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NewBase Energy News 15 December 2023 No. 1681 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: COP28 Ends With Deal on Transition Away From Fossil Fuels
Bloomberg + NewBase
The COP28 climate talks in Dubai ended in a deal that saw a commitment to transition away from
all fossil fuels for the first time.
The president of this year’s UN-sponsored summit, the UAE’s Sultan Al Jaber, brokered an
agreement that was strong enough for the US and European Union on the need to dramatically curb
fossil fuel use while keeping Saudi Arabia and other oil producers on board.
The agreement calls for countries to quickly shift energy systems away from fossil fuels in a just
and orderly fashion, qualifications that helped convince the skeptics. Under the deal, countries also
are called to contribute to a global transition effort — rather than being outright compelled to make
that shift on their own.
“Together we have confronted the realities and sent the world in the right direction,” said Al Jaber,
who’s also chief executive officer of Abu Dhabi National Oil Co. He brought the gavel down to
confirm the deal on Wednesday, a day later than scheduled. It was met with applause and cheers
by delegates.
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While the outcome falls short of the phase out most countries wanted, it does break new ground:
No previous COP text has mentioned moving away from oil and gas, the fuels that have underpinned
the global economy for decades.
How quickly that becomes a reality won’t be decided by the diplomatic horsetrading that clinched
today’s deal, but by investors, consumers and national governments. After a pledge to phase down
coal in Glasgow two years ago, consumption has continued to rise and the world remains very
unlikely to limit warming to the Paris Agreement’s target of 1.5C.
Still, the Dubai decision is an important marker in the global direction of travel toward a low-carbon
energy system. The text also includes agreements to triple the deployment of renewable power and
double the rate of efficiency gains by the end of the decade. A separate COP28 agreement, reached
earlier, makes operations a hard-fought fund for addressing the losses and damages of climate
change.
“An agreement is only as good as its implementation. We are what we do, not what we say,” Al
Jaber said. “We must take the steps necessary to turn this agreement into tangible actions.”
The COP28 language pushing a decline in fossil fuel use will send “a signal” that “the world is now
thinking about it” and change the way investors assess the risk of those ventures, said Jonathan
Pershing, environment program director at the William and Flora Hewlett Foundation and a veteran
US climate negotiator.
Diplomatic Win
The last-minute deal is a diplomatic win for
the UAE and Al Jaber, whose role at Adnoc
made him a controversial choice to preside
over this year’s talks. There have been
hiccups – allegations he used his role to lobby
for oil deals and an argument over the
science of climate change – but in the end he
will argue he delivered.
Al Jaber also used his presidency to bring the
oil and gas industry firmly into the COP
process and there were more representatives
of fossil fuel companies than at any previous
summit, drawing criticism from climate
activists.
He forged a pact between more than 50 companies to reduce emissions from their own operations.
It said nothing about levels of oil and gas production, but a pledge to reduce pollution from methane
– 80 times more dangerous than carbon dioxide – to near zero by the end of decade could have a
material impact on emissions.
That didn’t prevent Saudi Arabia leading a rearguard action against any attempt to include a fossil
fuel phase out in the text. As COP28 got into full swing, the kingdom’s Energy Minister was asked
by Bloomberg News if he’d be happy to see a phase down in the text.
“Absolutely not,” he replied.
The Organization of the Petroleum Exporting Countries later sent a letter to members, asking them
to lobby against any text that targets fossil fuels rather than emissions.
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While the final language was watered down to reflect their concerns, ultimately the coalition of oil
producers was left too isolated to resist.
The deal specifically calls for "transitioning away from fossil fuels in energy systems, in a just, orderly
and equitable manner... so as to achieve net zero by 2050 in keeping with the science."
It also calls for a tripling of renewable energy capacity globally by 2030, speeding up efforts to
reduce coal use, and accelerating technologies such as carbon capture and storage that can clean
up hard-to-decarbonize industries.
Now that the deal is struck, countries are responsible for delivering on the agreements through
national policies and investments.
In the United States, the world's top producer of oil and gas and the largest historical emitter of
greenhouse gases, for example, climate-conscious administrations have struggled to pass laws
aligned with their climate vows through a politically divided Congress.
US President Joe Biden scored a major victory on that front last year with passage of the Inflation
Reduction Act, which contained hundreds of billions of dollars in subsidies for electric vehicles, wind,
solar and other clean energy technologies.
Mounting public support for renewables and electric vehicles from Brussels to Beijing in recent
years, along with improving technology, sliding costs, and rising private investment have also driven
rapid growth in their deployments.
Even so, oil, gas, and coal still account for about 80 percent of the world's energy, and projections
vary widely about when global demand will finally hit its peak.
OPEC Secretary General Haitham Al Ghais had said in a letter dated 6 December to OPEC
members and allies at COP28 that the world should target emissions rather than fossil fuels
themselves, rallying them to oppose any deal targeting oil.
Oil producers have argued that fossil fuels can be cleansed of their climate impact by using
technology that can capture and store carbon dioxide emissions. Carbon capture, however, is
expensive and has yet to be proven at scale.
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S.Africa: Solar remains the sustainable solution to energy crisis
Dylan Schnetler, Bizcommunity.com + NewBase
For over a decade and a half, South Africa has grappled with a crippling energy crisis. The scarcity
of power has compelled many households to seek alternatives, such as installing battery backup
systems, to mitigate the effects of Eskom’s insufficient generating capacity.
These measures have proven invaluable in helping South Africans navigate frequent power
outages, enabling businesses to continue operations and households to maintain normalcy.
However, it’s crucial to recognise that relying solely on battery backup systems does not address
the root issue: the country’s severe electricity generation capacity deficit.
