NewBase 06 May 2024 Energy News issue - 1722 by Khaled Al Awadi_compressed.pdf

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NewBase Energy News 06 May 2024 No. 1722 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Sharjah announces discovery of new gas reserves
The National + NewBase
Sharjah has discovered new gas reserves in the onshore Al Hadiba field. The emirate, however, did
not reveal the volumes of gas discovered as it has yet to test the field located north of the Al Sajaa
Industrial Area in Sharjah, which has “promising quantities” of gas reserves, according to the
Sharjah Government Media Bureau.
“The new field was discovered after the Sharjah National Oil Corporation (SNOC) drilled a well over
the past few months, and the well will be tested in the days ahead to confirm the quantities and
potential gas reserves of the field for development,” a statement released on Saturday said.
The Al Hadiba field is the fifth onshore field in Sharjah, in addition to Al-Saja’a, Kahif, Mahani and
Muayed fields.
The announcement comes after Sharjah, in 2020, discovered a new onshore well of natural gas
and condensate in the emirate, its first in more than three decades.
ww.linkedin.com/in/khaled-al-awadi-80201019/
Al Hadiba field near Al Sajaa Industrial area has 'promising
quantities' of gas

State-owned SNOC and Italy's oil major Eni discovered the “Mahani” exploration well within the first
year of their partnership, SNOC said at the time. The SNOC, established in 2010, is tasked with the
exploration, production, engineering, construction, operation and maintenance of Sharjah's energy
assets.
In addition to the Mahani gasfield, it
owns and operates three onshore
fields, a gas processing complex, two
hydrocarbon liquid storage and export
terminals and a network of flow lines
and production pipelines.
The emirate’s sole gas supplier is also
exploring green hydrogen and carbon
capture projects amid efforts to reach
net-zero emissions by 2032, its chief
executive Hatem Al Mosa, told The
National last year.
In July, the company signed an initial agreement with Japan’s Sumitomo Corporation to explore a
carbon capture project in the emirate.
The demand for natural gas in the coming decades is expected to rise globally amid decarbonisation
efforts, according to the Gas Exporting Countries Forum.
The global demand for natural gas will rise to 5.36 trillion cubic metres in 2050 from 4.02 tcm in
2022, the organisation said in its global gas outlook report in March.
“The increase in population and economic output, and policies aimed at air quality enhancement,
greenhouse gas emission reduction, stability of renewable power systems, universal access to
clean cooking, and the switch from coal and oil to gas are pivotal factors influencing the forecast,”
the report said.
“Natural gas, coupled with CCUS (carbon capture utilisation and storage), is poised to underpin
long-term demand, while the utilisation of blue hydrogen (produced from natural gas) offers an
additional pathway for decarbonising hard-to-abate sectors.”
In the Middle East, natural gas, which contributed 53 per cent to the regional energy mix in 2022, is
forecast to persist as the most utilised energy source, the report added.
Demand is expected to rise by 1.5 per cent per annum from 560 billion cubic metres in 2022 to 855
bcm by 2050, driven by economic growth and demographic trends as well as plans to displace oil
products in power generation to cut emissions.
“Countries’ strategies to exploit its large natural gas reserves are set to raise natural gas availability
and drive demand in all sectors,” it said.
Total global gas production is also forecast to grow by 33 per cent to reach 5.3 tcm by 2050, with
the Middle East region adding 465 bcm during the period.
In January this year, Sheikh Dr Sultan bin Muhammad Al Qasimi, Ruler of Sharjah, approved the
emirate's Dh40.83 billion ($11.12 billion) budget for 2024, the largest in its history.
The budget expected revenue to rise 5 per cent annually this year. Capital revenue is expected to
reach 11 per cent, tax revenue to hit 9 per cent, customs revenue to reach 4 per cent, while oil and
gas revenue is projected to constitute 5 per cent of the total.

Japan’s energy policies aim to reduce use of fossil fuels in
electricity generation . U.S. EIA, International Energy Statistics, and FACTS Global Energy, Gas Databook 2023
In the first part of our two-part series on Japan’s energy policies in the electric power sector, we
examined policies affecting generation from non-fossil fuel sources, namely renewable sources and
nuclear generation.
The second part of this series discusses policies affecting generation from fossil fuels, including
liquefied natural gas, coal, and petroleum.
Policies target reducing the share of natural gas-fired generation in Japan’s power generation from
34% in 2022 to 20% by 2030. The electric power and industrial sectors are the largest consumers
of natural gas in Japan, accounting for 82% of all natural gas consumed there in 2022.
Following the 2011 Fukushima Daiichi accident and the subsequent shutdown of nuclear reactors,
use of LNG in the electric power sector increased from 5.8 billion cubic feet per day (Bcf/d) in 2010
to 7.8 Bcf/d by 2012. However, since 2019, LNG consumption in the electric power sector has been
declining as more of Japan’s nuclear capacity has returned to service.
In 2022, less natural gas was consumed in Japan than in 2009, mainly because of slower economic
growth, less industrial demand, high international LNG prices, and continued improvements in
energy efficiency. We expect the decline in natural gas consumption in the electric power sector to
continue.
Although LNG consumption has declined in recent years, we expect LNG to continue playing a
significant role in Japan’s power generation mix through the mid-term. Natural gas-fired generation
accounted for 34% of generation in 2022—the largest share of any fuel—followed by coal at 31%.
As coal plant retirements continue and more electricity is generated from renewable sources, natural

