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NewBase Energy News 11 September 2023 No. 1655 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
‘Net Zero Nuclear’ initiative calls for global collaboration to
triple world nuclear capacity by 2050
WAM
World Nuclear Association (WNA) and the Emirates Nuclear Energy Corporation (ENEC), with the
support of the Atoms4NetZero initiative launched by the International Atomic Energy Agency (IAEA),
today called for unprecedented collaboration between government, industry leaders and civil society
to triple global nuclear capacity to achieve carbon neutrality by 2050.
The urgent call for rapid deployment of more nuclear technologies was made during the launch of
‘Net Zero Nuclear’; an initiative for action and advocacy for nuclear energy’s role in achieving global
clean energy security,
which was debuted during the opening of the World Nuclear Symposium taking place in London this
week.
Recent data modelling has shown that global nuclear energy capacity should at least triple by 2050
to achieve climate targets while still ensuring global energy security. This would require the
worldwide rate of deployment to average 40 GW per year, more than six times the rate of
deployment over the past decade.
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In the lead up to COP28, which will be hosted by the United Arab Emirates in Dubai later this year,
Net Zero Nuclear aims to bring together political leaders and industry to engage in data-driven,
actionable, solutions-focused dialogue to enable the rapid expansion of the global nuclear fleet and
the acceleration of research and development into emerging nuclear technologies.
The initiative will work to ensure nuclear energy’s potential is fully realized in facilitating the
decarbonization of global energy systems, by promoting the value of nuclear energy and removing
barriers to its growth.
IAEA Director-General Rafael Mariano Grossi said, “Building on the efforts made during COP26
and COP27, nuclear energy will feature even more prominently at COP28. As more nations
understand the role nuclear can play in achieving energy security and decarbonisation targets,
global support for nuclear energy is growing. Analysts agree that globally we cannot achieve carbon
neutrality without a rapid expansion of nuclear energy capacity.
We welcome the important objectives of Net Zero Nuclear launched by the nuclear industry, which
is in line with the Atoms4NetZero initiative launched by the IAEA and we will continue to provide
technical support and cooperation to countries with existing nuclear power programmes and those
considering embarking on them."
Dr Sama Bilbao y León, Director General of the World Nuclear Association, said, “We cannot afford
to underestimate the role nuclear energy must play in achieving Net Zero. Our world is in the midst
of an energy crisis, and we continue to experience unprecedented climate-change-related weather
extremes. The time for debating is over.
Nuclear energy is a critical tool in securing future energy systems that are clean, resilient and
secure. But scaling up nuclear energy capacity to at least three times its current size requires
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political will from energy leaders, along with mobilizing quickly and efficiently the required financing.
We have no time to lose in delivering a realistic, proven approach to the clean energy transition.
Through Net Zero Nuclear, we hope to facilitate the action our industry needs to grow.”
Mohamed Ibrahim Al Hammadi, Managing Director and Chief Executive Officer of ENEC, which
leads the UAE Peaceful Nuclear Energy Programme and its flagship Barakah Nuclear Energy Plant,
said, “Nuclear energy is a key source of electricity for delivering Net Zero.
It is the only source of dispatchable, low-carbon, climate-resilient energy we have available that can
reliably produce vast amounts of clean electricity, day and night. It brings energy security, resilience,
diversity and sustainability to an energy system.
Beyond the grid, nuclear’s potential to enable the decarbonisation of heavy industry and transport
sectors through heat, steam and hydrogen should provide even greater impetus to ensure nuclear’s
growth is strongly supported through sound policy, access to finance and unprecedented
collaboration.
The UAE example has proven that nuclear energy can be a modern-day climate solution – delivering
a transformational shift in the carbon intensity of power supply. In just over a decade, nuclear energy
is producing a quarter of the nation’s energy needs.
"The UAE, as host of COP28, welcomes other nations coming to the UAE for COP28 to learn how
the nation has rapidly decarbonized its power grid through the deployment of nuclear energy,
offering a model for others looking for a proven route to reducing carbon emissions while boosting
energy security.”
During the global launch in London, it was announced that the UK Department for Energy Security
and Net Zero would be joining ‘Net Zero Nuclear’ as the inaugural government partner to collaborate
and support the initiative on the road towards COP28 in the UAE.
UK Minister for Nuclear and Networks Andrew Bowie said, “We have launched a nuclear power
revival in the UK, with projects like Hinkley and Sizewell C, but also with Great British Nuclear
supporting the latest cutting-edge technologies like small modular reactors.
I am therefore proud that the UK is the first government partner in this new initiative, as a means
of championing nuclear technologies both to boost global energy security and in achieving net zero
– particularly as we look ahead to COP28.”
In the UAE, where the sun is abundant and where renewables have a major role to play in the
energy mix, nuclear energy has delivered the largest decarbonisation of the nation’s history, with
the Barakah Nuclear Energy Plant, which will generate 40 TWh annually once fully operational while
preventing the release of over 22 million ton of carbon emissions, being the largest single source of
clean electricity in the country. The UAE’s nuclear energy program is one of the most cost and time-
efficient new nuclear builds in recent history.
Globally, nuclear energy has experienced a significant resurgence over the past two years, as
nations rush to meet energy security and decarbonisation targets. The industry has benefited from
major policy announcements in different nations, including the UK, US, Canada, Japan, France and
China, as well as growing inclusion in green financing mechanisms and a major uptick in private
investment interest in nuclear energy technologies.
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UAE Masdar and Africa50 to accelerate clean energy transition
WAM - Rola AlGhoul
Abu Dhabi Future Energy Company (Masdar) has partnered with Africa50, the pan-African
infrastructure investment platform, to identify, fast-track and scale clean energy projects across the
continent.
The UAE's clean energy champion has signed a memorandum of understanding (MoU) with
Africa50, which will work to bridge the infrastructure funding gap and mobilise public and private
finance.
