Middle East making the switch as decarbonized energy future becomes a reality

Middle East making the switch as decarbonized energy future becomes a reality
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Updated 28 January 2022

Middle East making the switch as decarbonized energy future becomes a reality

Middle East making the switch as decarbonized energy future becomes a reality

As countries strive to meet growth and development targets, many are also considering climate change and its implications, as such turning to clean and renewable energy.

How can economies today ensure global decarbonization in the private, consumer and industrial sectors? Achieving carbon neutrality requires energy efficiency in everything that can be electrified, or turning to carbon neutral hydropower.

The delivery of clean energy solutions is already playing a significant role in the sustainable energy revolution.

French multinational electric utility company EDF, one of the main actors in the industry, is studying the possible synergies between nuclear, renewable energies and hydrogen generation, including the hybridization of electricity production.

France has made a commitment to reducing greenhouse gas emissions, as well as consolidating its nuclear assets in coming decades to achieve carbon neutrality. The French pavilion at Expo 2020 brought together energy experts to share insights and best practices.

EDF’s strategy

“CAP 2030” is EDF’s main strategy to double the group’s net renewable capacity from 28 GW, including hydro, to 60 GW from 2015 to 2030. The remaining 30 GW that the group aims to produce in the years leading up to 2030 will mainly consist of renewable power, such as wind, on-shore and off-shore, and solar PV.

To speed up their energy transition, countries in the Middle East region are developing large-scale projects, which is consistent with the group’s strategy.

“The Middle East is a strategic area for EDF Renewables, and ultimately for EDF Group. We have currently secured 4 GW of projects in the Middle East and Africa, and the region has a pipeline of five additional GW to come” said Olivier Bordes, EDF Renewables Middle East’s CEO and Managing Director.

EDF Renewables’ portfolio consists of around 14 GW of renewable operational (wind and solar capacities) assets worldwide. The strategy applies in more than 20 countries where the group is present.

Shifting away from the historical market of Europe and North America, the strategy follows two trends: First, rebalancing the business toward regions including Latin America, Africa, Asia and the Middle East, which is expected to be one of the major contributors to the business in the coming years.

The second trend is rebalancing solar and wind production, the company’s portfolio being concentrated in wind energy historically.

Projects in the region

Dumat Al-Jandal project in Saudi Arabia is the largest wind farm in the region, with an installed capacity of 400 MW. The farm has started to produce clean energy during the summer 2021 and the 99 turbines are all connected to grid since the end of last year.

The Dewa 3 photovoltaic plant in Dubai is in operation since 2020. With an installed capacity of 800 MW, the plant contributes to the climate change mitigation goals by offsetting 1.4 million tonnes of CO2 emissions per year.

Projects under construction include the Al Dhafrah PV2 solar plant in Abu Dhabi. With 2 GW capacity, Al Dhafra will be the largest single-site PV initiative in the world.

In Saudi Arabia, South Jeddah 300 MW photovoltaic plant is the EDF Renewables’ first PV project in the Kingdom.

Partnerships

“Strong partnership is a key factor for success. We have partners to develop our low-carbon solutions in the region, particularly in the UAE and in KSA,” said Bordes.

In the energy sector, complementarity and innovation are fundamental for value creation, to offer the market more competitive proposals, and to participate in the energy transition.

He added, “The Middle East program has ambitious targets. One of the main challenges is to continue to accelerate the development to reach the energy transmission targets”.

EDF recently won a stake in a $3.6 billion project to develop and operate a transmission system alongside ADNOC and TAQA. This subsea transmission network, the first of its kind, will decarbonize the offshore production of ADNOC, supporting the UAE’s goal of being net zero by 2050.

EDF Group is covering all the value chain, energy generation, transmission and distribution, and energy services, such as district cooling and energy efficiency. “We believe that the best energy is the one that is not consumed” stated Laurent Clement, CEO and Managing Director of EDF Middle East.

He added, “The energy mix in the GCC region is evolving quickly to low-carbon generation, with the massive integration of renewable energy. As an example - the objective of 60 GW in KSA in 2030, or the starting of Barakah nuclear power plant in the UAE in addition to their massive renewable objectives in 2030.” said Mr. Clement.


Shares of Saudi jeweler L'azurde dip despite posting $4m profits

Shares of Saudi jeweler L'azurde dip despite posting $4m profits
Updated 11 sec ago

Shares of Saudi jeweler L'azurde dip despite posting $4m profits

Shares of Saudi jeweler L'azurde dip despite posting $4m profits

L'azurde Company for Jewelry's shares dropped in early trade on Monday despite reporting a profit for the first quarter of 2022.