gas-fired power plants will continue to provide load-following power supply to compensate for the
intermittent nature of renewable generation.
Japan’s ample natural gas storage capacity contributes to the country’s energy security by helping
to meet seasonal demand peaks and ensuring that natural gas remains available in case of
interruption in global LNG supplies.
Japan does not have international pipeline interconnections and imports about 98% of its natural
gas in the form of LNG. LNG intended for consumption and additional volumes designated as
reserves or inventory are stored in above-ground cryogenic storage tanks co-located at more than
30 of Japan’s LNG import terminals.
Japan has the world’s largest LNG storage capacity, estimated to total 425.1 billion cubic feet (Bcf)
of natural gas according to data from GIIGNL.
LNG stored in tanks as reserves or inventory can be used if LNG imports from global suppliers are
interrupted. We estimate that from 2009 through 2023, Japan’s LNG inventory varied between 32%
and 66% of available LNG storage capacity.
Japan’s LNG storage capacity exceeds average monthly consumption to meet peaks in seasonal
demand. The balance between LNG imports, consumption, and inventory is closely monitored and
continuously optimized because LNG gradually evaporates even under the most favorable ambient
conditions during storage in cryogenic tanks.
Coal and petroleum
Policies in Japan target reducing the share of coal in electric generation from 31% in 2022 to 19%
by 2030 and the share of petroleum generation from 4% in 2022 to 2% by 2030. This target extends

policies announced in 2020 to phase out old and inefficient coal units. The policies also focus on
rapid development of technologies aimed at reducing emissions from coal, including integrated-
gasification combined-cycle infrastructure, carbon capture and sequestration, and fuel blending with
ammonia and biomass to achieve higher operational efficiency of coal-fired plants.
Japan’s government announced that it intends to review rules for power grid use to prioritize
renewable electricity generation over coal-fired electricity generation. In 2023, Japan’s government
announced that all new coal-fired power plants must have emission reduction measures in place.
Japan plans to close or suspend around 90% of the existing coal-fired power plants that have been
deemed inefficient: approximately 100 facilities. Although specifics regarding these criteria and a
list of coal plants that are considered inefficient have not been made public, it’s likely the facilities
will include older plants that use lower-efficiency subcritical or higher-efficiency supercritical
technologies.
Based on such a cutoff, we assess the 100 oldest facilities (approximately 24 gigawatts [GW] of
coal-fired capacity) could close or suspend operations. This policy would reduce Japan’s total
installed coal capacity by about 40%. Only 1.2 GW of new coal capacity is currently under
construction.
Two proposals are being considered to help keep up to 12 GW of existing coal-fired capacity
operational after 2030. They include adding 20% or more ammonia to the coal supply or blending
25% or more wood pellets into the coal boilers to help lower CO2 emissions and keep the plants
open. The wood pellet
program is well underway,
but the use of ammonia is
still being tested.
Japan's Ministry of
Economy, Trade, and
Industry (METI) is offering
a feed-in-tariff (FIT) that
pays owners of coal-fired
plants for every
kilowatthour generated by
wood pellets in a coal
boiler. The FIT would be
offered for 20 years.
The program has resulted
in more than 3 million tons
of wood pellets being
imported in 2023, an
amount likely to increase in
the future. To qualify for the FIT, METI requires that generators keep lifecycle greenhouse gas
emissions under certain limits.
The pace of coal retirements actually achieved under Japan’s phaseout plan will depend on several
factors, including:
 Addition of nuclear capacity through restarts and new facility additions
 Growth in renewables (both wind and solar) beyond what is currently in development
 The ability to balance the power grid as renewable generation grows

Japan’s energy policies aim to increased zero-carbon electricity generation
Over the last several years, the Japanese government has announced energy policies aimed to
achieve carbon neutrality, or net-zero greenhouse gas (GHG) emissions, by 2050 by lowering
emissions in the electric power, industrial, and transportation sectors.
In the electric power sector, government policies set 2030 targets, which include accelerated
investment in renewable capacity, increased use of nuclear generation, and reduced use of fossil
fuels for electricity generation.
Japan’s government called the package of energy policies and their targets “ambitious.” Energy
security considerations may affect the progress and pace of decarbonization in the electric power
sector.
Below, we examine policies affecting generation from non-fossil fuel sources, namely renewable
sources and nuclear generation in the first part of a two-part series on Japan’s energy policies in
the electric power sector. A second part will discuss policies affecting generation from fossil fuels,
including liquefied natural gas, coal, and petroleum.
Electric power sector policies
Japan’s 6th Strategic Energy Plan (released in 2021) and the GX (Green Transformation)
Decarbonization Power Supply Bill (released in 2023) target increasing the share of non-fossil fuel
generation sources to 59% of the generation mix by 2030 compared with 31% in 2022.
Policies target an increase in the share of renewable generation sources including solar, wind,
hydropower, geothermal, and biomass from 26% in 2022 to 36%–38% by 2030 and an increase in
the share of nuclear generation from 5% in 2022 to 20%–22% by 2030.
Generation by fossil fuels (natural gas, coal, and petroleum) is set to decline from 69% in 2022 to
41% by 2030. The policies also could expand hydrogen and ammonia use in natural gas and coal
co-fired power generation, in difficult-to-electrify end-use sectors, and in advanced carbon capture
and storage technology development.
Renewable energy resources
From 2018 to 2022, the share of renewable generation in Japan grew from 21% to 26%. Policies to
increase its share are to be supported by:

