ITP MEDIA GROUP / BUSINESS AUGUST 2021• VOL. 15, ISSUE 08 POWERING AFRICA Exploring the underlying issues and business prospects in Africa’s power generation, transmission and distribution80 GHz level sensor with fixed cable connection (IP68) www.vega.com/vegapuls All advantages of the radar technology: 436,- € VEGAPULS C 11 RadaR ULTRaSONIC IS THE BETTER AD-Radar-besser-als-Ultraschall_PULSC11_205x275+5_EN-AE.indd 116/01/2020 11:37:03CONTENTS www.utilities-me.com August 2021 / Utilities Middle East 3 Volume 15 | Issue 08 Contents Little is as critical for economic progress as a reliable electric- ity supply. In Africa, the lack thereof has taken a heavy toll on regional integration, productivity and competitiveness. Take the impact of power outages as an example. Over the last two decades, power outages have cost 39 sub- Saharan countries the equivalent of up to 2 percentage points in annual growth of real per capita GDP. The structural woes of Africa’s cash-starved electricity sector are well and widely documented. The cumulative gen- eration capacity for 48 sub-Saharan nations is estimated at 80GW (less than 40 GW if South Africa is excluded), which is inadequate. Average electrifi cation rates in these countries are below 30% (against a world average of 82%), leaving nearly 600m people and 10m small- and medium-sized enterprises literally powerless. Unless this major shortfall is addressed, worse is almost cer- tain to come: a growing population and the gradual rise of the African middle class will require the continent to put in place a minimum of 250GW of additional generation capacity through 2030 to meet power demand. A way out of this power-failure trap is available, but huge eff orts will be needed. Africa’s renewable energy potential will be an impor- tant part of the solution. With 10% of the global economically exploitable water reserves but only 17% of its 150 GW hydro- power potential installed, the region has room for growth. Additionally, the rapid decline in the prices of solar photovol- taic (PV) is making PV projects highly cost-eff ective for off -grid energy access — notably in remote rural areas that are diffi cult or expensive to connect to the central network. This potential for distributed power in the continent hasn’t gone unnoticed and several UAE based companies are already entering the market. Utilities Middle East will host its fi rst Africa Power Summit on 31st August where high profi le speakers will provide a deeper understanding of the African power landscape and the pros- pect it presents. To be a part of the distinguished panel of speak- ers at Africa Power Summit 2021, please contact Sonali Kanwar at sonali.kanwar@itp.com (Mobile: 055 684 8664). The real deal in Africa’s power Baset Asaba, Editor Email: baset.asaba@itp.com View point POWERING AFRICA A look at Africa’s electric power landscape and the business promise it holds for external investorsCONTENTS 4 Utilities Middle East / August 2021 www.utilities-me.com Privatisation of Saudi’s Ras Al Khair desalination and power plant halted Ras Al Khair desalination and power plant is one of a number of state assets that the government aimed to sell to reduce pressure on capital spending and diversify revenues away from oil 02 Saudi Arabia seeks to boost electric grid with new funding Japan Bank for International Cooperation (JBIC) recently signed a loan agreement with Saudi Electricity Company (SEC) under its GREEN (“Global action for Reconciling Economic growth and Environmental preservation”) programme 03 World’s fi rst offshore green hydrogen plant takes shape The Netherlands Enterprise Agency (RVO) has awarded a Eur3.6 million ($4.2 million) subsidy to the PosHYdon offshore renewable hydrogen project in the Dutch North Sea, said to be the world’s fi rst offshore green hydrogen pilot on a working platform 05 29 24 05 UPDATES 07 NEWS ANALYSIS 14 INDUSTRY TRENDS 18 COVER FEATURE 24 SPECIAL REPORT 32 PRODUCTS 09 14 16 TAQA Group and Abu Dhabi Ports, announced last month that they are discussing the development of an industrial scale green hydrogen to ammonia export project in Abu Dhabi SPECIAL EDITION ALSO THIS MONTH 09 FOSSIL FUELS Despite wide adoption of renewables, the world is burning more fossil fuels than ever and that the share of fossil fuels in the total energy mix is as high as a decade ago, says REN 21 report 24 GREEN HYDROGEN FOR ENGINES Wärtsilä is pioneering a milestone testing programme for its balancing gas engines to be converted to use pure hydrogen 16 FILTERCLEAR Addition of FilterClear upstream of the reverse osmosis (RO) plant provides developers and EPC contractors with the ability to save 30-40% in CAPEX 29 CURBING PLANT EMISSIONS Demand for all fossil fuels is on course to grow signifi cantly in 2021, with both coal and gas set to rise above their 2019 