Claudio Facchin, Chief Executive Offi cer, Hitachi Energy, on decarbonising future energy infrastructure through innovation and core services AN ITP MEDIA GROUP PUBLICATION JANUARY 2024• VOL. 18, ISSUE 01 NET ZERO ENERGY FUTURETHURSDAY 29 TH FEBRUARY 2024 GROSVENOR HOUSE, DUBAI, UAE oilandgasmiddleeast.com/awards NOMINATIONS ARE NOW OPEN RECOGNISING THE IDEAS, INITIATIVES & INNOVATIONS SHAPING THE FUTURE OF ENERGY SPONSORSHIP ENQUIRIES Andrea Mocay Commercial Manager T:+971 444 3662 M: +971 52 329 3301 E: andrea.mocay@itp.com SCAN TO NOMINATE EVENT ENQUIRIES Dmitry Lazarenko Marketing & Events Manager T: +971 444 3659 E: dmitry.lazarenko@itp.comJanuary 2024 / Vol.18 | Issue 01 08 COP28 SUCCESS World’s largest private investment vehicle for climate action launched at COP28 with an aim to raise $250 billion within the next six years 12 RENEWABLES BOOST COP28 calls for a tripling of renewable energy capacity, doubling energy effi ciency improvements and a fossil-free future 14 ENERGY TRANSITION Global utilities rally at COP28, marking a new era for energy transition with strong support for sustainable practices 18 EFFICIENCY IN WATER Xylem’s Middle East MD, Pietro Moro, discusses the company’s strategic solutions for addressing critical water challenges 08 12 1418 www.utilities-me.com January 2024 3 CONTENTS22 A NET ZERO ENERGY FUTURE How COP28’s role in shaping energy transformation aligns with Hitachi Energy’s commitment on sustainability and innovation 28 FUTURE-PROOFING POWER Exclusive interview with Javier Cavada, Mitsubishi Power CEO for EMEA, on enabling resilient future power generation systems 32 INNOVATIONS IN UTILITIES ACWA Power’s Thomas Altmann discusses innovations and effi ciency strategies for their energy and water portfolio 36 CLEAN ENERGY NEW MARKETS How empowering new markets and forging key partnerships can fast-track renewable energy and address energy access gaps 40 A COP WORTH BILLIONS A rundown of deals signed during COP28 to boost renewable energy development and climate action across Africa 44 UTICO SHIFTS GEARS Utico shifts to geographic expansion and tech exploration to optimise assets and foster business diversifi cation initiatives 28 3244 4 January 2024 www.utilities-me.com CONTENTSEmail - snarula@dmsglobal.net UAE Cell & +97150 6518010 CONTACT Sundeep Narula Chief Commercial Officer +971 249 161 71 (UAE Office) +973 17 405 590 (Bahrain Office)To flip through previous editions of Utilities Middle East magazine, visit utilities-me.com/emagazines/digital-magazine Published by and © 2024 ITP MEDIA Group FZ-LLC. PO Box 500024, Dubai, UAE Tel: 00 971 4 444 3000 Web: www.itp.com Offices in Abu Dhabi, Dubai, London, Mumbai, Riyadh & Geneva ITP MEDIA GROUP CEO Ali Akawi Managing Director Alex Reeve EDITORIAL Group Editor Kate-Lynne Wolmarans Tel: +971 4 444 3541 email: kate.wolmarans@itp.com Editor Baset Asaba Tel: +971 4 444 3159 email: baset.asaba@itp.com Commercial Editor Angitha Pradeep Tel: +971 4 444 3278 email: angitha.pradeep@itp.com DESIGN Art Director Amjad Ayche Art Editor Tofiq Memon Contributing Designer Muhammed Nahas ADVERTISING Group Commercial Director Anup Nagpurkar Tel: +971 4 444 3573 email: anup.nagpurkar@itp.com Sales Manager Jaya Kumar Tel: +971 4 444 3268 email: jaya.kumar@itp.com PHOTOGRAPHY Videographer Muhammad Kaleem Senior Video Editor Liju Cheruvathur Social Media & Production Manager Andy Ruedas PRODUCTION Production Manager Denny Kollannoor Production Coordinator Manoj Mahadevan Senior Image Editor Emmalyn Robles DISTRIBUTION Circulation Executive Rajesh Pillai Distribution Coordinator Avinash Pereira MARKETING Director of Awards and Marketing Daniel Fewtrell ITP GROUP CEO Ali Akawi CFO Toby Jay Spencer-Davies The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review. 