 Establishing renewable energy promotion zones (zones that meet specific criteria for
developing renewable energy projects and that provide investment and licensing benefits)
 Increasing investments in research and development focused on technology advancements,
particularly in solar and wind
 Accelerating development of offshore wind projects
 Stimulating growth in the renewable capacity buildout through other initiatives
The targeted increase in renewable generation is paired with broad encouragement of battery
storage. According to Japan’s 6th Strategic Energy Plan, battery storage will be increased as a
distributed source of electricity closer to end users and within microgrids.
This new policy calls for an increase in installed solar capacity from 79 gigawatts (GW) in 2022 to
108 GW by 2030. Initiatives include installing solar capacity on 50% of government buildings (6
GW), on corporate buildings and parking garages (10 GW), and on public land and promotion areas
(4 GW). The targeted increase in Japan’s wind capacity focuses on increasing offshore capacity
from 0.14 GW in 2022 to 10 GW by 2030. In March 2024, the Japanese government approved a
draft amendment to allow offshore wind turbines to be installed in Japan’s exclusive economic zone.
Nuclear power
From 2018 to 2022, the share of nuclear generation remained at about 5% of total generation in
Japan. Lawmakers approved the GX Decarbonization Power Supply Bill, which effectively maintains
existing legal provisions that allow nuclear reactors to operate beyond the 40-year license to 60
years of operation.
The bill also designated nuclear power as a main component of the country’s baseload electricity
generation. Japan also intends to maximize the use of existing reactors by restarting as many units
as possible.
Japan’s government has encouraged a collaborative effort between manufacturers and electric
utilities to develop next-generation reactors, signaling a sustained role for nuclear power in Japan’s
electricity mix.
Before 2011, nuclear power accounted for about 30% of Japan’s electricity mix, and the government
had planned to increase that share to over 40% by 2017. After the 2011 Fukushima Daiichi accident,
the Japanese government suspended operation of all nuclear reactors for mandatory inspections
and safety upgrades. The reactors were systematically taken offline during planned refueling and
maintenance outages; the last two units were suspended in 2013.
Nuclear restarts have proceeded slowly since the first two units were restarted in 2015. This
hesitancy reflects, among other factors, continued public safety concerns, local court injunctions,
comprehensive safety inspections, and lengthy authorization processes within changing regulatory
requirements.
Japan has restarted 12 reactors and expects to restart two more units in 2024. Chugoku Electric
Power Company announced that it will restart Shimane Unit 2 at its facility in the
Matsue Prefecture in August. Tohoku Electric Power has announced plans to restart Onagawa Unit
2 in the Miyagi Prefecture of northeastern Japan in September.
We estimate that 24 GW of operating nuclear capacity will be required for nuclear generation to
meet the policy target of 20% to 22% of total generation by 2030. By the end of 2024, a total of 12.6
GW of nuclear generating capacity is expected to be operating. An additional 11.4 GW of nuclear
capacity will need to be restarted between 2025 and 2030 to meet the policy target.

Namibia: Strategic farm-in agreement for Block 2914A (PEL 85)
Source: Azule Energy
Azule Energy, an independent joint venture created in 2022 by combining bp and Eni assets in
Angola, and Rhino Resources Namibia have announced the execution of a farm-in agreement
which, on completion, will grant Azule a 42.5% interest in Block 2914A located in the offshore
Namibian Orange basin, the location of several major oil discoveries since 2022.
The current contractor group consists of Rhino {Operator, 85%), Namcor (10%) and local
company Korres Investments {Pty) Ltd {5%).
The plan is to drill two high-impact exploration wells, as part of a work programme in the area, with
the first well expected to spud by the end of 2024. The Agreement also provides Azule Energy with
an option to become the operator of PEL85.
The transaction is subject to customary third-party approvals from the Namibian authorities and joint
venture parties.
Azule Energy's CEO, Adriano Mangini, expressed his enthusiasm about this strategic move: 'Our
entry into offshore Namibia represents a significant milestone for Azule. We are excited to enter this
highly prospective hydrocarbon region and to participate in the unlocking of Namibia's oil and gas
potential. This venture aligns with Azule Energy's vision of becoming a regional leader in energy
exploration and underscores its dedication to safe and reliable resource development.'
Rhino Resources· CEO, Travis Smithard said: 'The signing of this agreement sets the foundations
for a new strategic partnership between Rhino and Azule. This partnership is based upon a mutual
drive to accelerate exploration on the block with the goal of developing the hydrocarbon potential in
the shortest timeframes possible. We believe that Azule's unique capabilities of rapid deployment
of technical and financial resources will complement our objectives of delivering value creation, for
the benefit of all Namibian stakeholders.'

NewBase May 06 -2024 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil nudges higher after Saudi Arabia hikes prices
Reuters + NewBase
Oil futures edged up on Monday after Saudi Arabia hiked June crude prices for most regions and
as the prospect of a Gaza ceasefire deal appeared slim, renewing fears the Israel-Hamas conflict
could still widen in the key oil producing region.
Brent crude futures climbed 28 cents, or 0.3%, to $83.24 a barrel at 0119 GMT, while U.S. West
Texas Intermediate crude futures were at $78.40 a barrel, up 29 cents, or 0.4%.
Saudi Arabia raised the official selling prices (OSPs) for its crude sold to Asia, Northwest Europe
and the Mediterranean in June, signalling expectations of strong demand this summer.
Oil price special
coverage
Oil Advances After Weekly Slump as Saudi Arabia Jacks Up Prices
 Aramco increases Arab Light price to Asia for a third month
 OPEC+ expected to press on with output curbs in second half

"After falling a little more than 7.3% last week due to easing geopolitical tensions, ICE Brent has
started the new trading week on a stronger footing, opening higher," ING's head of commodities
research Warren Patterson said in a note.
This comes after Saudi Arabia raised June OSPs for most regions amid a tightening of supplies this
quarter, he added.
Last week, both futures contracts posted their steepest weekly loss in three months with Brent falling
more than 7% and WTI down 6.8%, as investors weighed weak U.S. jobs data and the possible
timing of a Federal Reserve interest rate cut.
The geopolitical risk premium in oil prices has also eased as talks for a Gaza ceasefire are
underway.
However, prospects for a deal appeared slim on Sunday as Hamas reiterated its demand for an end
to the war in exchange for the freeing of hostages, and Israeli Prime Minister Benjamin Netanyahu
flatly ruled that out.
In a sign supply may tighten, U.S. energy companies cut the number of oil and natural gas rigs
operating for a second week in a row last week, with oil rigs down seven to 499, in the biggest
weekly drop since November 2023, Baker Hughes (BKR.O), opens new tab said in a report on
Friday.

