The Sustainabilist ISSUE 27
Clean Energy
TWO SIDES OF THE COIN
FUEL OF THE FUTURE
ISBN 978 - 1978357310
Cover Story by Faisal Al Raisi, Acting COO, Etihad ESCO
Masaood Power is investing in Hydrogen
UNLEASHING THE POTENTIAL OF THE DESERT SUN
ADDRESSING THE CHALLENGES IN ENERGY STORAGE
EGA is producing aluminium using solar power
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The Red Sea Project will host the world’s largest battery storage facility
“At Veolia Middle East, we are not simply contributing to the but rather discovering new approaches towards creating a truly sustainable and communities and industries.”
www.veolia.com/middleeast
LETTER FROM THE EDITOR-IN-CHIEF The UAE continues to innovate and invest in renewable energy solutions and clean technologies, such as green and blue hydrogen, locally and abroad.
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lean Energy is defined as energy derived from renewable, zeroemission sources that do not pollute the atmosphere when used, as well as energy saved by energy efficiency measures. Clean energy has many environmental and economic benefits, and it is essential in mitigating climate change. While the UAE is void of rivers to produce hydro power, it has worked tirelessly to introduce wind, solar, and nuclear power as alternative sources of energy in the country. Renewable energy is now economically attractive in thWe UAE. As highlighted by the International Renewable Energy Agency (IRENA), a 10% share of renewable energy in the total UAE’s energy mix could generate annual savings of USD 1.9 billion by 2030, based on avoidance of fossil fuel consumption and lower energy costs. The Dubai Integrated Energy Strategy (DIES) 2030 was developed by Dubai Supreme Council of Energy (DSCE) to support Dubai’s vision of leadership in energy security and efficiency. The DIES 2030 set the strategic direction towards secure and sustainable energy supply and demand.
Eng Waleed Bin Salman
Editor in Chief The Sustainabilist
The development of The Dubai Clean Energy Strategy 2050 is the next milestone. It sets such ambitious targets as 25% clean energy by 2030 and 75% clean energy by 2050, positioning Dubai as a global role model in clean and renewable energy. Countrywide, in 2017, the UAE launched ‘Energy Strategy 2050’, which is considered the first unified energy strategy in the country that is based on supply and demand. The UAE continues to innovate and invest in renewable energy solutions and clean technologies, such as green and blue hydrogen, locally and abroad. Thanks to the efforts and endeavours of such entities as Dubai Electricity and Water Authority (DEWA), Abu Dhabi National Oil Company (ADNOC), Mubadala, Masdar, among others, the UAE is at the forefront of clean energy and green economy. This edition sheds light on the initiatives across the region that embrace clean and renewable energy solutions and increase energy efficiency. I hope they inspire and motivate our readers to do their part towards a fossil fuel free future.
IN THIS ISSUE
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COVER STORY
Interview with John Pagano, CEO of The Red Sea Development Company, to learn more about The Red Sea Project setting new standards for sustainable development.
Faisal Al Raisi shares his views on clean energy in the UAE and beyond while highlighting that renewable energy and energy efficiency are equally important in driving global energy decarbonisation.
50 A holistic approach to design, installation and usage of HVAC systems can help us create buildings that better support sustainability.
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Conversation with Rasso Bartenschlager, General Manager, Al Masaood Power Division, to understand the Group's road to success and challenges caused by the pandemic. 01
Letter from Editor in Chief
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Two Sides of The Coin, Faisal Al Raisi, Acting COO, Etihad ESCO
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Interview with Daniel Zywietz, CEO of Enerwhere
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Energy Efficiency in the MENA Region, CEBC
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DEWA’s Sustainability Efforts, DEWA
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Interview with John Pagano, CEO, The Red Sea Development Company
MENA Energy Outlook Interview with Dietmar Siersdorfer, CEO, Siemens Middle East Sustainability in Education, Royal Grammar School Guildford Dubai
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Interview with Peter Harris, VP, International Sustainability, UPS
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Interview with Rasso Bartenschlager, GM, Al Masaood Power Division
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Clean Energy Technological Trends 2021
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Mobility as a Service in the Middle East, Hypermotion Dubai Interview with Cornelius Matthes, CEO, Dii Desert Energy
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Increasing Energy Efficiency in your Building Facility, Armstrong Fluid Technology
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Technology is Key to Meeting Clean Energy Goals, Schnieder Electric Gulf
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Harnessing the Power of the Desert Sun, EGA
Editor in Chief : Programme Director :
Līga Līce da Costa ligal@dcce.ae
Associate Editor :
Nirel Ethel Titty nirelt@dcce.ae
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NEXT ISSUE 2020 was a challenging year, with countries across the globe having to focus almost entirely on curbing the spread of COVID-19. With the start of 2021, we saw the world entering in an active recovery phase while acknowledging that the life amidst and post pandemic and lockdowns would not be the same. Along with focusing on ‘digital’ and ‘green’ as sustainable recovery strategies, it seems that the world agreed that this new normal should entail embracing one’s health and wellbeing as a core pillar moving forward. Hence, we are dedicating our next issue to Health & Wellbeing. It will cover such topics as environmental health, mental health, healthtech, happiness & wellbeing at work, healthy nutrition, sustainable finance and more. We have started collecting stories for this issue. Get in touch!
The Sustainabilist is published by Dubai Carbon. Articles reprinted in this issue are copyrighted 2021 by Dubai Carbon. All rights reserved. Reproduction in any manner, in whole or in part, without prior written permission of Dubai Carbon is expressively prohibited. Nothing in this magazine shall be taken as technical or advice and DCCE waives any liability with respect to any representations made.The production of this magazine will be offset with local carbon credits.
The articles reflect the opinions of the respective contributors and are not necessarily shared by the publishers or the editorial team. All rights reserved. Reproduction in whole or part without written permission of the publisher is strictly prohibited.
Clean Energy
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COVER STORY
Two Sides of the Coin By: Faisal Al Raisi,
Acting Chief Operating Officer, Etihad ESCO
The Sustainabilist
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aisal Al Raisi shares his views on clean energy in the UAE and beyond while highlighting that renewable energy and energy efficiency are equally important in driving global energy decarbonisation. Moreover, he elaborates on Etihad ESCO’s efforts towards making Dubai one of the most sustainable cities in the world. Renewable energy is derived from sources or processes that can naturally and constantly replenish themselves, for example: wind and sun. These sources, in theory, should never run out, making it a much more efficient option than nonrenewable sources, such as fossil fuels and gas, which are damaging the atmosphere. Clean energy, on the other hand, is wider and encompasses all zero-carbon energy sources, including renewable energy, nuclear energy, and the carbonneutralising impact of technologies like carbon capture and sequestration (CCS). The rapid proliferation of solar and wind has brought a new energy player into the game, namely, green hydrogen. In fact, selected countries across the world are rolling out their green hydrogen strategies. To clarify, hydrogen can be renewable if it is produced through electrolysis using renewables and water, or it can be produced from natural gas, coal, biomass and oil. In the latter cases — and if utilised with CCS — hydrogen becomes a zero-carbon energy source. An alternative fuel must be technically feasible, economically viable, easily convert to another energy form when combusted, be safe to use, and be potentially harmless to the environment. Hydrogen is the most abundant element on earth. Although hydrogen does not exist freely in nature, it can be produced from a variety of sources, such as steam reformation of natural gas, gasification of coal, and electrolysis of water (green hydrogen). Hence, it is called ‘fuel of the future.’ Hydrogen can be used in internal combustion engines or fuel cells, producing virtually no greenhouse gas emissions when combusted with oxygen.
Preservation of the planet we live in is a growing concern for policy makers around the globe. The challenge of climate change mitigation is now trending through major global think-tank forums as nation economies account for damage caused by variations in climate patterns. The solution is clear and has been unanimously
accepted; however, it requires a legion of collaboration and effort from leaders, innovators, and consumers worldwide. Within the last decade, several major industry sectors in developed countries have incorporated initiatives directed towards sustainable growth. These
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The team has taken up some of the biggest and unique renewable energy projects in the region. initiatives primarily consist of reductions in energy and water use, renewable energy generation, or the implementation of resource and waste management strategies that streamline upstream and downstream emission reductions in the manufacturing process. Production and consumption of energy accounts for over 70% of the humancaused greenhouse gas emissions that cause climate change. Worldwide, nearly a billion people lack access to electricity,
and another billion rely on smoky fuels, such as wood, charcoal, or animal dung to cook. These and fossil fuels are major contributors to air pollution which causes adverse impact on climate. Due to the various environmental damages caused by the production and consumption of energy, efficient use of energy is of utmost importance. To link it back to the theme of this issue, the definition of clean energy also entails ‘energy saved by energy efficiency
measures.’ Energy efficiency simply means using less energy to perform the same tasks, and eliminating energy waste, which, in turn, can be incredibly beneficial for the environment and economy as it reduces CO2 emissions. For us at Etihad ESCO, energy efficiency is a core value. Thus far, Etihad ESCO has retrofitted more than 7,700 buildings in Dubai, which has resulted in saving energy costs in excess of AED 250 million and contributed to an equivalent CO2 abatement of 220 kilotonnes.
The Sustainabilist
Etihad ESCO has retrofitted more than 7,700 buildings in Dubai, which has resulted in saving energy costs in excess of AED 250 million and contributed to an equivalent CO2 abatement of 220 kilotonnes. and the world, Etihad ESCO contributes to achieving energy demand reduction targets set by the Dubai Supreme Council of Energy (DSCE) and creates an EPC market. Due to the region’s hot climate, most of the energy consumption in buildings is driven by cooling, which makes up more than 60% of building energy demand. As a Super ESCO (Energy
Etihad ESCO has done some of the biggest and unique renewable energy projects in the region. 18 MWp project for Mai Dubai water bottling factory is one of the largest single rooftop projects in the region. Solar PV installation on 5,000 villas rooftops is a unique community project of its size. In recent years, Etihad ESCO contributed towards renewable energy use in Dubai by installing approximately 82,000 kWp capacity of solar. Established in 2013, with a vision to make Dubai one of the most sustainable cities in the world, Etihad ESCO has lived up to this expectation. It has created a successful model for Energy Performance Contracting (EPC) in the region, and now many other cities in the Middle East follow the same model. With a mission to make Dubai’s built environment a leading example of energy efficiency for the region
Service Company), it enables the energy performance contracting market in Dubai by developing energy efficiency projects targeting more than 30,000 buildings. Etihad ESCO aims to jumpstart the creation of viable performance contracting market for energy service companies by executing building retrofits, increasing penetration of district cooling, building capacity of local ESCOs for private sector, and facilitating access to project finance.
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The Dubai ESCOs market will provide new business opportunities for joint ventures, international partnerships as well as engage UAE national entrepreneurs through a diversified supply chain from financial institutions, technology providers, and equipment manufacturers, to service providers across the project development, management, and reporting stages. According to the UN, the world needs a five-fold increase in its commitment to reduce carbon emissions and maintain a global temperature averaged at 1.5°C. In the UAE, this commitment has been accepted at all levels of government, and is channeled through a robust system of socio-economic frameworks, such as the UAE Vision 2021, UAE Centennial 2071, and the 50-Year Charter. The ensuing policies, laws and regulations are directing development in the country with the objective of bringing about tangible benefits in energy efficiency and the rapid adoption of renewable energy. It is here where Etihad ESCO plays a critical role as a key driver and Programme Manager of Dubai’s Demand Side Management Strategy. By the year 2030, Etihad ESCO intends to abate 1 million tonnes of CO2, save 1.4 TWh of electricity and 4.9 billion IG of water. According to a joint study by International Renewable Energy Agency (IRENA) and the International Energy Agency (IEA), global energy-related CO2 emissions could be reduced 70% by 2050, with a net positive economic outlook. Importantly, renewables would account for about half of total emission reductions while another 45% would come from increased energy efficiency and electrification. Hence, renewable energy and energy efficiency are two sides of the same coin in driving global energy decarbonisation. The massive solar projects in the UAE, namely Al Dhafra, Noor Abu Dhabi and the Mohammed bin Rashid Al Maktoum Solar Park, as well as targeted energy efficiency strategies and efforts at country and emirate level serve as testament of the UAE’s wise leadership acknowledging this fact. Etihad ESCO will continue its efforts on both fronts to make Dubai one of the most sustainable cities in the world and to ultimately contribute to the global energy decarbonisation efforts.
