ACWA Power: NEOM will push KSA to the forefront of green hydrogen production

(NEOM/Callie Chee)
(NEOM/Callie Chee)
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Updated 14 January 2021

ACWA Power: NEOM will push KSA to the forefront of green hydrogen production

ACWA Power: NEOM will push KSA to the forefront of green hydrogen production
  • Chairman of ACWA Power Mohammad A. Abunayyan noted that the project is now in its early stages, with completion expected by 2025

DUBAI: The Chairman of ACWA Power Mohammad A. Abunayyan has said that a new hydrogen project partnership with NEOM and Air Products will lead to Saudi Arabia being at the forefront of green energy production and exports.

In an interview with Asharq News, Abunayyan said “NEOM city enjoys a strategic location for renewable energy, especially with wind and solar energy, which will enable the joint venture to convert renewable energy into green hydrogen with new technology for the first time.”

He added that the new technology “will be utilized in the supply chains of the NEOM project, and will be the beginning of the Kingdom’s green energy leadership in the world.”

The chairman noted that the project is now in its early stages, with completion expected by 2025. “This project does not only benefit NEOM but the whole world, as its green energy products will be exported everywhere.”

In July 2020, Air Products, in conjunction with ACWA Power and NEOM, announced the signing of an agreement for a $6 billion world-scale green hydrogen-based ammonia production facility powered by renewable energy. The planning and design phases are currently underway to start construction in the industrial zone.

This joint venture is the first step for the NEOM region to become a key player in the global hydrogen market. The business is expected to build an environmentally-friendly hydrogen production facility to provide sustainable solutions for the global transport sector and to meet the challenges of climate change.

The project, which will be equally owned by the three partners, will export hydrogen to the world market for use as a biofuel that feeds transportation systems.

It will produce 650 tons per day of carbon-free hydrogen and 1.2 million tons of green ammonia per year, reducing carbon dioxide emissions by the equivalent of 3 million tons per year.
 


In oil-rich Iraq, a few women buck norms, take rig site jobs

In oil-rich Iraq, a few women buck norms, take rig site jobs
Updated 28 February 2021

In oil-rich Iraq, a few women buck norms, take rig site jobs

In oil-rich Iraq, a few women buck norms, take rig site jobs
  • They are part of a new generation of talented Iraqi women who are testing the limits imposed by their conservative communities

