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Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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NewBase Energy News 22 May 2021 - Issue No. 1433 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
U.A.E:Dubai inaugurates green Hydrogen-Pilot Project 20.5 Kg/h
By MEED
Dubai Electricity & Water Authority (Dewa), in partnership with Expo 2020 Dubai and Germany’s
Siemens Energy, has inaugurated the AED50m ($14m) green hydrogen plant at Dubai’s
Mohammed bin Rashid al-Maktoum (MBR) solar park.
The public-private partnership (PPP) project is a joint venture of state utility Dewa, Expo 2020 Dubai
and Siemens Energy. The integrated facility was developed with electrolysis, storage and re-
electrification capabilities.
Daylight solar power from the MBR park will enable the pilot project to produce about 20.5 kilograms
an hour (kg/hr) of hydrogen at 1.25MWe of peak power.
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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MEED understands the system allows for buffering renewable energy production, both for fast-
response applications, as well as for long-term storage.
“The plant has been built to accommodate future applications and test platforms for the different
uses of hydrogen, including potential mobility and industrial uses,” said Siemens Energy, which is
understood to have contributed AED25m to the project.
Hydrogen can be used for re-electrification through gas motors, gas turbines and fuel cells.
It can also be used as a feedstock for chemicals such as ammonia, synthetic fuels and green
chemicals; as fuel for transportation; as a reducing agent for the steel industry; as heat for industrial
processes; as gas for residential heating and cooking purposes; or as energy for export.
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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Oman unveils mammoth green fuels 25-gigawatt project -
Oman Observer
An international consortium comprised of OQ, which is the Sultanate of Oman’s global integrated
energy company, InterContinental Energy, the leading dedicated green fuels developer, and
EnerTech, a Kuwait government-backed clean energy investor and developer, is today announcing
it is developing an integrated green fuels mega project in Oman.
The consortium has been collaborating on the project for more than three years, which will consist
of 25 gigawatts (GW) of renewable solar and wind energy at full capacity to produce millions of tons
of zero-carbon green hydrogen per annum. The hydrogen can be used locally, exported directly, or
converted into green ammonia for international export. The consortium partners will leverage their
broad existing commercial relationships and partnerships to secure long-term product sales
agreements.
Given the site’s strategic location between Europe and Asia, as well as excellent solar irradiance
and wind resource facing the Arabian Sea, the development is well positioned to offer a secure and
reliable supply of green fuels globally at a highly competitive price.
Green hydrogen is expected to grow into a $2.5 trillion market by 2050. Demand comes from the
shipping sector, which requires green ammonia for its significant decarbonisation needs, the
aviation sector, which will utilise synthetic fuels made from green hydrogen, parts of the ground
transportation sector, such as rail and trucking, which are expected to adopt green hydrogen as a
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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fuel source, as well as heavy industry located in areas such as North West Europe that will use
green hydrogen to fuel their industrial processes including the production of steel. In addition, power
companies across East Asia with a legacy reliance on coal and gas are planning to transition to
green ammonia in order to reduce their carbon emissions.
The Consortium has been conducting wind and solar monitoring analysis in Al Wusta Governorate
in Central Oman since 2019. Renewable power generation will benefit from very high and stable
levels of solar and wind energy, exhibiting the optimal diurnal profile of strong wind at night and
reliable sun during the day. The project is also located near the coast for seawater intake and
electrolysis. Existing energy infrastructure in Oman provides additional future options to develop
synthetic fuels for the aviation sector, which will be critical for decarbonization.
The project will help transform Oman’s skills base and technical expertise in renewable energy,
providing a significant number of high value jobs during site construction and operation. Given the
amount of equipment required at a project of this scale, it could also support the development of
Oman’s renewable energy supply chain manufacturing and expertise.
Salim al Huthaili, CEO Alternative Energy at OQ said: “OQ is proud to announce our biggest project
in this field, which aims to maximise utilisation of Oman’s natural resources of wind and solar to
produce green hydrogen. Alternative energy is a key driver for OQ’s long-term growth and a
cornerstone of its strategy. It is also in-line with the country’s ambitious Oman Vision 2040 that aims
to diversify the nation’s resources and maximise the financial value derived. We are pleased with
the progress of the project so far and look forward to continuing development in collaboration with
our partners.”
Alicia Eastman, Co-Founder and President of InterContinental Energy said: “This is a huge
milestone in our mission to deliver cost competitive zero carbon fuels at unprecedented scale to
meet rapidly growing global demand across sectors. Only by decarbonizing fuels as well as
electrons will the world reach Paris climate agreement targets and increasingly stringent
commitments to reduce greenhouse gas emissions. It has been an absolute pleasure working with
our wonderful partners, each of whom brings critical domain expertise to the consortium.”
Abdullah al Mutairi, CEO of EnerTech said: “This is a landmark project that is in line with our
objective of being the leading platform for clean energy and energy transition in Kuwait and the
broader GCC. Our model of converging technology with infrastructure investment will place us at
the forefront of decarbonisation to realize our national objectives and meet our commitments under
the Paris Agreement.”
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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Italy's Snam in first of 30% gas-hydrogen blend in steel forging
Reuters + NewBase
Gas transport group Snam (SRG.MI) said on Wednesday a 30% blend of natural gas and hydrogen
had been used for the first time to power furnaces at a steelmaker in northern Italy.
The trial, carried out at a plant near Milan belonging to Italy's Giva Group, involved the use of the
gas mix in the steelmaker's internal gas distribution network.
Snam, Giva and certification and engineering consultancy RINA said the trial was a success and
was a first step to gradually introducing zero-emission hydrogen in certain steelmaking production
processes.
Governments and energy companies round the world are placing large bets on hydrogen playing a
leading role in efforts to lower greenhouse gas emissions and help decarbonise energy-intensive
industries like steel, heavy transport and chemicals.
However, without subsidies, the cost of green hydrogen remains too high to be profitable and
converting furnaces and boilers to hydrogen is expected to be a long and costly process.
