NEOM firm exploring ‘uncharted territory’ to make world’s largest green hydrogen plant a reality: CEO

Special NEOM firm exploring ‘uncharted territory’ to make world’s largest green hydrogen plant a reality: CEO
David Edmondson, CEO of NEOM Green Hydrogen Co. (Supplied)
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Updated 22 May 2023
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NEOM firm exploring ‘uncharted territory’ to make world’s largest green hydrogen plant a reality: CEO

NEOM firm exploring ‘uncharted territory’ to make world’s largest green hydrogen plant a reality: CEO

RIYADH: In a move to help Saudi Arabia achieve its sustainability goals, NEOM Green Hydrogen Co. is breaking new ground in order to start the full-time operation of the world's largest green hydrogen plant in 2026.

In an interview with Arab News, David Edmondson, CEO of NGHC, said the company is ready to face any challenges that may arise while building this hydrogen plant which could revolutionize the ongoing energy transition journey. 

“We are building the world’s largest plant to produce green hydrogen at scale. As a first-of-its-kind facility, and with key learnings not available to us with no other similar facilities in the world, we are very much navigating uncharted territory in the green hydrogen and sustainable energy space,” said Edmondson. 

He acknowledges that projects of this scale come with challenges but “we have already hired some great talent.” 

With the support of its shareholders and commitment from its technology partners, Edmondson said the company is “prepared for any scenario by leveraging the experience and expertise of everyone supporting us on the project.” 

The firm behind the mega-plant, which will integrate up to 4 gigawatts of solar and wind energy to produce up to 1.2 million tons of green ammonia, achieved the financial closure on the project in NEOM’s industrial city Oxagon at a total investment value of $8.4 billion.

This came after it signed financial documents with 23 local, regional, and international banks and investment firms. 

“Together, these banks and financial institutions have committed to funding our investment and, alongside those from across the region and around the world, we are privileged that the Saudi Industrial Development Fund and National Infrastructure Fund are among those supporting us,” added Edmondson. 

An equal joint venture between ACWA Power, Air Products, and NEOM, NGHC’s mega-plant will produce up to 600 tons per day of carbon-free hydrogen by the end of 2026. 

NGHC has also concluded the engineering, procurement, and construction agreement with Air Products as the nominated contractor and system integrator for the entire facility. 

“This substantial financial backing from the investment community shows the unmatched potential of NGHC’s green hydrogen project. With the financial close announced today, we are taking a massive leap toward opening the plant, in line with NEOM’s vision to accelerate renewable solutions,” said Nadhmi Al-Nasr, chairman of NGHC and CEO of NEOM. 

Mohammed Abunayyan, chairman of ACWA Power, said the company is proud to support and facilitate the successful financial close of the much-anticipated green hydrogen facility in the Kingdom, which will contribute to the goals outlined in Vision 2030. 

“We have a proven track record of leveraging innovative solutions and advanced technology to deliver clean, sustainable power at the lowest cost. This is a significant step forward in our shared purpose to accelerate the shift to clean energy and support the Kingdom’s decarbonization goals,” said Abunayyan. 

Edmondson further noted that shareholders and the investment community are giving sufficient support to make this green hydrogen project a reality in the future. 

“The 23 banks and financial institutions referred to previously are providing $6.1 billion in non-recourse financing as part of the total value. Such substantial backing from the investment community shows the huge potential of our project to lead the world in tomorrow’s hydrogen revolution and we look forward to making this vision a reality with their support,” he added. 

He said that technology is a major enabler as this green hydrogen facility is getting ready for its operation, noting that NGHC’s technology partners were selected early in the project development phase to ensure that “we were able to ensure a seamless integration across the whole facility.” 

NGHC’s CEO pointed out that the Middle East and North Africa region has all the potential to become a global renewable powerhouse, as there are already large areas of land where projects can be developed with abundant access to sunlight and wind. 

“For the MENA region, becoming a global hydrogen powerhouse in the decades ahead is a realistic possibility. Over many decades, the region has gained enormous significance as a global producer and exporter of energy,” Edmondson told Arab News. 

