Energy

DEWA leads Dubai's green economy with innovative IPWP models, attracting billions in investments and setting global solar benchmarks. (Image source: DEWA)

DEWA leads Dubai's green economy drive with innovative IPWP models, attracting billions in investments and setting global benchmarks in solar energy pricing and sustainable development

HE Saeed Mohammed Al Tayer, managing director and CEO of Dubai Electricity and Water Authority (DEWA), underscored DEWA's alignment with the vision and directives of HH Sheikh Mohammed bin Rashid Al Maktoum, vice-president and prime minister of the UAE and Ruler of Dubai, to position Dubai as a global hub for the green economy

Al Tayer highlighted DEWA's development of the Independent Power and Water Producer (IPWP) model, incorporating leading international practices tailored to Dubai's legislative and technical requirements. The IPWP model has attracted investments totaling approximately US$11.9bn over a decade, fostering partnerships between the government and private sectors. This approach has enabled DEWA to achieve the world's lowest Levelised Cost of Energy (LCOE) in solar energy projects, establishing Dubai as a benchmark for global solar energy pricing.

"The regulatory and legislative frameworks in Dubai, facilitating private sector participation in energy generation projects, have incentivized international investors and developers to engage in projects like the Mohammed bin Rashid Al Maktoum Solar Park under the IPP model," noted Al Tayer. "Our IPWP initiatives support Dubai's Economic Agenda D33, aimed at doubling the city's economy over a decade and solidifying its position among the world's top three cities. They are also aligned with Dubai's Clean Energy Strategy 2050 and Net Zero Carbon Emissions Strategy 2050, targeting 100% clean energy production by 2050."

Ideal environment for investment

Dubai's conducive business environment has made it a premier destination for foreign direct investment (FDI), attracting US$10.7bn in FDI capital in 2023, creating around 45,000 job opportunities, according to Financial Times Ltd.'s "fDi Markets" data.

Pioneering energy and water projects

This environment supports DEWA's efforts to draw foreign investments through pioneering energy and water projects under the Independent Power and Water Producer (IPWP) model, which DEWA has embraced since 2014, supplanting the Engineering, Procurement and Construction (EPC) model.

Key among DEWA's IPWP projects is the Mohammed bin Rashid Al Maktoum Solar Park, the world's largest single-site solar park slated to produce over 5,000MW by 2030, with a total investment of USD 13.6 billion. DEWA has commissioned five phases of the solar park and is currently implementing its 6th phase, a 1,800MW project costing approximately US$1.5bn. Noteworthy global consortiums, including major firms like Saudi Arabia's ACWA Power and Abu Dhabi Future Energy Company (Masdar), have participated in these phases.

DEWA's other significant IPWP-based projects include the Hassyan Power Complex, a 2,400MW natural gas facility employing state-of-the-art technologies in energy production, and a 180 million imperial gallons per day (MIGD) seawater reverse osmosis (RO) desalination project in Hassyan, the world's largest of its kind using RO technology under the Independent Water Producer (IWP) model, with an investment of approximately USD 925 million.

Installed solar panels. (Image source: Henkel)

Henkel Adhesive Technologies, the world’s leading solution provider for adhesives, sealants and functional coatings, has reached a significant sustainability milestone: all manufacturing sites in the Middle East and Africa (MEA) region now operate on 100% renewable electricity.

Henkel's eight MEA Adhesive Technologies manufacturing sites, located in six countries, have successfully transitioned to renewable electricity sources, eliminating carbon dioxide (CO2) emissions from their electricity usage, also known as Scope 2 emissions. This shift includes on-site solar installations and external renewable sources such as hydroelectric and wind energy.

Specific initiatives include renewable electricity derived from on-site photovoltaic (PV) solar and hydroelectricity in Turkey and Kenya, wind energy in South Africa, and solar power in Saudi Arabia and the UAE.

Through this, Henkel has eliminated approximately 10,471 tons of carbon emissions per year from its Scope 2 activities, equivalent to removing the carbon footprint of around 2,500 gasoline-powered cars driven for one year or 2,700 flights from New York to Singapore. By drastically reducing its reliance on fossil fuels, Henkel is making a substantial environmental impact and setting a benchmark for the industry.

Veerabhadra Konakalla, head of safety health & environment Henkel Adhesive Technologies IMEA, stated “By achieving complete decarbonisation of our scope 2 operations in our MEA sites, we’ve turned our commitments into tangible progress on the path to achieving climate positive operations by 2030. This achievement is a testament to the zeal of our IMEA team to drive transformative environmental change and create a more sustainable future.”

SAF can be seamlessly incorporated into existing jet engines and airport infrastructure. (Image source: Canva)

The International Air Transport Association (IATA) called on South Africa to mobilise its experience, resources, and infrastructure to accelerate the development of Sustainable Aviation Fuel (SAF) production. The call came as government and industry officials gathered in Johannesburg for the IATA Wings of Change Focus Africa conference.