The Saudi jeweler's shares edged down 2.01 percent at SR16.64 ($4.4), as of 10:44 a.m. Saudi time.

On May 22 the company reported a 34 percent boost in net profit on the back of higher sales and revenues.

The jewelry producer, which is listed on the main index TASI, generated a profit of SR13.7 million in the first quarter, up from SR10.2 million in the same period last year, it said in a bourse filing on Sunday.

The growth in net profit was primarily down to an increase in sales and revenue for the quarter of 11 percent to stand at SR614.5 million.

The company also attributed the increase in profits to higher gross profits and lower financing costs.


Saudi stocks opens higher, energy prices up: Opening bell

 Saudi stocks opens higher, energy prices up: Opening bell
Updated 55 min 20 sec ago

Saudi stocks opens higher, energy prices up: Opening bell

 Saudi stocks opens higher, energy prices up: Opening bell

RIYADH: Saudi stocks opened Monday morning's trading session higher for a second day despite fluctuating oil prices.

The main index, TASI, added 0.45 percent to reach 12,390, while the parallel market, Nomu, rose 0.46 percent at 22,430, as of 10:06 a.m. Saudi time.

Prices for crude oil were up slightly from Friday’s close. Brent crude rose to $113.77 a barrel and US West Texas Intermediate crude reached $111.38 a barrel, as of 10:02 a.m. Saudi time

Saudi Aramco, the largest player on the Saudi oil market, opened today’s trading up 0.64 percent.

Salama Cooperative Insurance Co. gained 7.08 percent to lead the market, while Anaam International Holding Group fell 4.23 percent to lead the laggards.

Arabian Pipes Co. gained  3.81 percent, after Saudi Aramco awarded the company a SR100 million ($27 million) contract to supply steel pipes.

In the financial sector, the Kingdom’s largest valued bank Al Rajhi increased 1.08 percent, while Alinma Bank gained 0.99 percent.

In the pharma sector, Aldawaa Medical Services Co. gained 0.13 percent, while Nahdi Medical Co. fell 0.65 percent.


Iran and Oman agree to jointly develop shared oilfield: Fars news

Iran and Oman agree to jointly develop shared oilfield: Fars news
Updated 23 May 2022

Iran and Oman agree to jointly develop shared oilfield: Fars news

Iran and Oman agree to jointly develop shared oilfield: Fars news

Iran and Oman have agreed to form a committee to jointly develop the Hengam oilfield, which straddles both countries’ sea border, Iran’s semi-official Fars news agency reported its oil minister Javad Owji as saying on Monday.

In 2005, both countries signed a memorandum of understanding to jointly develop the Hengam oil field but the agreement did not materialize and Iran decided to develop the field independently in 2012.

“As the first basis of my talks with Omani Oil Minister Mohammed bin Hamad Al-Rumhi, it was agreed to form a joint technical committee to develop the next phases of the Hengam oil field in a seamless manner between Iran and Oman,” Owji said.

“Joint exploitation, in contrast to competitive exploitation, will be mutually beneficial to both countries as this method leads to less damage to the reservoir and allows for more extraction,” the oil minister added.

Last week, Iran’s state news agency IRNA reported that Owji had agreed to revive a long-stalled project to lay an undersea pipeline to carry gas to Oman. 


Here’s what you need to know before Tadawul trading on Monday

Here’s what you need to know before Tadawul trading on Monday
Updated 23 May 2022

Here’s what you need to know before Tadawul trading on Monday

Here’s what you need to know before Tadawul trading on Monday

RIYADH: Saudi Arabia’s stock market closed lower for a second consecutive session on Sunday as investor sentiment was dragged down by weak earnings results.

The main index TASI dropped 0.8 percent to reach 12,334, while the parallel market Nomu lost 0.8 percent to 22,329.

Kingdom Holding Co. soared 9.9 percent after Saudi Arabia's Public Investment Fund acquired a SR5.7 billion ($1.5 billion) stake in the firm from billionaire Prince Alwaleed bin Talal.

Elsewhere in the Middle East, stock exchanges of Egypt, Bahrain, Oman, and Kuwait were all down between 0.4 and 0.9 percent, while Qatar’s QSI ended 0.1 percent higher.  

Oil prices gained on Monday with US fuel demand, tight supply and a slightly weaker US dollar supporting the market.

Brent crude rose to $113.53 a barrel and US benchmark West Texas Intermediate crude traded at $111.03 a barrel as of 9:09 a.m. Riyadh time.