Masdar brings its technical expertise and extensive experience in emerging markets, while Africa50
brings its experience developing projects in Africa, which, combined, can help unlock Africa's
tremendous clean energy potential.
Signed by Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, and Alain Ebobissé,
Chief Executive Officer of Africa50, on the sidelines of Africa Climate Summit, the first of four global
climate summits ahead of COP28, the agreement will see both parties work to catalyse sustainable
development of the clean energy sector in Africa.
Masdar, one of the world's largest clean energy companies and the largest in Africa, committed
US$2 billion of equity as part of the UAE finance initiative, which was announced during the Africa
Climate Summit by Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology, COP28
President-Designate and Chairman of Masdar.
The initiative brings together public, private, and development capital from UAE institutions, notably
Abu Dhabi Fund for Development (ADFD), Etihad Credit Insurance (ECI), Masdar, and AMEA
Power. Africa50 is expected also to join this initiative as a strategic partner.
Dr. Al Jaber said, "We welcome this important partnership with Africa50, which brings a key
stakeholder to the table for an inclusive, equitable and just energy transition. We look forward to
working with Africa for Africa. The world must continue to close the gap in climate finance for clean
energy investment in the global south, disproportionately affected by climate change.
"We need the public and private sectors to work together to deliver clean energy access across
Africa – a key mission and objective of Africa50. This can be accelerated in countries with robust
regulatory frameworks, clear transition strategies and a real commitment to developing grid
structure."
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Al Ramahi, in turn, said, "As the largest renewable energy company in Africa, through our joint
venture with Infinity Power, it is fitting that Masdar, with Africa50, should take this bold step forward,
which will unlock much-needed climate finance for the energy transition. It is a key strategic market
for Masdar, and we are proud of our long-term partnerships and projects in Africa.
Our portfolio today includes Senegal's first utility-scale wind farm under Masdar's Infinity Power
Holding platform (IPH), Mauritania's first and largest solar photovoltaic project, and the development
of Africa's largest wind farm in Egypt with IPH and other partners. With Africa50, Masdar looks
forward to unlocking the enormous clean energy potential across the continent,"
Masdar has committed a total of US$10 billion in clean energy finance, of which US$2 billion will be
generated from equity, with an additional $8 billion mobilised from project finance. This landmark
investment will target the delivery of 10GW of clean energy capacity in Africa by 2030.
Ebobissé commented, "Partnerships are key to our goal of scaling up and accelerating the delivery
of bankable and sustainable infrastructure across Africa. We are pleased to join forces with Masdar
through this signing. We believe this step will become one of many on a journey to drive
transformative projects supporting Africa's path to net-zero and help build cleaner economies for
future generations."
Africa50 and Masdar will also explore opportunities to collaborate on implementing the Alliance for
Green Infrastructure in Africa (AGIA), launched at COP27 by the African Union Commission, the
African Development Bank and Africa50.
The UAE investment initiative sits under the umbrella of Etihad 7, a development platform launched
by the UAE at Abu Dhabi Sustainability Week in 2022 and spear-headed by the Ministry of Foreign
Affairs (MoFA). Announced in 2022, Etihad 7 aims to provide 100 million people across the African
continent with clean electricity by 2035.
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India: Outcomes of G20 Summit are crucial for COP28: official
WAM
As the outcomes of the G20 Summit in New Delhi are incredibly important for the COP28 – the
UAE-hosted UN Climate Conference, it is key to have the UAE at the table in New Delhi Summit, a
senior German official told the Emirates News Agency (WAM).
State Secretary Jörg Kukies, Commissioner of the German Chancellor for the G7/G20 Summits,
said that the outcome of climate discussions in New Delhi will pave
the way for COP28 to be held in Dubai in November this year.
‘World is off track on 1.5°C target’
In an interview with WAM on the sidelines the G20 Summit, he
stressed the significance of G20 initiatives in climate change as the
member countries collectively account for around 80 percent of global
greenhouse gas (GHG) emissions.
Kukies noted the importance of the efforts to keep 1.5°C of Paris
Agreement within reach; to enhance national climate targets and nationally determined contributions
(NDCs); and to transition towards renewable energies. “The world is currently clearly off track with
regards to the 1.5°C target.”
New Delhi declaration
The New Delhi declaration adopted yesterday reiterated the G20’s resolve to pursue further efforts
to limit the global average temperature increase to 1.5°C.
“We note with concern that global ambition and implementation to address climate change remain
insufficient to achieve the temperature goal of the Paris Agreement to hold the increase in the global
average temperature to well below 2°C above pre-industrial levels and pursue efforts to limit the
temperature increase to 1.5°C above pre-industrial levels. We highlight the importance of ambitious
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action on all pillars of the Paris Agreement, taking into account the best available science,” the
declaration said.
The G20 also recognised that limiting global warming to 1.5°C requires rapid, deep and sustained
reductions in global GHG emissions of 43 percent by 2030 relative to the 2019 levels.
Germany’s commitments
The German official said his country stands ready to fulfil its climate finance commitment and to
support the most vulnerable.
Talking about Germany’s expectations for the UN Climate Conference, Kukies said, “At COP28, we
need global targets for the expansion of renewable energy (at least tripling the installed capacity to
at least 11 terawatts) and energy efficiency (doubling the rate of improvement) by 2030. And last
but not least, we need a clear signal for a worldwide gradual exit from fossil fuels, especially coal,
as well as the phaseout of inefficient subsidies for fossil fuels by 2025.”
The German official appreciated the UAE’s readiness to assume a leadership role among energy
producing countries with regard to climate protection. “It is an important signal that UAE is ready to
organise COP28 and to make comprehensive contributions to climate financing. At the recent
climate summit in Nairobi, UAE announced a comprehensive financing initiative for renewable
energies in Africa,” he pointed out.
