ITP MEDIA GROUP / BUSINESS DECEMBER 2021• VOL. 15, ISSUE 12 With an increasing number of countries on the path towards carbon neutrality, the world is brimming with opportunities for investment into renewable energy and green infrastructure as highlighted by Huawei Digital Power POWERING THE ENERGY TRANSITIONTHE ULTIMATE UTILITIES SOURCE Utilities-me.com is home to the Middle East’s utilities industry’s top news, analyses, insights and opinions Special Reports Receive monthly reports and analyses on various trending topics pertaining to the utilities industry. Awards Take advantage of early bird access to be first in line for the industry-leading Middle East Energy Awards. Subscribe now to generate more business and get insight from industry experts from Utilities-me.com, with exclusive benefits Lists Access annual rankings of the Middle East’s most active people and companies across the utilities sector. Multimedia platforms Get insider information through our global webinars and video interviews with top utilities leaders. Industry events Learn from the crème de la crème of the utilities industry through a series of industry events. In-depth interviews Read comprehensive interviews with leaders of public and private utilities entities in the region. AN ITP MEDIA GROUP PUBLICATIONCONTENTS www.utilities-me.com December 2021 Utilities Middle East 3 Volume 15 | Issue 12 Contents While environmentalists continue to wax lyrical about the recently concluded COP26 global summit in Glasgow and dis- missing it as “a failed green wash festival” and “a failure”, key actors within the energy space remain positive and commit- ted to zero emissions in the coming years. More than 40 countries have committed to shift away from coal, in pledges made at the COP26. Major coal-using countries including Poland, Vietnam and Chile are among those that have made the commitment, although some of the world’s biggest coal-dependent countries, including China and the US, did not sign up. One important scheme launched at COP26 is the $10bn Global Energy Alliance for People and Planet, which has backing from organisations including the Rockefeller Foun- dation, a string of development banks, the furniture store IKEA, and Jeff Bezos’s Earth Fund. Over the next decade, the alliance aims to unlock $100bn in public and private capital and one of its objectives is reach- ing one billion people with reliable renewable energy. On our cover this month, we feature Huawei Digital Pow- er’s commitment to net zero. The company is leading power digitalisation for a smart and sustainable world and help- ing customers improve effi ciency and smarten up facilities. It recently concluded its Global Digital Power Summit 2021 in Dubai where it called for global action to pursue low-carbon and sustainable development. But the journey to net zero will also mean limiting the use of fossil fuels in vehicles and fast-tracking their electrifi ca- tion as well as the integration of hydrogen into the entire eco- system. As will be seen in this issue, the UAE is making huge strides in the adoption of electric vehicles (EVs) and its charg- ing station to vehicle ratio is among the world’s highest. Several other countries in the Middle East are building net- works of electric charging stations large enough to cater to the growing number of EVs and their drivers. Similarly, the requirement to enhance energy effi ciency levels across utilities operations through digitalisation and machine learning will have the direct impact of limiting CO2 emissions from thermal power generation plants. What next after COP26? Baset Asaba, Editor Email: baset.asaba@itp.com View point POWERING THE ENERGY TRANSITION Renewable energy investment opportunities set to grow as countries chart the course on carbon neutrality CONTENTS 4 Utilities Middle East December 2021 www.utilities-me.com Masdar signs agreement to develop 200MW solar plant in Armenia Masdar, one of the world’s leading renewable energy companies and a subsidiary of Mubadala Investment Company, has signed an agreement with the Government of the Republic of Armenia to develop a 200-megawatt (MW) solar photovoltaic (PV) plant. treatment plants 02 Oman’s OQ and Korea’s KOGAS-Tech to partner on hydrogen opportunities OQ Group, a global integrated energy company, has signed a memorandum of understanding (MoU) with South Korea’s KOGAS-Tech aiming at exploring potentials of cooperation between the two sides in Hydrogen- related opportunities 03 Jordan, Israel conclude major deal on water and solar power swap Jordan and Israel have signed an important deal that will see the construction of a major solar power plant in Jordan to generate electricity for Israel while a desalination plant established in Israel will send water to Jordan 05 34 30 05 UPDATES 10 NEWS ANALYSIS 