The Sustainabilist
Faisal Al Raisi ACTING COO, ETIHAD ESCO
Faisal Al Raisi is Acting COO of Etihad ESCO. He is leading Etihad - the Super ESCO in the emirate of Dubai, which is thriving to make Dubai one of the most sustainable cities and a leading example of energy efficiency for the region and the world.
For us at Etihad ESCO, energy efficiency is a core value.
Mr Al Raisi is playing a key role in the expansion of Etihad ESCO portfolio. He is actively involved in formation of two verticals under the Etihad umbrella – Etihad Facility Management (FM) & Etihad Electro-Mechanical (EM) over the past year, and is currently working to develop several other verticals. Mr Al Raisi is also strategically planning to expand the footprint of Etihad ESCO to the MENA region and to other parts of the world. He has successfully established a Joint Venture (JV) between Etihad ESCO and Royal Strategic Partners under the umbrella of Abu Dhabi Capital Group in Abu Dhabi and is supervising the business of Etihad International – KSA, which is a JV between Etihad ESCO and Vision Invest to create base for Etihad ESCO to expand its business into the market of the Kingdom of Saudi Arabia.
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he Middle East energy market has been exponentially growing during the past few years. An exclusive interview was conducted with Daniel Zywietz, CEO of Enerwhere, to shed light on the region’s journey towards a clean energy future. What do you think is the position of the Middle East in driving clean energy in the future? The Middle East has played a pivotal role in the global energy sector for over 80 years, based on its dominant share of global oil & gas resources. Its future position in clean energy will have to be built on the foundation of its near-limitless solar and wind-resources, and proven capabilities to build, finance, and operate billion-dolar energy projects. However, despite these advantages, the transition will not be an easy one. Other world regions have pushed ahead with ambitions clean energy targets and policies that are driving adoption of clean energy much more rapidly than many were expecting. Few would have predicted a decade ago that Germany, a major industrialised nation, would be powered by more than 50% renewable energy on its grid in 2020, or that another European country would cross the 50% market share threshold for electric vehicles in the same year. So how can the Middle East energy sector stay relevant and thrive in this new world, where demand for its current main exports will stagnate and eventually fall? By accelerating the roll-out of its own clean energy policies, and putting in the infrastructure to go after export markets around the world. Governments in the region, including in the UAE, Oman and Saudi Arabia, have grasped this and are pushing ahead with a rapid expansion of renewable energy capacity at the grid level.
Q&A That is an important first step to maintain the region’s position at the global stage, but while itself will not be enough to maintain market share across global energy markets, which requires a way to get the clean energy to end consumers around the world. So while we celebrate the rapid expansion of the clean energy sector in the region, let’s put in place the foundations to export this bounty via pipelines, ships, long-distance grid connections, or in the form of energy-intensive goods like aluminium and steel. This will require long-term planning and extensive cooperation among what are sometimes seen as rivals for the same set of markets and resources. That’s never an easy task but the size of the price (and the cost of failure) should make it worth everyone’s while.
Its [Middle East] future position in clean energy will have to be built on the foundation of its near-limitless solar and wind-resources, and proven capabilities to build, finance, and operate billiondollar energy projects
The Sustainabilist
What is currently driving clean energy in the region, other than policies? The obvious answer here is “Economics”. The truth is that when one looks at the Middle East today, renewable energy (and solar PV in particular) is dramatically cheaper than fossil fuels, including coal, oil, and even natural gas. This is being dramatically demonstrated by ever cheaper bids for utility-scale solar PV projects with recent PPA tariffs in the GCC falling below 1.5 UScents/kWh, or less than half of the cost of a new coal or gas-fired power plant. One might argue that these tariffs are only applicable in a very narrow set of circumstances (decades-long utility-scale contracts for intermittent daytime power with government off-takers), and hence
not applicable for other energy markets. This is partially true – but they are nevertheless a good indication of a general cost trend, keeping in mind that similarly structured tariffs 10 years ago were still around 30 times higher. The speed of the conversion is also remarkable, with much of the daytime load curve in the UAE being filled up by solar PV long before 2030. Looking forward, the question is then: when will renewables break out of the “easy” day-time only utility-scale “niche” and start building market share in all of the other energy markets that aren’t as easily conquered? However, with battery costs falling rapidly on the back of surging global EV production, this day is closer than most people think, with solar-battery plants likely to compete with conventional power by 2025. Similarly, we will still soon hit a point where solar-(wind)-hybrid plants will start to compete with grid extensions for many remote loads, essentially making it cheaper to run stand-alone mini-grids than to connect to a far-away grids. This will come as a great relief to many commercial and industrial energy users who have been paying for expensive diesel-fuelled generators while waiting for the arrival of cleaner and cheaper solutions. These are exciting and hopeful times in the energy sector – and we are glad to be part of the sector at this time!
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Energy Efficiency in the MENA Region By: Maria Gharesifard, Research Associate; Ahmed Samir Elbermbali, Managing Director, CEBC
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s the demand for energy continues to rise, energy efficiency plays a crucial role to ensure the world can sustain enough supply to meet the demand.
The Sustainabilist Energy demand took a hit in 2020 as a result of COVID-19. Energy demand was set to grow 12% by 2030, and now that figure has gone down to roughly 9% (IEA, 2020). However, energy demand is continuing to rise irrespective of the crisis, and therefore, it is crucial to ensure the world can sustain enough supply to meet this demand. The world’s largest consumer of energy, China, has heavily invested in renewables to combat its consumption. But despite being the ‘world’s most prolific producer of wind energy’ and a leader in solar generation, China is continuing to construct coal plants (O’Meara, 2020; Reuters, 2021). This is due to projected energy demand and to meet energy needs during peak hours (Myllyvirta et al., 2020). China’s conundrum is one that faces every country, albeit on a smaller scale. How will governments ensure sufficient energy supply while transitioning to low-carbon solutions? A major factor in this will be energy efficiency. Energy efficiency, defined as ‘using less energy to perform the same task’, is key to reducing emissions and improving energy security (EESI, 2020). It contributes to social development, economic growth and resilience, and clean energy transition. In many cases, energy efficiency is also seen as a ‘quick win’ as it often requires little investment, but results in massive savings, which can, in turn, increase business profits. For example, in the oil and gas sector, flaring is a major emitter of carbon dioxide but also results in a loss of natural gas, which could be sold instead as a valuable commodity (Uhler, 2020). As outlined by the IEA, there is ‘enormous untapped potential’ due to a lack of energy efficiency globally, both in the buildings sector and the industrial sector (IEA, 2020). Population growth and economic growth are set to put a strain on energy demand. According to the United Nations, the world’s urban population will reach over 2.5 billion in 2050, and 90% of this increase will take place in Asia and Africa (Bumajdad et al., 2020). With electricity demand in the Middle East set to triple by 2050, energy efficiency will be at the core of ensuring countries are able to meet their emissions reduction targets (DNV-GL, 2019). The MENA region, in particular, consumes great amount of energy due to the need for cooling, both in residential buildings and industrial practices. Energy consumption in buildings in the GCC alone doubled between 2000 and 2010 (Bumajdad et al., 2020).
Governments are increasingly making energy efficiency a priority to meet these targets. The UAE recently announced its second Nationally Determined Contribution (NDC), and energy efficiency is part of its plan to reduce emissions by 70 million tonnes (Bashir, 2020). Oman has gone a step further and is planning to set up a National Energy Efficiency Center, which will ‘establish baselines and targets for energy efficiency improvement, qualification and certification of Energy Efficiency Officers and Auditors’ (Prabhu, 2021). This was announced at the OQ Energy Efficiency conference in January 2021, the first such conference in Oman. The event consolidated Oman’s commitment to placing energy efficiency at the core of their clean energy transition (Times of Oman, 2021). The Middle East Energy Service Companies (ESCOs) market is nascent, but has developed over the past few years, and from the industry’s perspective, opportunities in the market are increasing (Konatt, 2019). The region has also witnessed the emergence of super ESCOs, governmentbacked energy savings companies, such as Etihad Energy Services Company (Etihad ESCO) in Dubai, Abu Dhabi Energy Services Company (ADES), and Tarshid in Saudi Arabia. Super ESCOs are able to support the growth of the private ESCO market by creating opportunities through assisting with project financing and issuing tenders (Rahman, 2020; ESCWA, 2019). An energy savings project by Tarshid led to 28% savings in electricity consumption at the headquarters of the National Information Centre in Riyadh, which is equivalent to 4,700 mt of CO2 emissions (Oommen, 2020). Despite the clear evidence that energy efficiency is a huge potential market that could create a lot of job opportunities, increase savings and profits, and has a direct impact of reducing carbon emissions, there are still some major obstacles that face the ESCOs in the region, such as the willingness of the building owners, the complexity of the ESCO contracts, and the lack of project funding (CEBC, 2019). The CEBC Energy Efficiency Working Group’s mission it to tackle those challenges by bringing together the private sector and policy makers to discuss the best policy practices, raising awareness among building owners and policy makers and more. You can learn more about the CEBC Energy Efficiency Working Group here: https://cebcmena.com/whatwedo/EEWG/
Challenges Facing Escos in the Region
24% 24% 19% 14% 5% 5% 5% 5%
Client Willingness Complexity of ESCO clients
Lack of project funding Number of ESCO tenders
Clients liquidates in the market Policy/ regulation
Quality of ESCO services
Confusions in the market
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DEWA’s sustainability efforts support the UAE’s sustainable path to prosperity By: Dubai Electricity and Water Authority (DEWA)
The Sustainabilist
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EWA continues its work to achieve its vision of becoming a globally leading sustainable innovative corporation. Dubai Electricity and Water Authority (DEWA) continues its work to achieve the vision of the wise leadership to build a more sustainable environment and develop long-term solutions for challenges in line with the 17 UN Sustainable Development Goals (SDGs). DEWA adopts the triple bottom line of sustainable development, which includes society, the environment, and economy. This also achieves DEWA’s vision to become a globally leading sustainable innovative corporation. “At DEWA, we promote sustainability across all our operations, and partner with international organisations to support sustainability programmes and initiatives. This supports the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to achieve comprehensive sustainable development in Dubai and the UAE. We also adopt the latest and best global administrative and environmental practices. This promotes Dubai’s leading position as a global hub for business, green economy, and sustainable development,” said HE Saeed Mohammed Al Tayer, MD & CEO of DEWA.