“South Africa has vast potential to become a leading Sustainable Aviation Fuel (SAF) producer in the region. And there is a waiting market for SAF as airlines work to achieve net zero carbon emissions by 2050. More than a strategy in support of aviation’s decarbonisation, it is a strategy for economic development and should be a top priority for the new South African government. Across agriculture, energy, and transportation, new jobs and industries are waiting to be created that would not only help fight poverty but also contribute to greater energy independence,” said Marie Owens Thomsen, IATA’s senior vice president for sustainability and chief economist.

Growth in Africa and across the world

South Africa chaired the 2022 ICAO Assembly at which governments agreed to a long-term goal aligned with the aviation industry’s net-zero carbon emissions by 2050 commitment. The role of SAF in achieving this goal was emphasised by the ICAO CAAF/3 objective of a 5% average global reduction in aviation’s carbon emissions by 2030. As decarbonising aviation will require global collaboration, it is critical that global or regional stakeholders like States, development banks, industry, academia and other relevant parties bring forces together to help countries with SAF potential to develop their industry.

“Airlines are ready and waiting to purchase SAF as evidenced by the fact that every drop of SAF produced has been purchased and used. But the production volumes are a minute fraction of what aviation needs. That’s why it is essential for governments of countries with production potential, such as South Africa, to embrace what is a unique win-win-win opportunity for economic development, energy transition, and decarbonised air transportation,” said Thomsen.

E-fuels can reduce greenhouse gas emissions in the energy and transportation sectors. (Image source: Adobe Stock)

Synergy Consulting discusses the advantages and challenges of e-fuels, and how a favourable environment can be created for their growth

E-fuels, or electro fuels, are synthetic fuels produced using electrolytic hydrogen. They are considered low-emission fuels when both their hydrogen and carbon inputs are derived using methods that result in minimal life-cycle greenhouse gas emissions. The production of e-fuels involves combining hydrogen with other elements to create different types of fuel products, each with specific applications and infrastructure requirements. Various different fuel types can be produced along this basic route.

Different fuel products can be further categorised by their ease of use. Drop-in e-fuels such as e-kerosene, e-diesel and e-gasoline are compatible with existing refuelling infrastructure and can be blended with limited constraints with petroleum-derived counterparts. By contrast, alternative e-fuels such as e-ammonia and e-methanol require investments in distribution infrastructure and end-use equipment to enable their use in the transport sector.

These types of fuels present yet another avenue in our quest towards a cleaner future by reducing greenhouse gas emissions in the energy and transportation sectors given that they utilise renewable electricity for their production. Drop-in e-fuels offer an easier transition due to their compatibility with existing infrastructure, whereas alternative e-fuels, despite their potential, require significant upfront investments.

E-fuels offer significant advantages in terms of reducing greenhouse gas emissions and utilising existing infrastructure, but they also face substantial challenges, particularly related to production costs, energy efficiency, and the need for substantial investments in new infrastructure. Balancing these factors is essential for the successful development and deployment of e-fuels.

• Reduction in greenhouse gas emissions: E-fuels can significantly lower life-cycle greenhouse gas emissions when produced using renewable energy sources and sustainable carbon capture methods
• Compatibility with existing infrastructure: e-fuels like e-diesel, e-gasoline, and e-kerosene can be used with existing refueling and distribution infrastructure, reducing the need for significant changes or new investments
• Energy storage and transport: can store energy from intermittent renewable sources (like wind and solar) in a stable, transportable form, addressing the challenge of renewable energy storage
• Energy security: By producing these fuels domestically, countries can reduce their dependence on imported fossil fuels, enhancing energy security

However, there still exist significant challenges in a greater adoption of such fuels. The current cost of producing e-fuels is relatively high compared to conventional fossil fuels due to the energy-intensive nature of the processes involved and the need for advanced technologies.

The overall energy efficiency of e-fuel production can be low, as significant energy is required for electrolysis and subsequent synthesis processes, leading to higher overall energy consumption.

In addition, alternative e-fuels such as e-ammonia and e-methanol require new investments in distribution and refuelling infrastructure, as well as modifications to end-use equipment, posing a financial challenge. Many technologies related to e-fuel production are still in the development or early commercialisation stages, requiring further research, development, and scaling up to become viable.

Given these challenges, accelerated deployment of e-fuels thus requires a comprehensive approach that includes policy support, infrastructure investment, cost reduction of key technologies, R&D promotion, and exploitation of synergies with other sustainable technologies.

Integrating e-fuels with biofuels and carbon capture utilisation and storage (CCUS) can lead to maximising benefits.

By addressing these areas, host countries and governments can create a favourable environment for the growth of the e-fuel industry, driving down costs and making e-fuels a viable alternative to conventional fossil fuels.

This article is authored by Synergy Consulting IFA