Battery backup systems, while providing temporary respite during power outages, still depend on
Eskom for recharging. This inadvertently exacerbates the strain on an already overburdened power
grid. To genuinely alleviate Eskom’s burden and address the energy shortfall, it’s imperative for
households to generate electricity independently. The most effective way to accomplish this is
through the adoption of solar power.
Solar power offers a decentralised solution to South Africa’s energy crisis. By installing solar panels,
households can produce their own electricity, reducing their dependence on Eskom and easing the
pressure on the national grid. This decentralised approach empowers individuals to take control of
their energy generation, making a meaningful contribution to the overall energy landscape.
Using solar energy to charge batteries actively helps to address the national energy shortage. By
harnessing sunlight as a plentiful and renewable resource, households and municipalities can
reduce their reliance on Eskom’s power sources, such as nuclear and coal plants. This, in turn,
eases the strain on Eskom and reduces the need for loadshedding.
The Redstone Solar Plant is in the Humansrus Solar Park between Tsanstabane and
Kgatelopele in the Northern Cape, with construction underway. On completion, which is
expected around 2023, 100 megawatts (MW) of power will be added to the national
grid. The plant will be operational by early 2024.
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Battery backups put strain on local network
When using battery backup systems, it’s important to consider their potential impact on power
consumption and the strain they can place on the local power network. After a power outage, when
the electricity comes back on, the batteries immediately start recharging while the household is also
drawing power from the grid.
This double power consumption may exceed the capacity of local electrical networks causing them
to trip or – in a worst-case scenario – damage them. This then requires the local municipality to
send personnel to restart or repair the substation, leading to further prolonged power outages for all
the power users in the same area.
To tackle this issue, homeowners have a few choices. They can use technology to control their
inverter so that it doesn’t immediately draw power from the grid to recharge the batteries as soon
as the loadshedding period ends, but rather waits for an hour or so.
Correctly configured, this still gives ample time for the batteries to recharge before the next round
of loadshedding, without putting additional strain on the grid right when the electricity is restored.
Solar is still the best option
However, the best option is to recharge the batteries using solar energy, reducing the dependence
on Eskom’s power entirely. This method recharges the batteries with power that has no impact on
the grid, whilst still ensuring that the batteries are ready in time for the next outage.
Storing power also benefits Eskom. At times, Eskom may generate more power than the immediate
demand requires. However, as the day progresses and demand increases, Eskom may struggle to
meet the logistical equation of supply and demand.
By using battery storage, individuals can help bridge this gap by accessing stored power during
peak demand periods, reducing strain on the grid and potentially lessening the need for
loadshedding.
The key message remains clear: if individuals are not generating their own power through solar
channels, they are not effectively helping to alleviate the power crisis faced by Eskom. Generating
and storing power independently is crucial to reduce reliance on the grid and ensure a more
sustainable energy future.
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UK: Wave of Projects for emerging role of hydrogen in powering UK
Source: OEUK
A series of official hydrogen announcements have been made today (14 December), boosting the
UK’s low carbon drive and reinforcing the future role of hydrogen in powering Britain.
The announcements include the award of 11 new green hydrogen production projects, totalling 125
MW of capacity in the Hydrogen Allocation Round 1 (HAR-1) process, and the launch of the HAR-
2 process which aims to support at least 875 MW of capacity over time. Alongside this, the decision
to allow 20% of hydrogen blending in the UK’s existing gas system will support market demand and
reduce emissions.
The leading trade body for the offshore energy sector, Offshore Energies UK (OEUK) says the
decisions will provide a significant boost of confidence to companies looking to invest in UK
hydrogen production. Together with the announcements for agreed international certification
standards in COP28, this signals the emergence of a global hydrogen market.
Michael Tholen, OEUK sustainability and policy director, said:
'Hydrogen is essential to the UK’s goal of meeting net zero by 2050. It could provide a clean source
of energy across the economy, from heating homes and serving industries to powering transport.
'Today’s announcements provide a welcome signal-boost for companies looking to invest in the
UK’s hydrogen future and will help to unlock billions of pounds of private investment.
'We must now maintain this momentum – putting UK companies at the forefront of this burgeoning
opportunity, providing growth for UK businesses and people, and reducing emissions.' In the 2021
North Sea Transition Deal, OEUK committed to work with the UK Government to ensure low carbon
hydrogen production can flourish.
The UK Government aims to deliver up to 10GW of low carbon hydrogen production capacity by
2030.
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Netherlands: Petrofac in FEED for Neptune Energy’s L10CCS project
Source: Petrofac
Petrofac has recently begun work on the front-end engineering design (FEED) on a project that
aims to play a key role in supporting the European Union in reaching its decarbonisation goals.
The FEED, awarded by Neptune Energy, is for its L10 Operation facilities - a carbon storage
infrastructure development that will connect to the Netherlands’ flagship Carbon Capture,
Transportation and Storage (CCS) project, Aramis.
The L10 Operation is being developed by Neptune Energy, alongside its partners EBN, Tenaz
Energy and ExxonMobil, and seeks to store up to five metric tonnes of carbon dioxide (CO2)
annually, which will be captured from industrial emitters in the region.
Our scope covers the first two phases of the project, L10 South (1A) and L10 North (1B) and is
being executed by our consulting team, based in Woking, UK:
 Phase 1A: L10-South - installation of an L10 hub/injection platform in the L10 south storage
complex and installation of a spur line from the Aramis DHUB (distribution hub) platform to
the L10 hub platform
 Phase 1B: L10-North - The installation of an injection platform (L10-Y) in the L10 north
storage complex (L10-BE) and the installation of an inter-field pipeline between the L10 hub
and injection platform
John Pearson, Chief Operating Officer, Energy Transition Projects commented:
'Energy transition projects like this reflect our growing role in helping deliver key infrastructure that
will be vital to achieving a lower-carbon future.?We look forward to deploying our multi-disciplinary
engineering capabilities and more than 20 years of experience of offshore pipelines and
infrastructure to support Neptune Energy and its partners. This development builds on our strong
track record in CCUS, from emitter capture at the asset, through transportation and ultimately long-
term geological storage.'
