Talal Hasan, 44.01 co-founder and chief executive officer told the media, “The launch of our Direct Air Capture plant is a major step forward for the region and we are delighted to be announcing our plans today for such an exciting new project. The GCC countries have some of the highest CO2 emissions per capita in the world. Capturing some of these emissions is an essential step towards reducing harmful greenhouse gasses and achieving carbon neutrality.”

He further revealed that once operational, the project will produce around 100 kilograms of CO2 per day. The plant will harness solar energy to generate the necessary energy to drive the DAC process.

Recently, it was reported that the Kingdom of Bahrain is mulling supplying surplus electricity to Europe in the winters, when demand falls in the Middle East. Sustainable Energy Authority President Dr Abdulhussain Mirza said the plan could help meet Europe’s peak demand in winter on a barter basis.

Dr Mirza further revealed that Bahrain is planning to use solar panels and offshore wind turbines on and around the planned King Hamad Causeway. The new 25 kilometre long new King Hamad Causeway will link Bahrain to Saudi Arabia.

The post Oman to establish the world’s first solar-powered Direct Air Capture project appeared first on International Finance.

The new company will be funded by Oman’s oil revenue and it will also develop and expand the sector and pump more investments to bolster financial and economic returns of the state. The new company will work on oil and gas explorations and also renewable energy projects.

According to the Gazette, the new company will “borrow or raise money and/or financing of any nature” and use “defined or identifiable cash flows, revenues, receivables or assets (including those which are Shariah compliant) to issue securities in one or more tranches to investors in Oman and/or other countries.”

Oman plans to generate 35 percent of the country’s total revenue from non-oil sources as early as next year. The Omani government plans to diversify the economy and increase the sources of the national income. It is a key part of the Ministry of Finance’s Medium Term Fiscal Plan (MTFP), which also aims to provide decent standards of living, build a sustainable economy, and bring the country’s debt levels to a manageable position.

The contribution of non-oil revenue has been measured at OMR488 million for 2020, OMR565 million for 2021, OMR830 million for 2022, OMR1.27 billion for 2023, and OMR1.38 billion for 2024.

The post Oman announces the foundation of a new state-owned energy company appeared first on International Finance.

According to Hilal Said al Hadi, Head of Studies and Research at the Ministry, the savings will ensue from primarily two sources: the falling cost of equipment and hardware used in renewable energy plants, and the utilisation of natural gas.

Oman’s government is committed to reduce its dependence on dirty sources to produce energy and increase its investment in renewable energy.

Oman plans to generate at least 10 percent of its energy demands from renewable sources such as solar and wind by 2025. With major projects in the pipeline, Oman is set to surpass its goal.

The country also plans to generate 30 percent of its electricity demand from renewable energy sources by 2030.
Currently, Oman is developing large-scale solar PV projects in Ibri, Manah, and Adam. Oman has also invested heavily in the development of wind power projects in Sur, Jaalan Bani Bu Ali, Duqm, Sadah, Shaleem & Al Halaniyat, and Al Jazer.

Oman has also introduced a wide-scale rooftop solar PV scheme. The sultanate has also developed a number of waste-to-energy and bio-waste plants envisioned at different locations in the Sultanate.

According to Oman Power and Water Procurement Company (OPWP), solar energy will likely produce 21 percent of the total power needed in Oman by 2030, while wind energy and waste energy are projected to account for 6.5 percent and 2.5 percent of the total energy mix, respectively.

According to media reports, Infundi, a joint initiative of Nafath Renewable Energy and National Sustainable Energy Development Company, will launch a new Special Purpose Vehicle (SPV) that aims to raise $100 million to support the development of solar PV schemes in Oman.

The post Renewable energy to help Oman save up to $1 bn appeared first on International Finance.

State Grid will pay $1 billion to Oman’s Electricity Holding Company for the stake in Oman Electricity Transmission.

The deal is a part of the Omani government plan to privatise state-owned entities in the kingdom in order to raise cash from asset sales and increase its cash reserves, which have depleted over the past few years by a slump in oil prices.

State Grid made the announcement on its website; however, the financial details of the deal were not mentioned.

According to Fitch Ratings, Oman faces one of the largest budget deficits in the Middle East. As oil prices continue to remain low, the Omani government is now forced to look for alternate sources of funding.

The deal is also part of Chinese President Xi Jinping’s plan to revive ancient trading routes under his ‘One Belt, One Road’ initiative- a trade and infrastructure network connecting Asia with Europe and Africa along the ancient trade routes of the Silk Road.

State Grid’s investment in Oman marks its first major investment in the Middle East and also the largest investment made by a Chinese company in Oman.

According to the Chinese Ambassador to Oman Li Lingbing, the two countries have worked closely in recent times and Chinese companies have undertaken projects in oil and gas exploration and production, electricity, communications, fisheries, and processing industries in the kingdom with a total business volume of over $6 billion.

During the first half of this year, trade volume between the two countries reached $10.6 billion, a 6.3 percent increase from the same period last year.

The post China’s State Grid buys 49% stake in Oman electricity Utility appeared first on International Finance.