CLIMATE ACTION DEWA joined the UN Global Compact in 2017, the world’s largest institutional sustainability initiative, becoming the first utility in the UAE to join it. DEWA supports the UAE’s efforts to meet its global responsibility to fight climate change, increasing the share of clean and renewable energy in Dubai’s energy mix. The Mohammed bin Rashid Al Maktoum Solar Park is one of DEWA’s key projects to achieve this goal. It is the largest single-site solar park in the world using the Independent Power Producer (IPP) model. The solar park will have a capacity of 5,000MW by 2030 and will reduce over 6.5 million tonnes of carbon emissions annually. The solar park supports the Dubai Clean Energy Strategy 2050, which aims to provide 75% of Dubai’s total power capacity from clean energy sources by 2050. DEWA has been a pioneer in launching environmental programmes and initiatives to reduce carbon emissions. Its efforts helped reduce a large amount of carbon emissions in Dubai. Net carbon dioxide emissions in Dubai decreased by 22% in 2019, two years ahead of the Carbon Abatement Strategy 2021 target to reduce the carbon emissions by 16% by 2021. The annual Sustainability Report issued by DEWA is a useful and transparent guide that documents DEWA’s achievements and efforts throughout the year towards achieving the UAE Centennial 2071, to make the UAE the world’s leading nation. DEWA achieved significant results in the Sustainability Culture Indicator by achieving 91.2% in 2020, exceeding the global average for organisations. The indicator is based on several pillars, including leadership in achieving sustainability, strategic commitment to sustainability, innovation in sustainability, effectiveness of training, and raising awareness of sustainability. RESPONSIBLE CONSUMPTION AND PRODUCTION In addition to the Mohammed bin Rashid Al Maktoum Solar Park, DEWA is
building a 250MW hydroelectric power station in Hatta. It is the first of its kind in the Arabian Gulf, with a storage capacity of 1,500 megawatt hours, a lifespan of up to 80 years, and investments worth AED 1.421 billion. DEWA is implementing a green hydrogen project, in partnership with Expo 2020 Dubai and Siemens. It is being built at DEWA’s outdoor testing facilities in the Research and Development (R&D) Centre at the Mohammed bin Rashid Al Maktoum Solar Park. The project is the first of its kind in the Middle East and North Africa. The Shams Dubai initiative enables building owners to install photovoltaic panels, to generate electricity from solar power and connect them to the power grid. Dubai aims to install solar panels on all buildings by 2030. Until the beginning of March, 6,709 sites have been connected to DEWA’s grid with a total capacity of about 295MW in residential, commercial, and industrial buildings. DEWA adopts an integrated strategy to raise awareness on the importance of rationalising consumption and involving all customers and society members in
DEWA supports the UAE’s efforts to meet its global responsibility to fight climate change, increasing the share of clean and renewable energy
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protecting the environment and preserving natural resources. Every year, DEWA launches several innovative initiatives, programmes, and awards, to encourage adopting a responsible lifestyle in using electricity and water. These include the Smart Living initiative; the Conservation Award; the Interactive Conservation Programme (which aligns with the UN SDGs); the Green Week; Earth Hour; and the ‘Let’s Make This Summer Green’ campaign. DEWA’s conservation programmes and initiatives from 2009 to 2020 achieved cumulative savings of 2.6 terrawatthours (TWh) of electricity and 8.5 billion gallons of water. This is equivalent to saving AED 1.5 billion and reducing 1.321 million tonnes of carbon emissions.
AFFORDABLE AND CLEAN ENERGY DEWA’s efforts have been crowned with providing electricity and water services at globally-competitive prices. The fuel surcharge for electricity decreased to 5 fils for kilowatt hour from 6.5 fils. The fuel surcharge for water decreased to 0.4 fils for Imperial Gallon from 0.6 fils. The savings achieved in fuel consumption as a result of the increase in solar power generation have been passed to customers. These fuel surcharge reductions have been applied to electricity and water bills since 1 December 2020. QUALITY EDUCATION DEWA is committed to supporting the educational sector and contributing to preparing the next generation of experts and leaders who will implement
ambitious national strategies and plans to achieve the sustainable development. DEWA collaborates with the Ministry of Education, the Knowledge and Human Development Authority (KHDA), and public and private entities that have a vision for sustainable development to prepare future leaders. DEWA Academy provides the best technological education programmes, supervised by the Ministry of Education and KHDA. It also provides specialised engineering and technical subjects under the supervision of Pearson-BTEC-UK, and the help of a team of instructors and engineers. The Academy prepares a generation of Emiratis who realise the importance of vocational work. After completing their studies, DEWA employs
The Sustainabilist
graduates at its divisions according to their specialisations and DEWA’s needs. DEWA’s R&D Centre continues its significant contributions to build and localise knowledge and experiences in its areas of work. These include solar power generation and clean energy technologies; smart grids integration; energy efficiency; water; and Fourth Industrial Revolution applications in R&D. The centre employs 39 researchers including 24 Masters degree and PhD holders. 70% of the centre’s researchers are Emiratis. The team has published 55 research papers in international conferences and scientific journals. A patent has been granted, and seven others are underway. GENDER EQUALITY DEWA provides equal opportunities for both men and women. It focuses on
empowering women in managerial and technical positions. This makes DEWA a role model for public and private organisations inside and outside the UAE. DEWA is one of the prominent national organisations that support women in the energy sector. DEWA has 1,949 women in its workforce, 80.5% of them are Emiratis. This includes 671 female engineers and technicians and 266 female employees in managerial positions. 32% of the R&D Centre’s staff are Emirati women who are highly educated in scientific and engineering areas. MAJOR INTERNATIONAL AND REGIONAL AWARDS DEWA’s efforts in sustainable development and support to the UAE’s efforts in achieving the UN SDGs have been crowned with several major international
awards. These include the European Foundation Quality Management (EFQM) UN SDGs Challenge 2021. HE Saeed Mohammed Al Tayer received the 3G Personality of the Year for good governance and sustainability in the Global Good Governance (3G) Awards 2020 from Cambridge IFA in the UK. DEWA won the Environmental Upgrade of the Year at Asia Power Awards 2019; the Sustainability Initiative of the Year in the 2018 Sustainability Awards programme by Business Intelligence Group in the US; four awards at the Gulf Sustainability and CSR (Corporate Social Responsibility) Awards in 2017 in the categories of Best Sustainability and Education Programme, Best Workplace and Education Programme, Sustainability Team of the Year, and Overall Sustainability.
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Q&A
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he Sustainabilist interviewed John Pagano, CEO of The Red Sea Development Company, to learn more about The Red Sea Project setting new standards for sustainable development.
The Sustainabilist
The Red Sea Project has been described as one of the most ambitious regenerative tourism projects in the world today. What is the commitment from TRSDC? Our goal is for The Red Sea Project to become the world’s first regenerative tourism destination. The destination is set in an area rich in pristine flora and fauna, including a number of rare species, and we take our responsibility to protect these natural wonders seriously. We are implementing policies that don’t just avoid harming the environment, but aim to actively enhance it for generations to come. As such, we have pledged to contribute a 30% net conservation benefit to the project area by 2040.
Our approach to regenerative tourism evolved from our original master plan which was informed by an extensive Marine Spatial Planning (MSP) exercise and guides us on which areas of the 28,000 km2 site will be developed. As a result of this initiative, we concluded that only 22 islands of more than 90 will be developed, with 9 designated as special conservation zones. When we talk about regeneration, we’re not just thinking about the commitment we have made to the natural world, it’s about creating opportunity for local communities too. We hope that our year-round, luxury destination and its amenities will be as valuable to the local population as it is to international travelers. What is the significance of awarding the PPP for utilities? What does the
agreement cover? At the end of 2020, we announced a public-private partnership (PPP) to a consortium led by ACWA Power – our highest value contract to date. ACWA Power will deliver environmentally responsible renewable energy, water generation and transmission, wastewater treatment and district cooling for the 16 hotels, international airport, and other assets that will be developed in Phase One. Under the PPP, we will power the development of all assets, infrastructure, and utility systems which make up Phase One of the project with 100% renewable energy. We will use solar panels and wind farms to do this, with a mix of approximately 85% solar and 15% wind. The creation of the world’s largest battery storage system to date will allow for no connection to the national grid. We expect that 210MW of energy will be generated initially, and that this will be expanded in
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line with development up to 400,000MWh. The resulting saving in CO2 emissions to the atmosphere will equate to around half a million tonnes per year for Phase One. The partnership is a significant step forward for The Red Sea Project, as it will become the region’s first tourism destination powered solely by renewable energy. In fact, a tourism project of this size with the ability to operate completely off-grid has never been achieved on this scale anywhere in the world. We want to create a tourist destination that limits the environmental impact through the provision of zero-carbon emitting and zero-waste generating utility services, and this partnership promises exactly that.
it will also guarantee a reliable supply of energy to the destination. The destination’s battery storage facility will ensure we are at the forefront of the global transition to carbon neutrality, something we are committed to achieving as part of our approach to regenerative tourism. How is district cooling being approached as part of this package and how does this align with the sustainability goals of TRSDC?
Tell us about the planned battery storage facility and its importance.
As part of the PPP contract, we are installing the largest district cooling plant in the world powered by 100% renewable energy. The plant will generate efficient centralised cooling across our Coastal Village and hub island, Shurayrah.
The Red Sea Project will house the world’s largest battery storage facility at 1000MWh, which will allow the destination to remain completely off-grid and powered by 100% renewable energy, 24 hours a day and 7 days a week. By using a blend of solar and wind power,
Besides the destination being solely powered by renewable energy, how else is The Red Sea Project setting new standards for sustainable development?
The entire development of our destination is aligned with the 17 United Nations Sustainable Development Goals (SDGs), which guide us towards ensuring that we are meeting and exceeding international standards.
The Sustainabilist
STEPS WE ARE TAKING TO REGENERATE WILDLIFE HABITATS AT THE RED SEA
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Conducting high-resolution mapping of habitats and biodiversity to inform spatial planning
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Conducting comprehensive baseline fish and benthic surveys
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Increasing fish biomass and abundance of large fishes by creating a large no-take Marine Protected Area
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Endhancing abundance of coral reef, mangrove, seagrass, and native land vegetation habitats
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Launching a Sustainability Stewards initiative to protect terrestrial and marine habitats
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Leaving 75% of our Islands underdeveloped
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Designating 9 islands as special conservation zones
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Zero single-use plastics
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Zero waste to landfill
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100% renewable energy
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Project-wide carbon neutrality
The partnership [with ACWA Power] is a significant step forward for The Red Sea Project, as it will become the region’s first tourism destination powered solely by renewable energy Our ambition to set new standards was considered long before construction even began. We worked with King Abdullah University for Science and Technology (KAUST) on an ambitious Marine Spatial Planning (MSP) exercise to inform the master plan for our destination and have continued this partnership to identify other ways in which we can actively enhance the biodiversity and conservation value of both the Al Wajh lagoon and the terrestrial elements too. Since the work started on-site, we have been working closely with our partners to use less intrusive construction methods, such as off-site manufacturing (OSM), which limits the impact of construction and protects the local environment. Our work with Saudi firm AlKifah Holding,
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The Sustainabilist
John Pagano
CHIEF EXECUTIVE OFFICER , THE RED SEA DEVELOPMENT COMPANY AND AMAALA for example, will establish a precast panel manufacturing facility in the project area as part of their commitment to supply 50 residential buildings for our Coastal Village complex. This will help localise jobs and greatly reduce the site’s carbon footprint by avoiding approximately 10 million kilometres of transportation, and tonnes of CO2 being released to the atmosphere. We have also implemented the use of innovative ‘green concrete’ which has helped to reduce our carbon footprint significantly and will assist us in achieving LEED Platinum building standards. Whereas standard concrete cement has a relatively high-carbon footprint, using green concrete reduces the CO2 emissions by using cement replacements, and thereby we anticipate saving around 500,000 tonnes of CO2 in Phase One alone. Going beyond sustainability and setting new standards in regenerative tourism often requires a more complex way of working. This not only applies to how we operate on-site but to the governance processes we implement to inform how we do business. Our approach is also underpinned with a robust regulatory framework and procurement processes.
John Pagano is the Chief Executive Officer of The Red Sea Development Company (TRSDC) and AMAALA, sister projects set along the north western coast of Saudi Arabia that will play key roles in the realisation of the Vision 2030 – KSA’s economic roadmap for the future. At TRSDC and AMAALA, John is leveraging his 38 years of international experience in delivering large scale multi-billion-dollar developments. Since 2018, he has led The Red Sea Development Company’s growth from the ground up and is creating a unique eco-luxury, sustainable, regenerative tourist destination that will contribute to transforming the global tourism industry, and to the diversification of the Saudi Arabian economy. In January 2021, he was appointed as CEO of AMAALA, and tasked with driving the next stage of development for the ultra-luxury destination. John’s experience covers every facet of the real estate value chain, including site acquisition, master planning, planning, project structuring, financing, construction, and asset management.