The FEED is expected to complete in the second half of 2024, and Neptune Energy aims to progress
towards a Final Investment Decision in 2025.
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NewBase December 15 -2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil prices on track for first weekly rise in two months
Reuters + NewBase
Oil prices rose on Friday, on track to notch their first weekly rise in two months after benefiting from
a bullish forecast from the International Energy Agency (IEA) on oil demand for next year and a
weaker dollar.
Brent futures rose 21 cents to $76.82 a barrel at 0640 GMT. U.S. West Texas Intermediate (WTI)
crude climbed 20 cents to $71.78.
"Oil prices may see a bit of a 'demand pull' due to improved liquidity conditions after the Fed's dovish
pivot," said Kelvin Wong, an analyst at OANDA in Singapore. The dollar fell to a four-month low on
Thursday after the U.S. central bank indicated interest rate hikes have likely ended and lower
borrowing costs are coming in 2024.
A weak dollar makes dollar-denominated oil cheaper for foreign purchasers.
The European Central Bank, meanwhile, pushed back against bets on imminent cuts to interest
rates on Thursday by reaffirming that borrowing costs would remain at record highs despite lower
inflation expectations.
World oil consumption will rise by 1.1 million barrels per day (bpd) in 2024, the IEA said in a monthly
report, up 130,000 bpd from its previous forecast, citing an improvement in the outlook for U.S.
demand and lower oil prices.
Oil price special
coverage
Both benchmarks are on course for a modest weekly gain, having been
lifted by a mid-week announcement from the U.S. Federal Reserve that it
is likely to cut borrowing costs next year.
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The 2024 estimate is less than half of the Organization of the Petroleum Exporting Countries'
(OPEC) demand growth forecast of 2.25 million bpd.
Weak economic data from China, the world's second-largest oil consumer, has added pressure on
oil prices in recent weeks.
Data released by the country's statistics bureau on Friday showed refinery runs in November
dropped to their lowest level since the start of 2023, as margin pressure on non-state owned refiners
saw them cut back production, while sluggish diesel consumption weighed on national fuel demand.
Despite ongoing woes in China's property market, the data also showed a better-than-expected
performance in industrial output and improving retail sales, lending some relief to market sentiment
amid the country's anaemic post-COVID economic recovery.
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NewBase Specual Coverage
The Energy world –December 15 -2023
CLEAN ENERGY
How the world agreed to move away from fossil fuels at COP28
Reuters + NewBase
The COP28 climate summit in Dubai started with all the ingredients for spectacular failure: It
proposed an end to the fossil-fuel era at a conference situated in Arab oil country amid overt
opposition from the powerful oil-producer group OPEC.
Landing a pact that all 196 countries could live with took deft maneuvering by the conference host,
the United Arab Emirates, along with back-channel diplomacy from the United States' and China's
top climate envoys, sources told Reuters.
The COP28’s UAE presidency employed
a strategy during the two-week summit of
issuing deliberately provocative drafts for
a deal designed to force negotiators to
reveal the outer limits of their positions
and find common ground, according to
the sources.
The top envoys from the world's biggest
climate polluters, the United States and
China - relying on a personal relationship
two decades in the making - together
found the right words to describe the
world's move away from oil, gas and coal
and persuaded OPEC leaders to come
along.
The details of the UAE's strategy and the
role of the U.S. and China in securing the
deal have not previously been reported.
At the end of the conference, which
spilled into overtime and was marked by
moments of near-crisis, negotiators
emerged with an accord that called for
"transitioning" away from fossil fuels,
marking the first time in history countries
expressed a unified desire to end the oil age.
In a concession to oil producers, including OPEC members and their allies, the deal also provided
an option for cleansing existing oil, gas and coal of their climate impact using technologies like
carbon capture and sequestration, in which the greenhouse gas is kept from the atmosphere.
U.S. Special Climate Envoy John Kerry called the deal a victory for multilateralism, and the UAE's
COP28 President Sultan Al Jaber called it "historic."
Some delegates, including the Alliance of Small Island States, bemoaned the accord's loopholes for
continued fossil-fuel use, but ultimately did not stand in its way.
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LOW TO HIGH
Ahead of the conference, Al Jaber – who also runs the UAE's state oil company ADNOC – was
pilloried by environmental activists as an untrustworthy host for a climate negotiation.
But he did not want to oversee a failed conference. Before the summit, his office issued press
releases pumping up an EU- and U.S.-led declaration by nations to triple renewable energy capacity
by 2030, and a U.S.-China cooperation agreement in California in November.
Scores of countries had come to Dubai pressing for language in a final deal to "phase out" fossil
fuels entirely, an option to which the Organization of the Petroleum Exporting Countries was
particularly opposed.
OPEC, which controls 80% of the world's oil reserves, made that clear in a Dec. 6 letter to its
members and allies rallying them to block an agreement targeting fossil fuels.
The letter sparked worries that the summit was doomed to fail.
"I think there were times in the last 48 hours where some of us had thought, 'this could fail,'" Kerry
told reporters after the deal was clinched.
A former lead negotiator for Saudi Arabia, Mohammad Al Sabban, told Reuters early on in the
conference that he shared that view: "I want you to know, that COP28 will fail to achieve any
meaningful decisions by the end of the Conference next week," he said in an email.
Faced with entrenched positions, and with time running short, Al Jaber employed his provocative
strategy to shake things up.
On Dec. 11, his office released a draft deal text that outlined a "menu" of options countries could -
not should - take to combat climate change, ranging from using carbon capture to reducing fossil-
fuel use, or cutting fossil-fuel subsidies.
There was no mention of a "phase out."