"Snam intends to make its infrastructure, research and expertise available to contribute to the
creation of a national hydrogen supply chain and to the achievement of domestic and European
climate targets," Snam Chief Executive Marco Alvera said.
Snam, Europe's biggest gas pipeline operator, has been experimenting with a 10% mix of hydrogen
in part of its 33,000-kilometre natural gas network and has said 70% of its natural gas grid is already
made up of "hydrogen ready" pipes.
The companies said the permanent use of a 30% green hydrogen blend, fuelled by renewable
energy, at the three GIVA Group steel forging plants could cut carbon emissions by some 15,000
tonnes per year, equivalent to 7,500 cars.
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NewBase May 22-2021 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil Has Worst Week in Over a Month With Potential Iran Return
Bloomberg + NewBase
Oil benchmarks suffered their worst week in more than a month as the market considered the
consequences of a potential nuclear deal that could lift U.S. sanctions against Iranian crude.
West Texas Intermediate for July delivery increased $1.64 to $63.58 a barrel, but ended the week
2.7% lower in its largest such decline since early April
Oil price special
coverage
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Brent for July settlement rose $1.33 to $66.44 a barrel. The contract posted a 3.3% weekly decline,
the largest since March
WTI futures in New York fell 2.7% for the week, the worst performance since early April. Brent
posted the largest weekly decline since March, amid the possible return of millions of barrels a day
of Iranian crude returning to the market. President Hassan Rouhani this week said world powers
have accepted that major sanctions will be lifted as part of any nuclear deal.
“There’s concern about the additional slug of supply potentially coming from Iran,” said John Kilduff,
a partner at Again Capital LLC. “The prospect of more Iranian supply has been a momentum killer.”
Some analysts estimate Iran could return to pre-sanctions production of almost 4 million barrels a
day in as little as three months. Iranian oil output has been rising this year and was about 2.4 million
barrels a day last month, according to estimates compiled by Bloomberg.
The key to whether the potential rise in Iranian output upsets global inventory drawdowns is how
early the country re-enters the oil market, Michael Hsueh, an analyst at Deutsche Bank, said in
a note. While the third-quarter deficit stands at only 1.2 million barrels-a-day, the market is more
equipped to handle the additional output the following quarter when that shortfall is likely larger, he
wrote.
“The most pressing question will be how much an early Iranian ramp-up could hurt third-quarter
balances,” Hsueh wrote. “The schedule of the ramp-up will be principally a question of politics and
negotiation,” as Iran’s supply “could be brought into the market before an actual increase in
production.”
Oil was also caught in a broader selloff this week in commodities and equities markets following
concerns about inflation. Hedge funds cut their net bullish position in WTI and Brent for a second
straight week, according to weekly ICE Futures Europe and CFTC futures and options data for four
contracts.
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The streak of losses this week tested the borders of oil’s current trading range, with the benchmarks
finding technical support after dipping to their lowest since April. Brent has been trading within a
roughly $5 band over the last month, pulling back from $70 a barrel but prompting a round of buying
Prior to the implementation of sanctions, Iran was producing about 3.8 million barrels a day of crude.
Only Iraq and Saudi Arabia’s output exceeds that amount within the Organization of Petroleum
Exporting Countries. Still, Citigroup Inc. estimates overall global demand is strong enough to absorb
any additional supply, including from Iran and that prices will continue to climb.
Meanwhile, the prompt spread for Nymex gasoline futures moved into a marked contango on Friday,
reflecting expectations that fuel markets may be oversupplied.
“The gasoline spread threatening to switch to contango implies the gasoline market is oversupplied
going into Memorial Day weekend, and that’s a negative price development,” said Bob Yawger,
head of the futures division at Mizuho Securities. “The inflation situation has also started to spook
some people, with prices at the pump getting a little lofty.”
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Stocks, Crude Oil Rise on Optimism Over Economy
Treasury yields dropped and the dollar was little changed. Gold extended its highest level in more
than four months. Bitcoin steadied after a volatile cryptocurrency slump this week.
The global economic revival, the risk of a significant pickup in inflation and Covid-19 flareups in
some parts of the world continue to shape market moves. Stocks have been volatile this week, with
speculative ardor cooling as minutes from the latest Federal Reserve meeting flagged the possibility
of a debate at some point on scaling back stimulus measures. Still, better-than-forecast jobless
claims data on Thursday buoyed sentiment.
“We believe there is still an upside story to be told,” said Mark Haefele, chief investment officer at
UBS Global Wealth Management. “Beneficiaries of reflation, like financials and energy, still have
‘catch up’ potential, while the relative near-term case for mega-cap tech is less clear.”
Elsewhere, Brent oil trimmed its biggest weekly decline since March. In Europe, Cartier jewelry
maker Richemont gained after posting sales that topped estimates.
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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Frenzy for Raw Materials Reorders the $6.3 Trillion ETF Market
Bloomberg - Claire Ballentine
The turbulence in the commodity complex this week looks like a much-needed cooldown, if signals
from the $6.3 trillion U.S. ETF industry are anything to go by.
With an American economic revival underway, the frenzy for raw materials now accounts for more
than half of the 20 best-performing exchange-traded products this year. That’s a rare degree of
outperformance for the inflation-sensitive sector.
Even after Wednesday’s big swoon, investors have allocated $2.6 billion this month to track
everything from lumber and corn to oil as consumer activity picks up, construction surges and
supply-chain bottlenecks intensify.
Small wonder that issuers are chasing the trend. On Thursday, Aberdeen Standard
Investments filed for two broad commodity ETFs and an industrial metals fund. Earlier this week,
Tidal ETF Trust filed for the SonicShares Global Shipping ETF, a chunk of which will be allocated
to companies transporting commodities in bulk.
It all underscores demand for investing styles that ride the early-cycle boom. At the same time, hot
passive money is flying into the sector rapidly -- lowering the bar for market volatility.
