NewBase 17 July-2023 Energy News issue - 1639 by Khaled Al Awadi_compressed.pdf

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NewBase Energy News 17 July 2023 No. 1639 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE is well positioned to go beyond its net-zero targets by 2030
The National - Robin M. Mills is CEO of Qamar Energy, and author of The Myth of the Oil Crisis ( images by NewBase)
Net-zero is not only a destination but a journey. The UAE has just made the first third of its climb
steeper, which should make for an easier ascent later and more chance of reaching the summit.
With the eyes of the climate world on the country as November’s Cop28 conference draws near,
the next seven years will be decisive.
Under 2015’s Paris Agreement, each country is supposed to submit a “Nationally Determined
Contribution”, explaining how it will reduce greenhouse gas emissions, and otherwise limit climate
change and deal with its effects. This NDC should be updated every five years with greater levels
of stringency. The UAE issued a second NDC in September, and has just released an update with
major increases in ambition and detail.
With its latest announced targets, the UAE aims to show that a major oil and gas-exporting country,
with an economy still largely powered by hydrocarbons, in a hot, arid region, a federal system of
government, with rapid population and economic expansion, can make rapid progress on
decarbonisation.
Credible plans and solid progress to date will increase the chances for successful negotiations in
November and blaze a trail for other states with similar issues.
Overall emissions from a significantly larger economy will be 182 million tonnes of carbon dioxide
equivalent, down from 208 million tonnes in the earlier version of the second NDC, 225 million
tonnes in 2019, and 301 million tonnes in 2030 in a “business-as-usual” case with no climate action.
The population is expected to grow by 14 per cent and the economy by 24 per cent between 2019
and 2030. The reduction target is therefore more ambitious in per-person or per-GDP terms and
compared to countries with stable or shrinking populations.
ww.linkedin.com/in/khaled-al-awadi-80201019/

The targets cover every major emitting sector. Electricity generation will double but carbon dioxide
emissions per kilowatt-hour will halve. Industry will see major expansion, but its emissions will drop
5 per cent. Transport kilometres travelled will also go up, but total emissions will drop slightly.
Emissions from waste will rise a little.
So, the major burden of cuts falls on buildings, where emissions should fall 56 per cent, and
agriculture, down 22 per cent.
To achieve these ambitions, the UAE will have to pull every worthwhile lever. Key elements include
decarbonising electricity and water generation with nuclear, solar, batteries and the use of more
efficient reverse osmosis desalination instead of thermal methods. In fact, with all but 3.8 gigawatts
of clean generation accounted for already, it is likely the UAE will go well beyond its existing target
of 19.8 gigawatts by 2030.
Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and Cop28 President-designate,
speaking at the Road to Cop28 launch event at Al Wasl Plaza, Expo City Dubai. All photos: Pawan
Singh / The National
This lower-carbon power sector reduces the emissions assigned to industries such as oil and gas,
and aluminium, which have signed up to zero-carbon electricity supplies. Cement plants will switch
inputs, and employ carbon capture and storage. Iron and steel plants will run on hydrogen, and the
government will preferentially procure low-carbon steel and cement. The government will offer
“contracts for difference” to pay companies for the increased cost of carbon capture facilities.
Public transport will expand, with metros in Abu Dhabi and some cities of the Northern Emirates,
more focus on the “last mile”, walkability and cycling, and the expansion of the Etihad Rail national
network for freight and passengers. Interestingly, the NDC suggests financial incentives for users
of electric battery vehicles.
Waste will be reduced by a “circular economy” approach, recycling and waste-to-energy to reduce
landfill. Building energy use will be cut with retrofits, new cooling methods, tighter standards for
appliances and stronger codes for new construction. Agriculture will see reductions in water use
through new technologies.
The capture of atmospheric carbon dioxide will also increase via an increase in planting mangroves
in coastal environments, and a pilot for direct air capture by 2030.

