Emirates operates MENA’s first test flight powered by 100% green fuel

The Emirates flight will act as a reference for potential demonstrations in the near future where 100 percent sustainable aviation fuel is approved.
The Emirates flight will act as a reference for potential demonstrations in the near future where 100 percent sustainable aviation fuel is approved.
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Updated 30 January 2023

Emirates operates MENA’s first test flight powered by 100% green fuel

Emirates operates MENA’s first test flight powered by 100% green fuel

RIYADH: The UAE’s Emirates airlines has operated its breakthrough test flight powered by 100 percent sustainable aviation fuel, according to a press release.

The flight is the first of its kind in the Middle East and North Africa region. It is “a milestone moment for Emirates and a positive step for our industry as we work collectively to address one of our biggest challenges — reducing our carbon footprint,” a statement quoted Chief Operating Officer of Emirates Adel Al-Redha as saying.

Nowadays, sustainable aviation fuel is used in airplanes but only in blends of 50 percent with conventional jet fuels.

 

That said, the Emirates flight will act as a reference for potential demonstrations in the near future where 100 percent sustainable aviation fuel is approved.

“We hope that landmark demonstration flights like this one, will help open the door to scale up the SAF supply chain and make it more available and accessible across geographies, and most importantly, affordable for broader industry adoption in the future,” Al-Redha added.

It is important to note that in order to procure and develop a sustainable aviation fuel blend that is capable of replacing conventional jet fuel, Emirates worked with its partners, namely GE Aerospace, Boeing, Honeywell, Neste, and Virent. 

“Sustainable aviation fuel will play a critical role in the aviation industry’s commitment to becoming net zero by 2050, requiring strong industry collaboration,” said Omar Arekat, vice president of commercial sales and marketing, Middle East at the Boeing Co.

“Sustainable aviation fuel plays a crucial role in reducing the emissions of air travel but to fully leverage its decarbonization potential we need to enable 100 percent sustainable aviation fuel use,” added Jonathan Wood, vice president of EMEA, renewable aviation at Neste.


Apico secures $29m funding for new plastics factory in Riyadh

Apico secures $29m funding for new plastics factory in Riyadh
Updated 24 March 2023

Apico secures $29m funding for new plastics factory in Riyadh

Apico secures $29m funding for new plastics factory in Riyadh

RIYADH: A new plastics factory in Riyadh is a step closer after the Arabian Plastic Industrial Co. secured SR105.5 million ($29 million) of funding from the Saudi Investment Bank.

According to a filing to the Kingdom’s stock market, Apico will use the funds – which come in the form of working capital and a medium term loan – to build the facility as part of a plan to expand production.

The Jeddah-based company had signed a land lease contract with the Saudi Authority for Industrial Cities and Technology Zones – known as Modon – in 2022 with regards to the factory.

Of the SR105.5 million, SR55.5 million will be spent on the expansion with the remainder earmarked for existing facilities.

Apico made its debut on the Kingdom’s stock market in October 2022, when its shares climbed 18.52 percent above its listing price on the first day of trading.

The company offered 1 million shares, or 20 percent, of its SR50 million market capitalization.

The offering coverage was 15.43 times oversubscribed, with the offer price set at SR27 per share.

Established in 1996, Apico serves customers across different sectors, including to Almarai Co., flynas, TotalEnergies, and Nahdi Medical Co..


Moody’s boosts ratings for six key Saudi companies, including PIF and Aramco

Moody’s boosts ratings for six key Saudi companies, including PIF and Aramco
Updated 24 March 2023

Moody’s boosts ratings for six key Saudi companies, including PIF and Aramco

Moody’s boosts ratings for six key Saudi companies, including PIF and Aramco

RIYADH: Saudi Arabia’s Public Investment Fund and energy giant Aramco are among six firms in the Kingdom to have their ratings boosted from stable to positive by Moody's Investors Service.

The credit rating agency said the upgrade in outlook is linked to the strength of Saudi Arabia’s economy, which was also changed to positive from stable earlier this month.

Saudi Basic Industries Corporation, also known as SABIC, Saudi Telecom Co., known as stc, and the Saudi Power Procurement Co. were among the other companies to see their grading increase.

The Saudi Electricity Co. also received a boost.

In a report explaining its rationale for the shift, the ratings agency said: “(These) rating actions are a direct consequence of the sovereign rating action and reflect the credit linkages between the Government of Saudi Arabia and each of the six entities. 

“While these corporates benefit to varying degrees from international assets and cash flows, they all have significant credit linkages to the Saudi Arabia sovereign and are exposed to the domestic environment including political, economic, regulatory and social factors.”

