Renewables

Utility-scale solar PV and onshore wind are the cheapest options for new electricity generation in a significant majority of countries worldwide. (Image source: Adobe Stock)

The global energy crisis is driving a sharp acceleration in installations of renewable power, with total capacity worldwide set to almost double in the next five years, overtaking coal as the largest source of electricity generation along the way and helping keep alive the possibility of limiting global warming to 1.5 °C, the IEA says in a new report

Javier Cavada, president and CEO at Mitsubishi Power underscores MENA’s potential to leapfrog developed nations in hydrogen production, at COP 27’s Climate Action Hydrogen Transition Summit. (Image source: Mitsubishi Power)

Mitsubishi Power, a power solutions brand of Mitsubishi Heavy Industries, Ltd. (MHI), participated in COP27, which took place in Sharm El-Sheikh, Egypt, where it showcased its pioneering technology advances in decarbonisation and their application to accelerate the energy transition

A global leader in low carbon engineering and technology, the company brings decades of experience and expertise that can play a vital role in the development of sustainable, resilient and carbon-neutral energy systems.

At COP27’s Hydrogen Transition Summit, one of Climate Action’s key events this year, Mitsubishi Power underscored the opportunity of hydrogen as a main enabler of energy transition, and as an integral constituent of a future decarbonised energy system.

In the opening session of the Summit, Javier Cavada, president and CEO of Europe, Middle East and Africa at Mitsubishi Power, highlighted the key role the MENA region can play in this regard: “The MENA region’s potential to become a major exporter of hydrogen, with the availability of abundant and low-cost renewables, existing export infrastructure, as well as financing resources.”

Dr Cavada also stressed the importance of collaboration to realise the potential of hydrogen.  “While hydrogen will continue to play an essential role in decarbonisation, its widespread deployment will require unprecedented collaboration with both existing and new technologies, industry partners, policymakers, and NGOs.”

Demonstrating the brand’s commitment to realising a carbon neutral society, MHI is committed to achieve carbon neutrality across its operations by 2040. MHI is also adopting a new goal to achieve Net Zero emissions through its entire value chain by 2040. In line with this ambition, Mitsubishi Power continues to develop energy solutions and processes that enable hydrogen’s transition from industrial use to being the clean fuel of choice.

“Since 1970, Mitsubishi Power has pioneered hydrogen fuel combustion technologies. With our recent projects that have demonstrated the large-scale commercial validation of our technology and decades-long expertise in this field, we are committed to support our customers across the region accelerate their energy transition with affordable and reliable solutions. This is going to be essential to demonstrating how hydrogen can competitively fulfil clean energy expectations and bring us one step closer towards a carbon neutral society,” added Cavada.

One recent example is the full turnkey contract Mitsubishi Power signed with leading Egyptian oil & gas company, Alexandria National Refining & Petrochemicals Company (ANRPC), to provide advanced hydrogen fuel conversion technology solutions, supporting the company to achieve its decarbonisation goals. The solution will be installed at the ARNPC refinery plant in Alexandria, which provides 30% of Egypt’s gasoline supply for domestic consumption.

Dr Emmanouil Kakaras, executive vice-president Next Energy Business at MHI EMEA, also participated in Climate Action’s Sustainable Innovation Forum, where he joined a panel of experts to discuss advanced energy solutions that can cut emissions rapidly enough to stay on track for a net-zero 2050 goal.

“Decarbonisation will be achieved by focusing on increasing energy efficiency and collaborating closely to develop and scale up hydrogen and CO2 value chains. There is no one-size-fits-all approach to net-zero 2050 — different regions and sectors will choose different pathways. As emissions cannot be avoided altogether and disruption to existing economies needs to be kept at a minimum, particularly as we’re faced with the “energy trilemma” of sustainability, solutions such as hydrogen will play a central role in many of these approaches,” Dr Kakaras said.

ACWA Power and TSFE will now engage in discussions for TSFE’s Infrastructure & Utilities Subfund to own up to 10% of the project. (Image source: ACWA Power)

ACWA Power, a leading Saudi developer, investor, and operator of power generation, water desalination and green hydrogen plants worldwide, has signed a MoU with The Sovereign Fund of Egypt (TSFE) to explore a joint investment in the 1.1GW Wind Energy project, located in the Gulf of Suez in Egypt

Per the terms of the MoU, ACWA Power and TSFE will now engage in discussions for TSFE’s Infrastructure & Utilities Subfund to own up to 10% of the project. Currently, project investors include Hassan Allam Holdings, an Egyptian engineering, construction and infrastructure company (25% stake) and ACWA Power. The Oman Investment Authority, the Sultanate’s sovereign wealth fund, recently signed a similar agreement with ACWA Power, to have an equity stake of up to 10% of the same facility.

This is the first instance of The Sovereign Fund of Egypt (TSFE) investing in ACWA Power’s Egyptian or worldwide portfolio. The company has had a presence in Egypt since 2015 and has developed the 120 MW PV project in Benban, a 200 MW PV facility in Kom Ombo, along with Suez Wind Energy, which will be the largest single contracted wind farm, and largest wind related public private partnership in Africa to date. Furthermore, ACWA Power has also signed a memorandum of understanding to develop another 10GW wind project with Egyptian Electricity Transmission Company (EETC), which is likely to be developed in phases.

“As the Government of Egypt’s ambitious energy diversification plans continue to gain momentum, it is assuring to see key investors from the Arab World join hands to support the development of clean energy projects in the country. This tangible endorsement signifies that Arab investors are looking firmly towards implementing sustainable solutions that benefit communities while ensuring global climate action pledges. At ACWA Power, we are proud that regional and global project finance organisations continue to place strong confidence in our ability to deliver giga scale renewable projects that are delivering impact and value across the world," commented Mohammad Abunayyan, ACWA Power chairman.  

“This is another significant manifestation to our strategy to continue to invest into renewable power generation to decarbonise Egypts energy sector and capitalise on green energy sources in the country. It shows our commitment to transition from pledges to implementation in collaboration with private-sector pioneers. We have strong confidence in our partner’s ability to deliver such large-scale projects, building on their expertise in the renewable energy field and their presence in the Egyptian market," Karim Badr, CEO of TSFE’s infrastructure & utilities subfund.

By 2026, the 1.1GW Wind Energy project will provide energy to over a million households and displace 2.4 million tonnes of carbon dioxide emissions annually. Elsewhere on the African continent, ACWA Power has a number of projects in development or in operation; five projects in Morocco and three in South Africa all in renewable energy.

The facility, powered by renewable energy, will be part of the city of Neom, built from scratch in the northwestern desert, with the ambition of establishing a new model for sustainable living. (Image source: Alfa Laval)

Alfa Laval has signed an agreement to deliver compact heat exchangers to the world’s largest green hydrogen plant, to be constructed in the Middle East