Although not strictly a required part of an NDC, what the UAE will do beyond its borders is also
important. International aviation and shipping have their own targets through their global governing
bodies, and the UAE will produce hydrogen-based fuels such as methanol, ammonia and e-
kerosene to drive them.
Clean energy company Masdar will deploy more than 100 gigawatts of renewables by 2030, most
of which will be outside the UAE, including its existing investments and partnerships in the US, UK,
Africa, Central Asia and elsewhere. As is known elsewhere, Adnoc plans to increase its oil and gas
production to meet international market demand, which has to fit within the global carbon budget.
Three points in particular are novel and important: financial support for carbon capture, incentives
for electric vehicles, and the trial of direct air capture.
A national carbon dioxide pipeline network will likely be needed to support carbon capture on
numerous different industries. Hydrogen and its derivatives will become common and familiar fuels.
The expansion of public transport and walkability will make living, working and holidaying in the UAE
quite different.
The plan offers business possibilities of all kinds, from expanding renewable energy, upgrading
building, introducing new technologies for water-saving and cooling, to selling and charging electric
cars, making and using hydrogen, and many more.
This will be most successful when it gives opportunities to as wide a range of companies as possible,
from the national giants such as Adnoc, Dewa and Masdar, to small businesses and start-ups.
The world of climate tech is increasingly competitive. Regional neighbours face many similar
challenges – being a trailblazer may be tough and risky, but offers the greatest rewards. Some
things will not work out, while other unexpected opportunities emerge.
2030 is not far away for such an ambitious plan – but for the sake of a liveable country and planet,
it is one foothill to conquer on the way to the net-zero summit of 2050.

U.S: TotalEnergies, Mubadala, GIC finalise Texas LNG project
TradeArabia News Service
TotalEnergies, Global Infrastructure Partners (GIP) NextDecade Corporation, and their partners,
GIC and Mubadala, made the final investment decision (FID) to develop phase 1 of Rio Grande
LNG (RGLNG), a natural gas liquefaction (LNG) project in South Texas.
This first phase comprises 3 liquefaction trains with a total capacity of 17.5 million tons per annum
(Mtpa) and CAPEX of $14.8 billion. The Engineering, procurement, and construction (EPC) contract
has been awarded to Bechtel, and commissioning of the plant is scheduled for 2027.
The project will be financed by equity contributions from the partners and by a debt contribution
concluded today with an international banks’ consortium.
As a result of this decision, and according to the terms of the agreement signed in June,
TotalEnergies acquires a 16.67 per cent stake in the joint-venture in charge of this first phase, and
will participate in its equity contributions, for a total amount of $1.1 billion.
Also, will hold a total 17.5 per cent stake in NextDecade for a total amount of $219 million. A first
tranche of 5.06 per cent was acquired last June, and a second tranche will be acquired in the next
few days to increase this stake to 12.47 per cent and a third tranche of 5.03 per cent shall be
acquired before the end of the year.
In addition, TotalEnergies will also offtake 5.4 Mtpa of LNG from the production of this phase for 20
years.
“We are delighted with this final investment decision that enable us to launch the construction of this
new LNG liquefaction plant in the Unites States, to which TotalEnergies will contribute its expertise
in the development of major LNG projects,” said Patrick Pouyanné, Chairman and CEO of
TotalEnergies.
Pouyanné adds, “This project gives TotalEnergies access to competitive LNG thanks to its low
production costs. LNG from this first phase will boost TotalEnergies U.S. LNG export capacity to
over 15 Mtpa by 2030, and thus our ability to contribute to European gas security, and to provide
customers in Asia with an alternative form of energy that is half as emissive as coal.”
“Having TotalEnergies as a key partner in the Rio Grande LNG project is an honor. Their long-
standing reputation as a leader in the LNG and energy industry makes this a great partnership,”
said Matt Schatzman, Chairman and Chief Executive Officer of NextDecade.
Schatzman adds, “Working together with TotalEnergies, we will be able to fulfill our mission to
deliver lower carbon-intensive LNG to customers around the globe and we look forward to working
together as construction on Phase 1 of Rio Grande LNG begins.”-

