UK policy updates

COP 26 ends with global agreement to speed up action on climate change

The 26^th global United Nations climate summit came to a close in the UK on 13^th November with a global agreement to accelerate action on climate change this decade. Nearly 200 countries agreed the “Glasgow Climate Pact” to keep 1.5C alive, but it will only be delivered with a huge global effort. Agreements made at COP26 include 130 countries across the globe committing to end and reverse deforestation, along with cutting methane emissions by 30% by the year 2030.

When the UK took on the COP26 leadership role nearly two years ago, only 30% of the world was covered by net zero targets. This figure is now at around 90%. Over the same period, 154 Parties have submitted new national targets, representing 80% of global emissions.

The UK Presidency has also been focused on driving action to deliver emissions reductions. We have seen a huge shift in coal, with many more countries committing to phase out unabated coal power and ending international coal financing.

While on the world’s roads, the transition to zero emissions vehicles is gathering pace, with some of the largest car manufacturers working together to make all new car sales zero emission by 2040 and by 2035 in leading markets. Countries and cities are following suit with ambitious petrol and diesel car phase out dates. Read more

Algeria policy updates

President Tebboune sets 3-month deadline for public solar energy use

On 21^st November, President Abdelmadjid Tebboune issued instructions that would obligate all municipal authorities across the country to use solar energy for public lighting ‘including along highways and in mountainous areas such as the Aurès, Ouarsenis and Djurdjura regions’. The President also set a three-month deadline to fast-track the energy transition by implementing solar energy in certain State institutions, notably those in the health and education sectors. In addition, he underlined the importance of reducing domestic gas consumption in order to preserve energy resources and increase export capacities. Read more

National hydrogen strategy committee set up

On 28^th November 2021, a national committee charged with developing Algeria’s national hydrogen strategy was officially set up. The committee is made up of representatives of the Commission for Renewable Energies and Energy Efficiency, the Ministry of Energy Transition and Renewable Energies, Sonatrach and Sonelgaz. The committee will be responsible for coordinating the development of a roadmap to implement a national strategy for the development of hydrogen in Algeria, with the collaboration of the Ministry of Energy and Mines. Read more

NAPEC conference emphasises importance of energy transition

The international oil and gas conference NAPEC, which began on 8^th November in the city of Oran, highlighted the need for Algeria and its partners to achieve an energy transition that aligned with the global objectives of reaching carbon neutrality by 2050 but also with the needs of developing countries. As such, during the conference, business leaders, experts and decision-makers stressed that Algeria’s future lies in diversifying its energy mix to include a substantial share of renewables, in addition to fossil resources. Read more

467.8 megawatts generated by September 2021

The State-owned group Sonelgaz has announced that Algeria generated 467.8 megawatts of electricity from renewable energy sources in the first nine months of 2021, including 156 megawatts produced in the far south. The use of renewable energy is estimated to have saved 4,247 m3 of fuel oil and reduced CO2 emissions by 117,000 tonnes. In 2020, the production of renewable energy reached a total of 657.4 megawatts. The group also stated that its subsidiary Shariket Kahraba wa Taket Moutadjadida (SKTM) has hybridised two oil-fired power stations to create an additional 12 megawatts of capacity in 2021. Read more

Algeria project updates

‘Solar 1,000 MW’ energy tender launched

On 25^th December, the Ministry of Energy Transition and Renewable Energies announced that the invitation to tender to create 1,000 MW of solar energy, known as the ‘Solar 1,000 MW’ project, is now open. The invitation should lead to the selection of companies tasked with building photovoltaic solar power plants each with capacities of between 50 and 300 MWp.

The invitation to tender is open to all natural or legal persons, alone or as a consortium, that are able to mobilise the funding required for the project, that have a proven track record in developing and assembling independent power plant projects and have the capacity to carry out all the services required for this project. Interested investors must develop, finance, design, supply equipment for, build, operate and maintain the power plants, as well as build the infrastructure to connect the plants to the grid and sell the electricity produced. For each power plant, the electricity produced will be sold via a Power Purchase Agreement (PPA) between the companies and the designated buyer, for an operating period of 25 years.

The deadline for submitting bids is 30^th April 2022.