6 January 2024 www.utilities-me.comBaset Asaba Editor A s a participant of last month’s COP28 event that took place in Dubai, one of the defining narratives was the clash of perspectives on the future of fossil fuels. Arab energy ministers declared that oil and gas would remain pillars of global energy for many decades to come, reflecting the deep divisions among delegates, with some advocating for a decisive phase-out of fossil fuels as a means to combat global warming. The tensions surrounding this issue were palpable, especially as Arab and other hydrocarbon producers staunchly defended the role of fossil fuels in the development of their economies. The European Union (EU) had led the charge against hydrocarbons, reiterating its commitment to a ban on oil, gas, and coal. The EU’s call for the world to abandon hydrocarbons was met with resistance, revealing the deep-seated economic implications for major oil and gas producers. For some industry observers, the reactions from EU officials suggest an unrealistic expectation that major oil-producing nations would willingly commit to abandoning their primary revenue source. Most OPEC members, including Saudi Arabia, heavily rely on oil and gas exports for their budgets. While Russia is not as dependent, hydrocarbons still represent a significant portion of its budget. Industry observers further point out the potential double standards at play when the EU, a major oil and gas consumer, criticises OPEC without addressing its own substantial role in hydrocarbon consumption. For some, this has become a standard practice, where oil and gas producers are targeted without holding major consumers like India and China accountable. Kuwait’s Oil Minister, Saad Al Barrak, decried the proposed phase-out, expressing surprise at the intensity of the attack on oil, and calling for an end to what he termed “historical exploitation” of some regions. The sentiments expressed at COP28 highlight the critical juncture at which we find ourselves—a moment demanding a re-evaluation of our energy systems. Balancing the needs of economic stability with obligations to curb emissions requires nuanced and cooperative approaches. In this issue, we delve deep into the outcomes of COP28, examining the implications for the energy sector and the broader climate agenda. www.utilities-me.com January 2024 7 EDITOR’S LETTER COP28: Reality check on energy’s dilemmaT he United Arab Emirates (UAE) has announced a historic commitment by pledging $30 billion to support global efforts to combat climate change. The financial commitment will fuel Alterra, a newly established private investment vehicle, aiming to raise $250 billion in the next six years. Announced during the opening address at the COP28 summit in Dubai by President Sheikh Mohamed, this initiative seeks to create a more equitable climate finance system. Alterra, hailed as the “world’s largest private investment vehicle for climate action” by COP officials, will concentrate on climate investments in emerging markets and developing economies. These regions have historically faced challenges in securing funding due to perceived higher risks. To kickstart this initiative, Alterra, in collaboration with partners such as BlackRock, Brookfield, and TPG, has already committed $6.5 billion to climate-dedicated funds, including projects in the Global South. COP28 President Dr. Sultan Al Jaber, who will chair Alterra’s board, deems the launch a “defining moment” in creating a new era of international climate finance. He highlighted Alterra’s transformative potential in attracting private capital, expressing confidence in its ability to act as a unique vehicle, reflecting the COP presidency’s action agenda and the UAE’s commitment to making climate finance accessible and affordable. The urgency to address electricity access for over 600 million people in Africa is further underscored by the partnership between Alterra and BlackRock, Brookfield, and TPG. This collaboration aims to mobilise capital from institutional investors and global entities, emphasising the role of the private sector in financing climate solutions. As highlighted in a report released during COP27, emerging markets and developing economies require up to $2.4 trillion annually by 2030 to combat climate change. Without concessional finance, achieving a net- zero scenario could cost over $7 trillion per year through 2050. Alterra’s structure, comprising a $25 billion fund (Alterra Acceleration) and a $5 billion fund (Alterra Transformation), aligns with COP28’s priorities, including energy transition, industrial decarbonisation for the hard to abate sectors, sustainable living, and climate technologies. The Alterra Transformation fund specifically addresses risk mitigation and aims to attract investment flows into the Global South. This aligns with the recognition that making green projects more bankable can unleash private finance, potentially reducing investment needs by $2 trillion annually. This approach