Saudi Arabia: Engie, PIF to develop hydrogen projects
TradeArabia News Service
Engie, a leading provider of low-carbon energy services and solutions for integrated utilities
management, has signed a memorandum of understanding (MoU) with Saudi Arabia's Public
Investment Fund (PIF) for the joint development of green hydrogen projects and its derivatives in
the kingdom.
They will explore opportunities that contribute to enhancing the energy transition within the
objectives of the Saudi vision 2030, said a statement.
The MoU was signed by Frederic Claux, Managing Director, Flexible Generation and Retail, AMEA
from Engie, and Yazeed Alhumied, Deputy Governor and Head of MENA Investments from PIF,
paving the way for the two parties to explore opportunities to jointly develop projects for green
hydrogen and derivatives production for export.
Claux said: "The MoU between Engie and PIF will foster strategic partnership in developing green
hydrogen projects in the kingdom.
“We, at Engie, are proud to contribute to driving the energy transition in the Kingdom and achieving
its aspirations and goals in the green hydrogen sector. Our partnership with PIF will contribute to
laying robust foundations for the green hydrogen industry, enabling the Kingdom to be one of the
top exporters of green hydrogen worldwide,” Claux added.
Under the MoU PIF and Engie are to evaluate the feasibility of co-development opportunity.
Additionally, the two parties will jointly formulate a strategy to best approach the international market
and secure offtake arrangements.
The MoU will enable Engie to work closely with PIF in Saudi Arabia in diversifying the kingdom’s
economy and to strengthen its global competitiveness in producing and supplying hydrogen and
derivatives, the statement added. -

KSA & Japan to co-operate on crude exports and clean hydrogen
The National + NewBase
Saudi Arabia, the world’s largest oil exporter, will continue its co-operation with Japan in areas such
as crude exports and clean hydrogen, the kingdom’s energy minister has said. The kingdom will
ensure the security of supplies to the Asian country, Energy Minister Prince Abdulaziz bin Salman
says
Prince Abdulaziz bin Salman said that Saudi Arabia, which is responsible for 40 per cent of Japan’s
oil imports, will ensure the security of supplies to the energy-starved Asian country, the official Saudi
Press Agency reported on Sunday.
The minister also emphasised the need for joint co-operation between the two countries in the field
of clean hydrogen and its applications, in addition to developing the infrastructure for “circular carbon
economy” applications.
Last month, Japan, the world's fourth-biggest importer of crude, and Opec agreed to establish a
dialogue between senior officials to address Tokyo's energy security concerns.
Japan is looking to bolster its energy security by entering into long-term liquefied natural gas
agreements and adding more renewable resources to its overall energy mix.
Global competition for LNG cargo is set to intensify this year as China’s economy recovers and
Europe stockpiles more natural gas before the next winter.
In December, Inpex, Japan’s largest oil and gas exploration company, signed an agreement with
US-based Venture Global LNG for the supply of a million tonnes annually for the next 20 years.
Last year, Saudi Arabia and Japan signed new agreements focused on the circular carbon economy
and carbon recycling fields and covering other areas such as green hydrogen, fuel ammonia and
derivatives.

Prince Abdulaziz said Saudi Arabia’s purchases from Japan in the energy sector amounted to nearly
12 billion Saudi riyals ($3.2 billion) in the past five years.
“There are many opportunities for co-operation between the two countries in the fields of
petrochemicals,” the energy minister said.
In April, a shipment of independently certified low-carbon ammonia from Saudi Arabia arrived in
Japan for use in power generation.
The ammonia was produced by Sabic Agri-Nutrients with feedstock from top crude exporter Saudi
Aramco.
The shipment represented a “milestone” in the development of clean energy solutions, and was the
result of “effective co-operation” between several entities in Saudi Arabia and Japan, Prince
Abdulaziz said.
Ammonia, a compound of nitrogen and hydrogen, can be used as a low-carbon fuel across industrial
applications, including transport, power generation, and industries such as steel, cement and
fertiliser production.
Power plants could potentially use 100 million tonnes of low-carbon ammonia as feedstock by 2050,
according to Wood Mackenzie.
Aramco aims to produce up to 11 million tonnes of blue ammonia per year by 2030 and is currently
developing carbon capture and hydrogen capabilities.

Morocco names pre-qualification firms in 400MW solar project
Ahmed Eljechtimi, Bizcommunity.com
Six consortiums have pre-qualified to build a 400MW solar plant in Morocco's Atlas mountains,
dubbed Noor Midelt II, the country's renewable energy agency Masen recently announced.
The consortiums are led by Spain's Cobra Servicios, Communicaciones y Energia, France's EDF
Renouvelables, Italy's Enel Green Power, Spain's Iberdrola Renovables International, Belgium's
International Power and Saudi Arabia's Acwa Power.
The project entails building a photovoltaic power plant with two-hour storage capacity.
A consortium led by EDF Renouvelables won in 2019 a tender to build a 800MW solar power plant
that was designed to combine both photovoltaic with concentrated solar power (CSP) technologies.
Four years later, the first phase is yet to be completed partly due to disagreements over CSP
technology, sources say.
Plans to increase renewable energy capacity
In 2022, renewables represented 18% of total electricity production in the country, while coal
accounted for 72%, according to official figures.
By March 2023, renewable energy represented 40% of the country's installed capacity as Morocco
plans to increase that share to 52% by 2030.