levels, a situation expected to create an upturn in CO2 emissions worldwide 18 POWERING AFRICA Recent investments in Africa by UAE based renew- able energy companies rep- resent the great business potential that Africa holds within the power genera- tion space 14 HYDROPOWER The “forgotten giant” of low-carbon electricity needs a sweeping policy and investment push to put it in line with net zero goals and to support a faster expansion of solar and wind, IEA special report shows Most popular news stories on www. Utilities-me.comitiesNews TAQA Group, one of the largest listed inte- grated utilities in the region, and Abu Dhabi Ports, announced today they are discussing the development of an indus- trial scale green hydrogen to ammonia export proj- ect in Abu Dhabi. A partnership on a green hydrogen to ammonia project on this scale between TAQA and Abu Dhabi Ports, would be a signifi cant step towards placing Abu Dhabi at the heart of a new emerging global market for green energy. Under an MoU signed last month by Jasim Husain Thabet, TAQA Group’s Chief Executive Offi - cer and Managing Director and Captain Mohamed Juma Al Shamisi, Group CEO, Abu Dhabi Ports, the two companies will work together on develop- ing proposals for a green ammonia export facility to be based in Khalifa Industrial Zone Abu Dhabi (KIZAD). The new plant would be fuelled by hydrogen produced by an electrolyzer facility paired with a 2 GW solar photovoltaic (PV) power plant. The green hydrogen would be turned into liquid ammonia to supply ships converted to use ammo- nia as a bunker fuel and for export from Abu Dhabi Ports via specialized gas carriers. Ammonia, which is relatively easier to transport than pure hydrogen, has a number of industrial uses and can also be easily turned back into hydrogen. The TAQA-Abu Dhabi Ports project will also fea- ture a storage facility at Khalifa Port, opening the opportunity for it to become a hub for exporting green ammonia to international markets including Europe and the East Asia. The solar farm, electrolyser and the ammonia production plant will be situated in KIZAD. The plant will have pipeline connectivity to the Khalifa Port storage facility enabling large volumes of ammonia to be directly delivered to the port. “Green hydrogen requires large-scale low carbon electricity production and desalinated water. TAQA is an internationally recognized leader in both of these,” said Jasim Husain Thabet, TAQA’s Group Chief Executive Offi cer and Managing Director. “We are pleased to have opened discussions with our partner Abu Dhabi Ports on developing proposals for a major industrial scale facility that, if it goes ahead, would place Abu Dhabi at the heart of the emerging market for green hydrogen.” Thabet added that combining the global reach of Abu Dhabi Ports with the energy and water know- how and established technology partnerships of TAQA could open up exciting opportunities for both companies, their shareholders and for Abu Dhabi. Captain Mohamed Juma Al Shamisi, Group CEO of Abu Dhabi Ports, said this potential collab- oration aims to address regional and global green energy needs, as well as supporting the goal of UAE’s leadership to position Abu Dhabi at the heart of the new emerging green energy market. “With its strategic location between the East and the West, its proximity to KIZAD and Zonescorp, as well as the multimodal connectivity through sea, air and land linking Abu Dhabi to global mar- kets, Khalifa Port is in an ideal position to become a major hub for green hydrogen and its deriva- tives exports to all international markets,” said Al Shamisi. Major economies around the world, including in Europe and Asia are investing heavily in decarbon- ization including in industry, global logistics includ- ing marine transport, heavy good vehicles, buses, trains and heating systems. Green hydrogen can be used to power fuel cells or burned without emitting carbon dioxide and will play an increasingly important part in enabling our low carbon future. REGIONAL UPDATE // ESSENTIAL INSIGHTS FOR MIDDLE EAST WATER, GAS AND ELECTRICITY PROFESSIONALS TAQA Group, Abu Dhabi Ports in talks for a 2GW Green Hydrogen to Ammonia Project KIZAD and Khalifa Port have been established as an export hub for green hydrogen and its derivatives, such as green ammonia, to international markets Hydrogen www.utilities-me.com August 2021 / Utilities Middle East 5EDF to help advance UAE’s nuclear power programme Électricité de France (EDF), the developer of UK’s fi rst nuclear power plant in 20 years, has committed its support for scaling the development of nuclear power in the UAE. EDF is stepping up its collaboration with the Emirates Nuclear Energy Corporation (ENEC) to strengthen the UAE’s nascent nuclear industry and the overall push for energy transition. ENEC is the entity