The launch of the tender followed the creation of a specialised working group in November 2021, which led to the selection of 11 potential sites for the project covering a total capacity of 4,250 hectares in collaboration with the wilayas involved, namely Béchar, El Bayadh, El Oued, El M’Ghair, Ghardaïa and Ouargla. Read more

Westport Fuel Systems to supply 60,000 LPG kits for 10.4 mn USD

In early November 2021, the Canadian company Westport Fuel Systems announced that it has signed a new contract with the Algerian petroleum product distribution company Naftal. Under the terms of the contract, Westport Fuel Systems will supply 60,000 LPG fuel kits, along with related spare parts and accessories, to Algeria for delivery over the next 18 months. The value of the transaction is estimated at 9 mn EUR (10.4 mn USD). Westport Fuel Systems has already supplied 120,000 LPG kits to Naftal over the past six years. Read more

Sonelgaz and Sonatrach to produce 500 MW of hybrid energy in southern Algeria

The CEO of Sonelgaz, Chaher Boulakhras, announced in October 2021 that the company intends to launch a project to produce 500 MW of hybrid energy in the far south of Algeria in partnership with Sonatrach. Boulakhras announced that an invitation to tender would be launched ‘shortly’ for the project, which will be connected to the national grid. He also announced a separate project to produce 21 MW of hybrid energy to strengthen the production of electricity for isolated networks. Read more

New plan to convert 150,000 vehicles to LPG launched

In mid-October 2021, the Ministry of Energy Transition and Renewable Energies and the National Agency for the Promotion and Rationalisation of Energy Use (APRUE), announced the official launch of a scheme to convert 150,000 vehicles to use LPG. Read more

Sonatrach and Eni sign an agreement to cooperate on renewables

On 14^th December, the Algerian State-owned group Sonatrach and the Italian group Eni signed an agreement to cooperate in the renewable energy sector. The agreement focuses on jointly developing renewable and new energies, with a focus on solar energy production, lithium exploration, bio-fuel production and green and blue hydrogen production. Read more

On 14^th December, the State-owned electronics company ENIE and the Italian company Fimer signed a contract which provides for the creation of a joint venture, Fimer Algérie, that will specialise in manufacturing photovoltaic inverters. Read more

ENIE and Fimer sign contract to create photovoltaic inverter manufacturer

First 150 MW photovoltaic power plant planned in Béchar

Work on the first photovoltaic power plant in Bechar, with the capacity to produce 150 megawatts (MW) of solar energy, will begin in January 2022, according to Abdelatif Boulouchouour, the local director of the energy sector. The power plant will be located across 337 hectares of land between the municipalities of Béchar and Kenadsa. Work to complete the solar power plant is expected to take 18 months. Upon completion, energy produced at the plant will be fed into the nearby very high voltage 240 kV (HTT) transformer station, as well as to the Béchar industrial zone and the public energy grid. Read more

Thought leadership

Petrofac

Petrofac is a leading international service provider to the energy industry. We design, build, manage and maintain infrastructure for the energy industries.

• The difference between green hydrogen and blue hydrogen

By Alex Haynes, Head of Business Development, Petrofac

Following up on two recent Petrofac announcements – supporting the leading UK CCS and hydrogen project and supporting Australia’s largest commercial-scale green hydrogen project – we had some questions that needed answering – what is green hydrogen and how does green hydrogen ‘work’? And what is blue hydrogen and what is the difference between blue and green? Bar the obvious, the colour name used to distinguish them, of course. Read more

UK company initiatives

Neptune Energy

Neptune is one of the largest independent exploration and production companies in Europe. We’re strategically positioned in OECD countries and have substantial production assets in North Africa and the Asia Pacific region.

• Neptune Energy announces endorsement of the World Bank’s Zero Routine Flaring by 2030 initiative: On 21^st October, Neptune Energy announced it has endorsed the World Bank’s Zero Routine Flaring by 2030 initiative, which brings together governments, companies and development institutions to eliminate routine gas flaring in oil production no later than 2030. Neptune will report annually on its flaring and progress towards meeting the initiative’s objective. Read more
• Neptune Energy and EDF complete first-of-its-kind methane study in UK:  On 2^nd November, Neptune Energy announced the completion of a first-of-its-kind collaboration with Environmental Defense Fund (EDF) to measure methane emissions on a working UK offshore platform using advanced drone technologies. Methane is the primary component of natural gas and is a potent greenhouse gas. The results of the study will be published in a scientific peer-reviewed paper in 2022. Read more
• Neptune Energy awarded ‘Gold’ status by OGMP for methane reduction plans: On 9^th November, Neptune Energy announced it has been awarded Gold Standard status by the Oil & Gas Methane Partnership (OGMP) in recognition of setting ambitious targets and establishing credible plans to reach a net zero methane intensity by 2030. To achieve Gold Standard companies are required to outline a credible and clear path to reduce methane emissions by 45% or more and to report their progress annually. Read more

Petrofac

Petrofac is a leading international service provider to the energy industry. We design, build, manage and maintain infrastructure for the energy industries.