16 INDUSTRY TRENDS 22 COVER FEATURE 30 SPECIAL REPORT 40 PRODUCTS 10 16 18 Dubai will sell a stake in Dubai Elec- tricity and Water Authority in coming months, deputy ruler Maktoum bin Mohammed bin Rashid said in a tweet.Shares will be listed “in stages” due to the size of the utility’s assets SPECIAL EDITION ALSO THIS MONTH 10 AFTER COP26 To hit net zero by mid- century, poor countries need to roll out renew- ables and clean tech now. But high costs, trade barriers and social resis- tance stand in the way 30EMBRACING ELECTRIC VEHICLES Government policies and incentives to adopt electric vehicles are will drive market growth in the coming years with countries such as Saudi Arabia and the UAE leading the way 18 ELECTRIFICATION There is no time like the present to build on past mine planning to go all- electric, explains Moham- med AlMousa, Country Managing Director, ABB Saudi Arabia and Ramzi Akkawi, eMine™ Transfor- mation Manager, ABB 34DECARBONISING POWER With the power sector representing nearly 40% of global carbon emis- sions, GE says that GCC countries have all it takes to champion the global push for lower carbon emis- sions through a number of initiatives 22 DIGITAL POWER Leading power digi- talisation for a smart and sustainable world, Huawei Digital Power has been striving to help customers improve effi ciency and smarten up facilities 16 DUBAI HYDROGEN Dubai’s DEWA has invited consulting companies to submit their offers to develop a strategy for the production of green hy- drogen, which represents one of the pillars of a sustainable future Most popular news stories on www. Utilities-me.comNews D ubai plans to off er 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 last month. Shares will be listed “in stages” due to the size of the utility’s assets and profi le in the economy. Dubai said last month it plans to sell stakes in 10 state-owned companies in what may prove to be a test of confi dence in a stock market dogged by falling volumes at a time when regional rivals are stepping up sales. The sale is part of plans to boost the size of its fi nancial market to AED3 trillion ($817 billion) as the Middle East’s business hub seeks to catch up with Abu Dhabi and Riyadh. The emirate’s deputy ruler announced the plan at his fi rst meeting as the head of the securities and exchange higher committee, without provid- ing a timeline for the listings. He also approved a AED2bn market-making fund to increase liquidity and a AED1bn fund to support tech IPOs. DEWA has invited banks to pitch for a role on an initial public off ering that could value the utility at around $25bn, according to Bloomberg quoting people familiar with matter. The public utility announced that Moelis is its adviser on what will likely be the emirate’s biggest listing yet. The company, owned by the Dubai govern- ment, will probably choose a mix of international and local banks, according to sources. While Dubai fi rms are required to sell at least 25 per cent of their shares in an IPO, DEWA may try to list a smaller amount at fi rst, the people said. The deal could be the fi rst of 10 IPOs of state companies planned by Dubai as it seeks to revive trading on its bourse and catch up with Abu Dhabi and Riyadh, which have both seen multiple list- ings in recent months. Trading on the main bourse has fallen in three of the past four years as a string of companies delisted at a time of declining liquidity and stock prices. DEWA has more than a million customers in Dubai, according to its website. Along with its sub- sidiaries, it has assets worth up to AED190 billion ($52 billion). It reported net income of AED4.9 bil- lion in 2019, the latest data available to Bloomberg. Dubai has staged just one IPO since 2017, and its only prospect of a listing this year fell through when logistics fi rm Tristar Transport pulled its off ering in April. At the same time, fl agship names such as port operator DP World have delisted. Others like Emaar Malls and Damac Properties are in the pro- cess of doing so. At the same time, the Covid-19 pandemic has hurt the city’s lifeblood tourism and real estate industries. Meantime, new listings in other Middle East fi nancial hubs such as Abu Dhabi and Riyadh are attracting a fl ood of cash. The IPO plan comes as Dubai and the wider Gulf economies recover from last year’s coronavi- rus pandemic and oil-price crash. That rebound has buoyed regional stock mar- kets. Investors placed more than $34bn of orders for Abu Dhabi-based ADNOC Drilling Co.’s $1.1bn IPO in September. ACWA Power International, a Saudi Arabian utility, attracted $300bn for its $1.2bn listing around the same time. Dubai’s equity market has climbed 20 per cent this year, while Abu Dhabi’s is up almost 60 per cent and Saudi Arabia’s added 35 per cent. Dubai announced its plan to