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German-UAE cooperation on climate change
Kukies said said Germany has intensified its cooperation with UAE on climate issues, in the run up
to COP28.
“In light of UAE’s role as host of the upcoming COP and Germany’s long-standing partnership with
the UAE, I particularly welcomed the participation of President His Highness Sheikh Mohamed bin
Zayed Al Nahyan at the Delhi Summit.”
Kukies pointed out that when Federal Chancellor Scholz met with President His Highness Sheikh
Mohamed in UAE in September 2022, climate change and renewable energies were among the
central topics. “Since then, we have exchanged high level visits and are now working towards a
successful COP at the end of the year.”
G-20’s support for Global South
The German official said the Delhi summit is important to address global challenges such as climate
action, sustainable growth and development, and technological transformation.
Kukies pointed out the significance of sending a signal of a G20 that lives up to its responsibility to
tackle these global challenges collectively, including through its support to developing countries and
the Global South.
“Germany is committed to make international governance more inclusive. Germany therefore
strongly supported the African Union as new formal member to join the G20.”
He also stressed the importance of a clear commitment by every G20 member to uphold
international law and the Purposes and Principles enshrined in the Charter of the United Nations.
Kukies expressed his concerns about the Ukrainian crisis that has caused human suffering, ripple
effects across all economies, and increase in food and energy prices.
About the Ukrainian crisis, the New Delhi declaration quoted the relevant resolutions of UN Security
Council and the UN General Assembly and underscored that all states must act in a manner
consistent with the Purposes and Principles of the UN Charter in its entirety. “In line with the UN
Charter, all states must refrain from the threat or use of force to seek territorial acquisition against
the territorial integrity and sovereignty or political independence of any state.
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Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil prices ease, supply cuts keep Brent above $90 per barrel
Reuters + NewBase
Oil prices eased in early Asian trade on Monday as economic concerns in China weighed on fuel
demand outlook although Brent stayed perched above $90 a barrel, supported by tightening
supplies after Saudi Arabia and Russia extended supply cuts.
Brent crude fell 49 cents, or 0.175%, to $90.50 a barrel by 05.35 GMT while U.S. West Texas
Intermediate crude was at $87.07 a barrel, down 44 cents, or 0.5%.
"Concerns about Chinese economic growth weighed on sentiment across commodities," ANZ
analysts said in a note.
"The move was exacerbated by a stronger USD, which kept investor appetite low," they added,
referring to the greenback which has risen for eight straight weeks.
Both contracts gained in the past two consecutive weeks with Brent settling at its highest since
November on Friday, after Saudi Arabia and Russia announced last week they will extend voluntary
supply cuts of a combined 1.3 million barrels per day until the end of the year.
Oil price special
coverage
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The International Energy Agency and the Organization of the Petroleum Exporting Countries
(OPEC) are due to release their monthly reports this week.
"Any sign of strong demand from oil market reports from IEA and OPEC will likely push oil prices
higher," ANZ analysts said.
In the United States, producers added an oil rig last week for the first time since June, Baker
Hughes said in its weekly report, but the total count was still down 127, or 17%, below this time last
year.
WTI is likely in the process of marking out a new higher range at above $83 and below resistance
at $93.50 in the weeks ahead, with concerns around demand in China and Europe capping further
upside, IG analyst Tony Sycamore said in a note.
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NewBase Specual Coverage
The Energy world –September 11 -2023
CLEAN ENERGY
Saudi Arabia Sets Its Sights on a Less Glamourous Source of
Wealth turning the country into a metals hub
Bloomberg
In scorching summer heat, Renier Swiegers marches through the desert toward a drilling rig. He’s
not looking for oil, the dynamo of Saudi Arabia’s economy the past 80 years, though. It’s another
potential source of wealth and influence the kingdom now has its eye on.
Having already used its energy riches to upend the worlds of sports, tourism and movies, Saudi
Arabia’s Crown Prince Mohammed bin Salman is prepared to pour billions of dollars into tapping
the more than $1.3 trillion of metals his government says is buried in places like this.
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The plan may be among the less glamorous components of his grand Vision 2030 to
transform the Saudi economy. The prospect of turning the country into a metals hub
that can make a dent in a global industry also has no shortage of skeptics. But Saudi
Arabia’s 38-year-old de-facto leader has no shortage of wealth or ambition. Key will
be convincing international mining companies it’s worth their while.
If only partially successful, the dream would have implications beyond the Middle
East, not just for metals mining but also Saudi Arabia’s relations with the US, China
and the emerging markets the kingdom is inching closer to.
Swiegers, a Namibian who works for British mining firm Moxico Resources Plc, is a
believer. He’s helping establish a new zinc and copper open pit mine about 200
kilometers (125 miles) west of the Saudi capital, Riyadh.
“I’ve done projects all over Africa, and I know the geology and where is good to mine,”
said Swiegers, extracting earth samples from the rig from as deep as 200 meters and
pointing to copper deposits glittering in the sun. “This site is just like those.”
If everything comes to fruition, by 2025 the Khnaiguiyah site he’s working on will be
producing metals including 100,000 tons a year of zinc and 10,000 tons of copper in
its first phase. That’s miniscule by global standards — equivalent to Chile’s copper
output in about 18 hours — but the aim is to double the volume. It’s one of several
projects in the kingdom.
As well as developing local mines, there’s also another element to the plan that
industry insiders say is less speculative and quicker to get up and running. Saudi
Arabia wants to buy up resources from elsewhere to be refined and processed at new
facilities inside the kingdom.
In July, the country announced its first big push into international mining. It took part
in a $3.4 billion deal in Brazil, buying a stake in Vale SA’s base metals unit alongside
investment fund Engine No. 1.