underlines the role of concessional funding and better financing structures to reduce the energy transition’s cost by nearly 40% for developing countries. UAE commits $30BN to Global Climate Action at COP28 The financial commitment will fuel Alterra, a newly established private investment vehicle, aiming to raise $250 billion $250B To be raised in six years 8 January 2024 www.utilities-me.com NEWSDubai unveils world’s largest concentrated solar (CSP) plus PV project ACWA Power to develop the largest green hydrogen project in Indonesia The project features the tallest solar tower in the world, standing at 263.1 m high Facility to be powered by 600MW renewable energy plant and will produce 150,000 tonnes of green ammonia annually D ubai has inaugurated the world’s most extensive concentrated solar power project within the fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park. Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE and Ruler of Dubai, launched the 950MW Phase Four, representing a significant stride in the realm of sustainable energy. The $4.3 billion investment in Phase Four integrates three important hybrid technologies, comprising 600MW from a parabolic basin complex, 100MW from the CSP tower, and an additional 250MW from photovoltaic solar panels. The project features the world’s tallest solar tower, standing at an impressive 263.1 meters, and features the largest thermal energy storage S audi-listed ACWA Power is set to develop in the largest green hydrogen facility in Indonesia with PT Perusahaan Listrik Negara (PLN), Indonesia’s state-owned electricity provider and PT Pupuk Indonesia, a state-owned fertiliser and chemical producer. The announcement was made on the sidelines of 28th United Nations Climate Change Conference (COP28) underway in Dubai. ACWA Power CEO Marco Arcelli signed the agreement with PLN’s CEO Darmawan Prasodjo and Rahmad Pribadi - CEO of Pupuk Indonesia Holding Company. “As we expand our footprint in Indonesia, we remain committed to supporting sustainable progress, for a greener future for all,” said Marco capacity of 5,907 megawatt hours. In an address, Sheikh Mohammed highlighted the UAE’s commitment to transforming into one of the world’s most sustainable nations. “Our journey towards sustainability encompasses advanced clean energy projects across diverse renewable sources and innovative solutions integrated into various spheres of the economy and society,” he said. The launch of the Solar Park’s fourth phase coincides with the culmination of the UAE’s Year of Sustainability, marking a crucial milestone in the nation’s sustainability journey. Arcelli, Chief Executive Officer of ACWA Power. The Garuda Hidrogen Hijau (GH2) Project, which is expected to start commercial operations in 2026, will run on 600MW of solar and wind power, and will produce 150,000 tonnes of green ammonia per year. Sheikh Mohammed underscored the project’s role in advancing climate action, aligning with the goals of the UN Climate Change conference COP28, currently hosted by the UAE. Driven by the objectives of the UAE’s Net Zero by 2050 Strategy, the project signifies a significant contribution to the global effort to combat climate change. Sheikh Mohammed said, “Our dedication to sustainability is a testament to our resolve to contribute to fostering a resilient and prosperous future for all of humanity.” The cost of the project is estimated to be upwards of $1 billion. The bidding process for engineering procurement and construction (EPC) for the Garuda Hidrogen Hijau project is expected to start in the first quarter of 2024, with financial close planned for the end of 2025. ACWA Power is expanding its green hydrogen portfolio; work is well underway at the 1.2 million tonne-per-year NEOM Green Hydrogen Project in Saudi Arabia and planned for completion in late 2026, and the company broke ground on a second project in Uzbekistan, in November 2023. “Green hydrogen is one of the answers to the energy transition. Therefore, the development of green hydrogen is our focus in efforts to accelerate the energy transition,” said PLN President Director Darmawan Prasodjo. “We see a strong commitment from the government, PLN, Pupuk Indonesia and ACWA Power, therefore we are ready to support this joint development effort of green hydrogen and green ammonia to achieve common goals.” www.utilities-me.com January 2024 9 NEWSNext >