Morocco, Shell sign 12-year LNG natural gas deal: ministry
Staff Writer, Agence France-Presse (AFP)
Energy giant Shell will supply Morocco with six billion cubic meters of liquefied natural gas (LNG)
over 12 years under a new agreement, Morocco's energy ministry has said.
Representatives of Morocco's national electricity authority, ONEE, and the British firm signed a
contract on Friday in Rabat, the ministry said in a statement.
The agreement includes the annual delivery of 500 million cubic meters of LNG to Morocco. The
value of the 12-year deal has not been disclosed.
In the initial years, the gas will be delivered through Spanish ports and the Maghreb-Europe Gas
Pipeline (GME). It will eventually be delivered through planned Moroccan LNG terminals.
Morocco has sought to diversify its energy sources particularly since neighbouring Algeria stopped
supplying natural gas via the GME in November 2021, after severing ties over the disputed Western
Sahara territory.
According to ONEE chief Abderrahim El Hafidi, the agreement with Shell will "address part of our
needs and ensure the supply of natural gas to our power plants".
Leila Benali, Morocco's minister of energy transition and sustainable development, was quoted in
the statement as saying "this medium-term supply contract will strengthen the kingdom's energy
security and improve its competitiveness by accelerating the Moroccan decarbonisation strategy."

European Power Prices Fall Below Zero With Green Power Boom
Bloomberg
Electricity prices across Europe are set to fall below zero this weekend as the continent experiences
a surge of summer winds combined with the p eak season for solar generation.
The sub-zero prices are a preview of what’s to come for European power markets if a flood of
planned renewable power production isn’t met with a shift in demand. The hope is that eventually
larger electric car fleets, smarter grids and better battery technology will catch up, but for now the
mismatch is a headache for policy makers and companies.
The risk is that a prolonged slump in prices could undermine the case for future investments, add
costs for consumers and waste energy that could be used to cut demand for polluting alternatives.
Data from Epex Spot SE on Friday show electricity prices for certain hours of Saturday are negative
in nearly a dozen countries including the UK, Germany, the Netherlands and France. That’s likely
to continue into Sunday when wind power production is set to ramp up further in northern continental
Europe and Britain.
Negative prices aren’t new, but are happening more frequently this summer after Europeans added
a record amount of solar panels to the power grid last year to cut demand for expensive natural gas.
The new production helped the EU hit a milestone earlier this summer when monthly solar power
surpassed electricity generation from coal for the first time.
With the solar build-out set to break records every year for the rest of the decade as panel prices
plunge, the only way to address negative pricing is to make power consumption smarter.

“Negative pricing is an important signal in the electricity system to incentivize flexibility and storage,
which is critical to a modern-day electricity system,” said Tom Haddon, a consultant at Arcadis LLP
based in Cardiff. “At the moment negative pricing is a bug, but it should be a feature.”
That means that power system will have to adapt. Soaring amounts of cheap renewable power
that’s concentrated in just a few hours of the day can increase the cost for the power grid operators
to balance the system. Ultimately those costs end up spread out on customers’ bills.
Ideally, when renewable power is abundant and prices low, households and businesses could ramp
up consumption to help limit costs for grid operators to keep the system in balance and use as much
green energy as possible.
There are some early examples of that in practice already. Residential power supplier Octopus
Energy in the UK has over 150,000 customers on contracts designed to enable EV drivers to charge
up when electricity is cheapest and greenest, usually overnight.
Last week, Britain’s grid operator highlighted possible shifts in when people charge EVs or heat
their homes with electric heat pumps as a key step. Large-scale demand, like from hydrogen
electrolyzers could also one day ramp up production to store the energy to use later.