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MENA
ENERGY OUTLOOK Total Power Capacity 2019 RE installed capacity
Algeria
24,194 MW
342 MW
Bahrain 8,002 MW
7 MW
Egypt
64,586 MW
5,972 MW
Jordan
6,369 MW
1,642 MW
Iraq
33,290 MW (18 GW only)
37 MW
Kuwait
19,372 MW
106 MW
Morocco 10,990 MW
3,264 MW
Oman
12,050 MW
8 MW
Saudi Arabia
77,335 MW
397 MW
Tunisia 6,155 MW
373 MW
UAE
1,885 MW
30,979 MW
Source: Solar Outlook Report 2021, Middle East Solar Industry Association, January 2021
22 GW
RE target by 2030
255 MW RE target by 2025
710 MW RE target by 2030
20% RE target by 2022
Increase upto
42% RE target by 2035
Increase upto
20%
of electricity production from renewables
RE target by 2025
1 GW
RE target by 2022
1 GW
RE target by 2022
The Sustainabilist
52%
Installed Solar Power Capacity in MENA Region
RE target by 2030
By 2024, the expected solar installed capacities, taking into consideration the impact of COVID-19, could reach up to almost 35 GW.
of power production from renewables
12 %
of total power generation
RE target by 2025
25
20
15
covering
30%
of its electricity demand from REN projects
RE target by 2030
10
5
0 2014
27.3 GW
2015
2016
2017
2018
2019
2020*
2022*
Sources: International Renewable Energy Association, DNV GL ETO *Estimated and forecasts are based on DNV GL experts and external sources
RE target by 2024
Installed Storage Capacity in MENA Region
58.7 GW
By 2024, experts forecast that energy storage installed could reach up to 19 GW.
RE target by 2030
2021*
20 18
4.2 GW
RE target by 2030
16 14 12 10 8
Produce
50% of its energy RE target by 2050
6 4 2 0 2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Sources: International Renewable Energy Association, DNV GL ETO *Estimated and forecasts are based on DNV GL experts and external sources
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The Sustainabilist
Q&A
I
n an interview with Dietmar Siersdorfer, CEO Siemens Middle East, The Sustainabilist aimed to understand Siemens Energy vision towards sustainability and clean energy In your view, with the world slowly recovering from the effects of COVID-19, how important should integrating sustainability in the recovery process be? How has Siemens Energy been applying sustainable approaches throughout the recovery process and beyond? Sustainability should be a top priority for any government or company. We, as a society, need to be careful that we don’t fall short of meeting climate change targets, including the 1.5°C Paris Agreement goal. We are currently at a moment in time, where in the wake of the COVID-19 pandemic, we can capitalise on the momentum of investment and spending, to align stimulus packages and recovery measures that will secure the future of our environment. The good news is that we are already seeing this starting to happen. The EU has set up a EUR 750 billion recovery fund with 37% earmarked for climate-related activities. The US is setting up a package of USD 1.9 trillion, and if it moves forward, it will address all sectors – roads, bridges, airports, broadband, etc. - not just energy. But much more must be done, and we can all do more.
How does Siemens Energy support Dubai Electricity and Water Authority (DEWA) in achieving Dubai’s sustainability targets in line with the Dubai Clean Energy Strategy 2050? Siemens Energy’s technologies contribute to over 50% of DEWA’s total generation capacity, enough power for more than 2.5 million residents in Dubai. One recent example is our joint development of the world’s first thermodynamic Digital Twin Gas Turbine (GT) Intelligent Controller, which uses Artificial Intelligence and machine learning. The technology was developed to control the Gas Turbines at M-Station in Jebel Ali, the largest power and water desalination plant in the UAE. As a result, the performance of the five turbines has been increased by up to 3.5 MW each, and NOx emissions have fallen by as much as 10%. Soon, the L station will be equipped with the intelligent controller as well. Siemens Energy is also collaborating with DEWA, and Expo 2020 Dubai, to build the first solar-powered hydrogen electrolysis facility in the MENA region. Powered by The Mohammed bin Rashid Al Maktoum Solar Park, the largest single-site solar park in the world with a planned production capacity of 5,000 megawatts by 2030, the Green Hydrogen project supports our joint efforts in innovation, research, and development of energy storage and sustainability.
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We plan to switch our own power consumption to 100% green electricity by 2023 and are aiming to make our own operations climate-neutral by 2030. Can you tell us more about Siemens Energy endeavours in terms of “green” hydrogen? Are there any other innovative technologies Siemens Energy is exploring and/or investing in? We are in the process of finalising our green hydrogen plant in Dubai with DEWA, and there will be a hand over ceremony soon. This project has been 2 years in the making. It will be the first project to produce green hydrogen in the Middle East region. It is very exciting. It shows that the UAE is looking ahead to new technologies in all avenues and ideas. They are not followers; they are leaders. Earlier this year, we also signed agreements with Mubadala and Masdar in the green hydrogen space. Under the agreement with Mubadala, we will work to develop the UAE’s hydrogen economy, and to drive investment and development of advanced technology, manufacture of equipment, and green hydrogen and synthetic fuel production. In association with this agreement, together with Masdar, we are joining forces with the Abu Dhabi Department of Energy, Etihad Airways, German Lufthansa, Marubeni Corporation, and Khalifa University on an ambitious project that will help
pave the way for the development of the UAE’s green hydrogen economy. We are developing a photovoltaic (PV) powered electrolyser facility, to demonstrate stateof-the-art green hydrogen production technology and present sustainable fuel use cases. The first phase of the demonstration programme will focus on the production of green hydrogen for passenger cars and buses in the Masdar City area. In parallel, a kerosene synthesis plant will be built to convert the majority of the green hydrogen into sustainable aviation fuel. In the second phase of the programme, the production of decarbonised fuels for the maritime sector will be explored.
The Sustainabilist What are the sustainability targets and investments made by Siemens Energy to contribute to the fight against climate change? We have set ambitious but achievable goals: We plan to switch our own power consumption to 100% green electricity by 2023 and are aiming to make our own operations climateneutral by 2030. At the end of last year, we released our first independent Sustainability Report. Sustainability is firmly anchored in all our actions, and our President and CEO Christian Bruch has taken over responsibility as Chief Sustainability Officer, to underscore this commitment. The 17 Sustainable Development Goals (SDGs), set out in the United Nations 2030 Agenda for Sustainable Development, guide us in our plans and actions. Siemens Energy actively endorses the Paris Agreement on climate change and supports ambitious political programmes, such as the European Green Deal and the EU hydrogen strategy. Further crystalising the importance of sustainability in our operations, compensation for members of the executive board is tied to the company’s sustainable development, and meeting certain Environmental, Social and Governance (ESG) criteria. Performance indicators selected for ESG targets are measurable quantitatively and are auditable.
How is Siemens Energy setting the standards for the industry in the region when it comes to clean energy? Siemens Energy owns a majority stake in Siemens Gamesa Renewable Energy, which is one of the largest wind companies in the world. We have a huge amount of wind turbines all over the world. We are one of the leaders in producing green energy. From a portfolio perspective, we have the renewable generation and the gas turbines, which we feel will be the bridge fuel over the next few years. Today, gas turbines are running with natural gas, but ours are also capable of running on hydrogen. If it is green hydrogen, then it is completely green electricity. Today, they can take up to 60% hydrogen, but by 2030, this will be up to 100%. We strongly believe that in order to advance the energy transition, partnership is the key to unlocking the potential of innovation. Just this year we have partnered with Gamesa to develop an innovative solution that fully integrates an electrolyser into an offshore wind turbine as a single synchronised system to directly produce green hydrogen. The companies intend to provide a full-scale offshore demonstration of the solution by 2025/2026. We are also collaborating with Air Liquide to develop a large scale electrolyser partnership for sustainable hydrogen production. Furthermore, our partnership with Linde Engineering is exploring the use of renewable energy and energy storage to help clients in the petrochemical industry meet carbon emissionsand environmental sustainability goals.
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Unit 1 of Barakah Plant Started Commercial Operations By:Emirates Nuclear Energy Corporation
The Sustainabilist
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arakah Plant project directly addresses the leading cause of climate change – one of the world’s most pressing challenges
The Emirates Nuclear Energy Corporation (ENEC) announced on April 6, 2021 that the Unit 1 of Barakah Nuclear Energy Plant gas started commercial operations. His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, applauded this achievement, describing it as a significant milestone in the UAE’s long-term roadmap for sustainable, knowledge-based economic prosperity, benefiting many generations to come. His Highness said that the UAE Peaceful Nuclear Program, which is run by the UAE talented and fully qualified Emirati expertise, along with global expertise, will be a game changer of the energy sector in the country. His Highness added that the UAE Program became a global and pioneering role model in close international cooperation in such strategic projects. The UAE government entity mandated to deliver the UAE program, the Emirates Nuclear Energy Corporation (ENEC), part of ADQ, one of region’s largest holding companies, confirmed that its operating and maintenance subsidiary, Nawah Energy Company (Nawah) successfully started commercial operations of the first Unit of Barakah Plant, following the completion of all testing activities. The 1400 MW Unit 1 is now providing constant, reliable, and sustainable electricity around the clock, with three further units to begin generating in the coming years. As a result, ENEC is now leading the largest decarbonisation effort of any industry in the UAE to date. His Excellency Khaldoon Khalifa Al Mubarak, Chairman of ENEC, said: “The UAE set a clear roadmap with solid principles to ensure this project’s development in accordance with the highest international industry standards of safety and quality with full transparency.”
“Our investment in pioneering technologies and the decarbonisation of our electricity production not only advances the UAE’s clean energy leadership but also produces tangible socioeconomic and environmental benefits. We congratulate all of our partners as we continue to support the prosperity and sustainable growth of our country”.
ENEC is now leading the largest decarbonisation effort of any industry in the UAE to date. His Excellency Mohamed Ibrahim Al Hammadi, Chief Executive Officer of ENEC said: “After more than a decade of strategic planning, program development and construction, today we are confidently marking the start of a new chapter in for the UAE’s transition to cleaner energy sources. The Barakah Plant uses a proven technology for significantly reducing carbon emissions to tackle climate change, one of the biggest challenges the world has
ever faced. Our talented team of UAE Nationals and international experts has worked tirelessly with the support of our Leadership and international partners to reach this pivotal milestone in the UAE Program’s history.” Barakah One Company, ENEC’s subsidiary in charge of the financial and commercial activities of the Barakah project, signed a Power Purchase Agreement (PPA) with the Emirates Water and Electricity Company (EWEC) in 2016 to purchase all electricity generated at the plant for the next 60 years. Electricity produced at Barakah Plant feeds into the national grid in the same manner as other energy plants, providing clean electricity to homes and businesses across the country. The start of commercial operations follows a period of extensive testing, overseen by the independent national regulator – the Federal Authority for Nuclear Regulation (FANR). FANR conducted 312 independent inspections since the start of Barakah’s development. These reviews have been conducted alongside more than 42 assessments and peer reviews by the International Atomic Energy Agency (IAEA) and World Association of Nuclear Operators (WANO). The Barakah Nuclear Energy Plant, located in the Al Dhafra region of the Emirate of Abu Dhabi, is one of the largest nuclear energy plants in the world, with four APR-1400 Units. Construction of the Plant began in 2012 and has progressed steadily ever since. Unit 2 has now completed the fuel load process and is working through all of the required processes prior to start-up, scheduled for later in 2021. Construction of Units 3 and 4 are in the final stages with the Units 94% and 89% complete respectively, benefitting from the experience and lessons learned during the construction of Units 1 and 2. The construction of the Barakah Plant as a whole is now more than 95% complete.