Oil-Watchers Expect OPEC+ to Extend Supply Cuts Into Second Half
(Bloomberg)
OPEC+ is expected to prolong oil output cuts into the second half of the year as it seeks to stave
off a global surplus and shore up prices.
Saudi Arabia and its partners have been keeping roughly 2 million barrels-a-day offline this year,
and will meet on June 1 to consider whether to continue. Crude prices soared last month on fears
that conflict in the Middle East could disrupt oil supplies, stirring talk that OPEC+ might revive output
to calm the market.
But 87% of traders and analysts surveyed by Bloomberg predict that the Organization of Petroleum
Exporting Countries and its allies will extend the curbs, potentially to the end of the year.
“OPEC+ will want to see evidence of sustained tightness in oil markets before starting to add supply,
so there’s a good chance they will decide to extend,” said Richard Bronze, an analyst at Energy
Aspects Ltd. “The discussions will not begin in earnest until closer to the meeting date.”
Oil prices have retreated close to a six-week low near $84 a barrel in London as traders shrug off
hostilities between Iran and Israel, while the market outlook darkens amid faltering growth in China,
and abundant crude supplies from the US, Brazil and Guyana.
The price retreat could offer some relief for consumers and central banks grappling with stubborn
inflation, and even for President Joe Biden as he campaigns for re-election with gasoline prices
never far from the political agenda.
Yet it’s a concern for many of the 22 OPEC+ nations.

Group leader Saudi Arabia needs prices near $100 a barrel, the International Monetary Fund
estimates, as Crown Prince Mohammed bin Salman spends lavishly on futuristic cities and top-flight
sports players. Co-leader Russia also requires revenues as President Vladimir Putin continues to
wage war on Ukraine.
Price Pressures
If OPEC+ relaxes the supply restraints, world oil markets could tip back into surplus, according to
the International Energy Agency in Paris, adding to the pressure on prices. The supply picture will
only tighten up if OPEC+ continues to act, Shell Plc Chief Financial Officer Sinead Gorman said on
Thursday.
Twenty-six of 30 survey respondents forecast that OPEC+ would persevere, and eight of those
predicted the curbs would last to the end of 2024 or even longer. Only four projected production
increases, of as much as 1.1 million barrels a day.
The alliance, which will gather at its Vienna headquarters on June 1, hasn’t yet signaled its
intentions.
OPEC’s secretariat pledged in a report that the group will closely monitor oil markets in the coming
summer months for signs of tightening, a shift in tone that some observers took as signaling
readiness to add barrels. Meanwhile, Riyadh and Washington are privately negotiating a security
pact that, if finalized, could encourage the kingdom adopt a more accommodating oil policy.
Tipping Point
Still, Saudi Energy Minister Prince Abdulaziz bin Salman hasn’t made any public comments, and
sometimes unveils surprise decisions to punish speculators. Several OPEC+ delegates privately
said it’s too early to form a view.
“We are at a tipping point in the oil markets where there is a strong case to add volumes,” said
Christyan Malek, global head of energy strategy at JPMorgan Chase & Co. Still, “this is a balancing
act — there’s a case to add, and also a case not to add. It’s not clear cut.”
Internal divisions could also stymie a consensus.
While Saudi Arabia often advocates caution when adding supplies to the market, its neighbor the
United Arab Emirates sometimes takes a conflicting stance.
Abu Dhabi faces less financial pressure to keep prices high and has been keen to deploy new
investments in production capacity. The emirate currently holds more than 1 million barrels-a-day
of idle supply, and blamed the sacrifice imposed by OPEC+ quotas when it lowered economic
growth projections last month.
Meeting Commitments
OPEC+ will also need to confront whether all members are adhering to their commitments.
Iraq and Kazakhstan have acknowledged pumping several hundred thousand barrels above their
agreed limits and, while they’ve pledged to make additional cutbacks in compensation, have a
patchy record when it comes to delivery.
Russia’s cooperation has also been ambiguous.
Riyadh reluctantly allowed the country to deliver its share of output curbs during the first quarter via
a blend of reductions to exports of crude oil and refined products, an arrangement complicated

further by Ukrainian drone strikes on Russian refineries. Moscow has promised to step up its
contribution by focusing more on cutting crude production.
Still, OPEC+ has repeatedly shown since the alliance’s creation seven years ago that, faced with
the collective risk of faltering prices, it can overcome divisions and perform effectively. A fragile
market may once again compel the group to both persevere with supply curbs, and do a better job
of delivering them.
“The alliance will have no choice but stay on course,” said Tamas Varga, an analyst at brokers PVM
Oil Associates Ltd. in London. “Anything else will most plausibly lead to a sell-off.”
The SPR is over half full (366 million barrels), and is up ~20 million barrels since last July, and will
keep climbing into the summer.
By June 2024 end there will be less supplies of oil than demand às Russian would have reached its
promised reduction quota. JULY will open the month will shortages that may lead to prices above
$90 / B
 Hawk Energy Sees Oil at $85-$100 This Year With Strong Demand Growth
 That’s a ‘ foreseeable & sensible range,’ Hawk Energy CEO M. Al Shihabi says
 Demand set to grow to 104 MBD up by 2.0 MBD, in 2024: Al Awadhi says

NewBase Specual Coverage
The Energy world – May 06 -2024
CLEAN ENERGY
Backed by the EU, Namibia has a $20 billion plan to
export green hydrogen
For Namibia, green hydrogen could be transformative. Backed by the EU, Namibia has a $20 billion
plan to export green hydrogen. A secretive tender process raises concerns for nature and citizens.
In an article on the Climate Home News website, John Grobler, Joe Lo and Matteo Civillini discuss
how the EU is supporting the development of green hydrogen in Namibia.
Shades of green hydrogen: EU demand set to transform Namibia
With vast sunbaked, windswept deserts and 2.5 million people, the southern African nation has
plenty of renewable resources to go around.
Meanwhile rich, densely populated Europe, South Korea and Japan are crying out for clean fuel to
decarbonise hard-to-electrify sectors like fertilisers, steel and shipping. Their net zero plans depend on it.
Keen to secure pole position in the global race for green hydrogen, last year the EU began reaching
agreements with prospective producers. One of the most trumpeted deals was signed with Namibia
on the sidelines of Cop27 in Sharm el-Sheikh, Egypt.
“We want to fight climate change. We want to have clean energy. And as I said, you have all the
resources in abundance. So let us team up,” European Commission President Ursula von der