He concluded: “As fossil fuel reliance wanes and demands for cleaner energy increase, the region has an opportunity to assume this position in the field of green hydrogen, green ammonia and low-carbon fuels in general, as well as establish world-class infrastructure and internationally recognized certification systems.” 


Closing Bell: Saudi main index rises to close at 11,177 

Closing Bell: Saudi main index rises to close at 11,177 
Updated 20 sec ago
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Closing Bell: Saudi main index rises to close at 11,177 

Closing Bell: Saudi main index rises to close at 11,177 

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 74.43 points, or 0.67 percent, to close at 11,177.48. 

The total trading turnover of the benchmark index was SR7.40 billion ($1.97 billion) as 124 of the listed stocks advanced, while 91 retreated.  

Similarly, the Kingdom’s parallel market Nomu also rose 153.56 points, or 0.61 percent, to close at 25,235.62. This comes as 22 of the listed stocks advanced, while as much as 30 retreated. 

The MSCI Tadawul Index saw a gain of 11.82 points, or 0.83 percent, to close at 1,442.03. 

The best-performing stock of the day was Maharah Human Resources Co. The company’s share price surged 6.31 percent to SR64. 

Other top performers included Al-Rajhi Company for Cooperative Insurance as well as Electrical Industries Co., whose share prices soared by 5.69 percent and 5.04 percent, to stand at SR171 and SR2.50 respectively. 

Other leading performers included Naseej International Trading Co. and Gulf Insurance Group. 

The worst performer was Al-Baha Investment and Development Co., whose share price dropped by 6.67 percent to SR0.14. 

Other poor performers were Saudi Pharmaceutical Industries and Medical Appliances Corp. as well as Jadwa REIT Saudi Fund, whose share prices dropped by 3.61 percent and 3.44 percent to stand at SR36.05 and SR12.36, respectively. 

Moreover, Development Works Food Co. and National Medical Care Co. also performed badly. 

On the announcements front, Saudi Cable Co. announced its annual financial results for the period ending on Dec. 31 2022. 

According to a Tadawul statement, the firm’s net profits reached SR584 million in 2022, reflecting a 201.93 percent drop when compared to 2021. 

The decline in net profits is mainly attributed to a liquidity issue that the firm was facing as a result of judicial enforcement orders filed against it by creditors and lenders. 

Consequently, during the period, the company was unable to use its bank accounts and could not execute and produce on hand orders that obtained from the market. 

On another note, on behalf of MBC Group, HSBC Saudi Arabia in its capacity as lead manager, announced the offering price range at SR23 to SR25 per share as well as the commencement of the institutional book-building period. 

A bourse filing revealed that the offering comprised the issuance of 33.25 million ordinary shares for public subscription, representing 10 percent of MBC’s share capital. 

Meanwhile, ​​Lumi Rental Co. announced that it has received a purchase order from The Royal Commission for AlUla to provide vehicle rental services based on the existing contract between the two firms. 

According to a Tadawul statement, the value of the purchase order is SR41.82 million and includes providing rental services for 264 vehicles by the company to RCU. 


Saudi Arabia studies graphite, rare earths trading platform — minister

Saudi Arabia studies graphite, rare earths trading platform — minister
Updated 57 min 59 sec ago
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Saudi Arabia studies graphite, rare earths trading platform — minister

Saudi Arabia studies graphite, rare earths trading platform — minister

LONDON: Saudi Arabia is exploring the potential launch of a new commodity trading platform for battery materials, including graphite and rare earths, its vice minister of industry and mineral resources said.

Riyadh’s efforts to build an economy that is not dependent on oil include a shift toward mining the country’s untapped mineral resources — worth about $1.33 trillion — including copper, lithium, phosphate and gold, but also investing in overseas assets.

“To be a minerals hub you have to have it all and we are studying a future minerals commodity exchange for graphite, rare earths, lithium, cobalt and even nickel, as there is no efficient commodity exchange nor price-finding mechanism for some,” Khalid bin Saleh Al-Mudaifer told Reuters in an interview.