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The transaction was the first by Manara Minerals, a vehicle established by Saudi
Arabia’s powerful sovereign wealth fund — the Public Investment Fund, or PIF — and
Saudi Mining Co., also known as Maaden. The agreement gives the kingdom, which
beat off competition from Japan and Qatar, a 10% slice in one of the world’s crucial
suppliers of nickel and copper — essential metals needed to decarbonize.
There will be more. Manara’s two shareholders will initially provide about $3 billion for
two or three international deals a year, and more funding will be provided if needed,
people familiar with the strategy said. It’s part of Maaden’s aim to ramp up its role in
domestic production, while also buying access to global resources.
Pillar of the New Saudi Economy
Using government subsidies and lending by state-controlled funds, the overarching
goal is to position Saudi Arabia as an alternative supplier to China for the metals and
minerals vital to the global energy transition, such as batteries for electric cars. In
short, dirty old mining is one of the pillars of the clean new future.
“Saudi Arabia needs more than one engine to achieve its vision,” Khalid Al Mudaifer,
vice minister of mining affairs, said in an interview. The kingdom’s plan is to transform
itself into an economic and industrial powerhouse, he said. “For that we need
minerals.”
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The main metal of interest to companies is copper, but Saudi Arabia also wants to
mine uranium and phosphates for its nascent nuclear program. That’s drawn the
attention of Western powers and the United Nations, who are wary of nuclear
proliferation in the Middle East.
Saudi Arabia has repeatedly pledged that its atomic program is strictly for peaceful
purposes, but Prince Mohammed has said the kingdom would develop a bomb if the
other big Middle Eastern power, Iran, did so.
Some executives and advisers at the world’s biggest miners, though, have doubts
about the kingdom’s domestic mining plans and point first to its geology. Its uranium
reserves have been called “severely uneconomic.” The copper deposits — the most
desirable metal for most miners — were mainly formed by volcanic activity.
That means they will likely only be found in small to medium-sized areas. It makes
them less attractive to mine than the deposits that stretch down the through the Andes
in Latin America and provide the bulk of the world’s supplies or the sedimentary-rock
formations in places like Central Africa.
These jurisdictions — and even the largely undeveloped copper crescent that runs
through Iran and Pakistan — are seen as much more prospective for the large, long-
life mines many of the major global companies are looking to develop.
There’s also the problem of water, something in scarce supply in Saudi Arabia, which
is around 95% desert. “There is also the challenge of availability of infrastructure,
particularly for deposits located in remote desert areas,” said Carole Nakhle, founder
and chief executive officer of London-based consultancy Crystol Energy.
Much of the Saudi plan will hinge on how successful projects like the one at
Khnaiguiyah are at getting from identifying specific locations of mineral deposits to
commercial production. Ajlan & Bros, the local investor developing Khnaiguiyah along
with UK-based Moxico Resources, has earmarked $14 billion to invest in developing
mines and processing facilities by 2030.
The firm, controlled by a wealthy Saudi family that built its fortune on selling traditional
Arab headdresses, is betting that “Saudi Arabia can become a new source of minerals
and rare earths away from China,” said Fahad Alenezi, CEO for the metals and mining
group at Ajlan & Bros. As China and the US compete for access to resources “this is
healthy for us,” he said.
Ajlan is planning to develop the largest zinc and copper processing plant in the Middle
East at Yanbu on Saudi Arabia’s west coast. Most of the focus will be domestic
demand, but the firm is already getting offers from Chinese and European trading
houses to take any commodities it can produce.
Saudi Arabia is partnering with the Chinese Geological Survey on a $207 million
contract to help identify minerals in the so-called Arabian Shield area of the kingdom
where most deposits are, officials said at a Saudi-China business conference in June.
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The government in Beijing has also led efforts to identify the kingdom’s uranium
deposits.
“The bottom line is that Saudi is exceptionally prospective,” Mark Bristow, CEO of
Barrick Gold Corp, said in an interview during a visit to Riyadh in January. As for the
estimate of more than $1 trillion of metals in the ground, “Whatever that number is,
it’s worth an investment,” said Bristow, whose company took a risk on Mali more than
25 years ago and helped to turn it into a top African gold producer.
Canada’s Barrick operates a copper mine on Saudi Arabia’s southwestern coast near
the Red Sea. It’s also been in talks with the PIF about a potential stake in a copper
project in Pakistan, which would bring in Saudi money and political influence, people
familiar with the matter said recently.
Vision 2030 Eyes $75 Billion
The government is offering big incentives for companies to start mining. The Saudi
Industrial Development Fund will offer financing for up to 75% of a project. There’s a
five year grace period on royalty payments, a cap on taxation levels, and a
commitment not to levy windfall taxes. All government income from mining will go into
a special fund to be reinvested in the industry.
Mining is the so-called “third pillar” of the economy in Vision 2030. The others are
petroleum and petrochemicals, meaning mining would become the biggest part of the
economy after oil and gas. The industry would eventually employ more than 250,000
people and contribute some $75 billion to Saudi gross domestic product by 2030,
according to the targets.
A metals refining and processing industry could have potential to draw interest from
international partners looking to provide more competition with China, which currently
dominates minerals processing and battery manufacturing. That, of course, is if it all
goes to plan.
So far, Saudi auctions for exploration licenses in the country have attracted only
smaller players. The kingdom in August announced another bid round for investment
and development of eight mining areas across the country.
Doubts among the big miners, though, don’t mean they aren’t closely following the
Saudi efforts. Under the crown prince, Saudi Arabia is willing to take the kind of
commercial risks other countries with mining ambitions might balk at, and his futuristic
new city in the desert, called Neom, and the recent lavish spending on football shows
the kingdom’s belief in its aims.
“Others in the industry were telling me that this is real and it’s something you need to
get closer to,” Mike Henry, CEO of BHP Group Ltd., the world’s biggest mining
company, said during a trip to Saudi Arabia. “It’s definitely the real deal.” That was in
January when he attended the country's annual mining conference. Whether giants
like BHP get involved remains to be seen.