BASRA: It’s nearly dawn and Zainab Amjad has been up all night working on an oil rig in southern Iraq. She lowers a sensor into the black depths of a well until sonar waves detect the presence of the crude that fuels her country’s economy.
Elsewhere in the oil-rich province of Basra, Ayat Rawthan is supervising the assembly of large drill pipes. These will bore into the Earth and send crucial data on rock formations to screens sitting a few meters (feet) away that she will decipher.
The women, both 24, are among just a handful who have eschewed the dreary office jobs typically handed to female petroleum engineers in Iraq. Instead, they chose to become trailblazers in the country’s oil industry, donning hard hats to take up the grueling work at rig sites.
They are part of a new generation of talented Iraqi women who are testing the limits imposed by their conservative communities. Their determination to find jobs in a historically male-dominated industry is a striking example of the way a burgeoning youth population finds itself increasingly at odds with deeply entrenched and conservative tribal traditions prevalent in Iraq’s southern oil heartland.
The hours Amjad and Rawthan spend in the oil fields are long and the weather unforgiving. Often they are asked what — as women — they are doing there.
“They tell me the field environment only men can withstand,” said Amjad, who spends six weeks at a time living at the rig site. “If I gave up, I’d prove them right.”
Iraq’s fortunes, both economic and political, tend to ebb and flow with oil markets. Oil sales make up 90% of state revenues — and the vast majority of the crude comes from the south. A price crash brings about an economic crisis; a boom stuffs state coffers. A healthy economy brings a measure of stability, while instability has often undermined the strength of the oil sector. Decades of wars, civil unrest and invasion have stalled production.
Following low oil prices dragged down by the coronavirus pandemic and international disputes, Iraq is showing signs of recovery, with January exports reaching 2.868 million barrels per day at $53 per barrel, according to Oil Ministry statistics.
To most Iraqis, the industry can be summed up by those figures, but Amjad and Rawthan have a more granular view. Every well presents a set of challenges; some required more pressure to pump, others were laden with poisonous gas. “Every field feels like going to a new country,” said Amjad.
Given the industry’s outsized importance to the economy, petrochemical programs in the country’s engineering schools are reserved for students with the highest marks. Both women were in the top 5% of their graduating class at Basra University in 2018.
In school they became awestruck by drilling. To them it was a new world, with it’s own language: “spudding” was to start drilling operations, a “Christmas tree” was the very top of a wellhead, and “dope” just meant grease.
Every work day plunges them deep into the mysterious affairs below the Earth’s crust, where they use tools to look at formations of minerals and mud, until the precious oil is found. “Like throwing a rock into water and studying the ripples,” explained Rawthan.
To work in the field, Amjad, the daughter of two doctors, knew she had to land a job with an international oil company — and to do that, she would have to stand out. State-run enterprises were a dead end; there, she would be relegated to office work.
“In my free time, on my vacations, days off I was booking trainings, signing up for any program I could,” said Amjad.
When China’s CPECC came to look for new hires, she was the obvious choice. Later, when Texas-based Schlumberger sought wireline engineers she jumped at the chance. The job requires her to determine how much oil is recoverable from a given well. She passed one difficult exam after another to get to the final interview.
Asked if she was certain she could do the job, she said: “Hire me, watch.”
In two months she traded her green hard hat for a shiny white one, signifying her status as supervisor, no longer a trainee — a month quicker than is typical.
Rawthan, too, knew she would have to work extra hard to succeed. Once, when her team had to perform a rare “sidetrack” — drilling another bore next to the original — she stayed awake all night.
“I didn’t sleep for 24 hours, I wanted to understand the whole process, all the tools, from beginning to end,” she said.
Rawthan also now works for Schlumberger, where she collects data from wells used to determine the drilling path later on. She wants to master drilling, and the company is a global leader in the service.
Relatives, friends and even teachers were discouraging: What about the hard physical work? The scorching Basra heat? Living at the rig site for months at a time? And the desert scorpions that roam the reservoirs at night?
“Many times my professors and peers laughed, ‘Sure, we’ll see you out there,’ telling me I wouldn’t be able to make it,” said Rawthan. “But this only pushed me harder.”
Their parents were supportive, though. Rawthan’s mother is a civil engineer and her father, the captain of an oil tanker who often spent months at sea.
“They understand why this is my passion,” she said. She hopes to help establish a union to bring like-minded Iraqi female engineers together. For now, none exists.
The work is not without danger. Protests outside oil fields led by angry local tribes and the unemployed can disrupt work and sometimes escalate into violence toward oil workers. Confronted every day by flare stacks that point to Iraq’s obvious oil wealth, others decry state corruption, poor service delivery and joblessness.
But the women are willing to take on these hardships. Amjad barely has time to even consider them: It was 11 p.m., and she was needed back at work.
“Drilling never stops,” she said.


Women fight for funding in man’s world of tech startups

Women fight for funding in man’s world of tech startups
Updated 28 February 2021

Women fight for funding in man’s world of tech startups

Women fight for funding in man’s world of tech startups
  • Women-led startups tend to be on the outside of the “pipeline” that unofficially funnels entrepreneurs to venture capitalists