• Petrofac partners with Cranfield University to support new technology in zero emissions challenge: On 1^st December, Petrofac announced it is collaborating with Cranfield University to investigate a new technology that could minimise the impact of amine scrubbing technology – a widespread form of carbon dioxide (CO2) capture. The Cranfield team, led by Dr Peter Clough, has been awarded funding from UKCCSRC (UK Carbon Capture and Storage Research Centre) for the initiative. Read more
• Petrofac strengthens New Energy Services team with offshore wind appointment: On 12^th January 2022, Petrofac announced it is supporting the continued growth of its global offering in the wind sector with a senior operational appointment. New Head of Wind Operations and Maintenance (O&M), Phaedra Pritchard will be responsible for building and supporting Petrofac’s O&M service capability within the offshore wind sector, both in the UK and globally. Read more

Equinor

Equinor is a broad energy company with more than 21,000 employees, present in more than 30 countries worldwide. We develop oil, gas, wind, solar energy and low carbon solutions. Our headquarters are in Stavanger, Norway. We are listed on the New York and Oslo stock exchanges.

• Empire Wind selects turbine supplier: On 18^th October,Empire Offshore Wind, a joint venture between Equinor and bp, announced that they had selected Vestas as its preferred supplier for wind turbine generators for both Empire Wind I and Empire Wind II, one of the largest offshore wind projects in the US. Read more
• Equinor plans to launch GW-size floating wind concept in Scotland: On 1^st November, Equinor, the leading developer in floating offshore wind, announced it had designed a new floating wind concept that will enable industrial standardisation and maximise opportunities for local supply chains. Read more
• Equinor farms down in Dogger Bank C and expands partnership with Eni: On 2^nd November, Equinor has entered into an agreement with Eni to sell a 10% interest in the Dogger Bank Wind Farm C project in the UK. Equinor continues to capture value from the world class offshore wind asset obtaining an equity consideration of around GBP 70 million.
• Stepping up Korean offshore wind plans, 3 GW collaboration with EWP: On 17^th November, Equinor announced it had signed a Memorandum of Understanding (MoU) with Korean East-West Power (EWP) to cooperate on 3 GW of offshore wind projects in South Korea. Together the partners will contribute significantly to the country’s ongoing energy transition and development of an offshore wind industry in Korea. Read more
• Equinor stepping up on fusion investment: On 1^st December, Equinor Ventures (EV) announced it is increasing its investment in Commonwealth Fusion Systems (CFS) as part of the Series B funding round raising more than USD 1.8 billion to commercialise fusion energy. Read more
• Equinor and partner reach financial close on the third phase of the world’s biggest offshore wind farm: On 2^nd December, Dogger Bank wind farm owners, Equinor and SSE, announced financial close on the third phase of the project, Dogger Bank C. The terms achieved are some of the best ever for a construction offshore wind project in the UK. Read more
• ENGIE & Equinor launch the H2BE project to kick-start low-carbon hydrogen market in Belgium: On 16^th December, ENGIE and Equinor announced the H2BE project which aims to develop production of low-carbon hydrogen from natural gas in Belgium. The Belgian federal government released its Hydrogen Strategy on 29 October and the H2BE project will help Belgium deliver on the strategy. Read more

BP

BP is an integrated energy business with operations in Europe, North and South America, Australasia, Asia and Africa.