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NewBase Energy News 11-September - Issue No. 1655 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
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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
contact details above.
Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 17
Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 18
Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 19

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NewBase 11 September 2023 Energy News issue - 1655 by Khaled Al Awadi.pdf

  • 1. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 1 NewBase Energy News 11 September 2023 No. 1655 Senior Editor Eng. Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE ‘Net Zero Nuclear’ initiative calls for global collaboration to triple world nuclear capacity by 2050 WAM World Nuclear Association (WNA) and the Emirates Nuclear Energy Corporation (ENEC), with the support of the Atoms4NetZero initiative launched by the International Atomic Energy Agency (IAEA), today called for unprecedented collaboration between government, industry leaders and civil society to triple global nuclear capacity to achieve carbon neutrality by 2050. The urgent call for rapid deployment of more nuclear technologies was made during the launch of ‘Net Zero Nuclear’; an initiative for action and advocacy for nuclear energy’s role in achieving global clean energy security, which was debuted during the opening of the World Nuclear Symposium taking place in London this week. Recent data modelling has shown that global nuclear energy capacity should at least triple by 2050 to achieve climate targets while still ensuring global energy security. This would require the worldwide rate of deployment to average 40 GW per year, more than six times the rate of deployment over the past decade. ww.linkedin.com/in/khaled-al-awadi-80201019/
  • 2. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 2 In the lead up to COP28, which will be hosted by the United Arab Emirates in Dubai later this year, Net Zero Nuclear aims to bring together political leaders and industry to engage in data-driven, actionable, solutions-focused dialogue to enable the rapid expansion of the global nuclear fleet and the acceleration of research and development into emerging nuclear technologies. The initiative will work to ensure nuclear energy’s potential is fully realized in facilitating the decarbonization of global energy systems, by promoting the value of nuclear energy and removing barriers to its growth. IAEA Director-General Rafael Mariano Grossi said, “Building on the efforts made during COP26 and COP27, nuclear energy will feature even more prominently at COP28. As more nations understand the role nuclear can play in achieving energy security and decarbonisation targets, global support for nuclear energy is growing. Analysts agree that globally we cannot achieve carbon neutrality without a rapid expansion of nuclear energy capacity. We welcome the important objectives of Net Zero Nuclear launched by the nuclear industry, which is in line with the Atoms4NetZero initiative launched by the IAEA and we will continue to provide technical support and cooperation to countries with existing nuclear power programmes and those considering embarking on them." Dr Sama Bilbao y León, Director General of the World Nuclear Association, said, “We cannot afford to underestimate the role nuclear energy must play in achieving Net Zero. Our world is in the midst of an energy crisis, and we continue to experience unprecedented climate-change-related weather extremes. The time for debating is over. Nuclear energy is a critical tool in securing future energy systems that are clean, resilient and secure. But scaling up nuclear energy capacity to at least three times its current size requires
  • 3. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 3 political will from energy leaders, along with mobilizing quickly and efficiently the required financing. We have no time to lose in delivering a realistic, proven approach to the clean energy transition. Through Net Zero Nuclear, we hope to facilitate the action our industry needs to grow.” Mohamed Ibrahim Al Hammadi, Managing Director and Chief Executive Officer of ENEC, which leads the UAE Peaceful Nuclear Energy Programme and its flagship Barakah Nuclear Energy Plant, said, “Nuclear energy is a key source of electricity for delivering Net Zero. It is the only source of dispatchable, low-carbon, climate-resilient energy we have available that can reliably produce vast amounts of clean electricity, day and night. It brings energy security, resilience, diversity and sustainability to an energy system. Beyond the grid, nuclear’s potential to enable the decarbonisation of heavy industry and transport sectors through heat, steam and hydrogen should provide even greater impetus to ensure nuclear’s growth is strongly supported through sound policy, access to finance and unprecedented collaboration. The UAE example has proven that nuclear energy can be a modern-day climate solution – delivering a transformational shift in the carbon intensity of power supply. In just over a decade, nuclear energy is producing a quarter of the nation’s energy needs. "The UAE, as host of COP28, welcomes other nations coming to the UAE for COP28 to learn how the nation has rapidly decarbonized its power grid through the deployment of nuclear energy, offering a model for others looking for a proven route to reducing carbon emissions while boosting energy security.” During the global launch in London, it was announced that the UK Department for Energy Security and Net Zero would be joining ‘Net Zero Nuclear’ as the inaugural government partner to collaborate and support the initiative on the road towards COP28 in the UAE. UK Minister for Nuclear and Networks Andrew Bowie said, “We have launched a nuclear power revival in the UK, with projects like Hinkley and Sizewell C, but also with Great British Nuclear supporting the latest cutting-edge technologies like small modular reactors. I am therefore proud that the UK is the first government partner in this new initiative, as a means of championing nuclear technologies both to boost global energy security and in achieving net zero – particularly as we look ahead to COP28.” In the UAE, where the sun is abundant and where renewables have a major role to play in the energy mix, nuclear energy has delivered the largest decarbonisation of the nation’s history, with the Barakah Nuclear Energy Plant, which will generate 40 TWh annually once fully operational while preventing the release of over 22 million ton of carbon emissions, being the largest single source of clean electricity in the country. The UAE’s nuclear energy program is one of the most cost and time- efficient new nuclear builds in recent history. Globally, nuclear energy has experienced a significant resurgence over the past two years, as nations rush to meet energy security and decarbonisation targets. The industry has benefited from major policy announcements in different nations, including the UK, US, Canada, Japan, France and China, as well as growing inclusion in green financing mechanisms and a major uptick in private investment interest in nuclear energy technologies.
