ITP MEDIA GROUP / BUSINESS NOVEMBER 2021• VOL. 15, ISSUE 11 FUTURE-PROOF GAS POWER Innovations are propelling gas power into a Net-Zero future by blending the best of gas turbine technologies Do you want to learn more? www.eh.digital/2Zq6Vrm You meet your efficiency goals and reduce costs without compromising on water quality. OBSERVE + CONSERVE We understand the challenge of finding the right balance between plant efficiency and compliance with industry standards and legal requirements. Improve your processes with our comprehensive portfolio of measuring instruments: Micropilot FMR20: Level radar with the process indicator RIA15 simplifies remote commissioning and operations. Proline Promag W 800: Battery-powered magmeter with integrated cellular radio module for off-grid applications with no power. iTHERM ModuLine TM121: Cost-efficient modular thermometer for standard applications in non- hazardous areas.CONTENTS www.utilities-me.com November 2021 / Utilities Middle East 3 Volume 15 | Issue 11 Contents Leaders from the G-20, who today represent the world’s big- gest coal producers and consumers, have agreed to take the fi rst steps to weaken coal’s future, although they fell far short of what is necessary to suffi ciently address climate change. In a joint communiqué released at the end of their summit in Rome, the G-20 leaders said they would end the fi nancing of coal power plants overseas, but the statement included no new commitments on curbing the use of coal domestically. The next decades are expected to be among the most transformative the energy sector has ever seen when the world is moving away from fossil fuels. As part of this trans- formation, several manufacturers are developing gas tur- bines that will eventually run 100% on hydrogen, a major step towards a carbon-free society. While fossil gas is often seen as a transition fuel towards a fully decarbonised energy mix, GE Gas Power sees low- carbon gas as “a destination technology” with the potential to convert power plants to run 100% on clean hydrogen by 2030. While research and development to advance the percent- age of hydrogen combustion capability towards 100% by 2030 has gained momentum, getting there would require a rapid scale up in the production of clean hydrogen. And that will only be possible if multiple sources of low-carbon hydro- gen are added to the mix, including so-called “blue hydro- gen” where emissions are somehow captured and stored. Last year, the European Commission unveiled proposals to develop 100% clean hydrogen production from renewable electricity, with plans to install at least 6 gigawatts of elec- trolysers in the EU by 2025 and at least 40 gigawatts by 2030. More than 95% of hydrogen today is produced from natu- ral gas steam reforming, a carbon-intensive process which adds to global warming emissions. The mix of carbon capture and sequestration now in a decade of action, with layered introduction of blue and green hydrogen is the future. In that perspective, gas turbine power generation technology becomes a destination tech- nology, not just a bridge. Pathways to clean energy Baset Asaba, Editor Email: baset.asaba@itp.com View point FUTURE-PROOF GAS TURBINES How certain is the future of gas power generation as cleaner and cheaper sources of power come on line?CONTENTS 4 Utilities Middle East / November 2021 www.utilities-me.com Dubai says to offer shares in DEWA to boost stock market trading Dubai plans to offer shares in its main utility as part of a plan to boost the emirate’s fl agging stock market. The emirate will sell a stake in Dubai Electricity and Water Authority “in coming months,” deputy ruler Maktoum bin Mohammed bin Rashid said in a tweet. 02 Shuqaiq 3 desalination plant ramps up production The Shuqaiq 3 desalination plant, currently under construction in Saudi Arabia, has ramped up production during fi nal testing to full capacity of 450m liters of potable water per day, enough to meet the needs of two million people. 03 Dubai invites bids to develop strategy on green hydrogen Dubai Electricity and Water Authority (DEWA) has invited globally reputed consulting companies to submit their offers to develop an ambitious strategy for the production of green hydrogen to support Dubai’s green economy agenda. 05 38 34 05 UPDATES 11 NEWS ANALYSIS 16 INDUSTRY TRENDS 28 COVER FEATURE 34 SPECIAL REPORT 40 PRODUCTS 10 14 24 Masdar, one of the world’s leading renewable energy companies, has signed a strategic agreement with Iraq to develop five solar photovoltaic (PV) projects in the country with a combined capacity of 1 gigawatt (GW). SPECIAL EDITION ALSO THIS MONTH 10 SDME 2021 SDME is a unique op- portunity to learn more about responsible energy use, renewable energy, energy effi ciency, and the technologies available to help in energy consump- tion and reduction 34 BOOSTING EFFICIENCY WITH SMART GRIDS Smart grid software, which analyses energy usage in real-time to enable responsive features for utility com- panies, will be critical to delivering energy and cost savings 24 AFRICA AGENDA New research, published recently identifi es fi ve sets of complementary actions to put Africa’s electricity sector on track to sharply increase electrifi cation rates and secure long-term access to affordable and cleaner energy. 