• bp investing almost $270 million to improve efficiency, reduce emissions and grow renewable diesel production at Cherry Point Refinery: On 4^th October, bp announced plans for a $269 million investment in three projects at its Cherry Point Refinery in Washington state, aimed at improving the refinery’s efficiency, reducing its carbon dioxide (CO2) emissions and increasing its renewable diesel production capability. Read more
• bp to grow leading US technology company that turns commercial buildings into virtual power plants: bp has acquired Blueprint Power (Blueprint), a US-based technology company whose technology can help turn buildings into a flexible power network by connecting them to energy markets through cloud-based software. Blueprint’s technology presents an opportunity to help decarbonize commercial real estate, help real estate owners meet their environmental goals, and give them access to new revenue streams. Read more
• Lightsource bp launches Bighorn Solar project in Colorado – powering world’s first steel mill to run almost entirely on solar: On 13^th October, Global solar leader Lightsource bp, together with Xcel Energy and EVRAZ North America, today celebrated the dedication of its new 300-megawatt Bighorn Solar project. Lightsource bp, a 50:50 joint venture with bp, unveiled the solar project that will help reduce emissions and support more than 1,000 jobs at EVRAZ’s Pueblo steel mill – the world’s first steel mill to be powered largely by solar energy. Read more
• Lightsource bp joins Poland’s accelerated energy transition with 757MW deal: On 19^th October, Lightsource bp, a global leader in the development and management of solar energy has secured its first projects in Poland through a 757MWp co-development deal. Read more
• East Coast Cluster selected as one of the UK’s first two carbon capture and storage projects: On 19^th October, the East Coast Cluster (ECC) was named as one of the UK’s first carbon capture, usage and storage clusters following a successful bid to the Department for Business, Energy & Industrial Strategy (BEIS). The ECC was named as a “Track-1” cluster, putting it on course for deployment by the mid-2020s. Read more
• bp and Piaggio Group join up to accelerate the two- and three-wheeled ‎electric mobility revolution across Europe, India and Asia: On 25^th October bp and Piaggio Group announced that they plan to work together to develop and roll out a comprehensive set of services ‎for the rapidly growing number of two- and three-wheeled electric vehicles across Europe and Asia. Read more
• bp and Daimler Truck AG to accelerate the deployment of hydrogen infrastructure, supporting the decarbonization of UK freight transport: On 27^th October, bp and Daimler Truck AG announced plans to work together to help accelerate the introduction of a hydrogen network, supporting the roll-out of a key technology for the decarbonization of UK freight transport. They intend to pilot both the development of hydrogen infrastructure and the introduction of hydrogen-powered fuel-cell trucks in the UK. Read more
• bp plans major green hydrogen project in Teesside: On 29^th November, bp confirmed it is planning a new large-scale green hydrogen production facility in the North East of England that could deliver up to 500Mwe (megawatt electrical input) of hydrogen production ‎by 2030. To be developed in multiple stages, HyGreen Teesside is expected to match production to demand ‎and build on experience to drive down costs. Read more
• bp acquires c. 29% stake in major UK provider of biomethane for heavy goods vehicles, Gasrec: On 2^nd December, bp announced that it had acquired a 28.57% stake in Gasrec, the UK’s largest dual provider of bio-Liquified Natural Gas (LNG) and bio-Compressed Natural Gas (CNG) to road transport. The company builds, owns and operates biomethane refueling stations, providing renewable solutions to the heavy goods vehicle (HGV) industry. Read more
• bp takes first major step into electrification in the US by acquiring EV fleet charging provider AMPLY Power: On 7^th December, bp took its first major step into electrification in the US with the acquisition of AMPLY Power, an electric vehicle (EV) charging and energy management provider for fleets that operate trucks, transit and school buses, vans and light-duty vehicles. Read more
• bp and partners award first engineering contracts advancing major ‎UK power and carbon capture projects: On 15^th December, bp announced on behalf of its partners – the operator of Net Zero Teesside Power (NZT Power) and ‎the Northern Endurance Partnership (NEP) – that it had awarded contracts as part of its dual Front ‎End Engineering Design (FEED) competition to two separate consortiums of engineering, ‎carbon capture licensors, power providers and EPC contractors.‎ Read more

Upcoming events

• SEER

Renewables, Energy, Electricity

Algiers, 07 Feb. to 10 Feb. 2022

www.seer-dz.com

• SolarElec

Renewables, Energy, Electricity

Algiers, 27 Mar. to 30 Mar. 2022

www.solarelec.dz

• Algeria Solar Summit

Renewables, Energy, Electricity

Algiers, 18 May. to 19 May. 2022

www.algeriesolaire.com

• ERA

Renewables, Energy Transition

Oran, 24 Oct. to 26 Oct. 2022

www.era.dz

Going further

Would you like to promote your organisation to the ABBC membership? Read more

Interested in ABBC membership? ABBC membership offers you unique benefits including insights, advice and networking in and around Algeria – find out why leading British organisations choose ABBC membership. Read more

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