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The Royal Grammar School Guildford Dubai Campus is
Setting the Standard for Sustainability in Education By: Royal Grammar School Guildford Dubai
The Sustainabilist
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oyal Grammar School Guildford Dubai has been named ‘Energy Project of the Year’ and is the first BREEAM rated project, as well as the first nearly zero energy school in the Middle East The Royal Grammar School Guildford Dubai’s innovative approach to education and eco-friendly, sustainable design is already earning the school prestigious awards in the Middle East. Before the school has even officially opened its doors, the global construction company, Multiplex, who are responsible for the build of the campus, beat numerous nominations from across the GCC and MENA region to be awarded the Energy Project of the Year award at the latest Big Project Middle East Awards. Setting the standard for educators to put sustainability at the forefront of everything they do, the school’s forward-thinking approach to clean energy, and strong emphasis on sustainability, is in line with the UAE’s environmental and sustainability construction goals. The campus has been designed to utilise eco-friendly design modifications that ensure that the building is a sustainable hub, as well as mitigating the effects of climate change. The school is working towards opening its impressive campus at Majid Al Futtaim’s flagship Dubai community, Tilal Al Ghaf, in September this year, and although the Royal Grammar School Guildford is one of Britain’s oldest independent schools, it is revolutionary in its thinking and beliefs about sustainability. Having lived in the Middle East for over 14 years, and witnessing the developments of the city’s sustainability efforts, Founding Principal, Craig Lamshed is a strong advocate for the school’s sustainability efforts. “Climate change and sustainability aren’t just topics that we will talk about at RGS, they will be woven into everything that we will do at the school, from the building that will house our pupils, to the curriculum that we will teach. We will endeavor to teach our pupils about how to be responsible, not just for themselves, but for their impact on the environment,” he said.
“It is brilliant that the school project and our partners, Multiplex, are being recognised with this award as it shows our pupils that we lead by example. Dubai is a place where anything is possible and being conscious about our sustainability footprint is now non-negotiable which we can all work towards changing for the better,” he added. The RGS campus is the first BREEAM rated project and the first nearly zero energy school in the Middle East. As well as having bold passive and active energy efficiency measures as an integral part of the design, the school is already garnering huge attention in the Middle East’s construction sector. With the installation of 875 kWp on-site Solar PV, the school is estimated to achieve an annual energy utility index of 60kWh/m2, which means it will meet the Emirates Green Building Council definition of a nearly zero building after achieving an annual EUI of 61 kWh/m2. Distinct features that allowed the RGS Guildford Dubai building to be awarded the prestigious ‘Energy Project of the Year’ accolade include 4,000 m2 of green walls that make up the central core of the school, a pillow inflated roof skylight that has been created using 3,000 m2 ETFE Skylight - 3-layer ETFE, and a landscaping themed design that allows pupils to explore higher advanced play elements and explore their limits. Craig Lamshed added: “Our goal at the Royal Grammar School Guildford Dubai is to deliver a personalised and forwardthinking educational experience for all our children and the cutting-edge and inspiring campus design really supports every part of this.” Admissions are now open. Please visit https://www.rgsgd.com/admissions/ for more information.
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T
he Sustainabilist, in conversation with Peter Harris, Vice President, International Sustainability at UPS, to talk about their initiatives of increasing delivery efficiency and reducing emissions.
As UPS is the Official Logistics Partner for Expo 2020, what are some of the initiatives and ideas that are planned keeping in mind the key themes of the event ‘Sustainability’ and ‘Mobility’? As the Official Logistics Partner of Expo 2020 Dubai, UPS is committed to supporting growing demand across the region to ensure a seamless delivery of the first World Expo to be held in the Middle East, Africa and South Asia region. UPS is applying its decades of expertise in sustainable logistics to manage and mitigate the environmental impacts of the Expo while supporting its ambition to deliver one of the most sustainable events in history. Expo 2020 Dubai is all about the future, and one in which UPS endeavors to play an important role in advancing a more sustainable delivery network. We have been collaborating with regional leaders and partners since 2017, to minimise the environmental impact of Expo 2020 and deliver a sustainable event. For instance, in October 2019, we collaborated with SAP to test electrically assisted quad cycles for future deployment in the region. These electric quad cycles, for potential use during Expo 2020 Dubai, will enable us to identify more sustainable, productive, and effective operations in logistics, while making it possible to deliver the last mile with zero carbon footprint.
Q&A In order to successfully organise an event of such a large scale and to carry out efficient sustainable logistical operations in general, it is essential that there is a steady public-private sector partnership. Tell us a bit about how UPS is going about that aspect? UPS continues to expand its footprint in ISMEA and globally through private-public partnerships. We are spearheading partnerships with city officials, urban planners, and other partners, such as Expo 2020 Dubai, to address sustainability issues through innovative urban delivery solutions. UPS strives to create a more sustainable company and world by employing disruptive, cutting-edge technologies to build a safer and cleaner fleet for the communities in which we deliver. We are as well proud of our collaboration with the UAE Ministry of Climate Change and Environment (MOCCAE) and other public and private partners aiming to collectively promote a green transition of the road freight sector. Together, we will work towards addressing sustainability challenges across the Emirates, and help the UAE in achieving its sustainability goals in the transportation sector. The transition to clean energy and technologies is a priority for both UPS and the UAE, and is well aligned with the country’s UAE Green Agenda 2030 and the National Climate Change Plan 2017-2050. We are also working on projects in other cities around the world, while collaborating with policymakers, academic institutions, and nongovernmental organisations, to shape urban logistics policy. In the UK, we joined a consortium to deploy smart-grid technology, which enables simultaneous recharging of an entire fleet of electric vehicles without the need for the expensive upgrade to the power supply grid. Electric vehicles are an integral component within UPS’s alternative fuel and advanced technology fleet. A cost effective deployment of electric vehicles will play a key role in ensuring the global trend toward urbanisation is sustainable.
The Sustainabilist
UPS recently announced plans to purchase more vehicles that would run on alternate fuel to help reduce the company’s carbon footprint. What is the vision of UPS in terms of sustainability, with clean energy as one of its elements? Moving our world forward by delivering what matters is driving us towards sustainable solutions. We are passionate about adopting alternative fuels for our fleet, including hybrid and electric vehicles. Our journey toward a less carbon-intensive future is enabled through one of the industry’s largest private alternative fuel and advanced technology fleets, and a ‘rolling laboratory’ of more than 12,000 vehicles that drive more than 1 million cleaner miles each business day. UPS is leading the charge on electrification of our fleet over the next five years, including investments with Tesla, Workhorse, Arrival, and other manufacturers.
What are some of the technological innovations UPS is using to further increase their delivery efficiency and reduce emissions?
What is UPS’ involvement in helping create smarter cities, not just in UAE, but worldwide?
Through our Smart Global Logistics Network, UPS is driving operational and sustainable improvements for our business, while providing improved speed and service for our customers, from pickup to the final mile. Recognising the importance of corporate environmental and social responsibility, investors are increasingly recognising the importance of sustainability to the short- and long-term prosperity of business, both in terms of risk mitigation and opportunity generation. This is consistent with sustainability steadily moving from a peripheral, ‘nice to do’, activity, to a central function of the business.
UPS recognised the challenges that mega-cities would face years ago. We see this, day in and day out. UPS strives to support in creating smart, digitally enabled cities across the communities that we serve, by leading the way with a wide range of studies, tests, and partnerships. Our services and integrated network allow shippers to simplify their supply chains by using fewer carriers, and to adapt their transportation requirements and expenditures as their businesses evolve.
Customers are in search of sustainable logistics solutions. Some customers want to buy specific solutions, such as UPS carbon neutral, while some want to go further and develop innovation partnerships. This is a logical extension of the way in which sustainability is moving to the centre stage of business. UPS has developed and rolled out a tool called On-Road Integrated Optimization and Navigation (ORION), to ensure UPS drivers use the most optimised delivery routes, with regards to distance, fuel, and time. Using this technology has generated annual savings of more than 100,000 metric tonnes of CO2, 100 million miles, and 10 million gallons of fuel. Other last mile delivery solutions that are reducing miles and emissions include UPS My Choice, which allows consumers to choose a convenient time and place of delivery from their mobile device. Moreover, UPS Access Point network provides a consolidated delivery location, such as a gas station or convenience store, for multiple consumers in the same area. Other ways in which UPS is increasing efficiencies while reducing emissions is through our investments in alternative fuels. Since 2009, UPS has invested more than USD 1 billion in alternative fuel, advanced technology vehicles, and fueling stations globally. Our partnership with Arrival, an electric vehicle manufacturer in the UK, is helping us develop an extended range delivery vehicle that uses battery technology and a smart on-board electric system to give it a 150-mile range. With roughly 1,000 electric or hybrid electric vehicles already in operation in cities around the world, UPS expects to continue to lead the charge on electrification of medium-duty vehicles.
UPS is marshalling the scale of its evertransforming smart global logistics network to encourage innovation within the energy and automotive industry. In London, for instance, UPS has deployed smart grid technology, while we are commissioning 35 electric vehicles (EVs) to be trialled in both London and Paris. Apart from fleet electrification, we are also partnering with cities to rethink transport in dense urban cores, and create innovative last-mile delivery solutions that minimise congestion and pollution. We previously worked with the city of Hamburg to develop and deploy innovative delivery techniques, including replacing our large delivery vehicles with a smaller, city-friendly fleet. We have since expanded this model and introduced eBikes in other cities in Europe.
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Q&A
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he Sustainabilist in conversation with Rasso Bartenschlager, General Manager, Al Masaood Power Division, to understand the Group's road to success and challenges caused by the pandemic.
The Sustainabilist
Al Masaood Power Division has long established its leading reputation across the UAE power industry. What elements is Al Masaood focusing on to maintain its lead, and to contribute to the country’s progression? Al Masaood Power Division sets itself apart by concentrating more on solution creation rather than distributorship, which most of our market competitors in the Middle East are focusing on. Developing cost-effective, sustainable, and customised solutions is at top of our agenda when we collaborate with clients who are looking for services related to power supply. We make sure that what we present fits their financial and business requirements. This strategy works as proven by our strong market positioning, which we aim to maintain by further enhancing our solution-creation processes. On contributing to the UAE’s progress, Al Masaood Power Division ensures to proactively and intentionally help strengthen the country’s socio-economic advancement by aligning its business plans and strategies with the national programmes, including energy-related initiatives, such as the UAE’s Energy Strategy 2050. The strategy is the first unified local energy programme that was launched to promote clean energy and reduce the carbon footprint of the power generation industry. It also seeks to increase consumption efficiency of individuals and corporates. It is along these lines that we continue to deliver power in the most sustainable way.
Al Masaood was off to a great start in 2020, achieving two thirds of its targets for the year in just the first six months. What kind of impact did the pandemic have on the business and how were you able to overcome the challenges? Was Al Masaood able to identify any opportunities? The coronavirus (COVID-19) pandemic has affected our business operations like any other corporation. Visiting our sites, for example, became a challenging endeavour in 2020 due to movement restrictions. We recognised the need for us to change our processes and procedures to adapt to the new normal. The way we communicate with our workforce had to evolve as well to avoid major disruptions in our operations. The results of these and other initiatives allowed us to perform and end the year strong despite the challenging market circumstances.
Our primary focus then and now remains the safety and health of our employees, customers, partners, and other stakeholders. Al Masaood Group’s Project Wiqaya, which was implemented at the onset of the pandemic, guided us at Al Masaood Power as we put the needed protocols in place in compliance with the precautionary measures of the UAE Government, and based on the recommendations of global organisations. The new normal, created by the COVID-19 pandemic, has also led to new opportunities driven by industries that required immediate power solutions. For example, the energy requirements of temporary facilities built to address the global health crisis had to be met. We have identified an opportunity as well in the process of immense data generation as part of the COVID-19 monitoring. Sustainability and renewable energy have also taken the centre stage during these trying times. At Al Masaood Power, we have begun taking a serious look into all these areas with much-needed urgency in light of the pandemic.