  • 4. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 4 UAE Masdar and Africa50 to accelerate clean energy transition WAM - Rola AlGhoul Abu Dhabi Future Energy Company (Masdar) has partnered with Africa50, the pan-African infrastructure investment platform, to identify, fast-track and scale clean energy projects across the continent. The UAE's clean energy champion has signed a memorandum of understanding (MoU) with Africa50, which will work to bridge the infrastructure funding gap and mobilise public and private finance. Masdar brings its technical expertise and extensive experience in emerging markets, while Africa50 brings its experience developing projects in Africa, which, combined, can help unlock Africa's tremendous clean energy potential. Signed by Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, and Alain Ebobissé, Chief Executive Officer of Africa50, on the sidelines of Africa Climate Summit, the first of four global climate summits ahead of COP28, the agreement will see both parties work to catalyse sustainable development of the clean energy sector in Africa. Masdar, one of the world's largest clean energy companies and the largest in Africa, committed US$2 billion of equity as part of the UAE finance initiative, which was announced during the Africa Climate Summit by Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology, COP28 President-Designate and Chairman of Masdar. The initiative brings together public, private, and development capital from UAE institutions, notably Abu Dhabi Fund for Development (ADFD), Etihad Credit Insurance (ECI), Masdar, and AMEA Power. Africa50 is expected also to join this initiative as a strategic partner. Dr. Al Jaber said, "We welcome this important partnership with Africa50, which brings a key stakeholder to the table for an inclusive, equitable and just energy transition. We look forward to working with Africa for Africa. The world must continue to close the gap in climate finance for clean energy investment in the global south, disproportionately affected by climate change. "We need the public and private sectors to work together to deliver clean energy access across Africa – a key mission and objective of Africa50. This can be accelerated in countries with robust regulatory frameworks, clear transition strategies and a real commitment to developing grid structure."
  • 5. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 5 Al Ramahi, in turn, said, "As the largest renewable energy company in Africa, through our joint venture with Infinity Power, it is fitting that Masdar, with Africa50, should take this bold step forward, which will unlock much-needed climate finance for the energy transition. It is a key strategic market for Masdar, and we are proud of our long-term partnerships and projects in Africa. Our portfolio today includes Senegal's first utility-scale wind farm under Masdar's Infinity Power Holding platform (IPH), Mauritania's first and largest solar photovoltaic project, and the development of Africa's largest wind farm in Egypt with IPH and other partners. With Africa50, Masdar looks forward to unlocking the enormous clean energy potential across the continent," Masdar has committed a total of US$10 billion in clean energy finance, of which US$2 billion will be generated from equity, with an additional $8 billion mobilised from project finance. This landmark investment will target the delivery of 10GW of clean energy capacity in Africa by 2030. Ebobissé commented, "Partnerships are key to our goal of scaling up and accelerating the delivery of bankable and sustainable infrastructure across Africa. We are pleased to join forces with Masdar through this signing. We believe this step will become one of many on a journey to drive transformative projects supporting Africa's path to net-zero and help build cleaner economies for future generations." Africa50 and Masdar will also explore opportunities to collaborate on implementing the Alliance for Green Infrastructure in Africa (AGIA), launched at COP27 by the African Union Commission, the African Development Bank and Africa50. The UAE investment initiative sits under the umbrella of Etihad 7, a development platform launched by the UAE at Abu Dhabi Sustainability Week in 2022 and spear-headed by the Ministry of Foreign Affairs (MoFA). Announced in 2022, Etihad 7 aims to provide 100 million people across the African continent with clean electricity by 2035.
  • 6. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 6 India: Outcomes of G20 Summit are crucial for COP28: official WAM As the outcomes of the G20 Summit in New Delhi are incredibly important for the COP28 – the UAE-hosted UN Climate Conference, it is key to have the UAE at the table in New Delhi Summit, a senior German official told the Emirates News Agency (WAM). State Secretary Jörg Kukies, Commissioner of the German Chancellor for the G7/G20 Summits, said that the outcome of climate discussions in New Delhi will pave the way for COP28 to be held in Dubai in November this year. ‘World is off track on 1.5°C target’ In an interview with WAM on the sidelines the G20 Summit, he stressed the significance of G20 initiatives in climate change as the member countries collectively account for around 80 percent of global greenhouse gas (GHG) emissions. Kukies noted the importance of the efforts to keep 1.5°C of Paris Agreement within reach; to enhance national climate targets and nationally determined contributions (NDCs); and to transition towards renewable energies. “The world is currently clearly off track with regards to the 1.5°C target.” New Delhi declaration The New Delhi declaration adopted yesterday reiterated the G20’s resolve to pursue further efforts to limit the global average temperature increase to 1.5°C. “We note with concern that global ambition and implementation to address climate change remain insufficient to achieve the temperature goal of the Paris Agreement to hold the increase in the global average temperature to well below 2°C above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels. We highlight the importance of ambitious
  • 7. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 7 action on all pillars of the Paris Agreement, taking into account the best available science,” the declaration said. The G20 also recognised that limiting global warming to 1.5°C requires rapid, deep and sustained reductions in global GHG emissions of 43 percent by 2030 relative to the 2019 levels. Germany’s commitments The German official said his country stands ready to fulfil its climate finance commitment and to support the most vulnerable. Talking about Germany’s expectations for the UN Climate Conference, Kukies said, “At COP28, we need global targets for the expansion of renewable energy (at least tripling the installed capacity to at least 11 terawatts) and energy efficiency (doubling the rate of improvement) by 2030. And last but not least, we need a clear signal for a worldwide gradual exit from fossil fuels, especially coal, as well as the phaseout of inefficient subsidies for fossil fuels by 2025.” The German official appreciated the UAE’s readiness to assume a leadership role among energy producing countries with regard to climate protection. “It is an important signal that UAE is ready to organise COP28 and to make comprehensive contributions to climate financing. At the recent climate summit in Nairobi, UAE announced a comprehensive financing initiative for renewable energies in Africa,” he pointed out.
