the contract, for which it set a bid bond of KD500,000 ($1.6m), on 28 October.

  Located in Kuwait's Al-Jahra Governorate, the South Saad Al-Abdullah housing project covers an area of 64 square kilometres and consists of five residential areas with 24,508 housing units.

  The PAHW recently awarded two substation contracts for another city, which is being developed in Al-Jahra.

  The Kuwait branch of Saudi Arabia's National Contracting Company (NCC) won a contract to build 10 132/11-kV substations in Sabah Al-Ahmad City, MEED reported earlier this month.

  The substations will cater to neighbourhoods N5, N6, N8 and N10 in South Sabah Al-Ahmed City. The 24-month contract is valued at SR534m ($142m).

  Al-Ahleia Switchboard Company won the other tender for the supply, installation, implementation and maintenance of 10 11/132kV main transformer stations in Sabah Al-Ahmed's N5, N7 and N9 neighbourhoods.

  Located 80 kilometres south of Kuwait City, the South Sabah Al-Ahmad residential development will be home to an estimated 280,000 people when complete.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/12804333/main2244.gif

  Jennifer Aguinaldo
• 
  Emsteel and Masdar inaugurate pilot hydrogen plant

  Administrator

  28 October 2024

  Register for MEED's 14-day trial access 

  Emsteel and Abu Dhabi Future Energy Company (Masdar) have inaugurated a pilot green hydrogen plant at Emsteel's manufacturing complex in Mussafah, Abu Dhabi.

  The pilot project's electrolyser capacity and equipment supplier have not yet been disclosed.

  MEED understands the plant utilises solar power from the grid to produce hydrogen on site.  

  The project sets the stage for Emsteel to use green or renewable hydrogen, instead of natural gas, to extract iron from iron ore.

  Emsteel Group CEO, Saeed Ghumran Al-Remeithi, said the partnership with Masdar is part of a commitment to "accelerate decarbonising green steel production in the UAE and the wider Middle East and North Africa (Mena) region".

  During the launch event for the plant, Al-Remeithi said the project marks a significant step towards making the UAE "a world green hydrogen leader" and Emsteel "a hub for green steel".

  In a press briefing on 28 October, Saeed Al-Ghafri, CEO of Emirates Steel, said the plan is to scale up the pilot green hydrogen facility to enable it to meet demand for green steel both locally and from abroad.

  "We are decarbonising across verticals through carbon capture and green hydrogen … to serve the UAE market and eventually to go global," he said.

  Al-Ghafri declined to confirm whether the plan entails developing a major integrated facility with Masdar in one of two planned green hydrogen oases in Abu Dhabi, or offtaking the hydrogen produced at one of the future facilities planned in the emirate.

  Previously known as Emirates Steel Arkan, the steel and cement producer rebranded as Emsteel in September as part of a broader strategy to accelerate operational transformation and expand its global footprint.

  Headquartered in Abu Dhabi, Emsteel operates 16 plants with an annual production capacity of 3.5 million tonnes a year (t/y) of steel and 4.6 million t/y of cement. The company exports its products to over 70 markets, which account for 30% of its sales.

  The rebranding followed the merger of Emirates Steel and Arkan Building Materials in late 2021, establishing the UAE’s largest steel and construction materials company, valued at $3.53bn.

  Emsteel, which contributes 11% of Abu Dhabi’s manufacturing output, operates through two main divisions: Emirates Steel and Emirates Cement.

  The cement division includes Al-Ain Cement Factory, Emirates Blocks Factories, Anabeeb and Arkan Bags.

  Emsteel has a focus on low-carbon products, with the group committing to reduce carbon emissions as part of the UAE’s Net Zero by 2050 strategic initiative, with 80% of its operations powered by clean energy.

  The company is also a key player in the UAE’s industrial strategy, Operation 300bn, holding a 60% share of the UAE’s steel market.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/12803934/main.jpg

  Jennifer Aguinaldo
• 
  PPP activity eases back but remains strong

  Administrator

  25 October 2024

  

   

  ---

  This package also includes: Region remains global project finance hotspot

  ---

  Public-private partnership (PPP) activity appears to be easing back in the Middle East and North Africa (Mena) region in 2024, with the total value of contract awards in the first nine months of the year coming in at $24bn, according to regional projects tracker MEED Projects.

  This is 6.5% lower than the $25.6bn recorded in the same period a year earlier. The full-year total for 2023 then ended up at $41.3bn after a surge of activity in the final three months of the year.

  While there are plenty of contract awards pencilled in for the final quarter of this year, too – including several large power and water projects in the Levant and the Gulf – at this stage, it appears unlikely that the gap to the record 2023 total will be bridged.

  Among the projects with main contract awards due to be made before 31 December are a 10GW battery energy storage system (bess) in Saudi Arabia and the 3.7GW fifth round of the country’s renewable energy programme, both planned by Saudi Power Procurement Company.