SAN FRANCISCO: Lauren Foundos has excelled at just about everything she has put her mind to, from college sports and Wall Street trading to her Forte startup that takes workouts online.
Being a woman in the overwhelmingly male world of venture capital was still a barrier — but, like many other female entrepreneurs, she only worked harder to succeed.
“In some cases, before I even spoke, they were asking me if I would step down as chief executive,” Foundos said of encounters with venture capitalists.
“This was a whole new level.”
Men would speak past her in meetings, discussing whether she could emotionally handle the job as if she wasn’t there, or wondering out loud who would take care of the books.
“When that happens, I tell them I am right here,” Foundos said. “I am the finance guy; I worked at big banks for more than 10 years. I’ve been the best at everything I have ever gone into.”
Startups can only get by so long relying on friends, family or savings before eventually needing to find investors willing to put money into young companies in exchange for a stake in the business.
Money invested in startups in their earliest days, perhaps when they are no more than ideas or prototypes, is called “seed” funding.
When it comes to getting backing for a startup it is about trust, and that seems to be lacking when it comes to women entrepreneurs, according to Foundos and others interviewed by AFP.
“I don’t think women need to be given things,” Foundos said of venture capital backing. “But I think they are not seeing the same amount of deals.”
Forte has grown quickly as the pandemic has gyms and fitness centers scrambling to provide online sessions for members.
Foundos brought on a “right-hand man,” a male partner with a British accent, to provide a more traditional face to potential investors and increase the odds of getting funding.
She has taken to asking venture capitalists she meets if they have invested in women-led companies before, and the answer has always been “no.”
A paltry few percent of venture capital money goes to female-led startups in the United States, according to Allyson Kapin, General Partner at the W Fund and founder of Women Who Tech (WWT).
Being sexually propositioned in return for funding, or even an introduction to venture capitalists, is common for women founders of startups, according to a recent WWT survey.
Some 44 percent of female founders surveyed told of harassment such as sexual slurs or unwanted physical contact while seeking funding.
And while last year set a record for venture capital funding, backing for women-led startups plunged despite data that such companies actually deliver better return-on-investment, according to Kapin.
“This isn’t about altruism or charity, this is about making a (load) of money,” Kapin said of backing women-led startups.
Prospects for funding get even more dismal for women of color.
Black entrepreneur Fonta Gilliam worked overseas with financial institutions for the US State Department before creating social banking startup Invest Sou Sou.
Gilliam took the idea of village savings circles she had seen thrive in places such as Africa and built it into a free mobile app, adding artificial intelligence and partnering with financial institutions.
She created a Sou Sou prototype and started bringing in revenue to show it could make money, but still found it tougher to get funding than male peers.
“We always have to over-perform and overcompensate,” Gilliam said. “Where startups run by men would get believed, we’d have to prove it 10 times over.”
Gilliam got insultingly low valuations for her startup, some so predatory that she walked away.
“We are still lean and mean bootstrapping, but I think it is going to pay off in the end,” Gilliam said.
“One thing about women-owned, black-owned startups: because there is such a high bar to get support our businesses tend to be scrappier, stronger and more resilient.”
Women-led startups tend to be on the outside of the “pipeline” that unofficially funnels entrepreneurs to venture capitalists, according to Kapin and others.
In Silicon Valley, that channel is open to male, white tech entrepreneurs from select universities such as Stanford.
“The pipeline becomes filled with people from the same universities; from similar backgrounds,” Kapin said.
“It is not representative of the world, which is problematic because you are trying to solve the world’s problems through the lens of very few people — mostly white men.”
Investors competing for gems in the frothy tech startup scrum are missing out on a wealth of returns, and stability, to be had by investing in neglected women founders, according to Caroline Lewis, a managing partner in Rogue Women’s Fund, which does just that.
“At the end of the day, it is the right thing to do and it is a good thing to do,” Lewis said.


UK’s Sunak will set out plans to raise income tax by $8.36bn: report

UK’s Sunak will set out plans to raise income tax by $8.36bn: report
Updated 28 February 2021

UK’s Sunak will set out plans to raise income tax by $8.36bn: report

UK’s Sunak will set out plans to raise income tax by $8.36bn: report
  • The chancellor will say he needs to raise more than 40 billion pounds to tackle the budget deficit, the report said

British finance minister Rishi Sunak will set out plans to raise income tax by 6 billion pounds ($8.36 billion), The Times reported on Sunday.
The chancellor will say he needs to raise more than 40 billion pounds to tackle the budget deficit and protect the economy from rising rates of interest on government borrowing, the report said.
The government on Saturday said Sunak will announce 5 billion pounds of additional grants to help businesses hit hard by pandemic lockdowns, in his budget.
Separately, the government said Sunak is also expected to announce an initial 12 billion pounds of capital and 10 billion pounds of guarantees for the new UK Infrastructure Bank.
A Telegraph report said Sunak is also weighing up bringing back the small profits rate, axed by George Osborne in 2014, to support small to medium-sized companies.


Europe less at risk of inflation and rate fears: analysts

Europe less at risk of inflation and rate fears: analysts
Updated 28 February 2021

Europe less at risk of inflation and rate fears: analysts

Europe less at risk of inflation and rate fears: analysts
  • Fears that US President Biden’s $1.9 trillion stimulus plan will stoke up the economy too much have unnerved investors in recent weeks

PARIS: Investors are watching inflation carefully, worried that a boiling over of prices will ruin the expected strong pandemic recovery although analysts believe Europe faces much less of a risk than the United States.
Fears that US President Biden’s $1.9 trillion stimulus plan — which was passed by the House of Representatives on Saturday — will stoke up the economy too much have unnerved investors in recent weeks.
A rise in yields on 10-year US Treasury bonds — a key indicator of expectations — shows the markets believe prices are set to rise much more sharply than last year’s gain of 1.4 percent, which could force the US Federal Reserve to hike interest rates earlier than it says it plans to do.
Bond yields have risen elsewhere too, with 10-year French government bonds turning positive on Thursday for the first time in months while the benchmark 10-year German Bund has also risen although it remains negative.
European inflation data for January showed a jump in prices of 0.9 percent compared to a minus 0.3 percent reading in December, as increased costs of raw materials fed through into services and industrial goods.
After having slowed considerably in 2020, inflation is expected to rise this year in Europe as the economy picks up following the relaxation of measures to slow the spread of the Covid-19 pandemic.
But it is not so much a spike in inflation that worries investors but that the Fed would raise interest rates faster than it has communicated.
Federal Reserve Chairman Jerome Powell pledged Tuesday that the US central bank will keep benchmark lending rates low until the economy is at full employment and inflation has risen consistently above its 2.0 percent target.
But bond yields continued to rise, indicating investor concern about a rise in interest rates that would make borrowing and investment more expensive and slow the economy.
However, many analysts are skeptical that Biden’s stimulus program will spark considerable inflation.
“It isn’t clear that Biden’s recovery plan will create lots of inflation,” said Xavier Ragot, head of the French Economic Observatory think tank.
For the European Union, there is no likelihood that its pandemic recovery program would, he believes.
“The amounts of the European recovery plans pose absolutely no inflationary risk,” he said.