IPO companies this month. It’s said that DEWA and Salik, which collects road tolls, will be among the 10 fi rms, but hasn’t revealed the names of the rest. REGIONAL UPDATE // ESSENTIAL INSIGHTS FOR MIDDLE EAST WATER, GAS AND ELECTRICITY PROFESSIONALS Dubai to offer shares in DEWA to boost stock market trading Emirate will sell a stake in Dubai Electricity and Water Authority ‘in coming months’, says deputy ruler DEWA www.utilities-me.com December 2021 Utilities Middle East 5Dubai takes lead with strategy, roadmap to achieve net-zero emissions by 2050 Dubai Future Council on Energy has conducted an in-depth study on how the Emirate of Dubai can achieve carbon neutrality (Net-Zero Emissions) by 2050. This is in line with the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, to promote the transformation of Dubai to a carbon-neutral economy by 2050. The move also aligns with Dubai’s commitment to sustainability and enhances its proactive role in shaping and supporting the future of energy and climate change. This will be achieved through a clear strategy and roadmap that includes implementing the strategy and using state-of-the- art technologies that account for the required investments and other enablers and model the socio-economic impact and opportunities. The study was launched to support the Dubai Future Council on Energy, one of Dubai Future Councils that were launched under the directives of Sheikh Mohammed bin Rashid and enacted by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council. energy generation and storage by 2030. “The new ETAF platform rein- forces our long-standing commit- ment to support positive climate action in developing and vulnera- ble countries,” said Sheikh Abdul- lah bin Zayed Al Nahyan, Minister of Foreign Affairs and International Cooperation, and Head of the UAE delegation to the 26th Conference of Parties to the United Nations Framework Convention on Climate Change - UNFCCC (COP26). “As a signatory to the United Nations Framework Convention on Climate Change (UNFCCC), UAE, IRENA launch $1bn global platform to accelerate renewable energy at COP26 The UAE and the International Renewable Energy Agency (IRENA) have announced the launch of the global platform on the sidelines of COP26, in Glasgow, the United Kingdom. The UAE committed $400mn in funding provided by the Abu Dhabi Fund for Development (ADFD) toward the platform’s goal of securing a minimum of $1 billion in total funding. Through co-fi nancing, ETAF will aim to mobilise an additional $2 billion in energy transition invest- ments, targeting a total deploy- ment of 1.5 GW of clean renewable Renewables Solar Saudi Arabia’s solar company Taqat Badeela to sell 21% shares in IPO Taqat Badeela hopes to raise funds to support its ambitious expansion plan as demand for solar products increases in Saudi Arabia Energy Transition Accelerator Financing (ETAF) Platform, a new global climate finance facility to accelerate the transition to renewable energy in developing countries, has been launched Saudi Arabia based solar energy fi rm Taqat Badeela has announced plans to sell 21.28% of its shares to the public to fund its expansion ambitions, according to media reports. The subscription for up to 135,134 shares will be available through the Afaq Financial Plat- form for 80 days, from Nov. 15, 2021 until Feb. 3, 2022, reported Argaam. Taqat Badeela installs, main- tains and manufactures solar panel systems for homes and compa- nies. The company hopes to cash in on the increasing demand in Saudi Arabia for this energy source. Saudi Arabia launched the National Renewable Energy Pro- gram in 2017 to increase the share of renewables in its overall power mix. The fi rst round of the program facilitated the installation of the 300-MW Sakaka solar park and the 400-MW Dumat Al-Jandal wind farm, which produced its fi rst power in April. The Kingdom wants to increase the generation capacity of renew- the UAE fundamentally believes, we must work together globally, in partnerships, to mitigate the effects of climate change,” Al Nahyan sad that the UAE was proud to act decisively in push- ing forward a responsible, sustain- ability-led agenda, and in assisting other nations to benefi t from the signifi cant advantages of renew- able energy.” able energy sources to about 58.7 GW by 2030, of which 40 GW would be from solar and 16 GW from wind energy and the balance coming from other The renewable energy market in the Gulf Cooperation Council coun- tries has already reached 17 GW and stands at 70 gigawatts in the wider Middle East and North Africa region. NEWS 6 Utilities Middle East December www.utilities-me.comEAD develops model for smart management of fresh water storage project The Environment Agency - Abu Dhabi (EAD), in cooperation with the Abu Dhabi Transmission and