  • 8. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 8 German-UAE cooperation on climate change Kukies said said Germany has intensified its cooperation with UAE on climate issues, in the run up to COP28. “In light of UAE’s role as host of the upcoming COP and Germany’s long-standing partnership with the UAE, I particularly welcomed the participation of President His Highness Sheikh Mohamed bin Zayed Al Nahyan at the Delhi Summit.” Kukies pointed out that when Federal Chancellor Scholz met with President His Highness Sheikh Mohamed in UAE in September 2022, climate change and renewable energies were among the central topics. “Since then, we have exchanged high level visits and are now working towards a successful COP at the end of the year.” G-20’s support for Global South The German official said the Delhi summit is important to address global challenges such as climate action, sustainable growth and development, and technological transformation. Kukies pointed out the significance of sending a signal of a G20 that lives up to its responsibility to tackle these global challenges collectively, including through its support to developing countries and the Global South. “Germany is committed to make international governance more inclusive. Germany therefore strongly supported the African Union as new formal member to join the G20.” He also stressed the importance of a clear commitment by every G20 member to uphold international law and the Purposes and Principles enshrined in the Charter of the United Nations. Kukies expressed his concerns about the Ukrainian crisis that has caused human suffering, ripple effects across all economies, and increase in food and energy prices. About the Ukrainian crisis, the New Delhi declaration quoted the relevant resolutions of UN Security Council and the UN General Assembly and underscored that all states must act in a manner consistent with the Purposes and Principles of the UN Charter in its entirety. “In line with the UN Charter, all states must refrain from the threat or use of force to seek territorial acquisition against the territorial integrity and sovereignty or political independence of any state.
  • 9. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 9 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil prices ease, supply cuts keep Brent above $90 per barrel Reuters + NewBase Oil prices eased in early Asian trade on Monday as economic concerns in China weighed on fuel demand outlook although Brent stayed perched above $90 a barrel, supported by tightening supplies after Saudi Arabia and Russia extended supply cuts. Brent crude fell 49 cents, or 0.175%, to $90.50 a barrel by 05.35 GMT while U.S. West Texas Intermediate crude was at $87.07 a barrel, down 44 cents, or 0.5%. "Concerns about Chinese economic growth weighed on sentiment across commodities," ANZ analysts said in a note. "The move was exacerbated by a stronger USD, which kept investor appetite low," they added, referring to the greenback which has risen for eight straight weeks. Both contracts gained in the past two consecutive weeks with Brent settling at its highest since November on Friday, after Saudi Arabia and Russia announced last week they will extend voluntary supply cuts of a combined 1.3 million barrels per day until the end of the year. Oil price special coverage
  • 10. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 10 The International Energy Agency and the Organization of the Petroleum Exporting Countries (OPEC) are due to release their monthly reports this week. "Any sign of strong demand from oil market reports from IEA and OPEC will likely push oil prices higher," ANZ analysts said. In the United States, producers added an oil rig last week for the first time since June, Baker Hughes said in its weekly report, but the total count was still down 127, or 17%, below this time last year. WTI is likely in the process of marking out a new higher range at above $83 and below resistance at $93.50 in the weeks ahead, with concerns around demand in China and Europe capping further upside, IG analyst Tony Sycamore said in a note.
  • 11. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 11 NewBase Specual Coverage The Energy world –September 11 -2023 CLEAN ENERGY Saudi Arabia Sets Its Sights on a Less Glamourous Source of Wealth turning the country into a metals hub Bloomberg In scorching summer heat, Renier Swiegers marches through the desert toward a drilling rig. He’s not looking for oil, the dynamo of Saudi Arabia’s economy the past 80 years, though. It’s another potential source of wealth and influence the kingdom now has its eye on. Having already used its energy riches to upend the worlds of sports, tourism and movies, Saudi Arabia’s Crown Prince Mohammed bin Salman is prepared to pour billions of dollars into tapping the more than $1.3 trillion of metals his government says is buried in places like this.
  • 12. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 12 The plan may be among the less glamorous components of his grand Vision 2030 to transform the Saudi economy. The prospect of turning the country into a metals hub that can make a dent in a global industry also has no shortage of skeptics. But Saudi Arabia’s 38-year-old de-facto leader has no shortage of wealth or ambition. Key will be convincing international mining companies it’s worth their while. If only partially successful, the dream would have implications beyond the Middle East, not just for metals mining but also Saudi Arabia’s relations with the US, China and the emerging markets the kingdom is inching closer to. Swiegers, a Namibian who works for British mining firm Moxico Resources Plc, is a believer. He’s helping establish a new zinc and copper open pit mine about 200 kilometers (125 miles) west of the Saudi capital, Riyadh. “I’ve done projects all over Africa, and I know the geology and where is good to mine,” said Swiegers, extracting earth samples from the rig from as deep as 200 meters and pointing to copper deposits glittering in the sun. “This site is just like those.” If everything comes to fruition, by 2025 the Khnaiguiyah site he’s working on will be producing metals including 100,000 tons a year of zinc and 10,000 tons of copper in its first phase. That’s miniscule by global standards — equivalent to Chile’s copper output in about 18 hours — but the aim is to double the volume. It’s one of several projects in the kingdom. As well as developing local mines, there’s also another element to the plan that industry insiders say is less speculative and quicker to get up and running. Saudi Arabia wants to buy up resources from elsewhere to be refined and processed at new facilities inside the kingdom. In July, the country announced its first big push into international mining. It took part in a $3.4 billion deal in Brazil, buying a stake in Vale SA’s base metals unit alongside investment fund Engine No. 1.