Leyen said in the direction of her Namibian counterpart, hailing the partnership as a “big win-win
situation for all of us”.
Tapping into solar and wind energy for export is central to President Hage Geingob’s economic
strategy. Namibia is seeking $20 billion of investment in green hydrogen – more than its entire GDP
of $12 billion in 2022. Government authorities are negotiating funding options with the EU.
As with any heavy industry, though, the hoped-for boom will come at a cost to local communities
and ecosystems. The benefits to ordinary Namibians are less certain.
In a months-long investigation, Climate Home News and Oxpeckers visited the site of the flagship
project, a $10 billion complex near the southern coastal town of Lüderitz.
The reporter on the ground found a community largely in the dark about the development and
nervous about the impact on fishing and tourism. Experts shared frustration at the secretive
tender process, scepticism about job prospects for Namibians and concerns for the area’s unique
wildlife.
The green hydrogen complex
Perched between the Namib desert and the Atlantic Ocean, Lüderitz is named after a German
colonist. It was the centre of a diamond rush in 20th century and of a colonial history that repressed
indigenous Africans. Germany officially apologised in 2021 for colonial-era atrocities, recognising them
as “genocide”.
Today, its Art Nouveau architecture, fresh seafood and wildlife draws a modest number of tourists,
who can visit ghost towns abandoned after the diamond rush. The town is surrounded by the

Tsau//Khaeb National Park, home to seals, penguins, flamingoes and ostriches. The park and
surrounding lands are off-limits to residents to prevent illegal diamond mining.
Green hydrogen is set to to transform the character of this small enclave once again.
Hyphen’s plans show an initial 5GW of wind turbines and solar panels to supply power, according
to the project’s factsheet published by the Namibian government. In this arid region, a desalination
plant is needed to supply fresh water. An electrolysis plant will split the water into hydrogen and
oxygen, before the hydrogen gas is converted into liquid ammonia.
A new deepwater port will accommodate tankers to ship the end product around the world. The
company aims to produce 300,000 tons of ammonia a year, commissioning the first phase by 2026,
Hyphen’s website says.
To build all this, Hyphen expects to bring in 15,000 workers, roughly doubling Lüderitz’s population.
Lüderitz Town Council is planning a new town in the desert to house the influx, immediately south
of the historic Kolmanskuppe ghost town.
An opaque tender process
“We were a little surprised at the government’s choice of a partner,” said Phil Balhao, an opposition
party member of the Lüderitz Town Council.
Other bidders like South Africa’s Sasol and Australian Fortescue Future Industries had an
“established track record” that “seemingly just got ignored”, he said.
The tender process was overseen by the Namibia Investments Development & Promotions Board
(NIDPB), which sits in the president’s office. In September 2020, the board appointed James
Mnyupe as green hydrogen commissioner. It launched the first call for proposals in early 2021.
In a televised speech, Mnyupe said the tender was exempt from public procurement rules. Instead,
he cited tourism and conservation laws as the basis to hold a closed selection process.

Graham Hopwood, director of the Institute of Public Policy Research, a public-interest think-tank
based in Windhoek, was not impressed.
“With such a major and strategic project, there needs to be transparency and accountability from
the outset. The fact that this project is mired in secrecy is raising red flags,” he said.
The Namibian government published a list of six bidders, who submitted nine bids between them.
However, the content of the bids was not made public, nor the reasoning for Hyphen’s selection.
Hyphen said this was standard practice, given the commercially sensitive data contained in the bids.
They added the process was “competitive”.
“It would be irresponsible and to the detriment to the development of the Hyphen project and
Namibia’s broader green hydrogen industry for it to publish commercially sensitive agreements in
the public domain that competitor projects/countries could use to compete against Namibia,”
Hyphen said in a statement.
The Namibian government said the tender was “conducted with the utmost transparency and
fairness”.
They said that the three-person bid evaluation committee did a “detailed and comprehensive
evaluation” of the proposals, supported by independent experts from the US government’s national
renewable energy laboratory and the EU’s technical assistance facility on sustainable energy.
Who is Hyphen?
Hyphen is a joint venture between two companies – Enertrag and Nicholas Holdings Limited.
Enertrag, owned by a 59-year-old East German nuclear physicist called Jörg Müller has a long track
record of building renewables. It is pursuing green hydrogen projects across the world in Uruguay,
Vietnam and South Africa.
Nicholas Holdings Limited is a company registered in the British Virgin Islands, which owns its stake
in Hyphen through a special purpose vehicle based in Mauritius. The ultimate owner of the company
is a South African investor called Brian Myerson.
The CEO of Hyphen is South African businessman Marco Raffinetti.
Myerson is a South African who spent decades as an investor in the UK, where he made headlines
for battling the business establishment.
In 2010, Myerson was found by a panel of top UK lawyers to have behaved dishonestly in averting a
takeover of Principle Capital, the investment firm he co-founded.

