This ticker is published every three months by Guidehouse on behalf of the BMWK the framework of the energy co-operation countries of the Arabian Peninsula.The contents have been compiled with the greatest
possible.
Nevertheless, no guarantee can be given for the accuracy, completeness and correctness of the content provided
About the energy partnerships and energy dialogues
Germany is working together with the United Arab Emirates (UAE) on various energy policy issues relating to the energy transition as part of an energy partnership agreed in 2017. In May 2022, an energy partnership was agreed with Qatar, which includes cooperation on liquefied natural gas (LNG) in addition to cooperation on energy transition issues. There are also energy agreements with Saudi Arabia (2019) and Oman (2018). Current priority topics of bilateral energy policy cooperation with the countries of the Arabian Peninsula include hydrogen, energy efficiency, industrial decarbonisation, climate modelling, the design and introduction of electricity market elements, the expansion and operation of electricity grids with increasing shares of renewable energies and sector coupling. Another important aspect is the involvement of the private sector
- Stand: Dezember 2024, Guidehouse -
Energy policy and economic information ADNOC takeover of Covestro The German chemicals group Covestro is about to be taken over by the state-owned oil and gas group ADNOC from the United Arab Emirates for around EUR 16 billion. ADNOC has already been offered around 70% of the shares in the German group as part of its takeover bid (as at 2 December). ADNOC is aiming for a complete takeover with a subsequent delisting from the stock exchange. ADNOC has undertaken not to make any significant changes, sales or closures at Covestro until the end of 2028. ADNOC also announced the establishment of its subsidiary XRG, an international investment company in the low-emission energy and chemicals sector with an enterprise value of €80 billion.
Spiegel (2024); GoodReturns (2024)
Hydrom and thyssenkrupp nucera cooperate in Oman
Hydrom and thyssenkrupp nucera have signed a Memorandum of Understanding to explore the localisation of assembly and service centres for water electrolysers in Oman. This collaboration is expected to strengthen thyssenkrupp nucera's presence in the Middle East region and promote the development of the green hydrogen sector in the Sultanate of Oman. Hydrom is the key player in coordinating the green hydrogen market in Oman.
Expansion of renewables in Saudi Arabia
The Saudi Power Procurement Co. (SPPC) has published the results of the fifth national tender round for renewable energies with a total capacity of 3.7 GW. The Emirati developer Masdar won the Al Sadawi solar project (2 GW). EDF Renewables in partnership with the Chinese State Power Investment Corporation (SPIC) won two projects with a total capacity of 1.4 GW, including the 1 GW Al-Masaa project and the 400 MW Al-Henakiyah 2 project. The 300 MW Rabigh 2 solar project was won by a consortium of Total Energies and the Saudi Aljomaih Energy and Water Company. The Saudi developer ACWA Power announced the financial closing for three solar projects with a total capacity of 5.5 GW. The Haden (2 GW), Muwayh (2 GW) and Al Khushaybi (1.5 GW) projects are scheduled to be commissioned in the first quarter of 2027.
Jinko Power also announced the financial closing of the 400 MW Tabarjal solar project in Saudi Arabia. On 13 November, ACWA Power also announced that the Al Shuaibah 1 solar park with a capacity of 600 MW had been commissioned. Another solar park at the same location south of Jeddah, Al Shuaibah 2, with a capacity of 2 GW, is scheduled to go into operation at the end of 2025.
Solar factories in Saudi Arabia and Oman
The Saudi company Desert Technologies is planning to build a solar cell factory on the west coast of Saudi Arabia. In future, the factory will produce solar cells with a capacity of 3 GW and solar modules with a capacity of 2 GW per year. The Sultanate of Oman is planning to build a solar panel factory with an annual production capacity of 5 GW in cooperation with the Chinese company Drinda New Energy Technology. The land for the project has already been contractually secured in the Sohar Free Zone. Commissioning is scheduled for 2025.
Renewables Now (2024); Oman Observer (2024)
Solar expansion in Abu Dhabi
The Emirates Water and Electricity Company (EWEC) called for expressions of interest for the 1.5 GW Zarraf PV project in the Al Dhafra region of Abu Dhabi at the beginning of October. At the end of October, a shortlist of 19 interested parties was drawn up, who can now submit their bids. Engie, a consortium consisting of EDF Renewables and Korea Western Power and a consortium consisting of Jinko Power and Jera are still in the running. The final result is expected to be announced in the second quarter of 2025. EDF Renewables, Korea Western Power (KOWEPO) and Masdar have started construction of the 1.5 GW Al Ajban solar project in Abu Dhabi. The electricity will be purchased from EWEC under a 30-year power purchase agreement (PPA). Commissioning is scheduled for the third quarter of 2026.
Blue ammonia in Qatar
QatarEnergy is starting construction of one of the world's largest blue ammonia plants with a capacity of 1.2 million tonnes per year. The plant is scheduled to go into operation in the second quarter of 2026. The project, which will cost around QAR 4.4 billion (approx. USD 1.2 billion), also includes CO2 storage with a capacity of 1.5 million tonnes per year. The plant will be supplied with over 35 MW of electricity from a nearby solar park. The consortium responsible for the implementation consists of ThyssenKrupp and CCC.
Masdar and EMSTEEL produce green steel with green hydrogen
Masdar and EMSTEEL have successfully completed a pilot project demonstrating the production of green steel using green hydrogen. The project in Abu Dhabi is the first of its kind in the MENA region and utilises green hydrogen to extract iron from iron ore. The hydrogen produced was certified in accordance with ISO 19870.