Despatch Company, has developed a smart management model for the strategic groundwater storage project - Makhazin Al Khayr. The model aims to use artifi cial intelligence systems and machine language to manage and operate wells, determine the quantities of pumped water, and control the water quality, so the water pumped from 315 underground wells remains within the permissible specifi cations and standards for drinking water in Abu Dhabi. The project also contributes to signifi cantly reducing cost, reducing human interference in the operation process, and achieving the highest effi ciency in the project without any errors. The project includes operating 315 underground wells which is the total number of pumping wells in the project. These wells can be used in times of emergency and can pump about 40 million gallons per day to overcome any shortage in the supply of freshwater resources. About 80% of these wells are operated to pump the required quantities in an emergency, and 20% are spare wells. bin Zayed Al Nahyan, Member of the Abu Dhabi Executive Council, Chairman of the Abu Dhabi Exec- utive Offi ce and Chairman of the Executive Committee of ADNOC’s Board of Directors launched the partnership. Simultaneously, EWEC will benefi t from long-term elec- tricity offtake for its current and future renewable and clean power sources, which include solar and ADNOC and EWEC launch clean energy partnership Abu Dhabi National Oil Company (ADNOC) and EWEC (Emirates Water and Electricity Company) have launched a landmark clean energy partnership. The strategic partnership, which is the largest of its kind in the oil and gas industry, will see up to 100% of ADNOC’s grid power supplied by EWEC’s nuclear and solar clean energy sources, making ADNOC the fi rst major oil and gas company to decarbonise its power at scale through a clean power agreement and strengthening the company’s position as one of the world’s least carbon-intensive oil and gas pro- ducers. Sheikh Khaled bin Mohamed Clean energy Lithium Lepidico to Set Up $95mn Lithium Production Facility in KIZAD Covering a land area of 57,000sqm, the first phase of Lepidico’s development for the chemical plant will house clean-tech L-Max® and LOH-Max® process technologies Largest clean energy agreement of its kind will see up to 100% of ADNOC’s grid power supplied by EWEC’s nuclear and solar clean energy from January 2022 Khalifa Industrial Zone Abu Dhabi (KIZAD), a subsidiary of AD Ports Group’s Industrial Cities & Free Zone (IC&FZ) cluster, has announced the signing of an agree- ment with Lepidico Ltd, a global lithium exploration and develop- ment company, for establishing the fi rst lithium production facility in the Middle East, utilising a fi rst of its kind designed process. Covering a land area of 57,000sqm, the fi rst phase of Lep- idico’s development for the Dh348 million ($95 million) chemical plant will house clean-tech L-Max® and LOH-Max® process technolo- gies. The process extracts lithium and recovers valuable by-products from lithium-mica and phosphate minerals. As an eco-friendly, zero- waste facility, the residue predom- inantly gypsum, will be repurposed for use in the construction industry. Abdullah Al Hameli, Head of Industrial Cities & Free Zone Clus- ter, AD Ports Group said, “AD Ports Group is committed to support- ing cutting edge innovative solu- tions that advance industrial devel- opment within the UAE. The Lep- idico’s process technology also aligns with our sustainability prin- ciples, and our vision to support innovative environmental solu- tions that contribute to the long- term sustainable development of Abu Dhabi, as outlined by the lead- ership of the emirate. “We are pleased to host an inno- vative and environmentally con- scious company like Lepidico, which aims to establish the region’s fi rst lithium production facility in nuclear power, enabling continued investment in transformative inno- vations to decarbonise the energy sector. This progressive approach sup- ports the United Arab Emirates (UAE) Net Zero by 2050 Strategic Initiative and enhances ADNOC’s pathway to decarbonisation while enabling sustainable future growth. It also underpins the UAE’s bold and strategic approach to enable a lower carbon future. Sheikh Khaled bin Mohamed bin Zayed Al Nahyan emphasised the importance of capitalising on opportunities to achieve the UAE 2050 Net Zero Emissions Target. the Middle East, located in KIZAD. The project is a critical enabler for developing an electric vehicle supply chain in the Middle East.” AD Ports Group and Lepidico sign agreement to establish the Middle East’s fi rst Lithium produc- tion facility in KIZAD. Joe Walsh, Managing Director, Lepidico, said, “The signing of the Agreement represents an impor- tant milestone in developing the fi rst phase of the new