38 NEW ENERGY ECONOMY The World Energy Outlook 2021 (WEO-2021) handbook for the COP26 Climate Change Conference in Glasgow offers a critical opportunity to accelerate climate action and the clean energy transition 28 GAS FUTURE Despite the role of gas in furthering decarbonisation in the energy sector, the future of gas power remains controversial as cleaner and cheaper sources of energy are switched on 14 NET ZERO DRIVE The UAE’s Net Zero 2050 initiative takes into con- sideration key economic sectors in the country and supports their efforts to benefi t from green growth opportunities. Most popular news stories on www. Utilities-me.comitiesNews Masdar, one of the world’s leading renewable energy companies, announced last month that it had signed a strategic agreement with the Republic of Iraq to develop fi ve solar photo- voltaic (PV) projects in the country with a com- bined capacity of 1 gigawatt (GW). Masdar has signed an implementation agree- ment with Iraq’s Ministry of Electricity and the National Investment Commission to develop the following projects: a 450-megwatt (MW) plant in the Dhi Qar Governorate in southern Iraq; a 100 MW and a 250 MW plant, both located in Ramadi in central Iraq; a 100 MW plant in Mosul in the north; and a 100 MW plant in Amarah in the south- east. The agreement was signed by Suha Al-Najar, President of the National Investment Commission for the Republic of Iraq, Maha Hamoudi Abdul- Jabbar the Director General of the Investments and Contracts Department at the Ministry of Elec- tricity, and Mohamed Jameel Al Ramahi, Chief Executive Offi cer of Masdar. The signing took place at a ceremony in Bagh- dad, in the presence of Mustafa Al-Kadhimi, Prime Minister of the Republic of Iraq and Suhail Al Maz- roui, Minister of Energy and Infrastructure for the UAE. Ihsan Ismaael, Oil Minister for Iraq, Adel Karim, Minister of Electricity for Iraq, Salem Issa Qattam Al Zaabi, UAE ambassador to Iraq and senior exec- utives from Masdar also attended the ceremony. Suhail Al Mazroui, Minister of Energy and Infra- structure for the UAE, said that the agreement rep- resents an important step forward in relations between the UAE and Iraq and will support Iraq’s eff orts to achieve its clean energy and climate change goals. “The renewable energy sector is seeing rapid growth as clean technologies prove their eco- nomic viability. Masdar has proven its pioneer- ing status through its diverse projects portfo- lio and contribution to the UAE’s eff orts to build a competitive, knowledge-based economy, one based on innovation and sustainability with an advanced infrastructure,” said Al Mazroui. “Through this milestone agreement, we look forward to exploring similar such opportunities in the region, and to consolidate our partnership with our brothers in Iraq in order to ensure a more sustainable future for the region.” Mohamed Jameel Al Ramahi, CEO of Masdar, said: “This agreement strengthens the already powerful bond between the UAE and the Repub- lic of Iraq, and will facilitate knowledge exchange between our two great nations. The UAE and Iraq share a common goal to diversify the energy mix, and to take a lead on climate action.” “Masdar has been a catalyst for renewable energy and clean-tech innovation in more than 30 countries around the world, and we will leverage the expertise we have developed to support Iraq in its energy transition.” In June, Masdar announced the signing of Heads of Agreement with the Ministry of Elec- tricity and the National Investment Commission to develop projects in Iraq with a minimum total capacity of 2 GW. Iraq, the second-largest oil producer in the Organization of Petroleum Exporting Countries (OPEC), is looking to increase the percentage of renewables in its total power production capac- ity to 20 to 25 percent by the end of this decade to address supply issues and meet climate objec- tives, which would be equivalent to 10 to 12 GW. The country, which this year ratifi ed the Paris Agreement on climate change, enjoys some of the most attractive solar irradiation levels in the region. REGIONAL UPDATE // ESSENTIAL INSIGHTS FOR MIDDLE EAST WATER, GAS AND ELECTRICITY PROFESSIONALS Masdar to deploy 1GW of solar capacity in Iraq Masdar signs implementation agreement with Iraq to develop five projects located across the country Solar www.utilities-me.com November 2021 / Utilities Middle East 5DEWA attracts investments of Dh40bn using IPWP model