The Kingdom has been studying setting up the trading platform for the past three months and it does not expect a decision to be made before the next six, Al-Mudaifer said.

“We don’t yet know if it would be feasible ... because the quantities are small and the specifications differ, it’s not as easy as aluminium or crude oil.”

There are currently no exchanges offering contracts for graphite or rare earth metals, both important materials for electric vehicle and the energy transition.

Lithium and cobalt can be traded on the London Metal Exchange and Chicago Mercantile Exchange.

“We are working with a number of consultants and also with the people who trade the commodities,” he said.

Saudi Arabia’s investment fund Manara Minerals, a joint venture between state-owned miner Ma’aden and the Public Investment Fund, was set up in January to buy assets overseas. It will prioritise copper, nickel, iron ore and lithium.

Its first major foray abroad was a deal to become a 10 percent shareholder in Vale’s $26 billion copper and nickel unit last July.


Business & Philanthropy forum to highlight inclusive approach for equitable climate solutions

Business & Philanthropy forum to highlight inclusive approach for equitable climate solutions
Updated 30 November 2023
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Business & Philanthropy forum to highlight inclusive approach for equitable climate solutions

Business & Philanthropy forum to highlight inclusive approach for equitable climate solutions

DUBAI: As global leaders converge on Dubai to attend the UN COP28 to discuss ways to mitigate the effects of climate change and strategies, there are calls for cross-border collaboration ensuring inclusivity to achieve common goals.

To effectively highlight these aspects of climate activism, the first-of-its-kind Business and Philanthropy Climate Forum has been organized with 55 sessions highlighting over 20 actionable opportunities for immediate climate and nature-centric interventions.

The forum will be attended by 1,300 business leaders and philanthropists from over 100 countries and seeks to provide a unique platform for enhanced cross-border collaboration.

In an exclusive interview with Arab News, Badr Jafar, COP28 special representative for business and philanthropy, highlighted the goals of the forum, the expected role of the private sector, and the need for an all-inclusive approach for equitable and just solutions to address climate issues.

Stressing the need for a paradigm shift, Jafar called on all stakeholders to move beyond the dichotomy of activism versus capitalism. “The climate conversation needs a new paradigm of activism that embraces dynamism, capital, and action networks of business and philanthropy,” he said.

Highlighting the global nature of environmental challenges, Jafar laid emphasis on an inclusive approach, especially with respect to the Global South. He was of the view that with 75 percent of the global population residing in these areas, they are not only at the forefront of climate change impacts but are also key players in global growth.

Almost 50 percent of the business leaders participating in the forum hail from the Global South indicating the region’s importance and underlining the commitment to ensuring their active involvement in shaping climate-related policies.

HIGHLIGHTS

  • The first-of-its-kind Business and Philanthropy Climate Forum has been organized with 55 sessions highlighting over 20 actionable opportunities for immediate climate and nature-centric interventions.
  • The forum will be attended by 1,300 business leaders and philanthropists from over 100 countries and seeks to provide a unique platform for enhanced cross-border collaboration.

“Achieving an equitable climate and nature transition by 2050 is going to require an ‘all-hands-on-deck’ response from every part of the global community,” Jafar asserts. “To deliver this just transition, we will need trillions, not billions.”

He also underscored the pivotal role of the private sector in driving climate action. With private capital markets surpassing $23 trillion, businesses can play a significant role in fixing climate finance. The forum aims to mobilize action platforms, leveraging the innovative capacity of businesses to address urgent climate needs — from breakthrough technologies to transforming food supply chains.

“The active and decisive engagement of businesses is absolutely critical to driving meaningful action on climate and nature,” said Jafar. “Private capital markets have more than doubled over the past decade, reaching over $23 trillion.”

The executive backed his arguments with concrete examples highlighting the collaboration between business and philanthropy to scale climate projects and businesses, fund innovation, and reduce emissions.

“An example is the announcement of a large-scale ‘Blended Finance Vehicle,’ to scale climate projects and businesses in emerging markets and developing economies,” he stated. “Other examples include launching of the ‘Climate and Nature Moonshots,’ an innovative venture that will fund 10 innovative projects focused on renewable energy and protection of natural habitat and biodiversity.”