The reaction in the corridors of the summit was outrage. Small island nations called it a death
sentence, the European Union called it insufficient, and climate NGOs dubbed it catastrophic.
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That was the desired effect.
"Everybody saw immediately this was a menu rather than a directional text," said a source with
direct knowledge of the presidency's strategy. "And that fleshed out people's real positions and their
red lines in a very public way ... It then became clear where people really stood. People were being
polite up to that point!"
The UAE host then organized a majlis, the Arabic term for a sitting room, in which negotiators sat
in a circle facing one another and took turns outlining their positions - a unique tactic that laid bare
the broad demand to address fossil fuels.
The COP28 presidency took meetings into the early-morning hours of subsequent days of the
conference, and held off on releasing an updated draft deal until early on Dec. 13, a day after the
summit's scheduled end.
"The idea was to use the clock to your advantage to squeeze the best deal and put the pressure
back on the parties," the source said.
ONLY WORDS
The outrage sparked by the draft deal made clear that COP28 would succeed only if its final accord
addressed the future of fossil fuels in a meaningful way.
But the term "phase out" remained a red line. Beijing, Riyadh and others would never accept it
because it had become politically charged, delegates told Reuters.
"Very often in a negotiation, parties are too hunkered-down in their respective positions," said
Singapore Environment Minister Grace Fu, who was involved in the negotiations. "And words like
'phase out' became a problem."
Sources told Reuters that Kerry and his Chinese counterpart, Xie Zhenhua, mulled a workaround:
Use different words that mean essentially the same thing.
Xie and Kerry, who enjoy a warm rapport after two decades working on climate change together,
already had a road map in their recent climate cooperation agreement reached at Sunnylands in
California in November.
That deal did not use phrases like "phasing out" but instead called for the accelerated substitution
of fossil fuels with renewable energy sources. To some extent, that language described what was
already happening around the world, with governments enacting policies to transition to a greener
economy.
With the two top players in agreement, it was then a matter of getting OPEC on board, and a number
of meetings ensued.
"Ultimately, Kerry, China and the Saudis played a constructive role at the eleventh hour when it was
clear there were no other options on the table," the source said.
Delegates said the inclusion of carbon capture in the final accord appeared to be a concession to
Saudi and the broader OPEC group, which had long argued emissions could be cut without targeting
specific fuels.
Saudi Arabia's energy minister, Prince Abdulaziz bin Salman, said after the deal that Riyadh
supported the accord because it leaves countries to decide for themselves on suitable pathways to
cleaner sources of energy.
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The source familiar with the negotiations said the final flurry of diplomacy ensured the deal would
pass: "I would say that doing the right thing became the only option left."
Energy companies back Cop28 deal calling for transition from fossil fuels
The global stocktake was unanimously approved by 198 countries at the UN climate summit in
Dubai on Wednesday, marking a historic moment in the fight against climate change.
France’s TotalEnergies said it welcomed the agreement, adding that it supported the goals of tripling
renewable energy and doubling energy efficiency by the end of the decade.
“These objectives are at the heart of TotalEnergies' roadmap for 2030,” the company said in a
statement to The National.
Developed and developing countries have agreed on the complexity of the energy transition
challenges ... that’s a great result
Eni, Italian energy company
The company also said that natural gas, considered a transitional fuel due to its lower emissions
compared with other fossil fuels, could be useful in the move to net zero by 2050.
Carbon dioxide emissions from burning fossil fuels are expected to hit a record high this year
amid higher emissions driven by India and China, according to the Global Carbon Budget report.
Earlier this year, TotalEnergies' board reaffirmed its support for the company’s multi-energy
strategy, focusing on oil and gas assets with low emissions and diversification into renewables.
In October, QatarEnergy and TotalEnergies signed two sale and purchase agreements for the
supply of up to 3.5 million tonnes of liquefied natural gas a year to France.
The company said it supported a “just, orderly and equitable” transition away from fossil fuels,
adding that it is crucial for emerging countries aiming for economic and social development.
But TotalEnergies was not the only company welcoming Wednesday's news, with Italy's Eni in
agreement.
"For the first time, the final agreement expresses the need to balance emission targets, energy
security, access to energy and competitive development," a spokesperson told The National. "Both
developed and developing countries have agreed on the complexity of the energy transition
challenges ... that’s a great result."
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People from all around the world, including the small island nation of Tuvalu, descend on Cop28 in
Dubai. Chris Whiteoak / The National
Sharjah-based Crescent Petroleum said the agreement recognised the importance of the energy
trilemma, which includes “achieving affordability and availability as well as sustainability".
It also acknowledged that the transition must be “just and orderly and equitable”, keeping the
growing energy needs of the developing world in mind, the company’s chief executive, Majid Jafar,
told The National.
The International Energy Agency expects global demand for oil and gas to peak by 2030 with an
increasing adoption of renewable energy technology and electric vehicles.
The current annual investment in the oil and gas sector of $800 billion is double what is required by
2030 in the 1.5°C scenario, the agency has said.
Javier Cavada, the chief executive and president of Mitsubishi Power Emea, drew a comparison
between the transition from fossil fuels to alternative energy sources and the shift from horses to
the automotive industry in the 20th century.
“We have a fossil fuel society … I wouldn't say we have an industry,” Mr Cavada told The National.
Mitsubishi Power, a subsidiary of Japan's Mitsubishi Heavy Industries, provides energy solutions.
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Despite the rapid adoption of electric cars and renewable energy, fossil fuels still meet more than
80 per cent of the world's energy requirements.
The Cop28 agreement was struck against the backdrop of two geopolitical conflicts and an
economic slowdown, that have raised concerns over energy supply.
Russia’s invasion of Ukraine last year pushed natural gas prices to record highs, forcing traders in
developing economies such as India and China to boost their imports of coal.