Saeed Mohammed Al Tayer, MD and CEO of Dubai Electricity and Water Authority (DEWA), announced that DEWA has attracted investments of around AED 40 billion using the Independent Power and Water Producer (IPWP) model, which it uses in a number of its key power projects. Al Tayer made these remarks during his keynote speech at the Dubai International Public Private Partnership Conference (DIPPP), organised by the Department of Finance in Dubai under the patronage of Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council. In his speech, in the presence of Abdulla Al Basti, Secretary- General of Dubai Executive Council, Abdulrahman Saleh Al Saleh, Director-General of the Department of Finance in Dubai, and a number of offi cials from the government and private sectors, Al Tayer talked about the importance of partnerships for the UAE, which last month, launched ‘Projects of the 50’ to enhance cooperation between the public and private sectors and provide promising investment opportunities. “The public private partnerships (PPP) are critically important in meeting the challenge of sustainable development,” said Al Tayer. The commercial operation of the project is expected to start in 2024, the minister noted. The project will achieve carbon dioxide (CO2) savings estimated at about one million tons annually, Shaker said. Prime Minister Mostafa Mad- bouly, Japan’s Ambassador to Cairo Masaki Noke and Deputy French Ambassador in Egypt Fran- çois Legué attended the signing ceremony. The project will also secure 1,100 direct job opportunities during the construction phase in addition to a large number of other job oppor- tunities in related services, Shaker Egypt to construct 500MW wind power farm in the Gulf of Suez region Egypt’s Ministry of Electricity and Renewable Energy and a multina- tional consortium has signed two agreements for the construction of a wind power farm with a capacity of 500 megawatts (MW) in the Gulf of Suez region. The consortium consists of Egypt’s Orascom Construc- tion, France’s ENGIE, and Japan’s Toyota Tsusho Corporation, according to a statement by the cabinet last month. The project will cost around $600mn, the statement quoted Minister of Electricity and Renew- able Energy Mohamed Shaker as saying. Wind Biogas Middle East’s fi rst biogas facility launched in UAE Project will help to generate 1.3MW of green electricity and significantly reduce the carbon footprint at Al Rawabi The wind farm will be developed by a consortium consisting of Egypt’s Orascom Construction, France’s ENGIE, and Japan’s Toyota Tsusho Corporation Al Rawabi, a juice and dairy com- pany based in the UAE, announced its large-scale biogas facility is now fully operational. A fi rst of its kind project in the Middle East, the plant will be recy- cling organic waste from Al Rawa- bi’s operations into clean energy and is expected to generate 1.3MW of green energy. “As responsible sustainable company, Al Rawabi now secures a valuable part of its energy con- sumption from renewable sources by recycling the organic waste into clean fuel. Moving to green energy puts us one step closer to a cleaner, more environmen- tally friendly operation. Invest- ing in this project is not only great for the planet, but also economi- cal and makes sense from a busi- ness perspective,” said Abdal- lah Sultan Al Owais, Chairman, Al Rawabi, a homegrown brand that has become a major player in the region’s FMCG industry. The biogas facility was devel- oped to fully support the UAE’s sustainability agenda. In replacing conventional and non-renewable sources of energy into cleaner and sustainable alter- natives, the company also hopes to reduce its carbon footprint and achieve an 80% reduction in emis- noted, adding that some of the project’s equipment will be locally manufactured. Orascom revealed in a state- ment that it would carry out con- struction of the wind farm and will have a 25% stake in the project. It said that it would develop, con- struct and operate for 20 years the wind farm located in Ras Ghareb, Red Sea governorate. sions of odorous gases. The feasibility was done in 2016 in cooperation with a pres- tigious university from Germany. Extended research was conducted with a UAE-based university a year after, with the biogas laboratory being established as an initial mile- stone for the project. Construc- tion began in early 2020 by mele® Company from Germany and was completed early this year. The biogas facility’s operations will also yield numerous other ben- efi ts, such as the production of highly concentrated organic fertil- izer of about 10 tons/day and 150 cubic metres of water per day. It will also generate 1.3MW of green heat as well as protect ground water with a 90% reduc- tion in ammonia migration. NEWS 6 Utilities Middle East / November 2021 www.utilities-me.comM Middle East Solar Industry Association Empow