TOP PERFORMING U.S. ETPS YTD RETURN
iPath Bloomberg Tin Total Return Sub-Index ETN 343%
Breakwave Dry Bulk Shipping ETF 233%
iPath Bloomberg Precious Metals Total Return Sub-Index ETN 163%
DB Base Metals Double Long ETN 154%
MicroSectors U.S. Big Oil Index 3X Leveraged ETNs 143%
“The economy has just come back quicker than anyone anticipated,” said Keith Lerner, chief market
strategist at Truist Advisory Services. “It takes time to bring plants back on and some of these
processes on the commodity side, you can’t just flip a switch.”
Commodity ETPs are on course to lure the most new cash since at least August 2020, according to
data compiled by Bloomberg. It’s a drastic shift from last year, when a slate of tech and thematic
ETFs took center stage as the pandemic raged.
High expectations for price growth are playing a key role.
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“Everyone is talking about inflation,” said Phil Toews, chief executive officer of asset manager
Toews Corp. “One clear hedge for inflation is having some commodity exposure.”
Commodities are an input to the global growth engine that tend to contribute to and correlate with
inflation. ETFs holding them usually do well during periods of rising price pressure, according to
Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter.
At Invesco, all but one of its nine U.S.-listed commodity ETFs are in the green this year, and more
than half are beating the S&P 500 Index. Year-to-date inflows for the group are currently outpacing
record levels seen in 2009, according to Jason Bloom, head of fixed income and alternatives ETF
strategy at Invesco in Downers Grove, Illinois. That’s taken assets in the funds to almost $10
billion, Bloomberg data show.
“We do see a basis for higher inflation (though not problematic) over the next five to 10 years, and
think it makes sense for investors to position their portfolios for that,” said Bloom. “Adding
commodities is really the most potent inflation hedge.”
The highest-flying commodity products aren’t all very big, or liquid. The best performing ETP in the
U.S. this year is the iPath Bloomberg Tin Total Return Sub-Index ETN (ticker JJTFF), with less than
$1 million in assets and a handful of trades.
It’s joined in the top five by the $1.5 million iPath Bloomberg Precious Metals Total Return Sub-
Index ETN (JJPFF), which has also hardly traded. The pair have returned 343% and 163%,
respectively.
Others in the list tell a clearer story about the materials-linked boom. The $113 million Breakwave
Dry Bulk Shipping ETF (BDRY), which tracks the cost of transporting bulk commodities like coal or
iron ore, is the second-best performing fund with a 233% return.
Read more: Commodities Boom Sends Dry Bulk Shipping ETF Past $100 Million
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Deutsche Bank’s DB Base Metals Double Long ETN (BDDXF) and the MicroSectors U.S. Big Oil
Index 3X Leveraged ETN (NRGU) round out the top five.
Material Interest
Of course, the billions of dollars flowing to commodity products risk creating a crowded trade,
vulnerable to a big unwind if inflation expectations prove too high.
That was thrown into sharp relief Wednesday as energy and commodities futures buckled amid a
wider market drawdown. Things steadied on Thursday, though most raw materials remain
lower after the bruising week.
All the same, investors can point to rising economic activity as grounds for continued optimism.
“Demand is starting to come back which is pushing up those prices,” Tom Hainlin, national
investment strategist at U.S. Bank Wealth Management. “As those funds have done well, you see
increased in investor interest.”
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NewBase Special Coverage
The Energy world – May - 22- -2021
Pathway to critical and formidable goal of net-zero emissions
by 2050 is narrow but brings huge benefits,
according to IEA special report
Source: IEA
World’s first comprehensive energy roadmap shows government actions to rapidly boost clean
energy and reduce fossil fuel use can create millions of jobs, lift economic growth and keep net zero
in reach.
The world has a viable pathway to building a global energy sector with
net-zero emissions in 2050, but it is narrow and requires an
unprecedented transformation of how energy is produced, transported
and used globally, the International Energy Agency said in a landmark
special report released today.
Climate pledges by governments to date – even if fully achieved – would
fall well short of what is required to bring global energy-related carbon
dioxide (CO2) emissions to net zero by 2050 and give the world an even
chance of limiting the global temperature rise to 1.5 °C, according to the
new report, Net Zero by 2050: a Roadmap for the Global Energy Sector.
The report is the world’s first comprehensive study of how to transition
to a net zero energy system by 2050 while ensuring stable and
affordable energy supplies, providing universal energy access, and
enabling robust economic growth.
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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It sets out a cost-effective and economically productive pathway, resulting in a clean, dynamic and
resilient energy economy dominated by renewables like solar and wind instead of fossil fuels. The
report also examines key uncertainties, such as the roles of bioenergy, carbon capture and
behavioural changes in reaching net zero.
'Our Roadmap shows the priority actions that are needed today to ensure the opportunity of net-
zero emissions by 2050 – narrow but still achievable – is not lost.
The scale and speed of the efforts demanded by this critical and formidable goal – our best chance
of tackling climate change and limiting global warming to 1.5 °C – make this perhaps the greatest
challenge humankind has ever faced,' said Fatih Birol, the IEA Executive Director.
'The IEA’s pathway to this brighter future brings a historic surge in clean energy investment that
creates millions of new jobs and lifts global economic growth. Moving the world onto that pathway
requires strong and credible policy actions from governments, underpinned by much greater
international cooperation.'
Building on the IEA’s unrivalled energy modelling tools and expertise, the Roadmap sets out more
than 400 milestones to guide the global journey to net zero by 2050. These include, from today, no
investment in new fossil fuel supply projects, and no further final investment decisions for new
unabated coal plants. By 2035, there are no sales of new internal combustion engine passenger
cars, and by 2040, the global electricity sector has already reached net-zero emissions.
In the near term, the report describes a net zero pathway that requires the immediate and massive
deployment of all available clean and efficient energy technologies, combined with a major global
push to accelerate innovation. The pathway calls for annual additions of solar PV to reach 630
gigawatts by 2030, and those of wind power to reach 390 gigawatts.
Together, this is four times the record level set in 2020. For solar PV, it is equivalent to installing the
world’s current largest solar park roughly every day. A major worldwide push to increase energy
efficiency is also an essential part of these efforts, resulting in the global rate of energy efficiency
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improvements averaging 4% a year through 2030 – about three times the average over the last two
decades.