Despite that, global coal-fired power generation is on track to peak in 2023 as new sources of
renewable and low-carbon energy expand rapidly, according to Rystad Energy.
The Norway-based consultancy expects coal consumption to start declining next year as solar and
wind grow in popularity.
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 15-December - Issue No. 1681 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.
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 15 December 2023 Energy News issue - 1681 by Khaled Al Awadi_compressed.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 15 December 2023 No. 1681 Senior Editor Eng. Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE UAE: COP28 Ends With Deal on Transition Away From Fossil Fuels Bloomberg + NewBase The COP28 climate talks in Dubai ended in a deal that saw a commitment to transition away from all fossil fuels for the first time. The president of this year’s UN-sponsored summit, the UAE’s Sultan Al Jaber, brokered an agreement that was strong enough for the US and European Union on the need to dramatically curb fossil fuel use while keeping Saudi Arabia and other oil producers on board. The agreement calls for countries to quickly shift energy systems away from fossil fuels in a just and orderly fashion, qualifications that helped convince the skeptics. Under the deal, countries also are called to contribute to a global transition effort — rather than being outright compelled to make that shift on their own. “Together we have confronted the realities and sent the world in the right direction,” said Al Jaber, who’s also chief executive officer of Abu Dhabi National Oil Co. He brought the gavel down to confirm the deal on Wednesday, a day later than scheduled. It was met with applause and cheers by delegates. 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 While the outcome falls short of the phase out most countries wanted, it does break new ground: No previous COP text has mentioned moving away from oil and gas, the fuels that have underpinned the global economy for decades. How quickly that becomes a reality won’t be decided by the diplomatic horsetrading that clinched today’s deal, but by investors, consumers and national governments. After a pledge to phase down coal in Glasgow two years ago, consumption has continued to rise and the world remains very unlikely to limit warming to the Paris Agreement’s target of 1.5C. Still, the Dubai decision is an important marker in the global direction of travel toward a low-carbon energy system. The text also includes agreements to triple the deployment of renewable power and double the rate of efficiency gains by the end of the decade. A separate COP28 agreement, reached earlier, makes operations a hard-fought fund for addressing the losses and damages of climate change. “An agreement is only as good as its implementation. We are what we do, not what we say,” Al Jaber said. “We must take the steps necessary to turn this agreement into tangible actions.” The COP28 language pushing a decline in fossil fuel use will send “a signal” that “the world is now thinking about it” and change the way investors assess the risk of those ventures, said Jonathan Pershing, environment program director at the William and Flora Hewlett Foundation and a veteran US climate negotiator. Diplomatic Win The last-minute deal is a diplomatic win for the UAE and Al Jaber, whose role at Adnoc made him a controversial choice to preside over this year’s talks. There have been hiccups – allegations he used his role to lobby for oil deals and an argument over the science of climate change – but in the end he will argue he delivered. Al Jaber also used his presidency to bring the oil and gas industry firmly into the COP process and there were more representatives of fossil fuel companies than at any previous summit, drawing criticism from climate activists. He forged a pact between more than 50 companies to reduce emissions from their own operations. It said nothing about levels of oil and gas production, but a pledge to reduce pollution from methane – 80 times more dangerous than carbon dioxide – to near zero by the end of decade could have a material impact on emissions. That didn’t prevent Saudi Arabia leading a rearguard action against any attempt to include a fossil fuel phase out in the text. As COP28 got into full swing, the kingdom’s Energy Minister was asked by Bloomberg News if he’d be happy to see a phase down in the text. “Absolutely not,” he replied. The Organization of the Petroleum Exporting Countries later sent a letter to members, asking them to lobby against any text that targets fossil fuels rather than emissions.
  • 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 While the final language was watered down to reflect their concerns, ultimately the coalition of oil producers was left too isolated to resist. The deal specifically calls for "transitioning away from fossil fuels in energy systems, in a just, orderly and equitable manner... so as to achieve net zero by 2050 in keeping with the science." It also calls for a tripling of renewable energy capacity globally by 2030, speeding up efforts to reduce coal use, and accelerating technologies such as carbon capture and storage that can clean up hard-to-decarbonize industries. Now that the deal is struck, countries are responsible for delivering on the agreements through national policies and investments. In the United States, the world's top producer of oil and gas and the largest historical emitter of greenhouse gases, for example, climate-conscious administrations have struggled to pass laws aligned with their climate vows through a politically divided Congress. US President Joe Biden scored a major victory on that front last year with passage of the Inflation Reduction Act, which contained hundreds of billions of dollars in subsidies for electric vehicles, wind, solar and other clean energy technologies. Mounting public support for renewables and electric vehicles from Brussels to Beijing in recent years, along with improving technology, sliding costs, and rising private investment have also driven rapid growth in their deployments. Even so, oil, gas, and coal still account for about 80 percent of the world's energy, and projections vary widely about when global demand will finally hit its peak. OPEC Secretary General Haitham Al Ghais had said in a letter dated 6 December to OPEC members and allies at COP28 that the world should target emissions rather than fossil fuels themselves, rallying them to oppose any deal targeting oil. Oil producers have argued that fossil fuels can be cleansed of their climate impact by using technology that can capture and store carbon dioxide emissions. Carbon capture, however, is expensive and has yet to be proven at scale.