The Takeover Appeal Board found that Myerson and co-conspirators made a “deliberate attempt to
circumvent” rules around taking over companies and then attempted to cover up their rule-breaking
when the authorities began to investigate. He was banned from getting involved in mergers for three
years.
Dishing out the punishment, the panel said it was only the second time it had done so, which it said,
“is some indication of the extreme nature of the sanction”.
A spokesperson for Hyphen, Enertrag and Nicholas Holdings Limited described this incident as a
“historic matter” over “an alleged technical infringement” which “remains contested”. It should not
be used to draw conclusions about Myerson’s character, they argued.
They added that the Takeover Appeal Board had no formal regulatory powers and UK financial
regulators took no action in respect of the alleged breach of the rules.
A spokesperson for the Namibian government said it these were “historical legal matters, that to
best of our knowledge have since been resolved”.
Myerson’s previous ventures on the African continent include a failed bid to scale up bioethanol
production in Mozambique. Like today’s green hydrogen push, this was driven by EU demand: in
2007, the bloc set a to blend a percentage of biofuels into petrol. Investors piled into Mozambique,
touting it as a “biofuels superpower”.
Myerson set up Principle Energy, based on the Isle of Man. It made bold promises to plant
sugarcane over 20,000 hectares of land, build one of the top production facilities in the world and
employ 1,600 people. Then the global bioethanol market collapsed and by 2013 the company
closed, having planted just 136 hectares, according to a report by GRAIN.
His involvement in Hyphen is likely to be of concern, said IPPR’s Hopwood, adding Hyphen’s
leadership was “questionable”.
Use of tax havens
Myerson’s investment in Hyphen is structured through the British Virgin Islands and Mauritius. Both
rank poorly in the Tax Justice Network’s financial secrecy and corporate tax haven indexes.
Raffinetti said that Mauritius and the British Virgin Islands were “tax neutral jurisdictions with efficient
financial markets”. A lot of infrastructure investment in Africa goes through Mauritius, he said, and
investors are subject to tax in the countries where they are registered.
Tax Justice Network analyst Bob Michel said that investment into Africa goes through Mauritius
because of its tax rules. “Mauritius is a corporate tax haven,” he said.
“(Mauritius’) domestic tax regime combined with its vast tax treaty network allow third country
investors to use it to siphon profits from operations in Africa with the least of taxes paid in the
countries where the operations take place,” Michel said by email.
Michel said Hyphen’s strategy of setting up a vehicle to channel investments is valid, but the
jurisdiction where it is set up is important.
Namibia is one of many African nations to have signed a tax treaty with Mauritius, which seeks to
stop investors based in Mauritius being taxed both there and in Namibia.
Michel said that, with this treaty in place, routing investment through Mauritius “restricts Namibia’s
rights to levy tax on the profits derived from the new project.”

A spokesperson for the Namibian government said it was “aware of the jurisdictions through which
certain Hyphen shareholders hold their equity in Hyphen”.
The spokesperson added: “Should [the Namibian government] come across any conduct that is
unbecoming of its laws and global best practice, rest assured [we] will take the necessary swift
corrective action.”
Great expectations
Raffinetti, Hyphen’s CEO, previously developed gas power and rooftop solar bids in South Africa. The
Richard Bay gas project he co-led is facing legal challenge by environmental activists due to its
climate impact.
Wearing glasses and a black turtleneck, Raffinetti joined a video call with Climate Home in late
October. He warned interviewers the internet might cut out due to the power cuts his native South
Africa is plagued with.
The interview was granted, through a PR agency, on condition Hyphen could vet the quotes used.
Some of the more colloquial soundbites reporters transcribed came back replaced with cautious
jargon, and an admonition to put everything in its full context. Hyphen separately responded in
writing to detailed concerns raised by sources.
“There’s an enormous amount of expectation in Namibia around this project. So there’s a huge
amount of media attention,” Raffinetti said in one approved quote. “As the first large-scale project in
Namibia’s green industrialisation strategy, we have an enormous obligation to get it right.”
Biodiversity concerns
Dr Jean-Paul Roux, a retired marine biologist working in the area for decades, pointed to where the
Luderitz peninsula ends at Angra Point. It is the northernmost tip of the Karoo ecosystem, he
explained, unique to southern Africa.
In the dry summer season, the desert landscape looks drab and lifeless. Winter rains bring a green
explosion of rare plants such as the endemic Lithops optica, a tiny succulent that gets as old as 90
years.
“Here you can find up to 1,000 different plant species in just one square kilometre, some so small
no bulldozer operator will even notice them,” he said. He spots signs of hyenas and porcupines.
This is the area earmarked for the deepwater port, desalination and ammonia plants.
Roux said the development would have a massive impact on Shearwater Bay and the adjacent
Sturmvogelbucht, a lagoon teeming with flamingos and a heavy-sided dolphin population that he
has been studying for years and visits every day.
“This is the only place along the southern African coast where you can watch them from your car,”
he said as this smallest of all dolphin species approached to within a few meters of the beach. He
fears that once developers start blasting rock for the port construction, dolphins will leave and never
return.
Dr Antje Burke, a veteran botanist, is working as a consultant to Hyphen. She said at a conference
of the Namibian Scientific Society in July that Hyphen was trying to avoid the most sensitive areas,
but “one big problem” is that a species of parsley “overlaps almost completely with the concession
area”.

She added that “even more concerning” was the future development plans. “The Hyphen project is
developing the service infrastructure really keeping the future developments in mind… That means
the entire area will be developed.”
Burke indicated some adjustments that could mitigate the environmental impact.
“No green energy project can be implemented without some environmental impact and Hyphen’s
objective is to minimise environmental impacts to the largest extent possible,” Hyphen CEO Marco
Raffinetti said in an interview with Climate Home.
The company has hired consultancy SLR to prepare an environmental and social impact report and
lead a “comprehensive stakeholder engagement process”, Hyphen added in a written statement.
Consultants are currently gathering meteorological data and reporting a baseline of wildlife and
plants in the area, SLR reports say. The formal environmental impact study is expected to start next
year, the official documents add.
Loss of access
Aside from the northern end of the bay, the peninsula is the only publicly accessible area of the
Lüderitz region. The rest is Sperrgebiet or “forbidden area” – a legacy of the diamond rush.
Some of Hyphen’s infrastructure will reduce public access to the peninsula. Hyphen’s Raffinetti said
this was “unavoidable” as it was “the only location feasible for a deepwater port”.
The other access to the sea is the four-kilometre Agate Beach to the north of the enclave, downwind
from the last few local fishing factories and an overflowing municipal sewage plant.
Residents fear this would impact lobster fishing and rock angling. Crayfish fisheries, one of the
area’s tourism attractions and an informal source of income would also be affected, locals said.
“The people in the township’s poorest areas [have] got nowhere else to go. They are going to strip
this bay [Agate beach] clean of everything,” said Gerd Kessler, a fourth-generation Buchter as locals
call themselves, referring to a potential concentration of fisheries in the area.
As owner of Five Roses Aquaculture and three smaller oyster-breeding operations, Kessler employs
100 people.
A massive new seawall and harbour at Angra Point could have unpredictable impacts on currents
in the bay, he cautioned. When the existing shallow port was expanded in the late 1960s by filling
in the channel between the town and Shark Island, the sea quickly stripped away the town’s little
beach inside Robert Harbour.
Kessler’s biggest concern was how Hyphen planned to dispose of the brine from their desalination
plant. “You can’t just dump that anywhere, you have to make sure you use the currents to disperse
it,” Kessler said.
Questionable job prospects
Hyphen expects to create 15,000 jobs in the construction phase and 3,000 to operate the finished
complex. It is aiming for 90% of these jobs to go to Namibians, and 30% to youth.
There is a huge skills gap, Namibian business groups warned.
“We do not even have a category for petrochemical or petroleum engineers at the moment,” said
Sophia Tekie, chairperson of the Engineering Council of Namibia (ECN). “If we have any, they are
registered as [one of 40] chemical engineers.”