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Most of the global reductions in CO2 emissions between now and 2030 in the net zero pathway
come from technologies readily available today. But in 2050, almost half the reductions come from
technologies that are currently only at the demonstration or prototype phase.
This demands that governments quickly increase and reprioritise their spending on research and
development – as well as on demonstrating and deploying clean energy technologies – putting them
at the core of energy and climate policy. Progress in the areas of advanced batteries, electrolysers
for hydrogen, and direct air capture and storage can be particularly impactful.
A transition of such scale and speed cannot be achieved without sustained support and participation
from citizens, whose lives will be affected in multiple ways.
'The clean energy transition is for and about people,' said Dr Birol. 'Our Roadmap shows that the
enormous challenge of rapidly transitioning to a net zero energy system is also a huge opportunity
for our economies.
The transition must be fair and inclusive, leaving nobody behind. We have to ensure that developing
economies receive the financing and technological know-how they need to build out their energy
systems to meet the needs of their expanding populations and economies in a sustainable way.'
Providing electricity to around 785 million people who have no access to it and clean cooking
solutions to 2.6 billion people who lack them is an integral part of the Roadmap’s net zero pathway.
This costs around $40 billion a year, equal to around 1% of average annual energy sector
investment. It also brings major health benefits through reductions in indoor air pollution, cutting the
number of premature deaths by 2.5 million a year.
Total annual energy investment
surges to USD 5 trillion by 2030 in
the net zero pathway, adding an
extra 0.4 percentage points a year
to global GDP growth, based on a
joint analysis with the International
Monetary Fund.
The jump in private and
government spending creates
millions of jobs in clean energy,
including energy efficiency, as well
as in the engineering,
manufacturing and construction
industries. All of this puts global
GDP 4% higher in 2030 than it
would reach based on current trends.
By 2050, the energy world looks completely different. Global energy demand is around 8% smaller
than today, but it serves an economy more than twice as big and a population with 2 billion more
people.
Almost 90% of electricity generation comes from renewable sources, with wind and solar PV
together accounting for almost 70%. Most of the remainder comes from nuclear power. Solar is the
world’s single largest source of total energy supply. Fossil fuels fall from almost four-fifths of total
energy supply today to slightly over one-fifth.
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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Fossil fuels that remain are used in goods where the carbon is embodied in the product such as
plastics, in facilities fitted with carbon capture, and in sectors where low-emissions technology
options are scarce.
'The pathway laid out in our Roadmap is global in scope, but each country will need to design its
own strategy, taking into account its own specific circumstances,' said Dr Birol. 'Plans need to reflect
countries’ differing stages of economic development: in our pathway, advanced economies reach
net zero before developing economies.
The IEA stands ready to support governments in preparing their own national and regional
roadmaps, to provide guidance and assistance in implementing them, and to promote international
cooperation on accelerating the energy transition worldwide.'
The special report is designed to inform the high-level negotiations that will take place at the 26th
Conference of the Parties (COP26) of the United Nations Climate Change Framework Convention
in Glasgow in November. It was requested as input to the negotiations by the UK government’s
COP26 Presidency.
'I welcome this report, which sets out a clear roadmap to net-zero emissions and shares many of
the priorities we have set as the incoming COP Presidency – that we must act now to scale up clean
technologies in all sectors and phase out both coal power and polluting vehicles in the coming
decade,' said COP26 President-Designate Alok Sharma.
'I am encouraged that it underlines the great value of international collaboration, without which the
transition to global net zero could be delayed by decades. Our first goal for the UK as COP26
Presidency is to put the world on a path to driving down emissions, until they reach net zero by the
middle of this century.'
New energy security challenges will emerge on the way to net zero by 2050 while longstanding
ones will remain, even as the role of oil and gas diminishes. The contraction of oil and natural gas
production will have far-reaching implications for all the countries and companies that produce these
fuels. No new oil and natural gas fields are needed in the net zero pathway, and supplies become
increasingly concentrated in a small number of low-cost producers. OPEC’s share of a much-
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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reduced global oil supply grows from around 37% in recent years to 52% in 2050, a level higher
than at any point in the history of oil markets.
Growing energy security challenges that result from the increasing importance of electricity include
the variability of supply from some renewables and cybersecurity risks. In addition, the rising
dependence on critical minerals required for key clean energy technologies and infrastructure brings
risks of price volatility and supply disruptions that could hinder the transition.
'Since the IEA’s founding in 1974, one of its core missions has been to promote secure and
affordable energy supplies to foster economic growth. This has remained a key concern of our Net
Zero Roadmap,' Dr Birol said.
'Governments need to create markets for investments in batteries, digital solutions and electricity
grids that reward flexibility and enable adequate and reliable supplies of electricity. The rapidly
growing role of critical minerals calls for new international mechanisms to ensure both the timely
availability of supplies and sustainable production.'
The full report is available for free on the IEA’s website along with an online interactive that highlights
some of the key milestones in the pathway that must be achieved in the next three decades to reach
net-zero emissions by 2050.
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 19
NewBase Energy News 22 May 2021 - Issue No. 1433 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as Technical Affairs Specialist for Emirates General
Petroleum Corp. “Emarat “with external voluntary Energy consultation for the GCC
area via Hawk Energy Service, as the UAE operations base. Khaled is the Founder
of NewBase Energy news articles issues, an international consultant, advisor,
ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste
management, waste-to-energy, renewable energy, environment protection and
sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities &
gas compressor stations. Executed projects in the designing & constructing of gas
pipelines, gas metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted &
finalized many contracts/agreements in products sale, transportation, operation & maintenance agreements.
Along with many MOUs & JVs for organizations & governments authorities. Currently dealing for biomass
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leading satellite Channels. Khaled can be reached at any time, see contact details above.