As an Emirati businessperson, Jafar also discussed the role of Gulf-based companies, especially in the energy sector, in fostering sustainable practices. Calling for viewing energy and societal challenges as interconnected, he emphasized that a green and inclusive approach to development can usher in a new model of growth for emerging economies.

Achieving an equitable climate and nature transition by 2050 is going to require an ‘all-hands-on-deck’ response from every part of the global community.

Badr Jafar

COP28 special representative for business and philanthropy

“If the first Sustainable Development Goal is to eradicate extreme poverty by 2030, we must look at both energy and society’s challenges through a single lens,” Jafar remarked. “Countries can fully evaluate smart energy policies as enablers of development, especially in regions like MENA where supporting a fair and just energy evolution must also facilitate economic growth and resultant critical jobs.”

Jafar acknowledged the trust gap between industrialized and developing nations and outlined COP28’s focus on proper engagement from regions most affected by climate change. The UAE and Saudi Arabia, acting as gateways for emerging markets, present an unprecedented opportunity to showcase the transformative journey of the Global South.

“When it comes to emerging markets, we know that the Global South is going to bear the brunt of climate change,” he said.

“Issues like extreme heat, water scarcity, and poor air quality (have) already created systemic challenges, despite the fact that the richest 10 percent of the world have per capita carbon footprints 11 times higher than the poorest 50 percent.”

Jafar wants all the stakeholders to understand the interconnected nature of human development with climate goals. He emphasized the need to address the needs of the 800 million (people) without electricity and the 2.3 billion lacking access to clean cooking fuels. Initiatives discussed at the forum aim to create inclusive climate policies that provide equitable opportunities for billions worldwide.

“Ultimately, we can no longer afford to decouple the human development agenda — which encompasses 12 of the 17 UN Sustainable Development Goals — from the climate agenda, or the nature agenda for that matter,” Jafar asserted. “They are two sides of the same coin, and the edge of that coin is conducive and inclusive climate policy that embraces a greener evolution of all of our systems.”


Dubai Taxi Co. sees ‘tremendous demand’ worth $41bn for oversubscribed offering

Dubai Taxi Co. sees ‘tremendous demand’ worth $41bn for oversubscribed offering
Updated 30 November 2023
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Dubai Taxi Co. sees ‘tremendous demand’ worth $41bn for oversubscribed offering

Dubai Taxi Co. sees ‘tremendous demand’ worth $41bn for oversubscribed offering

RIYADH: Dubai Taxi Co. hit a record high for its 1.2 billion dirhams ($315 million) initial public offering, with orders exceeding 150 billion dirhams by local and international investors.

The final offer price for the provider of comprehensive mobility solutions was set at 1.85 dirhams per share, leading to a total of 624.75 million shares, equivalent to 24.99 percent of DTC’s total issued share capital.

The announcement that followed the completion of the book building and public subscription process on the Dubai Financial Market highlighted that based on the final offer price, the company’s market capitalization upon listing is expected to be approximately 4.6 billion dirhams.

The total demand implied “an oversubscription level of 130 times in aggregate,” which “represents the highest oversubscription level achieved by an IPO on the DFM.”

Mansoor Al-Falasi, DTC’s CEO, said: “The exceptionally strong demand for the IPO reflects the high-quality investment opportunity provided by DTC, anchored in Dubai’s robust economic, population and tourism growth and world-leading mobility and sustainability vision.”

He added: “With DTC’s own growth accelerating, enabled by the continued expansion of our market-leading fleet, ongoing investment in the latest technologies and our expansion across Dubai and into neighboring emirates, this is an exciting time for DTC and our new investors.”

According to the DTC, the total gross proceeds of the IPO will be paid to the Department of Finance representing the Government of Dubai after adjusting for any expenses related to the offering.

The department will continue to own 75 percent of DTC’s share capital following the completion of the IPO, with the offering and admission expected to take place on Dec. 7, subject to approvals.