“Although the ECN has 2,015 registered engineers in eight disciplines at present, about 30 to 40%
of them were already retired and only did part-time consultancy work,” said her predecessor, Markus
von Jeney.
Local construction capacity did not look much better: according to Bärbel Kircher, director of the
Construction Industry Federation (CIF), their membership had declined from 480 companies in 2015
to 240 member companies, operating at only 50% capacity, she said.
“Currently, our local contractors are largely displaced by foreign contractors, excluding them from
opportunities. This is often due to conditions set by external financiers,” said Kircher.
In the past, the country has struggled to complete large projects due to corruption charges.
Since 2013, the Namibian Ports Authority, the National Petroleum Corporation of Namibia and the
Ministry of Agriculture have borrowed over N$21 billion (about US$400 million each, mostly from
the African Development Bank) for infrastructure projects, including the 3MW Neckartal dam.
The Namibian High Court declared the dam was commissioned in 2008 under corrupted
circumstances. The project was eventually completed at three times the original price in 2017.
Namibian construction companies were not likely to benefit from the green hydrogen projects, the
CiF said. “The current procurement methods and trends do not provide a promising outlook for the
future,” said Kirchner.
Hyphen said the company would implement “targeted training interventions at various levels”
including “specialized Masters’ programs, internships and apprenticeships”.
European support
Under the memorandum of understanding signed in Sharm el-Sheikh, the EU will provide technical
expertise, trade incentives and, crucially, help to secure infrastructure finance.
Moments after von der Leyen and Geingob inked their deal, the European Investment Bank
promised loans of up to €500 million ($528m) for renewable hydrogen investments in Namibia. “Let’s
bring flesh to the bone,” the bank’s chief Werner Hoyer told the audience.
Shortly after the event, Hyphen announced that it had “signed a €35 million agreement with the
European Investment Bank to finance the early development of our project”. This was somewhat
premature. The bank had supplied a letter of intent, not a firm commitment of funding.
Since the initial announcement, European institutions, Namibian government officials and private
actors have been working out the details of the partnership.
Hyphen is looking for €100 million to start work on the project.
“We have been very grateful to the EIB and the European Commission for making available the
initial funding to share the early development risk,” said Raffinetti in late September, suggesting a
firm commitment from the European backers.
The Hyphen CEO went on to outline what the deal with the EIB should look like: a €10 million ($10.5
million) grant – “still to be finalised,” he added – and a €25 million ($26.4 million) “soft loan”, meaning
it would come with favourable terms for the company.
An EIB spokesperson said no agreement has been signed yet. “We are in the process of completing
our due diligence, after which the project will be presented to the EIB’s governing bodies for
approval,” they said.

“Potential financial support at this early stage would be for site studies and feasibility studies. Any
support for implementation will be conditional to the project complying with the Bank’s environmental
and social (E&S), procurement, compliance and other standards,” they added.
On top of the cash injection, the EU’s international partnership division could provide a first-loss
guarantee. If the project does not go to plan and the borrower cannot pay back its debt, the EU will
pick up the tab – or at least part of it.
Without the “bedrock” of public money it would be impossible to lure in commercial lenders and
leave a huge funding gap, Raffinetti said.
A European Commission spokesperson told Climate Home that “at present, there is not yet any
financial assistance under the EU budget mobilised in favour of the Hyphen project”.
The Netherlands is also supporting the project. Dutch companies like the Port of Rotterdam and gas
pipeline operator Gasunie see a business opportunity to offload the green ammonia from ships and
pipe it to industry inland.
In June, green hydrogen commissioner Mnyupe told a national newspaper that the Dutch
government had given Namibia a €40m grant to develop green hydrogen. He said the government
would use €23m of this to buy a stake in Hyphen.
The Dutch said the money was not Namibia’s to spend. The €40m grant comes from Invest
International, a public fund set up in 2019 to advance Dutch interests abroad and promote economic
growth in the developing world.
Invest International’s lead on hydrogen Bart De Smet told Climate Home that the €40m grant will be
distributed by a fund manager independent of the Namibian government and won’t necessarily go
to Hyphen.
Who benefits?
The big question for Namibians is whether the inevitable disturbance of a unique ecosystem and
small-town culture will be worth it.
The Namibian government is taking a 24% stake in Hyphen through its sovereign wealth fund. It is
expected to raise further revenues through taxes, royalties, land rental and environmental levies on
the project, Hyphen said.
“The benefit for the country in terms of economic upliftment is enormous. Because Namibia is only
2.5 million people. So if you’re successful, your impact on each human being’s life can be
enormous,” Raffinetti said.
Patrick Neib, an unemployed resident of the Nautilus township behind Luderitz, could certainly use
some upliftment. He moved to the area in 2015 in search of a better job that has yet to materialise.
Like many residents, he found out about Hyphen from social media. Most of Hyphen’s public
meetings took place in Keetmanshoop, the regional capital 350 km away.
The secrecy and technical jargon used by Hyphen and its consultants made it impossible for the
ordinary layman to understand or access any opportunities, Neib said.
“There is just no public discussion about the benefits for ordinary people like me, or what price we
are to pay for green hydrogen development,” he said. “My question is, who or what is really behind
all of this?”