  • 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 S.Africa: Solar remains the sustainable solution to energy crisis Dylan Schnetler, Bizcommunity.com + NewBase For over a decade and a half, South Africa has grappled with a crippling energy crisis. The scarcity of power has compelled many households to seek alternatives, such as installing battery backup systems, to mitigate the effects of Eskom’s insufficient generating capacity. These measures have proven invaluable in helping South Africans navigate frequent power outages, enabling businesses to continue operations and households to maintain normalcy. However, it’s crucial to recognise that relying solely on battery backup systems does not address the root issue: the country’s severe electricity generation capacity deficit. Battery backup systems, while providing temporary respite during power outages, still depend on Eskom for recharging. This inadvertently exacerbates the strain on an already overburdened power grid. To genuinely alleviate Eskom’s burden and address the energy shortfall, it’s imperative for households to generate electricity independently. The most effective way to accomplish this is through the adoption of solar power. Solar power offers a decentralised solution to South Africa’s energy crisis. By installing solar panels, households can produce their own electricity, reducing their dependence on Eskom and easing the pressure on the national grid. This decentralised approach empowers individuals to take control of their energy generation, making a meaningful contribution to the overall energy landscape. Using solar energy to charge batteries actively helps to address the national energy shortage. By harnessing sunlight as a plentiful and renewable resource, households and municipalities can reduce their reliance on Eskom’s power sources, such as nuclear and coal plants. This, in turn, eases the strain on Eskom and reduces the need for loadshedding. The Redstone Solar Plant is in the Humansrus Solar Park between Tsanstabane and Kgatelopele in the Northern Cape, with construction underway. On completion, which is expected around 2023, 100 megawatts (MW) of power will be added to the national grid. The plant will be operational by early 2024.
  • 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 Battery backups put strain on local network When using battery backup systems, it’s important to consider their potential impact on power consumption and the strain they can place on the local power network. After a power outage, when the electricity comes back on, the batteries immediately start recharging while the household is also drawing power from the grid. This double power consumption may exceed the capacity of local electrical networks causing them to trip or – in a worst-case scenario – damage them. This then requires the local municipality to send personnel to restart or repair the substation, leading to further prolonged power outages for all the power users in the same area. To tackle this issue, homeowners have a few choices. They can use technology to control their inverter so that it doesn’t immediately draw power from the grid to recharge the batteries as soon as the loadshedding period ends, but rather waits for an hour or so. Correctly configured, this still gives ample time for the batteries to recharge before the next round of loadshedding, without putting additional strain on the grid right when the electricity is restored. Solar is still the best option However, the best option is to recharge the batteries using solar energy, reducing the dependence on Eskom’s power entirely. This method recharges the batteries with power that has no impact on the grid, whilst still ensuring that the batteries are ready in time for the next outage. Storing power also benefits Eskom. At times, Eskom may generate more power than the immediate demand requires. However, as the day progresses and demand increases, Eskom may struggle to meet the logistical equation of supply and demand. By using battery storage, individuals can help bridge this gap by accessing stored power during peak demand periods, reducing strain on the grid and potentially lessening the need for loadshedding. The key message remains clear: if individuals are not generating their own power through solar channels, they are not effectively helping to alleviate the power crisis faced by Eskom. Generating and storing power independently is crucial to reduce reliance on the grid and ensure a more sustainable energy future.
  • 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 UK: Wave of Projects for emerging role of hydrogen in powering UK Source: OEUK A series of official hydrogen announcements have been made today (14 December), boosting the UK’s low carbon drive and reinforcing the future role of hydrogen in powering Britain. The announcements include the award of 11 new green hydrogen production projects, totalling 125 MW of capacity in the Hydrogen Allocation Round 1 (HAR-1) process, and the launch of the HAR- 2 process which aims to support at least 875 MW of capacity over time. Alongside this, the decision to allow 20% of hydrogen blending in the UK’s existing gas system will support market demand and reduce emissions. The leading trade body for the offshore energy sector, Offshore Energies UK (OEUK) says the decisions will provide a significant boost of confidence to companies looking to invest in UK hydrogen production. Together with the announcements for agreed international certification standards in COP28, this signals the emergence of a global hydrogen market. Michael Tholen, OEUK sustainability and policy director, said: 'Hydrogen is essential to the UK’s goal of meeting net zero by 2050. It could provide a clean source of energy across the economy, from heating homes and serving industries to powering transport. 'Today’s announcements provide a welcome signal-boost for companies looking to invest in the UK’s hydrogen future and will help to unlock billions of pounds of private investment. 'We must now maintain this momentum – putting UK companies at the forefront of this burgeoning opportunity, providing growth for UK businesses and people, and reducing emissions.' In the 2021 North Sea Transition Deal, OEUK committed to work with the UK Government to ensure low carbon hydrogen production can flourish. The UK Government aims to deliver up to 10GW of low carbon hydrogen production capacity by 2030.
  • 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 Netherlands: Petrofac in FEED for Neptune Energy’s L10CCS project Source: Petrofac Petrofac has recently begun work on the front-end engineering design (FEED) on a project that aims to play a key role in supporting the European Union in reaching its decarbonisation goals. The FEED, awarded by Neptune Energy, is for its L10 Operation facilities - a carbon storage infrastructure development that will connect to the Netherlands’ flagship Carbon Capture, Transportation and Storage (CCS) project, Aramis. The L10 Operation is being developed by Neptune Energy, alongside its partners EBN, Tenaz Energy and ExxonMobil, and seeks to store up to five metric tonnes of carbon dioxide (CO2) annually, which will be captured from industrial emitters in the region. Our scope covers the first two phases of the project, L10 South (1A) and L10 North (1B) and is being executed by our consulting team, based in Woking, UK:  Phase 1A: L10-South - installation of an L10 hub/injection platform in the L10 south storage complex and installation of a spur line from the Aramis DHUB (distribution hub) platform to the L10 hub platform  Phase 1B: L10-North - The installation of an injection platform (L10-Y) in the L10 north storage complex (L10-BE) and the installation of an inter-field pipeline between the L10 hub and injection platform John Pearson, Chief Operating Officer, Energy Transition Projects commented: 'Energy transition projects like this reflect our growing role in helping deliver key infrastructure that will be vital to achieving a lower-carbon future.?We look forward to deploying our multi-disciplinary engineering capabilities and more than 20 years of experience of offshore pipelines and infrastructure to support Neptune Energy and its partners. This development builds on our strong track record in CCUS, from emitter capture at the asset, through transportation and ultimately long- term geological storage.' The FEED is expected to complete in the second half of 2024, and Neptune Energy aims to progress towards a Final Investment Decision in 2025.