DTC was established in 1994 and currently holds 44 percent of the market share. As of June 2023, it operated more than 7,000 vehicles and managed a workforce of more than 14,000 driver partners. The company is considered to be the largest taxi operator in Dubai.


China’s factories fall deeper into contraction, more policy support expected

China’s factories fall deeper into contraction, more policy support expected
Updated 30 November 2023
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China’s factories fall deeper into contraction, more policy support expected

China’s factories fall deeper into contraction, more policy support expected

BEIJING: China’s manufacturing activity shrank for a second straight month in November and at a quicker pace, suggesting more stimulus will be needed to shore up economic growth and restore confidence that the authorities can ably support industry.

Economists upgraded their forecasts for the world’s second-largest economy after better-than-expected third-quarter data, but despite a flurry of policy support measures, negative sentiment among factory managers appears to have become entrenched in the face of weak demand both at home and abroad.

The official purchasing managers’ index fell to 49.4 in November from 49.5 in October, National Bureau of Statistics data showed on Thursday, missing economists’ forecast of 49.7. The 50-point mark demarcates contraction from expansion.

“The domestic market cannot make up for losses in Europe and the United States. The data shows that factories are producing less and hiring fewer people,” said Dan Wang, chief economist at Hang Seng Bank China.

“(The data) could also show a loss of confidence in government policy,” she added, warning factory activity was unlikely to improve anytime soon as other economic problems dominate. “The priority now is clearly containing the local government debt risk and the risk posed by regional banks.”

The new orders sub-index contracted for a second consecutive month, while the new export orders component extended its decline for a ninth month.

In another worrying sign, the vast services sector contracted for the first time in 12 months. The non-manufacturing PMI, which includes services and construction, eased to 50.2 in November from 50.6 last month.

China’s economy has struggled this year to mount a strong post-pandemic recovery, held back by a deepening crisis in the property market, local government debt risks, slow global growth and geopolitical tensions.

The factory PMI has contracted for seven out of the past eight months — rising above the 50-point mark only in September. The last time the indicator was negative for more than three consecutive months was in the six months to October 2019.

“The hard data have held up better than the survey-based measures lately... (which) may be overstating the extent of slowdown due to sentiment effects,” Sheana Yue, China economist at Capital Economics, said in a note.

“But if that starts to change, policy support will need to be ramped up further to prevent the economy from backsliding.”

The patchy recovery has prompted many analysts to warn that China may decline into Japanese-style stagnation later this decade unless policymakers take steps to reorient the economy toward household consumption and market allocation of resources.

“Today’s PMI reading will further raise expectations towards policy support,” said Zhou Hao, economist at Guotai Junan International. “Fiscal policy will be under the spotlight and take centre stage over the coming year and will be closely monitored by the market.”

Oil prices fell in early Asia following weaker-than-expected manufacturing activity in China, the world’s largest energy consumer, while the offshore yuan also slipped.

MORE SUPPORT NEEDED

China’s central bank governor on Tuesday said he was “confident that China will enjoy healthy and sustainable growth in 2024 and beyond,” but urged structural reforms to reduce reliance on infrastructure and property for growth.

Policy advisers say the government will need to implement further stimulus should it wish to sustain an annual economic growth target of “around 5 percent” next year, which would match this year’s goal.

But the People’s Bank of China is constrained when it comes to implementing further monetary stimulus over concerns a widening interest rate differential with the West may weaken the currency and spur capital outflows.

In October, China unveiled a plan to issue 1 trillion yuan ($138.7 billion) in sovereign bonds by the end of the year, raising the 2023 budget deficit target to 3.8 percent of GDP from the original 3 percent.

The PBOC has also implemented modest interest rate cuts and pumped more cash into the economy in recent months, pledging to sustain policy support.

China still channels more funds into infrastructure projects to drive growth, which likely lifted the construction index to 55.0 from 53.5 in October, though the government has been trying to reduce the economy's reliance on property.

“Despite the raft of stimulus measures announced over the past several months, we believe it is still too early to call the bottom,” Ting Lu, chief China economist at Nomura, said in a note. “We expect another economic dip towards end-2023 and spring 2024.”