NewBase: For discussion or further details on the news above you may contact us on +971504822502, Dubai, UAE
NewBase 2021 K. Al Awadi
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 20
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 21
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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New base 22 may 2021 energy news issue 1433 by khaled al awadi

  • 1. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 1 NewBase Energy News 22 May 2021 - Issue No. 1433 Senior Editor Eng. Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE U.A.E:Dubai inaugurates green Hydrogen-Pilot Project 20.5 Kg/h By MEED Dubai Electricity & Water Authority (Dewa), in partnership with Expo 2020 Dubai and Germany’s Siemens Energy, has inaugurated the AED50m ($14m) green hydrogen plant at Dubai’s Mohammed bin Rashid al-Maktoum (MBR) solar park. The public-private partnership (PPP) project is a joint venture of state utility Dewa, Expo 2020 Dubai and Siemens Energy. The integrated facility was developed with electrolysis, storage and re- electrification capabilities. Daylight solar power from the MBR park will enable the pilot project to produce about 20.5 kilograms an hour (kg/hr) of hydrogen at 1.25MWe of peak power.
  • 2. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 2 MEED understands the system allows for buffering renewable energy production, both for fast- response applications, as well as for long-term storage. “The plant has been built to accommodate future applications and test platforms for the different uses of hydrogen, including potential mobility and industrial uses,” said Siemens Energy, which is understood to have contributed AED25m to the project. Hydrogen can be used for re-electrification through gas motors, gas turbines and fuel cells. It can also be used as a feedstock for chemicals such as ammonia, synthetic fuels and green chemicals; as fuel for transportation; as a reducing agent for the steel industry; as heat for industrial processes; as gas for residential heating and cooking purposes; or as energy for export.
  • 3. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 3 Oman unveils mammoth green fuels 25-gigawatt project - Oman Observer An international consortium comprised of OQ, which is the Sultanate of Oman’s global integrated energy company, InterContinental Energy, the leading dedicated green fuels developer, and EnerTech, a Kuwait government-backed clean energy investor and developer, is today announcing it is developing an integrated green fuels mega project in Oman. The consortium has been collaborating on the project for more than three years, which will consist of 25 gigawatts (GW) of renewable solar and wind energy at full capacity to produce millions of tons of zero-carbon green hydrogen per annum. The hydrogen can be used locally, exported directly, or converted into green ammonia for international export. The consortium partners will leverage their broad existing commercial relationships and partnerships to secure long-term product sales agreements. Given the site’s strategic location between Europe and Asia, as well as excellent solar irradiance and wind resource facing the Arabian Sea, the development is well positioned to offer a secure and reliable supply of green fuels globally at a highly competitive price. Green hydrogen is expected to grow into a $2.5 trillion market by 2050. Demand comes from the shipping sector, which requires green ammonia for its significant decarbonisation needs, the aviation sector, which will utilise synthetic fuels made from green hydrogen, parts of the ground transportation sector, such as rail and trucking, which are expected to adopt green hydrogen as a
  • 4. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 4 fuel source, as well as heavy industry located in areas such as North West Europe that will use green hydrogen to fuel their industrial processes including the production of steel. In addition, power companies across East Asia with a legacy reliance on coal and gas are planning to transition to green ammonia in order to reduce their carbon emissions. The Consortium has been conducting wind and solar monitoring analysis in Al Wusta Governorate in Central Oman since 2019. Renewable power generation will benefit from very high and stable levels of solar and wind energy, exhibiting the optimal diurnal profile of strong wind at night and reliable sun during the day. The project is also located near the coast for seawater intake and electrolysis. Existing energy infrastructure in Oman provides additional future options to develop synthetic fuels for the aviation sector, which will be critical for decarbonization. The project will help transform Oman’s skills base and technical expertise in renewable energy, providing a significant number of high value jobs during site construction and operation. Given the amount of equipment required at a project of this scale, it could also support the development of Oman’s renewable energy supply chain manufacturing and expertise. Salim al Huthaili, CEO Alternative Energy at OQ said: “OQ is proud to announce our biggest project in this field, which aims to maximise utilisation of Oman’s natural resources of wind and solar to produce green hydrogen. Alternative energy is a key driver for OQ’s long-term growth and a cornerstone of its strategy. It is also in-line with the country’s ambitious Oman Vision 2040 that aims to diversify the nation’s resources and maximise the financial value derived. We are pleased with the progress of the project so far and look forward to continuing development in collaboration with our partners.” Alicia Eastman, Co-Founder and President of InterContinental Energy said: “This is a huge milestone in our mission to deliver cost competitive zero carbon fuels at unprecedented scale to meet rapidly growing global demand across sectors. Only by decarbonizing fuels as well as electrons will the world reach Paris climate agreement targets and increasingly stringent commitments to reduce greenhouse gas emissions. It has been an absolute pleasure working with our wonderful partners, each of whom brings critical domain expertise to the consortium.” Abdullah al Mutairi, CEO of EnerTech said: “This is a landmark project that is in line with our objective of being the leading platform for clean energy and energy transition in Kuwait and the broader GCC. Our model of converging technology with infrastructure investment will place us at the forefront of decarbonisation to realize our national objectives and meet our commitments under the Paris Agreement.”
  • 5. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 5 Italy's Snam in first of 30% gas-hydrogen blend in steel forging Reuters + NewBase Gas transport group Snam (SRG.MI) said on Wednesday a 30% blend of natural gas and hydrogen had been used for the first time to power furnaces at a steelmaker in northern Italy. The trial, carried out at a plant near Milan belonging to Italy's Giva Group, involved the use of the gas mix in the steelmaker's internal gas distribution network. Snam, Giva and certification and engineering consultancy RINA said the trial was a success and was a first step to gradually introducing zero-emission hydrogen in certain steelmaking production processes. Governments and energy companies round the world are placing large bets on hydrogen playing a leading role in efforts to lower greenhouse gas emissions and help decarbonise energy-intensive industries like steel, heavy transport and chemicals. However, without subsidies, the cost of green hydrogen remains too high to be profitable and converting furnaces and boilers to hydrogen is expected to be a long and costly process. "Snam intends to make its infrastructure, research and expertise available to contribute to the creation of a national hydrogen supply chain and to the achievement of domestic and European climate targets," Snam Chief Executive Marco Alvera said. Snam, Europe's biggest gas pipeline operator, has been experimenting with a 10% mix of hydrogen in part of its 33,000-kilometre natural gas network and has said 70% of its natural gas grid is already made up of "hydrogen ready" pipes. The companies said the permanent use of a 30% green hydrogen blend, fuelled by renewable energy, at the three GIVA Group steel forging plants could cut carbon emissions by some 15,000 tonnes per year, equivalent to 7,500 cars.