  • 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 NewBase December 15 -2023 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil prices on track for first weekly rise in two months Reuters + NewBase Oil prices rose on Friday, on track to notch their first weekly rise in two months after benefiting from a bullish forecast from the International Energy Agency (IEA) on oil demand for next year and a weaker dollar. Brent futures rose 21 cents to $76.82 a barrel at 0640 GMT. U.S. West Texas Intermediate (WTI) crude climbed 20 cents to $71.78. "Oil prices may see a bit of a 'demand pull' due to improved liquidity conditions after the Fed's dovish pivot," said Kelvin Wong, an analyst at OANDA in Singapore. The dollar fell to a four-month low on Thursday after the U.S. central bank indicated interest rate hikes have likely ended and lower borrowing costs are coming in 2024. A weak dollar makes dollar-denominated oil cheaper for foreign purchasers. The European Central Bank, meanwhile, pushed back against bets on imminent cuts to interest rates on Thursday by reaffirming that borrowing costs would remain at record highs despite lower inflation expectations. World oil consumption will rise by 1.1 million barrels per day (bpd) in 2024, the IEA said in a monthly report, up 130,000 bpd from its previous forecast, citing an improvement in the outlook for U.S. demand and lower oil prices. Oil price special coverage Both benchmarks are on course for a modest weekly gain, having been lifted by a mid-week announcement from the U.S. Federal Reserve that it is likely to cut borrowing costs next year.
  • 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 The 2024 estimate is less than half of the Organization of the Petroleum Exporting Countries' (OPEC) demand growth forecast of 2.25 million bpd. Weak economic data from China, the world's second-largest oil consumer, has added pressure on oil prices in recent weeks. Data released by the country's statistics bureau on Friday showed refinery runs in November dropped to their lowest level since the start of 2023, as margin pressure on non-state owned refiners saw them cut back production, while sluggish diesel consumption weighed on national fuel demand. Despite ongoing woes in China's property market, the data also showed a better-than-expected performance in industrial output and improving retail sales, lending some relief to market sentiment amid the country's anaemic post-COVID economic recovery.
  • 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 NewBase Specual Coverage The Energy world –December 15 -2023 CLEAN ENERGY How the world agreed to move away from fossil fuels at COP28 Reuters + NewBase The COP28 climate summit in Dubai started with all the ingredients for spectacular failure: It proposed an end to the fossil-fuel era at a conference situated in Arab oil country amid overt opposition from the powerful oil-producer group OPEC. Landing a pact that all 196 countries could live with took deft maneuvering by the conference host, the United Arab Emirates, along with back-channel diplomacy from the United States' and China's top climate envoys, sources told Reuters. The COP28’s UAE presidency employed a strategy during the two-week summit of issuing deliberately provocative drafts for a deal designed to force negotiators to reveal the outer limits of their positions and find common ground, according to the sources. The top envoys from the world's biggest climate polluters, the United States and China - relying on a personal relationship two decades in the making - together found the right words to describe the world's move away from oil, gas and coal and persuaded OPEC leaders to come along. The details of the UAE's strategy and the role of the U.S. and China in securing the deal have not previously been reported. At the end of the conference, which spilled into overtime and was marked by moments of near-crisis, negotiators emerged with an accord that called for "transitioning" away from fossil fuels, marking the first time in history countries expressed a unified desire to end the oil age. In a concession to oil producers, including OPEC members and their allies, the deal also provided an option for cleansing existing oil, gas and coal of their climate impact using technologies like carbon capture and sequestration, in which the greenhouse gas is kept from the atmosphere. U.S. Special Climate Envoy John Kerry called the deal a victory for multilateralism, and the UAE's COP28 President Sultan Al Jaber called it "historic." Some delegates, including the Alliance of Small Island States, bemoaned the accord's loopholes for continued fossil-fuel use, but ultimately did not stand in its way.
  • 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 LOW TO HIGH Ahead of the conference, Al Jaber – who also runs the UAE's state oil company ADNOC – was pilloried by environmental activists as an untrustworthy host for a climate negotiation. But he did not want to oversee a failed conference. Before the summit, his office issued press releases pumping up an EU- and U.S.-led declaration by nations to triple renewable energy capacity by 2030, and a U.S.-China cooperation agreement in California in November. Scores of countries had come to Dubai pressing for language in a final deal to "phase out" fossil fuels entirely, an option to which the Organization of the Petroleum Exporting Countries was particularly opposed. OPEC, which controls 80% of the world's oil reserves, made that clear in a Dec. 6 letter to its members and allies rallying them to block an agreement targeting fossil fuels. The letter sparked worries that the summit was doomed to fail. "I think there were times in the last 48 hours where some of us had thought, 'this could fail,'" Kerry told reporters after the deal was clinched. A former lead negotiator for Saudi Arabia, Mohammad Al Sabban, told Reuters early on in the conference that he shared that view: "I want you to know, that COP28 will fail to achieve any meaningful decisions by the end of the Conference next week," he said in an email. Faced with entrenched positions, and with time running short, Al Jaber employed his provocative strategy to shake things up. On Dec. 11, his office released a draft deal text that outlined a "menu" of options countries could - not should - take to combat climate change, ranging from using carbon capture to reducing fossil- fuel use, or cutting fossil-fuel subsidies. There was no mention of a "phase out." The reaction in the corridors of the summit was outrage. Small island nations called it a death sentence, the European Union called it insufficient, and climate NGOs dubbed it catastrophic.