  • 13. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 13 The transaction was the first by Manara Minerals, a vehicle established by Saudi Arabia’s powerful sovereign wealth fund — the Public Investment Fund, or PIF — and Saudi Mining Co., also known as Maaden. The agreement gives the kingdom, which beat off competition from Japan and Qatar, a 10% slice in one of the world’s crucial suppliers of nickel and copper — essential metals needed to decarbonize. There will be more. Manara’s two shareholders will initially provide about $3 billion for two or three international deals a year, and more funding will be provided if needed, people familiar with the strategy said. It’s part of Maaden’s aim to ramp up its role in domestic production, while also buying access to global resources. Pillar of the New Saudi Economy Using government subsidies and lending by state-controlled funds, the overarching goal is to position Saudi Arabia as an alternative supplier to China for the metals and minerals vital to the global energy transition, such as batteries for electric cars. In short, dirty old mining is one of the pillars of the clean new future. “Saudi Arabia needs more than one engine to achieve its vision,” Khalid Al Mudaifer, vice minister of mining affairs, said in an interview. The kingdom’s plan is to transform itself into an economic and industrial powerhouse, he said. “For that we need minerals.”
  • 14. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 14 The main metal of interest to companies is copper, but Saudi Arabia also wants to mine uranium and phosphates for its nascent nuclear program. That’s drawn the attention of Western powers and the United Nations, who are wary of nuclear proliferation in the Middle East. Saudi Arabia has repeatedly pledged that its atomic program is strictly for peaceful purposes, but Prince Mohammed has said the kingdom would develop a bomb if the other big Middle Eastern power, Iran, did so. Some executives and advisers at the world’s biggest miners, though, have doubts about the kingdom’s domestic mining plans and point first to its geology. Its uranium reserves have been called “severely uneconomic.” The copper deposits — the most desirable metal for most miners — were mainly formed by volcanic activity. That means they will likely only be found in small to medium-sized areas. It makes them less attractive to mine than the deposits that stretch down the through the Andes in Latin America and provide the bulk of the world’s supplies or the sedimentary-rock formations in places like Central Africa. These jurisdictions — and even the largely undeveloped copper crescent that runs through Iran and Pakistan — are seen as much more prospective for the large, long- life mines many of the major global companies are looking to develop. There’s also the problem of water, something in scarce supply in Saudi Arabia, which is around 95% desert. “There is also the challenge of availability of infrastructure, particularly for deposits located in remote desert areas,” said Carole Nakhle, founder and chief executive officer of London-based consultancy Crystol Energy. Much of the Saudi plan will hinge on how successful projects like the one at Khnaiguiyah are at getting from identifying specific locations of mineral deposits to commercial production. Ajlan & Bros, the local investor developing Khnaiguiyah along with UK-based Moxico Resources, has earmarked $14 billion to invest in developing mines and processing facilities by 2030. The firm, controlled by a wealthy Saudi family that built its fortune on selling traditional Arab headdresses, is betting that “Saudi Arabia can become a new source of minerals and rare earths away from China,” said Fahad Alenezi, CEO for the metals and mining group at Ajlan & Bros. As China and the US compete for access to resources “this is healthy for us,” he said. Ajlan is planning to develop the largest zinc and copper processing plant in the Middle East at Yanbu on Saudi Arabia’s west coast. Most of the focus will be domestic demand, but the firm is already getting offers from Chinese and European trading houses to take any commodities it can produce. Saudi Arabia is partnering with the Chinese Geological Survey on a $207 million contract to help identify minerals in the so-called Arabian Shield area of the kingdom where most deposits are, officials said at a Saudi-China business conference in June.
  • 15. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 15 The government in Beijing has also led efforts to identify the kingdom’s uranium deposits. “The bottom line is that Saudi is exceptionally prospective,” Mark Bristow, CEO of Barrick Gold Corp, said in an interview during a visit to Riyadh in January. As for the estimate of more than $1 trillion of metals in the ground, “Whatever that number is, it’s worth an investment,” said Bristow, whose company took a risk on Mali more than 25 years ago and helped to turn it into a top African gold producer. Canada’s Barrick operates a copper mine on Saudi Arabia’s southwestern coast near the Red Sea. It’s also been in talks with the PIF about a potential stake in a copper project in Pakistan, which would bring in Saudi money and political influence, people familiar with the matter said recently. Vision 2030 Eyes $75 Billion The government is offering big incentives for companies to start mining. The Saudi Industrial Development Fund will offer financing for up to 75% of a project. There’s a five year grace period on royalty payments, a cap on taxation levels, and a commitment not to levy windfall taxes. All government income from mining will go into a special fund to be reinvested in the industry. Mining is the so-called “third pillar” of the economy in Vision 2030. The others are petroleum and petrochemicals, meaning mining would become the biggest part of the economy after oil and gas. The industry would eventually employ more than 250,000 people and contribute some $75 billion to Saudi gross domestic product by 2030, according to the targets. A metals refining and processing industry could have potential to draw interest from international partners looking to provide more competition with China, which currently dominates minerals processing and battery manufacturing. That, of course, is if it all goes to plan. So far, Saudi auctions for exploration licenses in the country have attracted only smaller players. The kingdom in August announced another bid round for investment and development of eight mining areas across the country. Doubts among the big miners, though, don’t mean they aren’t closely following the Saudi efforts. Under the crown prince, Saudi Arabia is willing to take the kind of commercial risks other countries with mining ambitions might balk at, and his futuristic new city in the desert, called Neom, and the recent lavish spending on football shows the kingdom’s belief in its aims. “Others in the industry were telling me that this is real and it’s something you need to get closer to,” Mike Henry, CEO of BHP Group Ltd., the world’s biggest mining company, said during a trip to Saudi Arabia. “It’s definitely the real deal.” That was in January when he attended the country's annual mining conference. Whether giants like BHP get involved remains to be seen.
  • 16. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 16 NewBase Energy News 11-September - Issue No. 1655 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 contact details above.
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