NewBase July 17 -2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil slips on weak China GDP data, resumption of Libya output
Reuters + NewBase
Oil prices extended their decline into a second session on Monday after China's economic data
showed growth slowed in the second quarter, fuelling concern about demand in the world's No. 2
oil consumer as Libya resumed production over the weekend.
Brent crude futures fell 72 cents, or 0.9%, to $79.15 a barrel by 0333 GMT, and U.S. West Texas
Intermediate crude was at $74.75 a barrel, down 67 cents, or 0.9%.
China's gross domestic product grew just 0.8% over April-June from the previous quarter, data
released by the National Bureau of Statistics showed, with its post-pandemic recovery faltering
rapidly due to weakening demand at home and abroad.
"The GDP came in below expectations, so will do little to ease concerns over the Chinese economy,"
said Warren Patterson, ING's head of commodities research. Chinese refineries processed 1.6%
more crude daily in June than May as they ramped up operations after spring maintenance, NBS
data also showed, in line with strong imports by the world's top crude importer last month.
Oil price special
coverage
 China Q2 GDP growth slows; June crude throughput up from May
 Two of three Libyan fields resume output during weekend
 Russian oil exports from western ports to fall in Aug -sources

"Apparent oil demand grew at a strong pace year on year, but the market seems focused on the
headline (GDP) numbers," Patterson said.
Beijing is likely to be cautious in timing any new stimulus measures, wary of driving commodities
prices higher, said Stefano Grasso, a senior portfolio manager at 8VantEdge in Singapore.
"They are stockpiling crude at low prices, and waiting for recession to hit the West, before going full
on with stimulus," Grasso said.
Prices softened after both benchmarks last week notched a third straight week of gains and touched
their highest since April, after output was shut at oilfields in Libya and Shell halted exports of a
Nigerian crude, tightening supply.
Two of the three Libyan oilfields that were shut on Thursday, the Sharara and El Feel with a total
production capacity of 370,000 barrels per day (bpd), resumed on Saturday evening, four oil
engineers and oil ministry said.
The 108 field remained shut. Output was halted in protest against the abduction of a former finance
minister.
In Russia, oil exports from western ports are set to fall by some 100,000-200,000 bpd next month
from July, a sign Moscow is making good on a pledge for fresh supply cuts in tandem with OPEC
leader Saudi Arabia, two sources said on Friday.
Global oil demand to grow by 2.2% in 2024, says Opec
The world oil demand will grow by a healthy 2.2 million to 104.25 million barrel per day (mb/d), in
2024, said the Organisation of the Petroleum Exporting Countries (Opec) in its review, thus raising
its 2023 forecast to 2.4 mb/d, following an upward revision of about 0.1 mbn/d from last month's
assessment.
In its Monthly Oil Market Report, the global organisation said the World GDP growth in 2024 is
forecast at 2.5%, slightly below this year’s expected growth level of 2.6%.
"Key oil-consuming countries, including China and India, along with some other developing
economies in Asia, will continue their healthy growth levels and be responsible for around half of
next year’s global economic growth," stated Opec.
"This is under the assumptions that general inflation will continue retraction in the secondd half of
this year and 2024. Tight monetary policies are also assumed to continue and key policy rates to
peak by the end of 2023. Moreover, central banks are expected to engage in more accommodative
monetary policies by H2 2024," he added.
According to Opec, the world economic growth in 2023 is to remain broadly unchanged at 2.6%,
with the initial forecast for 2024 economic growth expected at 2.5%.
Demand for Opec crude in 2023 is revised up in the report by 0.1 mb/d from the previous month’s
assessment to stand at 29.4 mb/d. This is around 1.0 mb/d higher than in 2022.
Based on the initial world oil demand and non-Opec supply forecast for 2024, demand for the Opec
crude is expected to reach 30.2 mb/d, 0.8 mb/d higher than the 2023 level, it added.

European Gas Prices Have Biggest Weekly Loss of the Year
European natural gas prices posted their biggest weekly drop this year
as above-average inventories and lackluster demand outweighed concerns
about heat waves across the Mediterranean. Benchmark front-month contracts
settled 2.4% lower after jumping earlier in the day, and ended the week 22%
lower.
High storage levels and flows from Norway are driving the drop
Extreme hot weather to cover southern Europe this weekend
European natural gas prices trimmed their weekly drop on Friday as heat blankets the continent’s
south and risks raising cooling needs.
Benchmark front-month contracts traded as much as 8% higher, reversing some of the week’s
losses. Higher-than-usual inventories and lackluster demand had kept a lid on prices so far, which
are still on course to end the week over 15% lower.
Extreme heat is ripping through southern Europe and parts of Germany, with the next blast from the
Sahara lifting temperatures toward record highs in parts of Italy this weekend. Electricite de France
SA warned it will curtail production at one nuclear reactor as a heat wave restricts the amount of
water that can be discharged into the Rhone River. That could raise demand for other sources of
electricity generation.