chemical plant and enables critical path geo- technical, and infrastructure EPCM works to commence.” NEWS 8 Utilities Middle East December www.utilities-me.comSolar Decathlon Middle East 2021 transforms traditional house design into a smart and sustainable oasis The second Solar Decathlon Middle East (SDME) for universities to design, build and operate sustainable solar-powered houses saw the submission of smart and sustainable designs to turn a traditional home in the Middle East and North Africa (MENA) region into a technological oasis with power effi cient and water- saving features. The second SDME is organised by Dubai Electricity and Water Authority (DEWA) under the patronage of Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, as part of an agreement between DEWA, Dubai Supreme Council of Energy, and US Department of Energy. “Hosting both editions of SDME, for the fi rst time in the MEA region in Dubai, with a total prize up to Dh20mn is a clear indication of Dubai’s position as a city of the future adopting the latest sustainable solutions and offers the world’s youth a safe space to innovate,” said Saeed Mohammed Al Tayer, MD & CEO of DEWA. “The SDME aims to encourage young people to create designs for smart and sustainable, solar-powered homes.” October 2021 for the $7.2billion senior debt facilities through a diverse mix of local, regional, and international banks and fi nancial institutions. Some aspects of the limited recourse project fi nancing involve the participation of the Saudi Industrial Development Fund (SIDF), a consortium of far-east- ern non-bank fi nancial institutions, traditional commercial banks and Islamic banks. Located in Jazan, Saudi Arabia, the IGCC plant is the world’s largest facility of its kind. The JV has purchased ASUs, gasifi cation, syngas cleanup, ACWA Power announces fi nancial close for $12bn power JV at Jazan ACWA Power, a Saudi based devel- oper, investor and operator of power generation, desalinated water and green hydrogen plants, has announced the fi nancial close and completion of the acquisition of the fi rst group of assets for the Jazan integrated gasifi cation com- bined cycle (IGCC) project. The JV will complete the com- missioning and testing and com- mence operating, and maintaining the plant to supply power, steam, hydrogen, and other utilities for Aramco’s Jazan refi nery, under a 25-year contract with Aramco. The Jazan IGCC project’s fi nan- cial close was achieved on 18th ACWA Power COP28 UAE is the offi cial host for COP28 in 2023 Confirmation followed unanimous endorsement by the Asia Pacific Group of na- tions during COP26 Transaction is the largest project finance agreement in ACWA’s history. The JV is for the plant to supply power, steam and hydrogen for Aramco’s Jazan refinery The UAE will host the 28th UN global climate talks in 2023, after a decision made by the body in Glasgow on Thursday night to accept the Emirates’ bid to run the negotiations. A plenary meeting of the UN Framework Convention on Climate Change approved the motion, under the dates and venues of future sessions, for the meeting to open in the UAE on November 6, 2023. “There being no objections, it is decided,” declared Cop26 presi- dent Alok Sharma. Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, tweeted after the announcement that the UAE would put everything towards making Cop28 a success. “We congratulate the Emir- ates for winning the bid to host the most important conference for cli- mate Cop28, for 2023 … a deserved win for our country … we will put all our capabilities for the conference to succeed … the UAE will remain committed to global climate action to protect our planet Earth,” he said. Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, said the UAE was “honoured” to be host country for Cop28. utilities, and power assets from Aramco. The JV owns and operates the facility under a 25-year contract for a fi xed monthly fee, with Saudi Aramco supplying feedstock to the JV, and the JV producing power, steam, hydrogen and other utilities for Aramco. “We look forward to working with the international community to accelerate efforts to address cli- mate change and environmental protection and create a more sus- tainable economic future,” Sheikh Mohamed tweeted. “Cop28 in 2023 will and must be a ‘solutions Cop’ – and I am confi - dent that the rich experience of this young, inclusive nation in advanc- ing practical, viable and share- able solutions to the world’s most pressing challenges will again come to the fore,”said Sheikh Abdullah bin Zayed, Minister of For- eign Affairs and International Co- operation. “The UAE Net Zero by 2050 Strategic Initiative shows our own unwavering commitment to pro- moting climate action.” NEWS www.utilities-me.com December 2021 Utilities Middle East 9Next >