  • 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 That was the desired effect. "Everybody saw immediately this was a menu rather than a directional text," said a source with direct knowledge of the presidency's strategy. "And that fleshed out people's real positions and their red lines in a very public way ... It then became clear where people really stood. People were being polite up to that point!" The UAE host then organized a majlis, the Arabic term for a sitting room, in which negotiators sat in a circle facing one another and took turns outlining their positions - a unique tactic that laid bare the broad demand to address fossil fuels. The COP28 presidency took meetings into the early-morning hours of subsequent days of the conference, and held off on releasing an updated draft deal until early on Dec. 13, a day after the summit's scheduled end. "The idea was to use the clock to your advantage to squeeze the best deal and put the pressure back on the parties," the source said. ONLY WORDS The outrage sparked by the draft deal made clear that COP28 would succeed only if its final accord addressed the future of fossil fuels in a meaningful way. But the term "phase out" remained a red line. Beijing, Riyadh and others would never accept it because it had become politically charged, delegates told Reuters. "Very often in a negotiation, parties are too hunkered-down in their respective positions," said Singapore Environment Minister Grace Fu, who was involved in the negotiations. "And words like 'phase out' became a problem." Sources told Reuters that Kerry and his Chinese counterpart, Xie Zhenhua, mulled a workaround: Use different words that mean essentially the same thing. Xie and Kerry, who enjoy a warm rapport after two decades working on climate change together, already had a road map in their recent climate cooperation agreement reached at Sunnylands in California in November. That deal did not use phrases like "phasing out" but instead called for the accelerated substitution of fossil fuels with renewable energy sources. To some extent, that language described what was already happening around the world, with governments enacting policies to transition to a greener economy. With the two top players in agreement, it was then a matter of getting OPEC on board, and a number of meetings ensued. "Ultimately, Kerry, China and the Saudis played a constructive role at the eleventh hour when it was clear there were no other options on the table," the source said. Delegates said the inclusion of carbon capture in the final accord appeared to be a concession to Saudi and the broader OPEC group, which had long argued emissions could be cut without targeting specific fuels. Saudi Arabia's energy minister, Prince Abdulaziz bin Salman, said after the deal that Riyadh supported the accord because it leaves countries to decide for themselves on suitable pathways to cleaner sources of energy.
  • 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 source familiar with the negotiations said the final flurry of diplomacy ensured the deal would pass: "I would say that doing the right thing became the only option left." Energy companies back Cop28 deal calling for transition from fossil fuels The global stocktake was unanimously approved by 198 countries at the UN climate summit in Dubai on Wednesday, marking a historic moment in the fight against climate change. France’s TotalEnergies said it welcomed the agreement, adding that it supported the goals of tripling renewable energy and doubling energy efficiency by the end of the decade. “These objectives are at the heart of TotalEnergies' roadmap for 2030,” the company said in a statement to The National. Developed and developing countries have agreed on the complexity of the energy transition challenges ... that’s a great result Eni, Italian energy company The company also said that natural gas, considered a transitional fuel due to its lower emissions compared with other fossil fuels, could be useful in the move to net zero by 2050. Carbon dioxide emissions from burning fossil fuels are expected to hit a record high this year amid higher emissions driven by India and China, according to the Global Carbon Budget report. Earlier this year, TotalEnergies' board reaffirmed its support for the company’s multi-energy strategy, focusing on oil and gas assets with low emissions and diversification into renewables. In October, QatarEnergy and TotalEnergies signed two sale and purchase agreements for the supply of up to 3.5 million tonnes of liquefied natural gas a year to France. The company said it supported a “just, orderly and equitable” transition away from fossil fuels, adding that it is crucial for emerging countries aiming for economic and social development. But TotalEnergies was not the only company welcoming Wednesday's news, with Italy's Eni in agreement. "For the first time, the final agreement expresses the need to balance emission targets, energy security, access to energy and competitive development," a spokesperson told The National. "Both developed and developing countries have agreed on the complexity of the energy transition challenges ... that’s a great result."
  • 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 People from all around the world, including the small island nation of Tuvalu, descend on Cop28 in Dubai. Chris Whiteoak / The National Sharjah-based Crescent Petroleum said the agreement recognised the importance of the energy trilemma, which includes “achieving affordability and availability as well as sustainability". It also acknowledged that the transition must be “just and orderly and equitable”, keeping the growing energy needs of the developing world in mind, the company’s chief executive, Majid Jafar, told The National. The International Energy Agency expects global demand for oil and gas to peak by 2030 with an increasing adoption of renewable energy technology and electric vehicles. The current annual investment in the oil and gas sector of $800 billion is double what is required by 2030 in the 1.5°C scenario, the agency has said. Javier Cavada, the chief executive and president of Mitsubishi Power Emea, drew a comparison between the transition from fossil fuels to alternative energy sources and the shift from horses to the automotive industry in the 20th century. “We have a fossil fuel society … I wouldn't say we have an industry,” Mr Cavada told The National. Mitsubishi Power, a subsidiary of Japan's Mitsubishi Heavy Industries, provides energy solutions.
  • 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 Despite the rapid adoption of electric cars and renewable energy, fossil fuels still meet more than 80 per cent of the world's energy requirements. The Cop28 agreement was struck against the backdrop of two geopolitical conflicts and an economic slowdown, that have raised concerns over energy supply. Russia’s invasion of Ukraine last year pushed natural gas prices to record highs, forcing traders in developing economies such as India and China to boost their imports of coal. Despite that, global coal-fired power generation is on track to peak in 2023 as new sources of renewable and low-carbon energy expand rapidly, according to Rystad Energy. The Norway-based consultancy expects coal consumption to start declining next year as solar and wind grow in popularity.
  • 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 15-December - Issue No. 1681 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.
  • 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 17
  • 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 18
  • 19. 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