Still, gas flows from Norway, Europe’s top supplier, are picking up again after works have affected
some of the country’s facilities. The market is anticipating the start-up of the Nyhamna gas
processing plant on July 15, which would support supply, and the Troll field is also returning to full
capacity after lengthy seasonal work, grid data show.
A mild winter could see natural gas prices slump to around €15 — about half the current level,
according to Morgan Stanley, though it acknowledged it’s a tricky period to forecast.
Dutch front-month gas, Europe’s benchmark, traded 5.4% higher at €28.05 per megawatt-hour at
11:36 a.m. in Amsterdam. The UK equivalent futures rose 6.8%.

NewBase Specual Coverage
The Energy world –July-17 -2023
CLEAN ENERGY
Rapid progress of key clean energy technologies shows the new
energy economy is emerging faster than many think
Rapid progress of key clean energy technologies shows the new energy economy is emerging faster
than many think, but momentum in solar, EVs and heat pumps needs to expand quickly across
more countries and to other parts of the energy system to move the world closer to net zero by
2050, the International Energy Agency (IEA) said
The pace of deployment of some clean energy technologies – such as solar PV and electric vehicles
– shows what can be achieved with sufficient ambition and policy action, but faster change is
urgently needed across most components of the energy system to achieve net zero emissions by
2050, according to the IEA’s latest evaluation of global progress.
Published July 12, the annual update of the IEA’s Tracking Clean Energy Progress online resource
reveals remarkable gains in the past year. Electric car sales reached a record high of more than 10
million in 2022, a nearly tenfold increase in just five years.
Renewable electricity capacity additions rose to 340 gigawatts (GW), their largest ever deployment.
As a result, renewables now account for 30% of global electricity generation. Investment in clean
energy reached a record USD 1.6 trillion in 2022, an increase of almost 15% from 2021,
demonstrating continued confidence in energy transitions even in an uncertain economic climate.
The transition to clean energy is occurring at different speeds across regions and sectors, however.
For example, nearly 95% of global electric car sales in 2022 took place in China, the United States
and Europe. Stronger international cooperation is needed to spread progress on electric cars and
other key technologies to all regions, particularly emerging and developing economies.
Clean energy deployment is also occurring faster in some parts of the energy system – such as
electricity generation and passenger cars – where costs have fallen and technologies are already
relatively mature.
Meanwhile, rapid innovation is still needed to bring to market clean technologies for parts of the
energy system where emissions are harder to tackle, such as heavy industry and long-distance
transport. Positive steps on innovation have been made in the past few years, but a further
acceleration is needed to soon bring to market more low-emissions technologies for these areas.
The 2023 update of Tracking Clean Energy Progress, available on the IEA website, tracks progress
towards aligning the global energy system with a path to reaching net zero emissions by 2050. It
does this by assessing over 50 different components, from sectors to technologies to infrastructure.

The IEA also released today the newly redesigned Clean Energy Technology Guide, an interactive
digital database that allows users to visualise the readiness and geographical distribution of more
than 500 different innovative technologies or components across the global energy system, along
with the accompanying Clean Energy Demonstration Projects Database.
“The clean energy economy is rapidly taking shape, but even faster progress is needed in most
areas to meet international energy and climate goals,” said IEA Executive Director Fatih Birol. “This
update of Tracking Clean Energy Progress highlights some very promising developments,
underlining both the need and the potential for greater action globally. The extraordinary growth of
key technologies like solar and electric cars shows what is possible.”
Although many sectors are not yet fully on track for international climate goals, the new analysis
identifies crucial advances over the past year. For the first time ever, announced manufacturing
capacity for electric vehicle batteries has reached levels sufficient to fulfil expected demand
requirements in 2030 in the IEA’s scenario for achieving net zero emissions by 2050. This is backed
by the momentum from major industrial strategies such as the Inflation Reduction Act in the United
States and the European Union’s Green Deal Industrial Plan.
Solar PV has been upgraded to “on track”, as its progress now aligns with milestones consistent
with net zero ambitions. Solar PV generated a record of nearly 1 300 terawatt-hours (TWh) in 2022,
up 26% from 2021 and logging the largest absolute generation growth of all renewable technologies
in 2022.
The number of manufacturing projects in the pipeline for solar PV also saw massive growth in the
context of widespread government support, especially in China, the United States and India. If all
announced projects are realised, global manufacturing capacity for solar PV will more than double
in the next five years, outpacing 2030 demand in the IEA’s Net Zero by 2050 Scenario.