Stock news

Saudi Aramco awarded contracts worth almost SR200 million collectively to Saudi Steel Pipe Co. and Arabian Pipes Co. for the supply of oil and gas steel pipes

Telecom giant stc partnered with a consortium, led by eWTP Arabia, to set up a cloud computing unit with SR894 million capital

Saudi retailer BinDawood Holding Co. posted a 5 percent profit surge to SR65.5 million in the first quarter, thanks to the easing of pandemic restrictions

Al Abdullatif Industrial Investment Co.’s losses increased by 176 percent during the first quarter of 2022 to reach SR12,110

Saudi Public Transport Co. narrowed its losses by 96 percent from SR54 million to SR2 million during the first quarter

Batic Investments and Logistics Co.’s profit in the first quarter stood at SR842,232, erasing SR3.2 million in losses from a year earlier

Mouwasat Medical Services Co. signed a nonbinding deal to fully acquire Egypt’s Al-Marasem International Hospital

Aseer Trading, Tourism, and Manufacturing Co. swung into a net profit of SR10.2 million in the first quarter

Saudi Marketing Co.’s first-quarter profit surged 45 percent to SR6.17 million due to higher retail revenue generated by Farm Superstores

Saudi Industrial Exports Co., better known as Sadirat, narrowed losses by 98 percent to SR5 million in the first quarter of 2022

Saudi Azm for Communication and Technology Co. sealed a deal with the Ministry of Communications and Information Technology to provide consulting services to its digital transformation unit

Nayifat Finance Co. announced the resignation of CEO Abdulmohsen Abdulrahman Musaed Al-Sowailem due to “his personal circumstances”

The Mediterranean and Gulf Insurance and Reinsurance Co. turned into a net loss before Zakat of SR55 million in the first quarter

Saudi Industrial Development Co.’s losses widened by 175 percent to SR4.8 million last quarter

Saudi Enaya Insurance Co.’s board recommended a capital raise to SR300 million to support the company’s future plans

Knowledge Economic City widened losses in the first quarter by 41 percent to SR6.7 million

Tabuk Agricultural Development Co. suffered 654-percent higher losses of SR10.1 million in the first quarter of 2022

Calendar

May 23, 2022

Start of Anaam International Holding Group’s subscription to new shares and rights trading

May 25, 2022

End of Amwaj International Co.’s IPO subscription

May 26, 2022

End of Ladun Investment Co.’s IPO book-building

May 30, 2022

Close of Anaam International Holding Group’s rights trading

June 2, 2022

Close of Anaam International Holding Group’s new shares subscription


Commodities Update — Gold hits one-week high; Grains edge higher on weather woes; Copper at two-week peak

Commodities Update — Gold hits one-week high; Grains edge higher on weather woes; Copper at two-week peak
Updated 23 May 2022

Commodities Update — Gold hits one-week high; Grains edge higher on weather woes; Copper at two-week peak

Commodities Update — Gold hits one-week high; Grains edge higher on weather woes; Copper at two-week peak

RIYADH: Gold prices touched a more than one-week high on Monday, as an easing dollar continued to support greenback-priced bullion, although higher US Treasury yields capped gains.

Spot gold rose 0.2 percent to $1,848.96 per ounce, by 0201 GMT. Prices hit their highest since May 12 at $1,853.55 earlier in the session.

US gold futures gained 0.4 percent to $1,847.90.

Silver up

Spot silver gained 0.4 percent to $21.84 per ounce, while platinum firmed 0.3 percent to $958.10. 

Palladium climbed 0.7 percent to $1,978.45. 

Grains edges up

US grains futures edged higher on Monday, lifted by a weaker dollar, and gains in crude oil as adverse weather conditions threatened production in key producing countries.

The most-active wheat contract on the Chicago Board of Trade was up 0.9 percent at $10.79-1/4 a bushel, as of 0343 GMT, after falling 0.74 percent last week.

Corn rose 0.32 percent to $7.81-1/4 a bushel and soybeans edged 0.41 percent higher to $17.12-1/4 a bushel.

Copper climbs

Copper prices rose to a more than two-week high on Monday, helped by a weaker US dollar and as support measures and plans to end COVID-19 lockdowns in top metals consumer China lifted hopes for a recovery in demand.

Benchmark three-month copper on the London Metal Exchange was up 0.5 percent at $9,471 a ton, as of 0418 GMT, after hitting its highest since May 5 at $9,532 in early Asian trade.

The most-active June copper contract on the Shanghai Futures Exchange rose 0.3 percent to $10,758.06 a ton by noon break, after touching its highest since May 6. 

(With input from Reuters)