  • 6. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 6 NewBase May 22-2021 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil Has Worst Week in Over a Month With Potential Iran Return Bloomberg + NewBase Oil benchmarks suffered their worst week in more than a month as the market considered the consequences of a potential nuclear deal that could lift U.S. sanctions against Iranian crude. West Texas Intermediate for July delivery increased $1.64 to $63.58 a barrel, but ended the week 2.7% lower in its largest such decline since early April Oil price special coverage
  • 7. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 7 Brent for July settlement rose $1.33 to $66.44 a barrel. The contract posted a 3.3% weekly decline, the largest since March WTI futures in New York fell 2.7% for the week, the worst performance since early April. Brent posted the largest weekly decline since March, amid the possible return of millions of barrels a day of Iranian crude returning to the market. President Hassan Rouhani this week said world powers have accepted that major sanctions will be lifted as part of any nuclear deal. “There’s concern about the additional slug of supply potentially coming from Iran,” said John Kilduff, a partner at Again Capital LLC. “The prospect of more Iranian supply has been a momentum killer.” Some analysts estimate Iran could return to pre-sanctions production of almost 4 million barrels a day in as little as three months. Iranian oil output has been rising this year and was about 2.4 million barrels a day last month, according to estimates compiled by Bloomberg. The key to whether the potential rise in Iranian output upsets global inventory drawdowns is how early the country re-enters the oil market, Michael Hsueh, an analyst at Deutsche Bank, said in a note. While the third-quarter deficit stands at only 1.2 million barrels-a-day, the market is more equipped to handle the additional output the following quarter when that shortfall is likely larger, he wrote. “The most pressing question will be how much an early Iranian ramp-up could hurt third-quarter balances,” Hsueh wrote. “The schedule of the ramp-up will be principally a question of politics and negotiation,” as Iran’s supply “could be brought into the market before an actual increase in production.” Oil was also caught in a broader selloff this week in commodities and equities markets following concerns about inflation. Hedge funds cut their net bullish position in WTI and Brent for a second straight week, according to weekly ICE Futures Europe and CFTC futures and options data for four contracts.
  • 8. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 8 The streak of losses this week tested the borders of oil’s current trading range, with the benchmarks finding technical support after dipping to their lowest since April. Brent has been trading within a roughly $5 band over the last month, pulling back from $70 a barrel but prompting a round of buying Prior to the implementation of sanctions, Iran was producing about 3.8 million barrels a day of crude. Only Iraq and Saudi Arabia’s output exceeds that amount within the Organization of Petroleum Exporting Countries. Still, Citigroup Inc. estimates overall global demand is strong enough to absorb any additional supply, including from Iran and that prices will continue to climb. Meanwhile, the prompt spread for Nymex gasoline futures moved into a marked contango on Friday, reflecting expectations that fuel markets may be oversupplied. “The gasoline spread threatening to switch to contango implies the gasoline market is oversupplied going into Memorial Day weekend, and that’s a negative price development,” said Bob Yawger, head of the futures division at Mizuho Securities. “The inflation situation has also started to spook some people, with prices at the pump getting a little lofty.”
  • 9. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 9 Stocks, Crude Oil Rise on Optimism Over Economy Treasury yields dropped and the dollar was little changed. Gold extended its highest level in more than four months. Bitcoin steadied after a volatile cryptocurrency slump this week. The global economic revival, the risk of a significant pickup in inflation and Covid-19 flareups in some parts of the world continue to shape market moves. Stocks have been volatile this week, with speculative ardor cooling as minutes from the latest Federal Reserve meeting flagged the possibility of a debate at some point on scaling back stimulus measures. Still, better-than-forecast jobless claims data on Thursday buoyed sentiment. “We believe there is still an upside story to be told,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “Beneficiaries of reflation, like financials and energy, still have ‘catch up’ potential, while the relative near-term case for mega-cap tech is less clear.” Elsewhere, Brent oil trimmed its biggest weekly decline since March. In Europe, Cartier jewelry maker Richemont gained after posting sales that topped estimates.
  • 10. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 10 Frenzy for Raw Materials Reorders the $6.3 Trillion ETF Market Bloomberg - Claire Ballentine The turbulence in the commodity complex this week looks like a much-needed cooldown, if signals from the $6.3 trillion U.S. ETF industry are anything to go by. With an American economic revival underway, the frenzy for raw materials now accounts for more than half of the 20 best-performing exchange-traded products this year. That’s a rare degree of outperformance for the inflation-sensitive sector. Even after Wednesday’s big swoon, investors have allocated $2.6 billion this month to track everything from lumber and corn to oil as consumer activity picks up, construction surges and supply-chain bottlenecks intensify. Small wonder that issuers are chasing the trend. On Thursday, Aberdeen Standard Investments filed for two broad commodity ETFs and an industrial metals fund. Earlier this week, Tidal ETF Trust filed for the SonicShares Global Shipping ETF, a chunk of which will be allocated to companies transporting commodities in bulk. It all underscores demand for investing styles that ride the early-cycle boom. At the same time, hot passive money is flying into the sector rapidly -- lowering the bar for market volatility. TOP PERFORMING U.S. ETPS YTD RETURN iPath Bloomberg Tin Total Return Sub-Index ETN 343% Breakwave Dry Bulk Shipping ETF 233% iPath Bloomberg Precious Metals Total Return Sub-Index ETN 163% DB Base Metals Double Long ETN 154% MicroSectors U.S. Big Oil Index 3X Leveraged ETNs 143% “The economy has just come back quicker than anyone anticipated,” said Keith Lerner, chief market strategist at Truist Advisory Services. “It takes time to bring plants back on and some of these processes on the commodity side, you can’t just flip a switch.” Commodity ETPs are on course to lure the most new cash since at least August 2020, according to data compiled by Bloomberg. It’s a drastic shift from last year, when a slate of tech and thematic ETFs took center stage as the pandemic raged. High expectations for price growth are playing a key role.