We also support the country’s path towards the full adoption of electric vehicles (EVs). We show our commitment by helping build EV charging stations located in different areas, including in places where there is no electricity. We will remain committed to sustainability by adopting and promoting the use of renewable energy, which is vital to the UAE’s development in the modern era.
5,000 kVA Mission Critical Prime Power Application “Build in the UAE”.
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The division’s dedication to renewable energy is undoubtedly significant. What noteworthy projects is Al Masaood Power working on in this field and how are these in line with the UAE’s energy strategies? As mentioned earlier, electrification is a huge part of our initiatives. We can contribute to the energy efficiency goals of Abu Dhabi and the UAE. Together with our European partners, Al Masaood Power continues to provide solutions in its key regional markets, namely the UAE and Bahrain, to help achieve their renewable energy targets and help promote its use instead of fossil fuels. We are developing and offering products and solutions — hybrid and microgrids — that account for 82% of clean energy and gas energy sources. The Emirates in particular, promotes the use of microgrids in line with the goals of the UAE Energy Strategy 2050. Our greener solutions can operate and deliver energy independently wherever it is required. Also critical to our endeavours is our current partnership with another organisation aimed at elevating our aftersales skills. In our continuing efforts to evolve beyond being a power supplier, we now deliver operation and maintenance solutions as an addition to our existing set-up of service solutions that include electric motors, alternators, and drives. As an industry leader with clients ranging from public and private entities across a broad range of sectors, what role does Al Masaood Power Division play in harmonising the supply chain and assisting the transition to a decarbonised economy? Al Masaood Power plays two important roles. One is — we strive to make green and sustainable solutions available to government and semi-government
The Sustainabilist
We will remain committed to sustainability by adopting and promoting the use of renewable energy, which is vital to the UAE’s development in the modern era. entities to help advance their environmental goals and for them to implement informed decisions. The second one is — we not only guarantee that these energy solutions are available to them, but we also ensure that they have the needed know-how to locally support their operations. Local support is crucial during these times when global travel remains restricted. Our clients require strong local support. In your opinion, what is the Group’s biggest achievement in its 50 years of operations in the realm of sustainability, and what is the Power Division’s most significant target in the same? At Al Masaood Power, we have implemented multiple sustainability initiatives in line with the strategies employed by the country and our international partner manufacturers. Our aim is to offer sustainable power solutions and in-country services, which include helping turn waste into energy and supporting power engines without the use of fossil fuels. We will maximise our expertise in marine propulsion and power generation systems to come up with more sustainable offerings delivered by our highly qualified technicians and power sector specialists. In 2020, an exciting year for the energy sector, we made several milestones in our pursuit of sustainability. Among our notable achievements last year there was the designing of our first hybrid boat in the UAE, and actively taking part in the government’s local power security systems in collaboration with our partners. On our marine business, we produced one of our lowest emission operating engines in coordination with our manufacturers. In line with our commitment to embrace clean and renewable energy, we also offer environment-friendly and efficient products that consume less diesel.
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An overview of the Smart Microgrid Solutions and Al Masaood’s contribution in this field. Incorporating innovation and technology into our portfolio, we now offer our Smart Microgrid solutions to our clients. Microgrids support a flexible and efficient electric grid by enabling the integration of growing deployments of distributed energy sources, such as renewables. Microgrids are decentralised energy systems that are composed of renewable power generation, power storage and conventional power generation used to meet a given demand. The utilisation of Microgrid technologies is aligned with the UAE’s Energy Strategy 2050, which aims to combine renewable, nuclear, and clean energy sources to help meet the country’s economic requirements and environmental goals.
Al Masaood Power team during the final test and handover to the client.
The Sustainabilist
Tell us about digitalisation in the power industry and how it helps the industry to thrive during COVID-19.
at the local Mercedes-Benz Distributor Gargash Enterprises, Rasso watched Dubai and Abu Dhabi’s evolution from fishing villages to the awe-inspiring cities that they are today. Going back to Germany in 2003, he earned his Betriebswirt (HWK) in 2014, before launching a multi-brand automotive dealership that ran for eight successful years, surviving a global recession.
Our digitalisation efforts are aimed at helping the business community and the power industry thrive during COVID-19. Digitalisation is also at the centre of our undertakings to enhance safety, deliver cost-efficient savings, and streamline and achieve sustainability in our processes. Digitalisation of the power systems through real-time sensors can enhance the monitoring and control of assets and prevent shutdowns with effective preventive maintenance procedure. For smart grids, sensors are also equipped to provide valuable data on consumption, thus helping to achieve better load forecasting, ensuring grid stability and reducing idle capacity. Ultimately, digitalisation provides connectivity that is needed to collect information from both new and existing equipment for analysis. By providing connectivity, industries can monitor assets remotely, especially in areas where a site visit is no longer possible. Please give us an outlook of Al Masaood with regards to investing in hydrogen. We are not slowing down as we are also looking at investing in hydrogen, which is the ‘fuel of the future.’ Hydrogen can also be used to store electrical energy for several weeks, which is a breakthrough in storing renewable energy. As a clean, environmentally benign, and a sustainable-energy carrier, hydrogen holds the potential of delivering a reliable supply of energy to address the growing global energy needs. Furthermore, the UAE’s strong collaboration with Japan in the area of hydrogen investment will help accelerate our efforts. Presently, we have partnered with MTU and Volvo Penta to develop hydrogen fuel cells that can be utilised in transportation, industrial and power generation applications. This can also result in changes in their processes and procedures, compared to when they are using fossil fuel-driven power sources.
RASSO JÖRG BARTENSCHLAGER
GENERAL MANAGER, AL MASAOOD POWER DIVISION
With a customer-oriented and performance-driven corporate and entrepreneurial career spanning over 25 years, Rasso Jörg Bartenschlager is the General Manager of the Al Masaood’s Power Division, overseeing a team of 200 people. His solution-driven, cando attitude has led to many notable achievements. This includes rewards for the Volvo Penta Aftermarket importer of the Year in 2016, the Yacht Support Center in the Middle East in 2018, hosting the Rolls-Royce Power Systems world distributor conference in 2018 in Abu Dhabi and the highest growth in the powergen business in the Middle East in 2020. Rasso started his career as a Mechanic, Service Engineer and Supervisor in the South of Germany where he worked with the Local Mercedes-Benz partner Autohaus Allgaeu. After moving to Dubai in 1998 to work as a Workshop Manager
Since joining the great Al Masaood family business in 2014 as General Manager of the Group’s Power Division, Rasso has been overseeing MTU, a Rolls-Royce Power Solutions company, Volvo Penta, and LeroySomer businesses within the Group for the United Arab Emirates & Bahrain. Rasso is specialised in marine and industrial propulsion systems, power generation solutions, including industrial and Oil & Gas application. His team has raised the bar for industry standards in the UAE and Bahrain, with implementing sustainable practices in fuel efficiency, hybrid, and alternative fuel systems. Rasso’s team operates under his key philosophy: we always provide solutions. He credits his team for their successes, their diverse backgrounds create a healthy mix of talent and vision, tapping into innovative business strategies and the latest technology. “Without history and legacy, we cannot write the future.” After celebrating 50 years of Al Masaood, Rasso is proud to drive the Group into a new era of its legacy, powered by mobility solutions and digitisation. Away from work, Rasso enjoys spending time with his wife, catching up on industry news webinars, and reading. When he can, Rasso likes to do volunteer work which includes 15 years as a volunteer fireman and squad leader in Germany, and the Special Olympics here in Abu Dhabi in 2019. Rasso regularly attends conferences on energy, sustainability, and leadership. To book Rasso for a keynote or panel, or even just to catch up for a coffee, please send him a LinkedIn message.
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Technological Trends
2021
The Sustainabilist
Renewable installations will rebound by double–digits after COVID-19 impasse Annual solar installations are predicted to grow by over 30% in 2021, after volatile demand in 2020, triggered by the COVID-19 pandemic. There are now 18 markets globally that have +1GW cumulative solar installations, compared to just six a decade earlier.
Offshore wind annual installations to surpass the 10 GW threshold
Rapid solar technology innovation continues despite shrinking PV system costs Spain, India, and the Middle East region will continue to be the markets with the lowest solar levelised cost of electricity (LCOE). Perovskites technologies is set to continue breaking efficiency records, but the technology will only be mature for commercial production in the next five years.
In 2021, the offshore wind industry will deploy more than 10 GW of capacity, nearly twice as much as last year. Oil and gas majors will further accelerate growth in the offshore wind market as they aim to leverage technical and project management skills to increase their footprint in the renewables space.
Li-ion price and technology trends in the energy storage sector will hinge on the automotive industry more than ever Despite the rapid growth of the gridconnected battery energy storage market, it will account for only a minor share of global demand for Li-ion batteries. Potential supply challenges for Li-ion batteries do represent a glimmer of opportunity for alternative (non-lithium) battery technologies, such as flow batteries.
Floating installations remain niche and lack scale but continue its acceleration path for both off-shore wind and solar PV technologies In the case of PV, floating solar represents a growing opportunity for developers to install solar in countries that are land constrained, or in specific locations that have favourable conditions, such as water bodies with proximity to existing grids, such as hydropower dams or water treatment plants, where they can use existing infrastructure to make floating PV more cost competitive.
Recycling becomes a priority for companies and governments globally New policies for battery recycling will be led by the automotive industry, spurred on with a sense of urgency due to the shorter life cycle of batteries, compared to solar panels and wind turbines, and the scale of the EV sector.
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Technological Trends
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The Sustainabilist
2021 will see more cleantech and electric mobility companies choose to enter the public markets using SPAC (Special Purpose Acquisition Company) More companies in the cleantech and electric mobility sector will choose to enter the public markets using SPAC, as this pathway offers high cash benefits and media attention, which are invaluable to companies looking to quickly capture market share.
Low-carbon hydrogen projects enjoy exponential growth The declining cost of low-carbon hydrogen is anticipated to continue to fall by a further 40% through 2025 due to the falling cost of renewable electricity and the price decline expected in electrolysis technology as it is scaled-up.
Sustainability and security of supply concerns will continue to drive the localisation of battery manufacturing The number of batteries reaching the end of their life is predicted to quickly ramp up throughout the decade, and globally, 350 GWh of batteries are predicted to reach the end of their life in 2030, which could provide an estimated 20% of the lithium, and almost half of the cobalt required to make new batteries that same year.
Hydrogen company stocks will build on their 2020 run up 2021 will test the lofty valuations enjoyed by hydrogen companies. Despite these measures, business models and technologies are nascent, and while the overall market might boom, there will be some spectacular busts.
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The Sustainabilist
Mobility as a Service in the Middle East – steering the course for a net zero carbon future By: Hypermotion Dubai
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nvestors, technology and mobility experts gave a fascinating insight into the growing popularity of on-demand mobility and Mobility as a Service (MaaS) in the Middle East during a recent webinar hosted by Hypermotion Dubai.
Edward Forrester, Future Lead & Deputy Cities Lead at Mott MacDonald was joined by Michael Granoff, Managing Director of Maniv Mobility, an investor in mobility technology start-ups; Thomas Wolf, COO of Hacon, a software supplier for transport and logistics services; and Jaideep Dhanoa, Co-founder and CEO of Fenix, an e-scooter for hire platform. Their task was to collectively explore how on-demand mobility and MaaS can contribute to a net zero carbon society, with a detailed view of the unique regional challenges and opportunities along the way. MaaS enables users to plan, book, and pay on-demand for multiple mobility options via a digital platform, leading to an eventual shift away from personally owned modes of transportation, such as vehicles. Its success depends not only on the app aggregator of mobility options, but also on ensuring the appropriate
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digital and physical infrastructure is in place so users can get around safely ondemand, whether on a scooter, in a cab, a water taxi, the metro, or even a gondola. Key to that, said Granoff – who gets around via an e-scooter on the streets of Tel Aviv, Israel, where Maniv Mobility is based – is private and public sector cooperation. “I think the most interesting trend to watch this year and in the coming few years is how the public and policy makers interact around the change of road usage, thereby creating more infrastructure for lighter-weight vehicles, electric mobility, and individual personal mobility,” said Granoff. “In Tel Aviv, there’s a great plan for infrastructure in terms of dedicated lanes for scooters. The plan over the next few years is very robust, because that’s the public will.”