Namibia: $3.5 Billion Private Investments in Green Hydrogen
NewBase + Bloomberg
Cie Maritime Belge SA, a Belgian shipping company, expects green hydrogen production in Namibia
to start in the fourth quarter, a project that could see $3.5 billion in investment over the next five
years.
Belgium’s King Philippe on Thursday toured what’s expected to be
Namibia’s first operating green hydrogen plant. The Antwerp-based
shipping company seeking to power its fleet plans to open the first
stage of the hydrogen fuel and ammonia project through a joint
venture with Namibia’s Ohlthaver & List Group.
The facility will initially produce 400 kilograms (882 pounds) of
hydrogen daily powered by a 5 megawatt solar plant near the port
town of Walvis Bay. It’s expected to cost $30 million to build.
The project, known as Cleanergy, is part of a plan by the arid southern African nation to exploit
some of the world’s best solar radiation and tap into Europe’s demand for green fuels. If successful,
along with recent oil finds, it could transform the economy of the nation of 2.8 million people that
currently relies on tourism, fishing and diamond mining.
“Our customers are asking us to clean up our act to make sure that we don’t emit carbon dioxide
anymore. So we need to find an alternative for diesel,” Alexander Saverys, CMB’s chief executive
officer, said in an interview at the site. “We wanted to be in a country where there’s an abundance
of cheap renewable energy and Namibia is that country.”

The CMB plant, which will be expanded, will be followed by an ammonia terminal at Walvis Bay
port. CMB is also planning to construct a 250,000 ton-per-year ammonia plant powered by solar at
Arandis in the heart of the Namib desert. That will bring total projects costs to about $3.5 billion.
Vast Resources
When complete the project will allow CMB to venture into refueling large ships that dock in Walvis
Bay - which lies on the route around the tip of Africa.
At the site near Walvis Bay solar energy is used to split water to generate hydrogen, which burns
without emitting greenhouse gases and can be used to fuel trucks and small ships. At Arandis the
hydrogen will be converted into ammonia, which is easier to transport and can be used to power
large ships and heavy industry.
“All actors here share a vision of a green energy future,” King Philippe said in a speech at the event.
“There is a bright future when I can see what we can accomplish together.” CMB, founded in 1895,
is controlled by the Saverys family. The Namibia plant will be its first outside Belgium, where it
operates a small facility.
Namibia has vast resources including sun and wind that can be used to make hydrogen, Tinne Van
der Straeten, Belgium’s energy minister, said in an interview. “But most important, we have a very
like-minded vision and a very like-minded hydrogen strategy.”
The two countries signed an agreement at the COP26 United Nations summit in Glasgow in 2021
to develop the green hydrogen industry. “It’s good that small countries can come together and do
bigger things for other countries to follow,” Nangolo Mbumba, Namibia’s president, said in a speech
at the event.
The greenhouses for the Daures Green Hydrogen Village
The Daures Green Hydrogen Village in Namibia is set to produce the country’s first green hydrogen
and ammonia in July, with the project’s construction now 80% complete.

The facility will produce 18 tonnes of H2 and 100 tonnes of NH3 a year, which will go towards the
production of ammonia sulphate fertilisers to grow crops in a co-located greenhouse.
Green hydrogen production in Africa 'can improve local power supply, but financing issues will drive
up costs'
However, the project is also set to scale up to supply regional and international exports, with 3,500
tonnes of annual ammonia production by 2027, 352,000 tonnes by 2032, and 700,000 tonnes a
year in a final phase.
Memoranda of understanding (MOUs) for ammonia offtake have already been signed with
Zimbabwean fertiliser manufacturer Sable Chemicals, Guernsey-headquartered Andrada Mining,
and the UN’s World Food Programme.
The Daures Green Hydrogen Village had also signed an MOU with Australia’s Fortescue in January
2023 to explore co-development, although there had been no further updates on this agreement.
While the July start-up could represent a delay from initial reports suggesting the plant would be on
line as early as June, the project is still within its stated timeline for commissioning the pilot phase.
The late Namibian president Hage Geingob (who died on Sunday) and European Commission
President Ursula von der Leyen at a signing ceremony in Brussels last October for a strategic
partnership on renewable hydrogen and raw materials.
'Green hydrogen is facing resistance in the developing world because almost all of it would be
exported to rich countries': UN
The consortium behind the Daures Green Hydrogen Village, led by developer Enersense, had
received a grant worth N$220m ($11.6m) from the German government in 2022.
Namibia is also set to produce its first green hydrogen-derived iron by the end of this year at start-
up HyIron’s Oshivela facility, which had also received German government funding worth €13m
($14m).
Meanwhile, the country’s flagship 3GW Hyphen project, which is geared towards exporting huge
volumes of ammonia to offtakers in Europe and Asia, is not set to reach a final investment decision
until 2025.
As such, Namibia appears to be moving in a similar direction recommended by the UN and the
International Renewable Energy Agency in a recent report, starting with small-scale green hydrogen
production for local use in value-add products such as fertiliser and steel, before gradually scaling
up for exports.

NewBase Energy News 06- May - Issue No. 1722 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the
GCC area via many leading Energy Services companies. Khaled is the Founder of
the NewBase Energy news articles issues, Khaled is an international consultant,
advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks,
waste management, waste-to-energy, renewable energy, environment protection
and sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas
compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of gas/oil supply routes.
Has drafted & finalized many contracts/agreements in products sale, transportation, operation &
maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities.
Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has
participated in numerous conferences and workshops as chairman, session chair, keynote speaker and
panelist.
Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over
1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable
energy, waste management, plant Automation IA and environmental sustainability in different parts of the
world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program
broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see
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