  • 11. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 11 “Everyone is talking about inflation,” said Phil Toews, chief executive officer of asset manager Toews Corp. “One clear hedge for inflation is having some commodity exposure.” Commodities are an input to the global growth engine that tend to contribute to and correlate with inflation. ETFs holding them usually do well during periods of rising price pressure, according to Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter. At Invesco, all but one of its nine U.S.-listed commodity ETFs are in the green this year, and more than half are beating the S&P 500 Index. Year-to-date inflows for the group are currently outpacing record levels seen in 2009, according to Jason Bloom, head of fixed income and alternatives ETF strategy at Invesco in Downers Grove, Illinois. That’s taken assets in the funds to almost $10 billion, Bloomberg data show. “We do see a basis for higher inflation (though not problematic) over the next five to 10 years, and think it makes sense for investors to position their portfolios for that,” said Bloom. “Adding commodities is really the most potent inflation hedge.” The highest-flying commodity products aren’t all very big, or liquid. The best performing ETP in the U.S. this year is the iPath Bloomberg Tin Total Return Sub-Index ETN (ticker JJTFF), with less than $1 million in assets and a handful of trades. It’s joined in the top five by the $1.5 million iPath Bloomberg Precious Metals Total Return Sub- Index ETN (JJPFF), which has also hardly traded. The pair have returned 343% and 163%, respectively. Others in the list tell a clearer story about the materials-linked boom. The $113 million Breakwave Dry Bulk Shipping ETF (BDRY), which tracks the cost of transporting bulk commodities like coal or iron ore, is the second-best performing fund with a 233% return. Read more: Commodities Boom Sends Dry Bulk Shipping ETF Past $100 Million
  • 12. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 12 Deutsche Bank’s DB Base Metals Double Long ETN (BDDXF) and the MicroSectors U.S. Big Oil Index 3X Leveraged ETN (NRGU) round out the top five. Material Interest Of course, the billions of dollars flowing to commodity products risk creating a crowded trade, vulnerable to a big unwind if inflation expectations prove too high. That was thrown into sharp relief Wednesday as energy and commodities futures buckled amid a wider market drawdown. Things steadied on Thursday, though most raw materials remain lower after the bruising week. All the same, investors can point to rising economic activity as grounds for continued optimism. “Demand is starting to come back which is pushing up those prices,” Tom Hainlin, national investment strategist at U.S. Bank Wealth Management. “As those funds have done well, you see increased in investor interest.”
  • 13. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 13 NewBase Special Coverage The Energy world – May - 22- -2021 Pathway to critical and formidable goal of net-zero emissions by 2050 is narrow but brings huge benefits, according to IEA special report Source: IEA World’s first comprehensive energy roadmap shows government actions to rapidly boost clean energy and reduce fossil fuel use can create millions of jobs, lift economic growth and keep net zero in reach. The world has a viable pathway to building a global energy sector with net-zero emissions in 2050, but it is narrow and requires an unprecedented transformation of how energy is produced, transported and used globally, the International Energy Agency said in a landmark special report released today. Climate pledges by governments to date – even if fully achieved – would fall well short of what is required to bring global energy-related carbon dioxide (CO2) emissions to net zero by 2050 and give the world an even chance of limiting the global temperature rise to 1.5 °C, according to the new report, Net Zero by 2050: a Roadmap for the Global Energy Sector. The report is the world’s first comprehensive study of how to transition to a net zero energy system by 2050 while ensuring stable and affordable energy supplies, providing universal energy access, and enabling robust economic growth.
  • 14. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 14 It sets out a cost-effective and economically productive pathway, resulting in a clean, dynamic and resilient energy economy dominated by renewables like solar and wind instead of fossil fuels. The report also examines key uncertainties, such as the roles of bioenergy, carbon capture and behavioural changes in reaching net zero. 'Our Roadmap shows the priority actions that are needed today to ensure the opportunity of net- zero emissions by 2050 – narrow but still achievable – is not lost. The scale and speed of the efforts demanded by this critical and formidable goal – our best chance of tackling climate change and limiting global warming to 1.5 °C – make this perhaps the greatest challenge humankind has ever faced,' said Fatih Birol, the IEA Executive Director. 'The IEA’s pathway to this brighter future brings a historic surge in clean energy investment that creates millions of new jobs and lifts global economic growth. Moving the world onto that pathway requires strong and credible policy actions from governments, underpinned by much greater international cooperation.' Building on the IEA’s unrivalled energy modelling tools and expertise, the Roadmap sets out more than 400 milestones to guide the global journey to net zero by 2050. These include, from today, no investment in new fossil fuel supply projects, and no further final investment decisions for new unabated coal plants. By 2035, there are no sales of new internal combustion engine passenger cars, and by 2040, the global electricity sector has already reached net-zero emissions. In the near term, the report describes a net zero pathway that requires the immediate and massive deployment of all available clean and efficient energy technologies, combined with a major global push to accelerate innovation. The pathway calls for annual additions of solar PV to reach 630 gigawatts by 2030, and those of wind power to reach 390 gigawatts. Together, this is four times the record level set in 2020. For solar PV, it is equivalent to installing the world’s current largest solar park roughly every day. A major worldwide push to increase energy efficiency is also an essential part of these efforts, resulting in the global rate of energy efficiency
  • 15. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 15 improvements averaging 4% a year through 2030 – about three times the average over the last two decades.