SUSTAINABLE AND SEAMLESS TRAVEL Wolf said Hacon, a fully owned subsidiary of German conglomerate Siemens, said the company’s vision is in line with their own interpretation of MaaS – sustainable and seamless travel for a better quality of life. Hacon’s MaaS apps have received 200 million downloads in 25 countries, computing 100 million trips daily across more than five million stops, with yearly ticket revenue generating more than 18 billion euros. “These huge numbers show very well that we now play a vital role in many people’s everyday lives around mobility, and that our digital solutions have really become the backbone of mobility in many countries and regions,” said Wolf.
Wolf said the wealth of data that MaaS platforms generate is equally important and provides operators critical user information to optimise mobility routes and services. “A MaaS platform doesn’t only need data to operate. It also produces a wealth of data,” he added. “If you operate a MaaS platform, you understand a lot about citizens of your region. “You know a lot about their mobility behaviour and mobility requirements, and a city needs to know about this to serve their citizens. If they don’t understand their mobility behaviour, they cannot provide an adequate infrastructure.” THE MICRO MOBILITY MIX Fenix, a leading micro-mobility operator, entered the Middle East in November
Hypermotion Dubai 2021 will make its debut alongside Expo 2020 from 2-4 November at the Dubai Exhibition Centre (DEC).
The Sustainabilist
MaaS apps have received 200 million downloads in 25 countries, computing 100 million trips daily across more than five million stops, with yearly ticket revenue generating more than 18 billion euros 2020, with operations in Abu Dhabi on the back of a cash injection by Maniv Mobility – the first Israeli mobility startup VC investment of its kind in the UAE, following the Abraham Accords in August 2020 that normalised relations between the UAE and Israel. The US-headquartered company offers a shared e-scooter service along with the region’s first private subscription scooter service called my-Fenix, where users pay weekly or monthly fees for their private scooter. Jaideep said micro-mobility is an essential part of the multi-modal transport mix in cities such as Dubai, where trips are often single-user, or to get to other public transport forms, such as the metro. “The 20th century mobility model was built around a car which would service all people’s mobility needs,” said Jaideep. “This provides a lot of freedom, but also a lot of wastage and inefficiency because it’s overqualified for a lot of its use. Most of our trips in cities are single passenger and micro-mobility is optimised for servicing that need.” Jaideep argued scooters have a much smaller vehicle footprint: 20 kgs versus 2,000 kgs for cars, they’re electric, they offer a much lower consumer cost base, and are faster since users can avoid traffic congestion when going point to point in cities for short distant trips. “If you repurpose some space from cars, for alternatives like a micro mobility lane, we’ll have six times more passengers than
a car lane,” added Jaideep. “It’s a 500% increase, which is unfathomable. It’s also reducing the air pollution and carbon emissions. “It would also facilitate access to public transport. One of the challenges in Dubai is getting to its metro stations, and micro-mobility is a core facilitator of this multimodal future we’re aspiring towards.”
‘The rise of on-demand mobility and MaaS’ webinar was hosted by Messe Frankfurt Middle East, the organiser of Hypermotion Dubai, which will make its debut from 2-4 November 2021 at the Dubai Exhibition Centre (DEC).
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he Sustainabilist in conversation with Cornelius Matthes, CEO Dii Desert Energy, about the organisation's significant achievements towards making MENA a 'power house' for the global energy markets, and the MENA Hydrogen Alliance
How has Dii Desert Energy contributed to the region’s clean energy endeavours and transformation? What do we see as your biggest achievement in this regard? Dii has been working in the MENA region for the last 12 years. The first few years were adventurous – many people did not believe that renewable energy could play an important role in the future energy system. We heard things like “We have so much oil and gas, why would you do renewable energy?” and sometimes people tried to make our life difficult. Looking back, it is great to have been a pioneer for this movement, pushing the development early on, and witness the tremendous success story of solar and wind energy since then, with both solar PV and wind becoming the cheapest form of energy in the region. Dii’s work has been to bring together all relevant stakeholders to make projects bankable, create the right regulatory framework, among other activities – effectively working very much indirectly and often behind the scenes. Desert Power 2050, published in 2012, has been an important achievement, as one of the first reports pointing already 9 years ago towards a near 100% RE energy potential in Europe, Middle East and North Africa Region. It was developed soundly with many working groups catering to the overall study, with complex modelling by Fraunhofer, and backed by a unique group of industries.
How is Dii Desert Energy contributing to the region’s fight against climate change? Are there any particular targeted initiatives you wish to single out? Dii is a not for profit organisation, working as a think-tank. We are looking at the energy transition from a holistic point of view, i.e. from renewable generation, grid integration, electrical interconnections, storage, green molecules up energy efficiency or flexible demand. While in the first years, the focus was more on utility-scale projects, Dii is also looking at decentralised solutions and newer market segments, like net metering, which needs a boost in many countries. In this context, Dii is not promoting any specific technology – we believe that being agostic from a technology point of view is very important for credibility in the market. Dii has published landmark reports on many of the topics relevant to the energy transition, and with numerous initiatives and events, created a platform to connect relevant stakeholders and building bridges internationally, e.g. between Europe and MENA. As exchange with young people is at the heart of our work, we have also contributed to the Desertec University network and conducted a yearly best paper award for Master and PhD thesis in topics of relevance to our work. This has been part of the yearly Dii Desert Energy Leadership Summit, whose 10th edition was held in Berlin, in 2019. Dii is also putting a lot of emphasis on the topic of job creation – with the first report on this topic published in 2013, and a new one localisation of the hydrogen value chain coming soon.
...many people did not believe that renewable energy could play an important role in the future energy system. We heard things like “We have so much oil and gas, why would you do renewable energy?”
The Sustainabilist
Can you tell us about the MENA Hydrogen Alliance, and how it will contribute to the development of the industry in the MENA region?
Dii Desert Energy works closely with leading industry organisations to develop business opportunities and unlock emission-free projects. Which would you call as your most significant achievements so far? What is in the pipeline? Dii, as public-private sector network of networks, indeed works closely with many leading trade associations like solar, wind, or hydrogen, as well as multilateral organisations, development banks, ministries, governmental organisations, and NGOs. Apart from some groundbreaking studies mentioned above, the ongoing presence as a discussion platform and to generate a continuous flow of business opportunities for our partners has been an important achievement by the team to create credibility and trust in the market. Dii recently launched a project transaction platform to bring together developers and investors for projects. The group of industrial partners, IPPs and investors has grown to a unique circle of partners, of which very few are manufacturers. As an invite-only network, the organisations realising projects and more hands-on type of organisations tend to join as Associated Partners. Dii is also working on launching the Dii Green Transition Fund to invest in projects/infrastructure as well as start-ups along the emissionfree value chain. It is important to keep on learning every day and continuously developing the organisation. I am sure there will be many more exciting things to come during this decade of disruption when emission-free technologies are coming into the scale-up phase and will significantly positively change the energy system.
The idea for the MENA Hydrogen Alliance was born at the 10th Dii Desert Energy Leadership Summit in Berlin. When our colleague Frank Wouters presented the North Africa Europe Hydrogen Manifesto, the overwhelming response brought him to the conviction to elevate this important topic to more than just a working group. While Dii has been working on the topic of green molecules since 2016, the moment to launch the MENA Hydrogen Alliance came only in January 2020, with a first stakeholder consultation at WFES, and an official launch at Intersolar ME in March 2020, just before the pandemic started. Since then, the Alliance managed to attract many prominent players along the green molecules value chain, and could establish itself as a platform for discussion, developing and pushing project ideas, educating, in particular, public sector stakeholders on the technical and economic implications of green molecule projects. We have published different reports, which can be downloaded from the Dii website, and built close cooperations e.g. with the EU Commission, Germany's Ministries, and with our Associated Partner developing the Asian Renewable Energy Hub – even relations as far as in Australia. Building on the relations and trust of Dii Desert Energy in the market for many years, the Alliance has quickly established itself as the premier platform on the rather new topic of green molecules in the region, but also built a series of international partnerships. The Alliance is working on several crucial topics to create a market for green molecules, ranging from certification of the green origin, to technical standards, mechanisms to bridge the gap between green and grey hydrogen to accelerate the development of hydrogen economies, like CfDs. Also, our CTO Fadi Malouf has developed the LCoH and LCoAmmonia models, including transport options, which are very helpful to calculate price ranges and sensitivities for different regions. In summary, the Alliance is working on all relevant things to accelerate the creation of green molecule projects, and eventually, hydrogen economies in the region.
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Increasing energy efficiency in your building facility By: Kevin Laidler, MEA Sales Director, Armstrong Fluid Technology
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holistic approach to design, installation and usage of HVAC systems can help us create buildings that better support sustainability.
As our urban centres grow, so does our demand for key resources, such as energy. Currently, cities are accountable for over 60% of resource use and an estimated 70% of global carbon emissions. In the Middle East particularly, countries have experienced unprecedented population growth, increased economic activity, and consequently, increases in energy consumption. Fortunately, industry leaders and governments are placing sustainability at the heart of regional plans for urban development. The integration of sustainable systems is no longer a value-added benefit, but rather a necessary requirement. I believe a vital element for sustainable development in our cities is energy management. Energy is a costly commodity representing an average of 25% of all operating costs in office buildings. This cost, however, can be reduced by using energy management to optimise HVAC systems employed in a building. Energy management involves proactive tracking, systemic management and thoughtful optimisation of energy consumption in a building, with the goal of improving energy efficiency. The concept of energy efficiency takes into account a variety of factors; we must consider system design, quality of installation and maintenance, efficiency rates and personal use. If we assume a system is designed with greatest efficiency in mind, its effectiveness is still deeply impacted by installation, maintenance and use. One challenge we face with the efficiency of HVAC systems is ‘performance drift’. When first installed, and even in the first few months, HVAC systems operate immaculately. Over
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time, however, component efficiency and system conditions, ‘drift’ away from the originally installed operating curve, meaning that efficiency and performance of the system can degrade incrementally. The deteriorating performance of HVAC systems has consequences: unnecessary use of energy, resulting in higher costs and emissions, in addition to reduced comfort for building occupants. In order to truly have an impact on energy consumption, a holistic approach must be adopted. Only by carefully examining and optimising each part of the HVAC system, can we then find ways to improve it. In my experience with Armstrong Fluid Technology, in the last decade the technology for HVAC pumps has been enhanced to provide up to 70% energy efficiency savings through demand-based control and parallel pumping technology. These innovations enable the pumps to operate at optimum levels, consuming as little energy as possible. Systems that incorporate innovative smart technology enable more accurate system performance analysis and optimisation. Pumps can function as highly accurate flow meters that provide valuable insight for building managers and operators. Data from the intelligent connected pumps can be collected through active performance management software, which enables the HVAC system to learn, predict and optimise to deliver even greater energy efficiency and cost savings through maintained optimised performance. Active performance management software enables real-time and historical data reporting that directly demonstrates system efficiency and savings. Given the global shift towards sustainable building construction, legislation on energy reporting is inevitable, therefore employing systems with this in-built capability can prove to be extremely beneficial in the future. The software can also help maintain client comfort at all times by enabling predictive maintenance. Systems can provide alerts when they detect faults, allowing for early replacement before a full breakdown. This can be particularly helpful in mission critical applications, such as hospitals. Evidently, collecting data is essential for many reasons, including preventing,
and even reversing, the loss of energy efficiency. Without the ability to analyse data, building managers and operators cannot properly optimise mechanical systems, which results in unnecessary energy use, insufficient maintenance practices and any related costs. There may be hesitation in the industry to incorporate more sophisticated systems as they require initial investment; however, the returns from using more efficient mechanical systems are impressive. Simple payback on energy upgrade projects is usually reached within 3 to 5 years. Furthermore, energy savings continue for the life of the system. Properly executed energy upgrades deliver up to 40% savings on energy consumption related to HVAC operation. Savings on that level for a large facility can be impactful for business operations. Energy efficiency is not “visible” but has the potential to have a transformative effect on climate change if embraced on a large scale. If we consume energy only as we need to, then we consume less of it. This, in turn, reduces our consumption of fossil fuels, and consequently, our greenhouse gas emissions. Aside from short-term benefits, such as cost-savings and increased operation efficiency, energy management has the ability to help conserve energy for generations to come. If we embrace innovative energy saving solutions in the building services industry, then we can begin to make a difference. With the recent launch of plans for sustainable development, such as the Dubai Master Plan 2040, green infrastructure supporting solutions will thrive. The global shift towards embracing sustainability has made individuals and organisations alike call into question their impact on our planet. Embracing sustainability is no longer a preference but a strategic business approach that helps to create long-term value on a social, economic, and environmental level. The role of energy efficiency, and the systems that enable it, will inevitably play a key role in creating more sustainable buildings, communities, and cities.