  Other major projects at a similar stage include a 10GW solar power project planned by the Renewable Energy & Energy Efficiency Organisation in Iran; the $4.3bn Aqaba-Amman water desalination and conveyance scheme backed by Jordan’s Water & Irrigation Ministry; and the $3bn, 2.3GW Facility E independent water and power project by Qatar General Electricity & Water Corporation (Kahramaa).

  In total, 72 main contract awards are due to be made by the end of 2024 – almost as many as were handed out in the whole of 2023. However, there can be no certainty as to which ones will get over the line before the year’s end and which ones might suffer delays or cancellations.

  Even without such projects, though, the number and value of contracts finalised in the first nine months of this year means 2024 is set to be one of the most active for PPP deal-making so far this century.

  Other than last year’s record-setting run, the combined value of deals has not been this high since 2009, when a total of $29.6bn-worth of contracts were awarded. In terms of the number of awards, this year has also been among the most active. 

  The 45 contracts handed out between January and the end of September is already above the annual average of 44 contracts a year over the past decade. It puts the year firmly on track to be among the top performing years in terms of the number of PPP contracts awarded. The surge in the past three years highlights the popularity that PPP deals are enjoying among Mena governments at present.

  The average size of contract awards is also running well above the long-term figure, with the typical deal being worth $533m in 2024. This is down from the $574m figure of last year, but well ahead of any other performance in the past decade save the $556m figure in 2014.

  Iraq, Saudi Arabia and the UAE lead

  In terms of geography, the standout markets this year have been Iraq, with $11bn of PPP awards, followed by Saudi Arabia with $5.4bn and the UAE with $3bn. Between them, these three countries accounted for a total of 34 contract awards, or 75% of the figure for the whole of the Mena region in the opening nine months of the year.

  Key contracts signed in these markets have included the $8bn Al-Faw refinery and petrochemicals complex in Iraq’s southern Basra province, which is being developed by the Southern Refineries Company; and a series of contracts
  awarded by the National Investment Commission on seven lines of the $2.5bn Baghdad Metro.

  In Saudi Arabia, there have been 15 awards across the transport, power and water sectors, including the 2GW Haden solar photovoltaic (PV) power plant, the 600MW Al-Ghat independent power producer (IPP) wind project, and expansion work at Prince Mohammad Bin Abdulaziz International airport in Medina.

  In the UAE, the contract activity has been more varied, with awards in the power, water, transport, construction and industrial sectors. Among the biggest awards so far this year were a $1.5bn contract awarded by Emirates Water & Electricity Company for the 1.5GW Al-Ajban solar IPP in Abu Dhabi and a $682m contract awarded by Sharjah Electricity & Water Authority to Acwa Power for the Hamriyah seawater reverse osmosis independent water project.

  Another market with high levels of activity this year is Egypt, where there has been $3.7bn-worth of contract awards, including a $2.2bn strategic warehousing scheme. The Damietta Port Authority also signed a $665m deal to deliver a second container terminal and a $500m award for the 1GW Benban solar PV power plant and 600 megawatt-hour bess in Aswan Governorate.

  Bahrain, Oman, Qatar and Tunisia have each seen one or two awards apiece, with the individual awards being generally more modest in value.

  Sectoral and contractual shift

  On a sectoral basis, this year has seen an even broader spread of awards across different industries compared to last year.

  In 2023, the power sector accounted for 55% of the total awards by value, with the water and transport sectors accounting for a further 39% between them.

  This year, power has again been the main focus of activity, but its share of the total awards value has fallen to 30%, while the transport sector fell to 15%.

  The chemicals and oil industries then inched ahead, with 17% each, split across the planned $8bn combined value of the Al-Faw refinery and petrochemicals complex in Iraq.

  The water sector has meanwhile seen a sharp drop-off in awards, with deals in the first nine months of the year accounting for just 6.6% of the total.

  These changes have contributed to another significant shift, with the type of contracts proving most popular also undergoing a change this year.

  In 2023, most of the awards were either for build, own and operate or build-operate-transfer (BOT) contracts, which accounted for 34% and 32% of the total value of awards handed out, respectively. 

  This was followed by build and operate and build-own-operate-transfer (BOOT) awards, worth a further 14% each.

  This year, the activity has been led by BOOT contracts, which have totalled $9.2bn, or 38% of the total for the first nine months. This was driven again by the $8bn-worth of contract value accounted for by the Al-Faw Refinery in Iraq.

  Following behind are BOT contracts with a total value of $5.4bn, representing 22% of the total, most of which has
  been awarded in the power sector. Design-build-finance-operate-transfer contracts worth $5bn accounted for 21% of the total with the value split across the transport and industrial sectors.

  The picture could yet change in the final quarter of the year. In recent years, the last three months have been the busiest period for contract signings. In 2021, 38% of the year’s awards were made in Q4, with this figure increasing to 66% in 2022, before receding again to 38% in 2023 – but yet again with more than a third of all awards being made in the last quarter.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/12694682/main.gif

  Dominic Dudley