Notable progress was made in the buildings sector – which has been upgraded from “not on track”
to “more efforts needed” in the Tracking Clean Energy Progress three-tier rating system.
Governments are increasingly introducing stringent building energy codes and performance
standards, and the use of efficient and renewable technologies for buildings such as heat pumps
and low-emissions cooling equipment is accelerating.
Energy efficiency policies were also strengthened globally in the past year, such as in India, which
enacted new policies for appliances, vehicles, industrial facilities and commercial buildings.
Policy is advancing in many regions. Earlier this year, for example, Indonesia became the first
country in Southeast Asia to establish a legal and regulatory framework for carbon capture,
utilisation and storage, and Namibia released a hydrogen strategy in late 2022.
Several technologies have seen important breakthroughs in innovation since the last updates to the
IEA’s Tracking Clean Energy Progress and Clean Energy Technology Guide. The world’s largest
battery manufacturer announced it would begin production of sodium-ion electric vehicles batteries,
an alternative battery chemistry that can help reduce reliance on in-demand critical minerals.
Two large-scale demonstrations of solid oxide electrolysers, a highly efficient technology to produce
low-emission hydrogen, started operating earlier this year. There have been positive steps in
innovative clean technologies for aluminium refining and cement-making – both industries in which
emissions are difficult to tackle.
Furthermore, in early 2023, the first shipment of liquid carbon dioxide (CO2) was taken from Belgium
to be geologically stored off the coast of Denmark beneath the North Sea, a landmark achievement
for the carbon capture sector.
While progress can be observed across all of the 50-plus components of the energy system
evaluated in Tracking Clean Energy Progress, the majority are not yet on a path consistent with net
zero emissions by 2050. Stronger policy support and greater investment are needed across a wide
range of different technologies, in all regions of the world, to enable a broader and faster shift
towards clean energy to keep net zero emissions by 2050 within reach.
Some highlights in 2022 include the following:
 Electric vehicle sales grew by 55%, reaching a record high of more than 10 million. And for the
first time ever, announced manufacturing capacity for electric vehicle batteries is sufficient to
fulfil expected demand requirements in 2030 in the NZE Scenario.

 Nuclear capacity additions grew by 40%, with 8 GW newly installed. While higher deployment
is needed in the Net Zero Scenario, the growth in 2022 represents a clear step forward after
capacity additions had remained stable from 2019 to 2021.

 Heat pumps saw another record year, with 11% growth in sales. This is close to the 15%
average compound annual growth needed to fully align with the Net Zero Scenario.


 Electrolyser installed capacity grew by more than 20%, while electrolyser manufacturing
capacity grew by more than 25%. The bigger story though is likely yet to come - based on the
current pipeline of projects under development and their expected operation dates, electrolyser
capacity could reach almost 3 GW by the end of 2023, a more than four-fold increase in total
capacity compared to 2022.

 Energy efficiency of the economy overall grew by more than twice the level the previous year.
This is a positive step forward following several years of relatively weak improvements.


Progress is occurring faster in those parts of the energy system for which clean technologies are
already available and costs are falling quickly, such as for electricity generation and passenger cars.
But a full transition to net-zero emissions will require decarbonising all areas of energy production
and use.
Rapid innovation is needed to bring to market clean technologies in particular for those parts of the
energy system where emissions are harder to address, such as heavy industry and long-distance
transport. Positive steps forward on innovation have been made in the past few years, but an
acceleration is needed in order to soon move to deployment of novel low emission technologies for
these areas.
The transition is also occurring at different speeds across regions and sectors. For example, nearly
95% of electric car sales in 2022 occurred in China, the United States and Europe. Meanwhile,
nearly 75% of operating and planned carbon capture capacity is in North America and Europe.
As such, the global evaluation that a technology is “on track” does not mean that it is on track in all
countries, and, conversely, a technology that is “not on track” globally could be progressing more
quickly in some specific countries. Stronger international cooperation and robust policy development
is needed to spread progress to all regions, particularly emerging market and developing
economies.

NewBase Energy News 17-July 2023 - Issue No. 1639 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.

NewBase 17 July-2023 Energy News issue - 1639 by Khaled Al Awadi_compressed.pdf

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