Energy efficiency is not "visible" but has the potential to have a transformative effect on climate change if embraced on a large scale
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Technology is key to meeting clean energy goals By: Ahmed Fateen, Power Systems Vice President, Schneider Electric Gulf
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hmed Fateen discusses the belief that technology holds the key to reducing carbon emissions.
We all want to live in a greener world, and the question constantly being asked is: how do we live more sustainably? Our belief is that technology holds the key to reducing our carbon emissions, and we need to focus on making electricity cleaner and greener. Electricity is the only energy that can be decarbonised, and that matters if we’re going to meet our climate targets. If we’re going to avoid a climate disaster, we need to limit the rise in global temperature to 1.5OC. It is imperative that we utilise electricity in parallel with other technologies to solve the issue of climate change. Electricity obviously isn’t new – it’s been in use for over 100 years – but the way electricity is produced and consumed is changing. Electricity is increasingly being produced by renewables, making it both clean and green. Right now, just one fifth of our energy usage is electric, and that’s going to change quickly over the coming decade. We’ll be driving more electric vehicles and using electric transportation. We’ll also be using electricity to heat and cool our buildings. The world will invest more in electricity in the coming 20 years,
than it has from its creation over a century back. Increasing electrification and shifting generation to renewables will help us focus on decarbonisation. Analysts at the International Renewable Energy Agency (IRENA) expect that the percentage of electricity which will be generated will increase from 6% today to 40% by 2030. Rather than using hydrocarbons, tomorrow’s electricity must be made from clean sources, such as solar or wind. The good news is that in most parts of the world, including in the Middle East, renewables are already the cheapest sources of energy generation. WHY OUR BUILDINGS’ ENERGY EFFICIENCY WILL DECIDE WHETHER WE MEET GLOBAL CLIMATE TARGETS It goes without saying, CO2 emissions have to be reduced in all sectors – heat/energy generation, industry, and transportation — if we want to become climate-neutral. The greatest savings potential however lies in buildings, and above all, in the existing building stock! Let’s take a look
at the bare facts. As three-quarters of building’s energy consumption comes from fossil fuels (gas, oil, coal), they contribute significantly to global CO2 emissions. The building and construction sectors together account for more than one third of end energy consumption and nearly 40% of all direct and indirect CO2 emissions worldwide. So, one thing quickly becomes clear: a 55% reduction of CO2 emissions by 2030 will only be feasible if end-use sectors, such as buildings, reduce their dependence on fossil fuels, integrate renewable energy through direct electrification, and thus radically increase their energy efficiency. In the UAE, there are clearly specified targets that support sustainable development, including the reduction of energy and water consumption in Dubai by 30% and increase the share of solar in the energy mix to 25% – both by 2030. Dubai also has a Clean Energy Strategy to achieve 75% clean energy by 2050. Across the UAE, green targets include 50% clean energy in the total energy mix by 2050, and treatment of 75% waste by 2021.
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Integrated digital renovation of buildings, combining on-site energy generation from renewable sources, electric heat pumps, networked systems and EV charging stations are at the heart of stimulating systemic efficiency in end-use sectors. Systemic efficiency – which describes the interaction of all parts of a solution by means of efficient buildings and smart energy infrastructure – will make a decarbonised, highly electrified, and resilient urban ecosystem possible. WE MUST ACT COLLECTIVELY TO REDUCE CLIMATE EMISSIONS According to the United Nations Environment Programme (UNEP), emissions fell by an estimated 7% last year as economic activity and travel around the globe ground to a near halt. However, the fall in emissions only represented temporary relief during a year none of us ever want to repeat. To ensure the change is real, lasting, and of a magnitude great enough to stop global temperatures from
It is imperative that we utilise electricity in parallel with other technologies, to solve the issue of climate change. rising even more, we need a fundamental and rapid change in the way we all live and work. It also requires collective action, spanning the public and private sectors, policy makers, and ordinary citizens. Every one of us must change the way we think
about our lives and how we produce and consume: in our homes, factories, transport and energy systems, and cities. The good news is that the technologies that allow us to create a greener, smarter and fairer future exist, and are increasingly viable and economically competitive: think electric vehicles, and solar and wind power. Digital solutions allow us to be more efficient with our use of resources – lighting, heating or cooling – in warehouses, shopping malls, office highrises and airport terminals. Corporations, such as ours, have an important role to play here – both as
developers of new solutions and as users of them. Our capacity to innovate, R&D and investment decisions, global footprint, and our commitments to environmental, social and governance (ESG) issues, are big enough to matter not just to ourselves, but to our wider economic and social ecosystems. Schneider Electric’s aim is to empower all to make the most of our energy and resources, bridging progress and sustainability for all, connecting people across the globe to reliable energy and resources while cutting our emissions in half. Our mission is to be the digital partner of our customers for sustainability and efficiency.
To date, Etihad ESCO has retrofitted more than 7,700 buildings in Dubai, which has resulted in saving energy costs in excess of AED 250 million and contributed to an equivalent CO2 abatement of 220 kilotonnes.
Etihad ESCO is a DEWA venture that was established in 2013 to make Dubai built environment a leading example of energy efficiency for the region and the world. As a Super ESCO (Energy Service Company), it enables the energy performance contracting market in Dubai by developing energy efficiency projects targeting more than 30,000 buildings. Etihad ESCO aims to jumpstart the creation of viable performance contracting market for energy service companies by executing building retrofits, increasing penetration of district cooling, building capacity of local ESCOs for private sector and facilitating access to project finance. The Dubai ESCOs market will provide new business opportunities for joint ventures, international partnerships as well as engage UAE national entrepreneurs through a diversified supply chain from financial institutions, technology providers and equipment manufacturers to service providers across the project development, management and reporting stages.
www.etihadesco.ae
BUILDING RETROFIT PROJECT FINANCING MAINTENANCE ENERGY AUDIT SOLAR PV FACILITY MANAGEMENT ELECTRO-MECHANICAL
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Harnessing the power of the desert sun to produce the metal of the future inium
Alum l a b o l irates G By: Em
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ilestone in line with the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to make Dubai the most sustainable city in the world. Emirates Global Aluminium (EGA), the largest industrial company in the UAE outside oil and gas, and the Dubai Electricity & Water Authority (DEWA) in January made the United Arab Emirates the first country in the world to harness the power of the sun to make aluminium. The milestone supports the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to make Dubai the most sustainable city in the world, and to take the lead in the development and application of scientific and technological advances in the energy sector.
Aluminium plays an important role in the development of a sustainable future, as part of everything, from light-weighting vehicles to make them more fuel efficient, to building wind farms and mass transit systems. However, producing aluminium is energy-intensive, with electricity generation accounting for around 60% of the global aluminium industry’s greenhouse gas emissions. The use of solar power significantly reduces the emissions associated with aluminium production. Since January, DEWA has been supplying EGA’s Jebel Ali smelter in Dubai with 560,000 megawatt hours of solar power on an annualised basis, with the potential
for significant expansion. The solar power is generated at DEWA’s Mohammed bin Rashid Al Maktoum Solar Park, on the outskirts of Dubai. EGA’s sourcing of solar power from Dubai’s electricity grid is tracked and traced through the use of the International Renewable Energy Certification (IREC)system. EGA is marketing solar aluminium under the new product name CelestiAL. The first customer, announced in early February, was BMW Group. EGA has supplied metal to BMW Group since 2013 for use in the German carmaker’s engines and other parts. EGA will now supply 43,000 tonnes of CelestiAL aluminium to BMW Group per year. Using solar aluminium from EGA will reduce BMW Group’s emissions by 222,000 tonnes of CO2 per year. BMW Group’s annual supply contract with EGA is worth three-digit million-euro. EGA’s CelestiAL metal will cover almost half the annual requirements of Plant Landshut, the BMW Group’s only production facility for light metal casting in Europe. Last year, Plant Landshut produced 2.9 million cast metal components, including engine parts, such as cylinder heads and
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crankcases, parts for electric drive trains, and vehicle body parts.
Abdulnasser Bin Kalban, Chief Executive Officer of EGA, said: “Aluminium is lightweight, strong and infinitely recyclable and these properties mean that as a material it plays a vital global role in the development of a sustainable future. However, it also matters how sustainably aluminium is made. CelestiAL, aluminium made in the UAE with solar power, will help make modern life possible for people around the world whilst protecting our planet for future generations. This is a great milestone for the UAE and our industry.” The availability of solar power on the scale needed for aluminium smelting is thanks to the UAE’s significant investment in solar power, including in Dubai by DEWA and its Independent Power Producer (IPP) partners.
His Excellency Saeed Mohammed Al Tayer, Managing Director and Chief Executive Officer of DEWA, and Vice Chairman of EGA, said: “This global achievement of both DEWA and EGA confirms our firm commitment to achieving the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, in building a green economy in UAE, and reaching the goals of the Dubai Clean Energy Strategy 2050 in diversifying energy sources and providing 75% of Dubai’s energy production capacity from clean energy sources by 2050. To achieve these goals, we have launched many initiatives and projects, most notably the Mohammed bin Rashid Al Maktoum Solar Park, which is the largest single-site solar energy project in the world with a capacity of 5,000 megawatts by 2030. The solar park projects use photovoltaic panels and concentrated solar energy technologies.” HE Al Tayer added, “The new achievement contributes to supporting our efforts in reducing carbon emissions through the Dubai Carbon Abatement Strategy. Dubai reduced 22% in carbon emissions in 2019 compared to business as usual. Results achieved exceeded the targets set in the Dubai Carbon Abatement Strategy, which aims to reduce carbon emissions by 16% by 2021”.
The Mohammed bin Rashid Al Maktoum Solar Park, located in Dubai, has a current installed capacity of some 1,013 Megawatts using photovoltaic solar panels. DEWA is implementing an additional 1,850 megawatts of projects using solar panels and Concentrated Solar Power (CSP). Eventually, this capacity will reach 5,000MW by 2030.
Dr Andreas Wendt, BMW AG Board Member for Purchasing and Supplier Network, said: “In EGA, we have found a strong partner who values sustainable development just as much as we do. It is a special honour for us to be the first customer to receive aluminium produced using solar electricity. Aluminium plays an important role in e-mobility and using sustainably produced aluminium is tremendously important to our company.”
Using solar aluminium from EGA will reduce BMW Group’s emissions by
222,000 tonnes of CO2 per year.
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