ering Solar ac ro ss the Middle East Middle East & North Africa SOLAR MEP & UME NOV EDITION.pdf 1 10/5/21 11:14 AM5.4 billion kilowatt-hours generated by Sharjah’s SEWA in H1 2021 Energy generated in the Emirate of Sharjah amounted to 5.4 billion kilowatt-hours during the fi rst half of the year, according to latest statistics by the Sharjah Electricity, Water and Gas Authority (SEWA). Figures indicated that the residential sector in the emirate of Sharjah has the highest consumption of electricity at 41.19%, and the commercial sector is in 2nd place with 35.18%, followed by the government sector with 12.03%, then the industrial sector by 11.48 percent, and the agricultural sector by 0.13 percent. Engineer Issa Obaid Al Suwaidi, Director of Electricity Production at SEWA, confi rmed that the strategy of implementing SEWA projects in the fi eld of electric power generation aims to achieve the vision of Dr. Sheikh Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, to meet the demand of electricity, keeping pace with the residential, commercial and industrial growth in the Emirate of Sharjah and increasing production capacity. He pointed out that the Authority is working on two projects to develop the Al Hamriyah and Layyah stations, which are considered among the most ambitious projects. company started in 2017 in Riyadh, according to Air Products and Qudra websites. Aramco has a 20% stake in the joint venture through its unit Saudi Aramco Power Co., it said. Air Prod- ucts owns 46%, ACWA Power 25% and Air Products Qudra 9%. The joint venture was fi rst announced in 2018. “The JV is purchasing the ASUs Acwa Power, Air Products, Aramco sign $12bn Saudi hydrogen and project deal Saudi Aramco and three other partners have concluded an agree- ment for a $12bn project that will produce hydrogen and power in the kingdom’s southern city of Jazan as the world’s biggest oil exporter forges ahead with clean energy. Riyadh-based ACWA Power, Aramco, US-based Air Products, and Air Products Qudra are part- ners in the gasifi cation and power joint venture in Jazan Economic City, Aramco said in a Sept. 27 statement. Air Products Qudra is a joint ven- ture between Air Products and Qudra Energy, a Saudi renewables Hydrogen Hydrogen Utico ventures into hydrogen with dedicated company The company has announced a switch from Clean Coal Carbon capture pro- ject to Green Energy Portfolio The deal includes asset acquisition and project financing agreements for a gas- ification/power joint venture in Jazan, Saudi Arabia UAE headquartered utilities infra- structure developer, Utico, has announced its entry into Hydrogen production by 2024. In a statement last month at the WETEX and Dubai Solar Show, Utico also said that it was exiting the Clean Coal Carbon capture project it had signed with Shang- hai Electric in 2014, for which it had obtained the Middle East’s fi rst Federal Environmental Permit in 2016 done by TUV Nord. Utico had also planned and announced the same scale 350MW super critical project at the Duqum Special Economic Zone in 2016 with a Bio Fertilizer plant using Carbon to produce Agro & Pharma grade Algae with a 200MW solar facility that would offset carbon emissions by greater than 70%, making it cleaner than natural gas. Both projects would have captured greater than 1 mil- lion tons of CO2 per year. The new company will start with a 12,000 tons p.a Hydrogen expandable to 100,000 tons p.a and will include a portfolio of Green and renewable power produc- tion totalling 200MW, Utico said, adding that the fi rst phase of pro- duction is slated for 2024. The focus will be to produce the Hydrogen splitting water with Green Energy rather than natural gas. This will be Green Blue Hydro- gen, generating Green Water as well, making it the cleanest and cheapest available in the market. Utico said that as the world’s lowest tariff water producer and the region’s most sustainable (air separation units), gasifi cation, syngas cleanup, utilities and power assets from Aramco,” the state- ment said. “The JV owns and oper- ates the facility under a 25-year contract for a fi xed monthly fee. Aramco will supply feedstock to the JV, and the JV will produce power, steam, hydrogen and other utilities for Aramco.” The JV serves Aramco’s 400,000 b/d Jazan refi nery, which makes products including ultra- light sulfur diesel and gasoline. It will enhance the overall value of the refi nery and integrated gas- ifi cation combined cycle power plant. Innovative Utilities Company, it has innovated processes to pro- duce the lowest priced Hydrogen in the market. 