responsible for the deployment and ownership of nuclear energy plants in the UAE. Recently, ENEC signed a Letter of Intent with EDF to develop a Memorandum of Understanding (MoU) for cooperation on research and development (R&D) in the nuclear energy sector. The collaboration is part of ENEC’s commitment towards progressing the UAE’s nuclear energy industry, supporting innovation, clean electricity production and tackling climate change. The MoU is expected to elevate the strategic partnership between the two entities through sharing global expertise and the latest advancements in the nuclear energy sector. Through the MoU, the two entities will also explore the production of green hydrogen- powered by nuclear energy. side international lenders Crédit Agricole Corporate and Invest- ment Bank, KFW IPEX-Bank GmbH, Mizuho Bank, Ltd, Siemens Bank GmbH, Société Générale, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation. Japa- nese export credit agency Nippon Export and Investment Insurance (NEXI) provided loan insurance. “BESIX helps states to convert their visions and opportunities into concrete industrial partnerships. Dubai Waste-to-Energy is an exam- ple of which we are very proud,” said Olivier Crasson, General Manager of BESIX in the Middle East. “Together with Dubai Munici- pality, Hitachi Zosen Inova and our valuable co-investors, we have Dubai Waste-to-Energy project achieves $1.2bn fi nancial close The Dubai Waste-to-Energy proj- ect has achieved a fi nancial close of $1.2bn for its development. The equity investor consor- tium comprises leading private and public operators from the Middle East, Asia and Europe: Dubai Hold- ing, DUBAL Holding, ITOCHU, HZI, BESIX and Tech Group. Dubai Waste Management Com- pany P.S.C. (DWMC) is the special purpose development vehicle for the project. The plant, one of the largest in the world, was procured by Dubai Municipality. The debt provider group com- prises Japanese export credit agency Japan Bank for Interna- tional Cooperation (JBIC) along- WTE Efficiency Dubai increases effi ciency in power generation to 33% DEWA’s optimal fuel heat utilisation is 80%-90%, which is among the highest in the world The project, led by Dubai Municipality, consists of a waste-to-energy (WtE) plant, located at the former Warsan landfill site Power generation from power plants operated by the Dubai Electricity and Water Authority (DEWA) has drastically increased by 33.41% in 2020, a senior offi cial at the public utility has revealed. This is a signifi cant increase from the effi ciency levels regis- tered fourteen years ago. Nasser Lootah, Executive Vice President of Generation at DEWA said that said that DEWA’s imple- mentation of the latest innovative technologies has tremendously helped to boost effi ciency in power generation. He said that this has resulted in considerable fi nancial savings and reduced carbon emissions by 31%. Nitrogen oxide emissions were reduced by 74% and sulphur diox- ide by 99%, said Lootah. He said that the generation divi- sion at DEWA is a pioneer in the use of artifi cial intelligence (AI). Lootah added that a team of DEWA engineers, led by Emirati experts, in cooperation with Sie- mens Energy, had developed the Intelligent Gas Turbine Controller, the world’s fi rst thermodynamic Digital Twin Gas Turbine Intelli- gent Controller, which uses AI and machine learning. conceived and engineered one of the most ambitious environmen- tal projects in the Middle East and made it a reality. We designed it, today we are building it, and tomor- row we will operate and maintain it for 35 years.” This strategic project marks an important contribution to Dubai Clean Energy Strategy 2050 and Dubai Plan 2021 to make the Emir- ate one of the most sustainable cities in the world. “Using this system at M-Sta- tion contributed to increasing effi ciency and reducing emis- sions. The Controller is currently installed in nine gas turbines at DEWA’s Generation division and will be installed in an additional six gas turbines,” said Lootah. In an assessment of 60 promi- nent global utilities that use elec- tricity and water co-generation systems, global management con- sultants McKinsey categorised DEWA’s generation division as one of the best fi ve plants in the world. DEWA’s optimal fuel heat utili- sation is 80%-90%. The division made achievements, including breaking the record for gas turbine and desalination unit maintenance. NEWS 6 Utilities Middle East / August 2021 www.utilities-me.comwww.utilities-me.com August 2021 / Utilities Middle East 7 NEWS ANALYSIS The World Energy Council has published an innovation Insights briefi ng titled “Hydrogen on the Horizon: ready, almost set, go?” The paper informs worldwide energy dialogue on hydrogen’s role in ongoing, and future, energy transitions and transformations. Prepared