First EU-GCC Summit
The first European Union-Gulf Cooperation Council Summit took place in Brussels on 16 October. The focus was on the ‘Strategic Partnership for Peace and Prosperity’. According to the press release, energy cooperation and the joint fight against climate change are to be intensified. The event was chaired by H.E. Charles Michel, President of the European Council, and H.H. Sheikh Tamim bin Hamad Al Thani, Emir of the State of Qatar and rotating President of the Gulf Cooperation Council.
Construction of the ‘Baltic Eagle’ offshore wind farm in the Baltic Sea by Masdar and Iberdrola completed
All 50 wind turbines have been installed at the 476 MW ‘Baltic Eagle’ wind farm in the German Baltic Sea. The wind farm is a joint venture between Iberdrola and Masdar (51% Iberdrola, 49% Masdar) and is already connected to the national grid. The offshore wind farm will supply 475,000 households with renewable energy. Commissioning is scheduled for the end of 2024.
Drydocks World wins contract for Ostwind 4 converter stations
The Emirati company Drydocks World has been awarded the EPC contract for the superstructure and foundation structure of the converter station for the German offshore wind farm Ostwind 4. The contract was awarded by the German transmission system operator 50Hertz. Ostwind 4 is a 2 GW offshore wind grid north-east of the island of Rügen, which is scheduled for completion by 2031.
Implementing energy cooperation with the countries of the Arabian Peninsula: events and project progress
Tech tour on CO2 pricing and hydrogen with the UAE in Berlin
Carbon pricing and hydrogen were at the centre of the tech tour of the German-Emirati energy and climate partnership. 12 participants from partner ministries, the public sector and the private sector of the UAE visited Berlin from 28-30 October. The delegation, led by H.E. Sharif Al Olama (UAE Ministry of Energy), was welcomed by Parliamentary State Secretary Stefan Wenzel (BMWK), Dr Christian Forwick, Head of the Department of Foreign Trade and Anne Jacobs-Schleifhoff, Head of the MENA Region Division. The tech tour was combined with a meeting of the German-Emirati Hydrogen Task Force. The delegation also exchanged ideas with various German stakeholders (companies, associations, experts, ministries), took part in technical workshops and visited the production of PEM electrolysers at Siemens Energy in Berlin. A technical exchange with Prof Dr Edenhofer and other scientists from the Potsdam Institute for Climate Impact Research to support the UAE in the possible introduction of CO2 pricing took place on the EUREF campus. The trip tied in with ongoing activities on the topic of emissions pricing and hydrogen in the bilateral partnership, which the UAE is driving forward with great commitment.
COP29 Side Event: Carbon Pricing
At the side event of the German-Emirati energy and climate partnership on 15 November, Prof. Ottmar Edenhofer (PIK) and H.E. Dr Alanoud Al Ali (UAE MOCCAE) discussed current questions from the UAE side on the topic of emissions trading. Dr Weinreich (BMWK) contributed words of welcome. The UAE is currently exploring the implementation of emissions pricing mechanisms and is working on a benchmarking study. In addition to open questions regarding the design of a possible emissions trading system, the UAE sees major challenges in the competitiveness of companies, the avoidance of carbon leakage and connectivity to CBAM.
COP29 Side Event: Hydrogen in Hard-to-Abate Sectors
On 15 November, the role of H2 for industrial decarbonisation was discussed at the German-Emirati side event between company representatives from the steel (EMSTEEL), hydrogen project development (Masdar) and gas import and trade (VNG) sectors as well as UNIDO. Industry stakeholders repeatedly called for clear and harmonised standards and regulations such as quotas or obligations to stimulate H2 demand and create investment security for projects (H2 production but also decarbonisation projects).
COP29 Side Event: Driving Industrial Decarbonisation
Decarbonisation At the panel discussion of the German-Omani Energy Dialogue on 16 November, BMWK, the OMN Net Zero Initiative, VNG and the state-owned Omani oil and gas company (PDO) discussed strategies and policy measures for industrial decarbonisation in Germany and Oman. The discussion was preceded by a knowledge sharing session with a presentation of the Omani Net Zero strategy (OMN Environment Authority) and German policy instruments for the industrial sector (Guidehouse). Welcome remarks were given by Berthold Goeke (BMWK) and Dr Thuraya Al Sariri (Environment Authority Oman).
COP29 side event: MEFED
As a follow-up to the MEFED24 conference in Thessaloniki in September 2024, the BMWK and IRENA jointly organised a panel discussion on 18 November at COP29 on the topic of energy cooperation between Europe and the MENA region. Malte Bornkamm (BMWK) opened the event together with Norela Constantinescu (IRENA). This was followed by a high-level panel discussion with representatives from the UAE Ministry of Energy, EIB, IRENA, RCREEE and REN21, focussing on the implementation of the COP28 consensus on tripling renewable energy and the storage and grid solutions required to achieve this. Andrea Clerici (EIB) also presented various instruments for blending, lending and advising and for involving the local population in public-private partnerships (PPPs).
Decarbonisation standards webinar
On 15 October, the German-Omani Energy Dialogue organised a webinar on decarbonisation standards in sectors with hard-to-avoid emissions with a focus on the steel sector. Sabine Domke (BMWK) and Dr Firas Al Abduwani (Omani Ministry of Energy) opened the event. This was followed by contributions from Dr Yannik Sparrer (WV Stahl) and Dr Alli Devlin (Responsible Steel) on emission standards in Germany, the EU and internationally.
Schedule: Upcoming measures and activities in the countries of the Arabian Peninsula (6 months)
Date Activity Subject area Partner
13.-14. Januar 2025 (TBC) | UAE: DEU-UAE steering[1]group and bilateral energy[1]conference, Abu Dhabi | Comprehensive | BMWK, MOEI, MOCCAE, |
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