Reflecting on Aramco, the report said the company’s A1 rating “reflects its very large operational scale, significant downstream integration and strong financial flexibility given its low cost structure and low leverage relative to cash flows.”

It added: “These characteristics provide resilience through oil price cycles and also help mitigate carbon transition risk, which is a material credit consideration for oil and gas companies.”

Moody’s said that SABIC had been able to maintain its strong global position in the petrochemical and fertilizer market thanks to “competitively priced domestic feedstock under long-term contracts with Saudi Aramco.”

The report added: “These advantages help mitigate to an extent the volatility of its predominantly commodity-based petrochemical, fertilizer and steel activities and SABIC's asset concentration in Saudi Arabia.”

In a section on the PIF, Moody’s said the organization had a “high-quality investment portfolio”, a “very strong financial profile with very low leverage and very high interest coverage”, and an “excellent liquidity profile”.


NEOM Airlines set for take-off by end of 2024, CEO reveals

NEOM Airlines set for take-off by end of 2024, CEO reveals
Updated 24 March 2023

NEOM Airlines set for take-off by end of 2024, CEO reveals

NEOM Airlines set for take-off by end of 2024, CEO reveals

RIYADH: A dedicated airline for Saudi Arabia’s futuristic city NEOM will take to the skies by the end of 2024, the carrier’s CEO has revealed.

Writing in a blog post, Klaus Goersch set out an ambitious vision for NEOM Airlines, promising that passengers will receive “a completely different travel experience”.

Goersch, who has previously served as chief operating officer of British Airways and Air Canada, argued the new service will be “futuristic and efficient”, adding: “I can honestly say the opportunity here is way beyond anything else out there.”

The development of the airline comes as Saudi Arabia seeks to boost its aviation sector, with Crown Prince Mohammed bin Salman earlier this month announcing a new carrier, Riyadh Air, which will benefit from a $37 billion aircraft deal with US firm Boeing.

In his blog post, Goersch painted his vision for NEOM Airlines as he set out the “new future” for air travel.

He said: “Just imagine if your bags were collected from your home or office and delivered to the hotel or residence you were going to. 

“Imagine if biometrics were advanced enough to recognize you via facial recognition as soon as you walked in a building, security clearing you for travel without the need for even going through a gate – let alone having to bother with a visa. 

“And just imagine the time of your meeting changed by a few hours and you were able to change your flight to a later one, without hassle or cost. 

“Better still, imagine you are collecting loyalty points at the airport – where the whole place is lounge-style service – as well as while flying and when using the facilities in your destination, because everything is owned by the same company.”

Goersch went on to say the airline will initially retrofit existing aircraft in order to get the carrier up and running, before shifting to new planes. 

“Come 2026 onwards, there will be new innovative aircraft – whether it be electric, hydrogen-powered or supersonic – and next-generation interiors coming online from us. We are already in discussions with plane, interior and seat manufacturers,” he wrote.

In keeping with NEOM’s pledge to be environmentally-friendly Goersch said the airline’s ambition is for every flight to have “ some sustainable fuel onboard” originating from mixing facilities at NEOM. 

He added: “Sustainability will even stretch into the catering, with foods sourced locally from here and delivered via on-demand dining at a time when you actually feel like eating. 

“We will look at every single component right down to the carpets and single-use plastics. 

“Little things like this will accumulate and add up to more than the sum of their parts.”

The $500 billion NEOM megaproject is set to transform the Kingdom’s northwest Red Sea coast to a high-tech hub.


Oil Updates - Prices slides as US holds off refilling strategic reserve

Oil Updates - Prices slides as US holds off refilling strategic reserve
Updated 2 min 20 sec ago

Oil Updates - Prices slides as US holds off refilling strategic reserve

Oil Updates - Prices slides as US holds off refilling strategic reserve

LONDON: Oil prices fell sharply on Friday amid declining European banking shares and after US Energy Secretary Jennifer Granholm said refilling the country’s Strategic Petroleum Reserve (SPR) may take several years, dampening demand prospects.

Brent crude fell $2.50, or 3.3 percent, to $73.41 a barrel by 1031 GMT, while West Texas Intermediate US crude futures dived $2.47, 3.5 percent, to $67.49 a barrel.

Both benchmarks, which fell about 1 percent on Thursday, were on track to end the week slightly higher, after posting their biggest weekly declines in months last week due to banking sector turmoil and worries about a possible recession.