in collaboration with PwC and the U.S. Electric Power Research Institute (EPRI), the briefi ng shares various hydrogen demand scenar- ios, country and regional-level priorities and iden- tifi es important enablers and barriers for large- scale hydrogen development. Countries’ views on hydrogen’s potential role in the energy transitions are vastly diff erent with national hydrogen strategies showing signifi cant diff erences across the world. A comparative assessment of existing CLEAN HYDROGEN ENERGY GAINING MOMENTUM, AS POTENTIAL ASIAN AND EUROPEAN DEMAND ENERGISES NEW MARKETS Estimates find hydrogen could account for 6 to 25% of global energy consump- tion by 2050. Human skills and infrastructure development crucial to hydro- gen take-up and decarbonisation targets worldwide hydrogen demand scenarios shows estimates varying between 6 and 25% of fi nal worldwide energy consumption by 2050 (between 150 and 600 mega tonnes by 2050) depending on how hydrogen will compete with other clean solutions such as battery storage. Asia and Europe currently seem more demand focused while the Middle East and North Africa focus on the supply of hydrogen. Asia shows a greater focus on hydrogen as a liquid fuel in the form of ammonia and as a trans- port fuel for shipping and road transport. In con- trast, Europe is more focused on using hydrogen to decarbonise the hard-to-abate sectors in indus- try and transport (e.g. heavy industries, HGVs, mass transportation). The Americas (North and South) are consid- ering production for their own consumption and export. “Hydrogen on the Horizon’ puts the focus on the role of hydrogen users and demand, moving beyond traditional supply-centric energy per- spectives,” said Dr Angela Wilkinson, Secretary General and CEO, of the World Energy Council. “With demand forecasts showing such large variations in consumption forecasts I’d say that nations and society at-large would-be better-off training for the pentathlon rather than the 100 metre sprint or the high jumps. Successful, just and equitable worldwide energy transitions will test the ingenuity, skills and collaborative abilities of all nations.” How countries want to produce and consume clean energy, and their immediate national priori- ties, will shape large-scale hydrogen development and end-user uptake, said Wilkinson.8 Utilities Middle East / August 2021 www.utilities-me.com NEWS ANALYSIS fund this support. However, environmental and political drivers are sending encouraging signals to the market and prompting growing interest, with many pilot proj- ects being under development, construction and in operation worldwide. These projects span the hydrogen value chain and are across all relevant sectors of the global economy. Additionally, some countries are actively developing bilateral partnerships to help form global hydrogen supply chains and secure clean hydrogen supply. With the appropriate policies and technolo- gies to enable hydrogen scale up, some projec- tions suggest that it could be cost competitive with other solutions as soon as 2030. The so-called “hydrogen economy” is at an embryonic stage of development. It faces the “chicken and egg problem” between supply and demand, both lacking secure volumes from the other to help establish the full value chain. Numerous hydrogen technologies are at diff er- ent levels of maturity, contributing to a complex landscape with multiple paths being explored and few approaches as yet being fully eliminated. Interest in clean hydrogen as an energy vector is surging across the globe as countries and companies seek to explore its potential to decarbonise the hard-to-abate sectors and uses, providing fl exible storage for an increasing amount of renewables. While hydrogen’s true potential within future energy systems remains unclear, there are increasing ambitions for new economic and social opportunities, particularly to support the post- COVID19 recovery. With increasing commercial interest and polit- ical support, there is a pressing need to untangle the diff ering underlying drivers and actual oppor- tunities to understand better the real potential of clean hydrogen in energy systems and in the energy transition. The World Energy Council has been at the heart of global, regional and national energy debates for nearly a century, developing new thinking and driving eff ective action around the world to achieve the benefi ts of sustainable energy for all. Comprised of over 3,000 member organisa- tions in nearly 90 countries, drawn from govern- ments, private and state corporations, academia and new and wider system-shapers stakeholders, the Council is the world’s fi rst and only truly global member-based energy network. The Council works dynamically across the whole energy sector as a global energy transitions platform, pulling together