1KG of Hydrogen has 3 times the energy of Natural gas and with Green Water it has no carbon foot- print unlike using Natural gas to produce Hydrogen where 1Kg Hydrogen produces 10kg of CO2. Key investors are discussing with Utico for collaborations which includes majors like Blackstone, Actis, Masdar, ADQ, International Holdings Group and IDB Infra- structure Fund. NEWS 8 Utilities Middle East / November 2021 www.utilities-me.comDubai Future Foundation new report stresses importance of increasing use of hydrogen in vital sectors A new report, titled ‘Hydrogen: From Hype to Reality’, has called on the importance of developing integrated strategies to produce, store and use hydrogen energy. As the world strives to achieve net-zero emissions, hydrogen will be crucial to decarbonize hard-to-abate industries, such as steel, cement, aviation and shipping, it noted. The report is launched by Dubai Future Foundation (DFF) in partnership with the Ministry of Energy and Infrastructure, the Ministry of Climate Change and Environment (MoCCAE) and the Dubai Electricity and Water Authority (DEWA). Suhail bin Mohammed Al Mazrouei, Minister of Energy and Infrastructure, said, “The UAE is one of the leaders in the fi elds of renewable and clean energy and a forerunner in adopting innovative methods to enhance the effi ciency of the energy sector. To achieve these priorities, the country launched the UAE Energy Strategy 2050 that targets an increase in the share of renewable and clean energy sources in the energy mix to strike a balance between its economic needs and environmental goals. Hydrogen energy supports sustainable development.” Specifi cally, it will support tech- nical assistance and investment in power generation, transmission and distribution to increase pene- tration of renewable power in Afri- can grids. The funding follows Germany’s initial contribution to SEFA of €50 million, made in 2020. “We need to accelerate the global energy transition. This requires the rapid phasing out of all fossil fuels and a massive expan- sion of renewable energy. The time to act is now,” said Norbert Barthle, Parliamentary State Secretary of the German Ministry for Economic Africa receives $116mn boost to unlock private investment in renewable energy The German government will con- tribute €100mn ($116mn) to the African Development Bank’s Sus- tainable Energy Fund for Africa (SEFA), affi rming its commitment to efforts to tap Africa’s renewable energy potential and drive its tran- sition to clean energy sources. The announcement came during the United Nations High- Level Dialogue on Energy, held in New York on 24 September as part of the UN General Assembly. The funding will go to unlock pri- vate sector investment in green- baseload projects, a SEFA prior- ity focus. Africa Wind GWEC Creates Africa WindPower to Accelerate Africa’s Energy Transition Africa’s technical wind power potential is enough to power the continent’s entire energy demand 250 times over, but Africa is currently only tapping into 0.01% of its potential Funding will support technical assistance and investment in power generation, transmission and distribution to increase penetration of renewable power in African grids The Global Wind Energy Council (GWEC) has launched Africa Wind- Power (“AWP”) to address a clear need for a regional body represent- ing the wind industry. AWP offers a platform for dia- logue between Africa’s wind indus- try and government stakehold- ers, with the ultimate goal of scal- ing up and accelerating wind proj- ect development and deployment across the entire African conti- nent. With suffi cient investment appetite already in place, the development of fi t-for-purpose government policy and regulation for the energy transition is neces- sary to unlock private investment from both within and outside of the continent. Despite an early start for wind energy in Africa, wind energy deployment has often been held back as fossil fuel generation sources such as natural gas con- tinue to make inroads in some markets, and coal, heavy fuel oil, and diesel remain a large part of the energy mix. A recent report commissioned by the International Finance Cor- Cooperation and Development, during the High-Level Dialogue. The fi nancing aligns with the G20 Compact with Africa (link is external) launched during Germa- ny’s tenure of the G20 Presidency. The Compact promotes macro- economic, business and fi nanc- ing reform to attract more private investment in Africa. poration (IFC) shows that Africa has 59,000 GW of technical onshore and offshore wind poten- tial, enough to meet the conti- nent’s energy demand 250 times over. Building out wind farms that uti- lise Africa’s vast wind resource will drive investment, create clean energy jobs and critical infra- structure, and help support thriv- ing local economies in line with the region’s Sustainable Development Goals. The time for a wind-powered Africa has come; Africa WindPower is here to help make it happen. That message is supported by many entities including the Inter- national Energy Agency (IEA). NEWS www.utilities-me.com November 2021 / Utilities Middle East 9Next >