The European Commission’s recovery program is worth 750 billion euros ($920 billion), with several EU members also having their own national programs.
“We have a European recovery program... considerably less strong, and a loss of growth that is much greater, so there aren’t the same risks of overheating as in the United States,” said Fabien Tripier, an economist at CEPII, a Paris-based research center on the world economy.
The US economy shrank 3.5 percent last year while the drop for the eurozone was nearly double that.
There is “no risk of overheating or a sustained rise in inflation” in the eurozone, the head of the Banque de France, Francois Villeroy de Galhau, insisted this past week.
The French Economic Observatory’s Ragot also does not believe that if the Fed is pushed by the markets into raising rates that the European Central Bank would be forced to follow suit.
“It doesn’t work like that in macroeconomics,” he said, noting that the monetary policy of the Fed and ECB had diverged considerably at the start of the last decade.
“With loose financial conditions still necessary to support the economy, the ECB is unlikely to react to the coming inflation overshoot,” said Capital Economics economist Jack Allen-Reynolds.
Francois Villeroy de Galhau, who as head of the Banque de France also sits on the ECB’s Governing Council, said the central bank wants to “maintain favorable financing conditions.”
For Fabien Tripier, the ECB needs to send “a strong signal” to the markets against the idea that “just because inflation hits 1.5 percent or 2.2 percent, speculation it will hike rates should begin.”
The ECB issued a reassuring message on Friday as executive board member Isabel Schnabel said it could broaden its support for the economy in case of a sharp rise in interest rates.


Biden urges quick Senate action on huge stimulus package

Biden urges quick Senate action on huge stimulus package
Updated 28 February 2021

Biden urges quick Senate action on huge stimulus package

Biden urges quick Senate action on huge stimulus package
  • The package passed the House just after 2:00 am (0700 GMT) Saturday, in a 219 to 212 vote

WASHINGTON: President Joe Biden on Saturday welcomed the overnight passage by the US House of Representatives of an enormous, $1.9 trillion coronavirus relief package, saying it moves the country closer to full Covid-19 vaccination and economic recovery.
The package passed the House just after 2:00 am (0700 GMT) Saturday, in a 219 to 212 vote, with not one Republican vote, and moves next week to the Senate.
"I hope it will receive quick action," Biden said in a brief address from the White House.
"We have no time to waste. If we act now, decisively, quickly and boldly, we can finally get ahead of this virus."
The vote in the House meant that "we're one step closer to vaccinating the nation, we are one step closer to putting $1,400 in the pockets of Americans, we're one step closer to extending unemployment benefits for millions of Americans who are shortly going to lose them."
He said the bill -- which would be the second-largest US stimulus ever, after a $2 trillion package approved in March -- would also help schools reopen safely and allow local and state governments to avoid "massive layoffs for essential workers."
The House vote came just days after the Covid-19 death toll surpassed 500,000 in the United States, the world's worst total.
Democrats have called the aid package a critical step in supporting millions of families and businesses devastated by the pandemic. It extends unemployment benefits, set to expire mid-March, by about six months.
But Republicans say it is too expensive, fails to target aid payments to those most in need, and could spur damaging inflation.
The administration appears poised to use a special approach requiring only 51 votes in the 100-seat Senate -- meaning the vote of every Democrat, plus a tie-breaking vote by Vice President Kamala Harris, would be required.
But progressives suffered a major setback when a key Senate official ruled Thursday that the final version of the bill in that chamber could not include a minimum wage hike.
Biden campaigned extensively on raising the federal minimum wage to $15 an hour, from the $7.25 rate that has stood since 2009. Progressives have been pushing the raise as a Democratic priority.
In his remarks Saturday, the president made no mention of the issue, a source of discord within the party.
Most Republicans, and a few Democrats, opposed the higher wage, so having it stripped from the Senate version of the legislation could actually ease its passage.