Banking stocks slid in Europe with Deutsche Bank and UBS Group hit hard by worries that the worst problems in the sector since the 2008 financial crisis have not yet been contained.

A stronger dollar, which rose 0.6 percent against other currencies on Friday, also fueled the sell-off. A stronger greenback makes crude more expensive to holders of other currencies.

“The lack of crude buying for the SPR represents a major blow to the oil demand outlook,” PVM Oil analyst Stephen Brennock said.

“If anything, it will heap even more pressure on China to do the heavy lifting on the demand side over the coming months,” he added..

The White House said in October it would buy back oil for the SPR when prices were at or below about $67-$72 per barrel.

Granholm told lawmakers that it would be difficult to take advantage of low prices this year to add to stockpiles, which are currently at their lowest level since 1983 following sales directed by President Joe Biden last year.

Strong demand expectations from China capped decreases, with Goldman Sachs saying commodities demand was surging in China, the world’s biggest oil importer, with oil demand topping 16 million bpd.

Meanwhile, Russian Deputy Prime Minister Alexander Novak said a previously announced cut of 500,000 barrels per day (bpd) in Russia’s oil production would be from an output level of 10.2 million bpd in February, the RIA Novosti news agency reported.

That would mean Russia is aiming to produce 9.7 million bpd between March and June, according to Novak, which would be a much smaller output cut than Moscow previously indicated. 


Scandal-plagued Japan tech giant Toshiba gets tender offer

Scandal-plagued Japan tech giant Toshiba gets tender offer
Updated 24 March 2023

Scandal-plagued Japan tech giant Toshiba gets tender offer

Scandal-plagued Japan tech giant Toshiba gets tender offer
  • Toshiba's deep troubles began with a sprawling accounting scandal in 2015, involving books being doctored for years
  • Its US nuclear arm Westinghouse filed for bankruptcy in 2017, after years of deep losses as safety costs soared

TOKYO: Scandal-embattled Japanese electronics and technology manufacturer Toshiba has accepted a 2 trillion yen ($15 billion) tender offer from Japan Industrial Partners, a buyout fund made up of the nation’s major banks and companies.
If the proposal succeeds, it will be a major step in Toshiba’s yearslong turnaround effort, allowing it to go private and delist from the Tokyo Stock Exchange. But overseas activist investors own a significant part of Toshiba’s shares, and it’s unclear if they will be happy with the latest bid.
Tokyo-based Toshiba Corp. announced its board accepted the bid at 4,620 yen ($36) a share late Thursday. Toshiba closed at 4,213 yen ($32) a share Thursday, and is trading at 4,474 yen ($34) early Friday. The offer was announced after trading closed in Tokyo.
The move comes while the world’s financial sector is in turmoil over the ripple effects from the recent collapse of banks in the US
The critical point is that the latest offer, if successful, will keep Toshiba’s business Japanese in an alliance with Japanese partners.
Japan Industrial Partners, set up in 2002 to restructure Japanese companies, lists big names among where it has invested, such as Sony, Hitachi, Olympus and NEC.
The consortium includes about 20 Japanese companies, such as Orix Corp., a financial services company, electronics manufacturer Rohm Co. and the megabanks such as Sumitomo Mitsui Banking Corp., according to Japanese media reports.
The deep troubles at Toshiba began with a sprawling accounting scandal in 2015, involving books being doctored for years. That added to its woes related to its nuclear energy business.
Its US nuclear arm Westinghouse filed for bankruptcy in 2017, after years of deep losses as safety costs soared. Toshiba is also involved in the decommissioning effort at the Fukushima nuclear plant heavily damaged by an earthquake and tsunami in March 2011.
Toshiba has gone through several presidents over the years, as the brand once prized for making household appliances, laptops, batteries and computer chips, became the target of overseas activist shareholders.
The latest proposal still needs to go through regulatory reviews in several countries, including the US, Vietnam, Germany and Morocco. The process is expected to take several months.
Toshiba has been trying to go private in recent years. Proposals to split Toshiba into three, and then two, companies were rejected by shareholders. Delisting will allow Toshiba to leave behind the activist investors.
Toshiba had its humble beginnings in a telegraph equipment factory in 1875. The brand had been synonymous with the power of modern Japan’s manufacturing sector. It has sold parts of its operations, including its flash-memory business, now known as Kioxia, although Toshiba remains a stakeholder in Kioxia.
Whether Toshiba can get back on a solid growth track remains uncertain. Last month, Toshiba lowered its profit forecast for the fiscal year through March to 130 billion yen ($1 billion), down from an earlier projection for a 190 billion yen ($1.5 billion) profit.