intelligent leadership to catalyse and inform the world’s energy policy dialogue, create impact and drive practical action. The Council does not advocate for any coun- try, company, technology or source of energy. The World Energy Council remains thoroughly com- mitted to the challenge of being both impartial and impactful. This Innovation Insights Briefi ng on hydro- gen is part of a series of publications by the World Energy Council focused on Innovation. It was developed in collaboration with the Electric Power Research Initiative (EPRI) and our Innova- tion Partner, PwC. The briefi ng builds upon earlier work by the Council and involved extensive research on national strategy developments and interviews with 38 experts from 23 countries, refl ecting 61 % of the global Total Primary Energy Supply – TPES (2018 data, OECD) and 70% of global GDP (2019 data, WB). She added that identifying end-user priori- ties and triggers for enhanced demand is critical to better understand hydrogen’s real potential in creating decarbonised societal futures. ‘’As momentum intensifi es around energy transitions, big steps are being made towards the replacement of fossil fuels with low carbon alter- natives, and hydrogen has a big role to play,” says Jeroen van Hoof, Global Energy, Utilities and Resources Leader, PwC Netherlands. “This decade is crucial to develop hydrogen projects along with the infrastructure to produce, transport, import, distribute and use hydrogen at large scale. If we do this successfully over the next few years.” It can pave the way for hydrogen demand to grow exponentially beyond 2030. Additionally, hydrogen has the potential to create skilled jobs along the entire value chain, which connects almost all sectors of our global economy.’’ “The development of hydrogen as a source of energy is larger than the colour debate. Colours were assigned to assist in the communication of hydrogen sourcing, but the focus should be on the carbon intensity of hydrogen and the poten- tial for large-scale deployment. This will be far more useful for groups and individuals seeking to achieve their decarbonisation goals,” says Neva Espinoza, Vice President, Energy Supply and Low- Carbon Resources, EPRI. Hydrogen on the Horizon shows that scaling hydrogen up within the energy system faces sig- nifi cant challenges. Low-carbon hydrogen is currently not cost competitive with other energy supplies in most applications and locations and is likely to remain so without signifi cant support to bridge the price gap - which raises the question of who should www.utilities-me.com August 2021 / Utilities Middle East 9 NEWS ANALYSIS The latest report by REN 21 shows an alarming gap between targets and actions with fi fteen G20 countries lack- ing a 2020 renewable energy target cov- ering all sectors. REN21 calls for all economic activities to incor- porate a key performance indicator to close this gap. Released on 15 June, the Renewables 2021 Global Status Report compiles developments from the past year on the market, policy and tech- nology trends in renewable energy. The report’s fi ndings are truly global as they are crowdsourced from hundreds of contributors from industry, NGOs, governments and academia from around the world. FOSSIL FUELS REMAIN DOMINANT Despite wide adoption of renewables, the latest REN 21 report say that the world is burning more fossil fuels than ever and that the share of fossil fuels in the total energy mix is as high as a decade ago and the renewable energy share only increased slightly Additionally, the chapters go through two rounds of public peer review, leading to the hun- dreds of acknowledged contributors in the report’s fi rst pages. The robust process of producing the GSR means the fi ndings are deeply relevant for the world. We’ve summarised a few below. According to the report, while the use of renew- able energy has increased, this is overshadowed by fossil fuels remaining a dominant source of energy for the world. Renewables grew almost 5% per year between 2009 and 2019, outpacing fossil fuels (1.7%). Renewable energy set another record for installed power capacity in 2020, meaning that we now produce around 29% of our energy from renewables. At the same time, the world is burning more fossil fuels than ever. The share of fossil fuels in the total energy mix is as high as a decade ago and the renewable energy share only increased slightly. The report also shows that recovery pack- ages are pouring money into the brown economy despite the advantages of renewables. The report notes that there has been a wave of stronger commitments to action on the climate crisis in 2020. This includes net zero carbon emis- sions targets by China, Japan, South Korea and several other regions, countries, cities and com- panies. Following announcements of funding for a Next >