Egypt’s Suez Canal Economic Zone expects to sign about $25 billion worth of green energy deals at Cop27, the UN climate change summit to be hosted in the Red Sea coastal city of Sharm El Sheikh in November.
Of the 16 memoranda of understanding signed between the SCZone and international companies since March, about five could result in final agreements at the conference, an SCZone spokeswoman told The National.
Last week, the SCZone signed seven agreements worth at least $31bn to set up green hydrogen and ammonia production facilities. It previously signed seven initial agreements worth more than $14bn.
“SCZone has a vision based on making it a regional and global hub for the production of green fuel, as it is scheduled to announce several projects and final contracts coinciding with Egypt’s hosting of Cop27,” said SCZone chairman Walid El Dein, following a meeting with Egyptian Prime Minister Mostafa Madbouly on Saturday.
Egypt is aiming to increase its renewable energy sources to 42 per cent by 2035 and has been ramping up its green hydrogen ambitions in recent months before Cop27.
Hydrogen is projected to account for 12 per cent of global energy use and 10 per cent of carbon dioxide emissions reductions by 2050, driven by climate change urgency and countries’ commitments to net zero, the International Renewable Energy Agency says.
The colourless, odourless gas comes in several forms, including blue, green and grey. Blue and grey hydrogen are derived from natural gas, while green hydrogen is produced using renewable sources.
The Mena region has the highest number of low carbon-based hydrogen initiatives for export purposes and is projected to be the world’s largest supplier of green hydrogen in the coming years, according to research from the Abu Dhabi-based Clean Energy Business Council.
In the SCZone’s 460-kilometre area, 15 of the planned projects will be in the Ain Sokhna economic zone on the western side of the Gulf of Suez and one in East Port Said, which is close to the north exit of the Suez Canal.
“The integration between the industrial zones and the affiliated ports gave SCZone the competitive advantage that made it one of the most important global destinations and a regional hub for the green fuel industries,” Mr El Dein said.
The seven deals signed last week at the Egyptian government headquarters in New Alamein were between the SCZone, the Sovereign Fund of Egypt, the Egyptian Electricity Transmission Company, and companies from Egypt, India, Saudi Arabia, the UK and the UAE.
India’s Acme Group, which currently has projects in India and Oman, will build a $13bn hydrogen production plant with a total capacity of 2.2 million tonnes annually.
Africa-focused British company Globeleq plans to establish a $11bn green fuel production plant on an area of 10 million square metres and an annual production capacity of two million tonnes.
Saudi Arabian company Alfanar said on Monday it aims to develop a $3.5bn centre in Sokhna that will produce 500,000 tonnes of green ammonia from 100,000 tonnes of green hydrogen per year.
Green ammonia, which is used in making fertilisers, is made with hydrogen that comes from water electrolysis powered by alternative energy.
Alfanar has renewable energy projects in Egypt, India, Saudi Arabia, Spain and the UK.
It currently operates a 50 megawatts solar project in Aswan’s Benban Solar Park. The electricity generated from the solar plant offsets about 57,000 tonnes of carbon dioxide emissions per year, the company said.
The UAE’s Alcazar is looking to construct a $2bn green fuel production complex with an annual production capacity of 230,000 tonnes.
Also from the UAE, the K&K Group plans to build a green hydrogen production plant with the same capacity, although the investment value was not disclosed.
A $1.5bn project from the UK’s Actis will establish green fuel production plants with a capacity of 200,000 tonnes annually.
Finally, Egypt’s Mediterranean Energy Partners will invest $250m to establish a green ammonia plant with a production capacity of 120,000 tonnes per year.
The companies will now begin conducting feasibility studies on the projects, the SCZone said.
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Fuel economy combined 12.2L / 100km
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
MATCH INFO
Rugby World Cup (all times UAE)
Final: England v South Africa, Saturday, 1pm
A little about CVRL
Founded in 1985 by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, the Central Veterinary Research Laboratory (CVRL) is a government diagnostic centre that provides testing and research facilities to the UAE and neighbouring countries.
One of its main goals is to provide permanent treatment solutions for veterinary related diseases.
The taxidermy centre was established 12 years ago and is headed by Dr Ulrich Wernery.
more from Janine di Giovanni
Ibrahim's play list
Completed an electrical diploma at the Adnoc Technical Institute
Works as a public relations officer with Adnoc
Apart from the piano, he plays the accordion, oud and guitar
His favourite composer is Johann Sebastian Bach
Also enjoys listening to Mozart
Likes all genres of music including Arabic music and jazz
Enjoys rock groups Scorpions and Metallica
Other musicians he likes are Syrian-American pianist Malek Jandali and Lebanese oud player Rabih Abou Khalil
The Vile
Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah
Director: Majid Al Ansari
Rating: 4/5
Vaccine Progress in the Middle East
Two products to make at home
Toilet cleaner
1 cup baking soda
1 cup castile soap
10-20 drops of lemon essential oil (or another oil of your choice)
Method:
1. Mix the baking soda and castile soap until you get a nice consistency.
2. Add the essential oil to the mix.
Air Freshener
100ml water
5 drops of the essential oil of your choice (note: lavender is a nice one for this)
Method:
1. Add water and oil to spray bottle to store.
2. Shake well before use.
Dolittle
Director: Stephen Gaghan
Stars: Robert Downey Jr, Michael Sheen
One-and-a-half out of five stars
MATCH INFO
Inter Milan 2 (Vecino 65', Barella 83')
Verona 1 (Verre 19' pen)
The specs
Engine 60kwh FWD
Battery Rimac 120kwh Lithium Nickel Manganese Cobalt Oxide (LiNiMnCoO2) chemistry
Power 204hp Torque 360Nm
Price, base / as tested Dh174,500
'The Lost Daughter'
Director: Maggie Gyllenhaal
Starring: Olivia Colman, Jessie Buckley, Dakota Johnson
Rating: 4/5
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