  • 16. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 16 Most of the global reductions in CO2 emissions between now and 2030 in the net zero pathway come from technologies readily available today. But in 2050, almost half the reductions come from technologies that are currently only at the demonstration or prototype phase. This demands that governments quickly increase and reprioritise their spending on research and development – as well as on demonstrating and deploying clean energy technologies – putting them at the core of energy and climate policy. Progress in the areas of advanced batteries, electrolysers for hydrogen, and direct air capture and storage can be particularly impactful. A transition of such scale and speed cannot be achieved without sustained support and participation from citizens, whose lives will be affected in multiple ways. 'The clean energy transition is for and about people,' said Dr Birol. 'Our Roadmap shows that the enormous challenge of rapidly transitioning to a net zero energy system is also a huge opportunity for our economies. The transition must be fair and inclusive, leaving nobody behind. We have to ensure that developing economies receive the financing and technological know-how they need to build out their energy systems to meet the needs of their expanding populations and economies in a sustainable way.' Providing electricity to around 785 million people who have no access to it and clean cooking solutions to 2.6 billion people who lack them is an integral part of the Roadmap’s net zero pathway. This costs around $40 billion a year, equal to around 1% of average annual energy sector investment. It also brings major health benefits through reductions in indoor air pollution, cutting the number of premature deaths by 2.5 million a year. Total annual energy investment surges to USD 5 trillion by 2030 in the net zero pathway, adding an extra 0.4 percentage points a year to global GDP growth, based on a joint analysis with the International Monetary Fund. The jump in private and government spending creates millions of jobs in clean energy, including energy efficiency, as well as in the engineering, manufacturing and construction industries. All of this puts global GDP 4% higher in 2030 than it would reach based on current trends. By 2050, the energy world looks completely different. Global energy demand is around 8% smaller than today, but it serves an economy more than twice as big and a population with 2 billion more people. Almost 90% of electricity generation comes from renewable sources, with wind and solar PV together accounting for almost 70%. Most of the remainder comes from nuclear power. Solar is the world’s single largest source of total energy supply. Fossil fuels fall from almost four-fifths of total energy supply today to slightly over one-fifth.
  • 17. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 17 Fossil fuels that remain are used in goods where the carbon is embodied in the product such as plastics, in facilities fitted with carbon capture, and in sectors where low-emissions technology options are scarce. 'The pathway laid out in our Roadmap is global in scope, but each country will need to design its own strategy, taking into account its own specific circumstances,' said Dr Birol. 'Plans need to reflect countries’ differing stages of economic development: in our pathway, advanced economies reach net zero before developing economies. The IEA stands ready to support governments in preparing their own national and regional roadmaps, to provide guidance and assistance in implementing them, and to promote international cooperation on accelerating the energy transition worldwide.' The special report is designed to inform the high-level negotiations that will take place at the 26th Conference of the Parties (COP26) of the United Nations Climate Change Framework Convention in Glasgow in November. It was requested as input to the negotiations by the UK government’s COP26 Presidency. 'I welcome this report, which sets out a clear roadmap to net-zero emissions and shares many of the priorities we have set as the incoming COP Presidency – that we must act now to scale up clean technologies in all sectors and phase out both coal power and polluting vehicles in the coming decade,' said COP26 President-Designate Alok Sharma. 'I am encouraged that it underlines the great value of international collaboration, without which the transition to global net zero could be delayed by decades. Our first goal for the UK as COP26 Presidency is to put the world on a path to driving down emissions, until they reach net zero by the middle of this century.' New energy security challenges will emerge on the way to net zero by 2050 while longstanding ones will remain, even as the role of oil and gas diminishes. The contraction of oil and natural gas production will have far-reaching implications for all the countries and companies that produce these fuels. No new oil and natural gas fields are needed in the net zero pathway, and supplies become increasingly concentrated in a small number of low-cost producers. OPEC’s share of a much-
  • 18. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 18 reduced global oil supply grows from around 37% in recent years to 52% in 2050, a level higher than at any point in the history of oil markets. Growing energy security challenges that result from the increasing importance of electricity include the variability of supply from some renewables and cybersecurity risks. In addition, the rising dependence on critical minerals required for key clean energy technologies and infrastructure brings risks of price volatility and supply disruptions that could hinder the transition. 'Since the IEA’s founding in 1974, one of its core missions has been to promote secure and affordable energy supplies to foster economic growth. This has remained a key concern of our Net Zero Roadmap,' Dr Birol said. 'Governments need to create markets for investments in batteries, digital solutions and electricity grids that reward flexibility and enable adequate and reliable supplies of electricity. The rapidly growing role of critical minerals calls for new international mechanisms to ensure both the timely availability of supplies and sustainable production.' The full report is available for free on the IEA’s website along with an online interactive that highlights some of the key milestones in the pathway that must be achieved in the next three decades to reach net-zero emissions by 2050.
  • 19. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 19 NewBase Energy News 22 May 2021 - Issue No. 1433 call on +971504822502, UAE The Editor:” Khaled Al Awadi” Your partner in Energy Services NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE. For additional free subscriptions, please email us. About: Khaled Malallah Al Awadi, Energy Consultant MS & BS Mechanical Engineering (HON), USA Emarat member since 1990 ASME member since 1995 Hawk Energy member 2010 www.linkedin.com/in/khaled-al-awadi-38b995b Mobile: +971504822502 khdmohd@hawkenergy.net or khdmohd@hotmail.com Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S. Universities. Currently working as Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat “with external voluntary Energy consultation for the GCC area via Hawk Energy Service, as the UAE operations base. Khaled is the Founder of NewBase Energy news articles issues, an international consultant, advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste management, waste-to-energy, renewable energy, environment protection and sustainable development. His geographical areas of focus include Middle East, Africa and Asia. Khaled has successfully accomplished a wide range of projects in the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted & finalized many contracts/agreements in products sale, transportation, operation & maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities. Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has participated in numerous conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is the Editor- in-Chief of NewBase Energy News and is a professional environmental writer with more than 1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste management and environmental sustainability in different parts of the world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see contact details above. NewBase: For discussion or further details on the news above you may contact us on +971504822502, Dubai, UAE NewBase 2021 K. Al Awadi
  • 20. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 20
  • 21. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 21
  • 22. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 22 For Your Recruitments needs and Top Talents, please seek our approved agents below