News from HAEE | October 2018
News from HAEE | October 2018

Climate change: European Commission and Bill Gates led Breakthrough Energy launch €100 million clean energy investment fund

The European Commission and Breakthrough Energy have signed a Memorandum of Understanding to establish Breakthrough Energy Europe (BEE) – a joint investment fund to help innovative European companies develop and bring radically new clean energy technologies to the market.

With this initiative, the Commission takes action to continue leading in the fight against climate change and to deliver on the Paris Agreement – giving a strong signal to capital markets and investors that the global transition to a modern and clean economy is here to stay.

Breakthrough Energy Europe links public funding with long-term risk capital, so that clean energy research and innovation can be brought to market faster and more efficiently. With a capitalization of €100 million, the fund will focus on reducing greenhouse gas emissions and promoting energy efficiency in the areas of electricity, transport, agriculture, manufacturing, and buildings. It is a pilot project that can serve as a model for similar initiatives in other thematic areas.

Breakthrough Energy Europe is expected to be operational in 2019. Half of the equity will come from Breakthrough Energy and the other half from InnovFin – risk-sharing financial instruments funded through Horizon 2020, the EU's current research and innovation program.

 

PPC: With the short delay of submitting the binding bids for the divestiture

In early December, binding bids for the sale of PPC units are expected to be disbursed.

Recently, all the schemes claimed by PPC units are in contact with the administration in order to obtain clarifications on technical and financial data, based on the data they collected from their access to the data room.

The recent decision of the Ministry of Environment and Energy to abolish the lignite fee and supplier billing, creates new data, providing additional incentives for investors.

 

Lukoil - Eni cooperation for Meleiha block in Egypt

"Russia’s oil giant LUKoil hopes that the extraction at the Meleiha Block - which the company is developing jointly with Italy’s Eni and Japan’s Mitsui - will start as soon as the talks with the Egyptian government are finished", LUKoil's CEO Vagit Alekperov reported and continued “In Northern Africa, in Egypt, there is the Meleiha project that we are now negotiating with the Egyptian government. I hope that Eni, as the project’s operator, will soon finish the talks and we will start the implementation of the project”.

 

Investments worth € 153.6 million made by Enagas

Investments worth 153.6 million euros were carried out in the first quarter of 2018 by the spanish Enagas, with the bulk being directed to the construction of the TAP pipeline, which has now reached 79%. As reported, Enagas, which has a 16% stake in TAP, a net profit of 325.7 million euros was achieved in a nine-month period, while its debt fell by 349 million to 4,659 billion euro.

 

EU: Investment proposal of € 700 million in clean transport

European Commission promotes an investment proposal of € 695.1 million in 49 key projects to develop clean mobility infrastructures in Europe.

Investments will come from the Connecting Europe Facility (CEF), the EU's financial instrument for supporting the development and modernization of infrastructure. They are expected to mobilize up to € 2.4 billion in public and private investments.

The selected projects will provide infrastructure for alternative fuels, electric and hydrogen cars, modernize air traffic management in Europe and develop rail and inland waterway transport. With the support of the selected projects, the Commission is implementing the objectives set out in the "Europe on the Move" mobility package, which aims to help European industries and make the EU a global leader in innovation, digitization and exemption from carbon emissions.

 

Energean: Trading in Tel Aviv has begun

Energean Oil & Gas PLC has started trading on the Tel Aviv exchange, through a secondary listing. Energean raised £330 million, when it floated on London’s main market in March and will maintain this as its primary listing, but will broaden the shareholder base.

The special opening ceremony was attended by Yuval Steinitz, Israeli Minister of National Infrastructure, Energy and Water Resources, who reported:

"Energean's entry to the Tel Aviv Stock Exchange is an important development. It is a positive signal to the stock market, but above all a positive signal for the growing energy market and the emergence of Israel as a major player in the global energy market".

Mathios Rigas, Managing Director of the Energean Group, also commented:

"The juncture is very positive for Energean, as the company is preparing to launch its major project in Israel, which will not only add value to its shareholders, but also offer competition and security of supply on the Israeli market".

 

Energy Saving: Winning the bet of 40,000 renovations per year

The "bet" of energy efficiency is urged to be won by Greece over the next decade, following the European checks and always seeking to close the gap, which has been created, as well as getting back in the field.

The Secretary General of the Ministry of Environment and Energy, Mr. Michalis Verroiopoulos, speaking at an investment forum, organized by the European Commission, highlighted the European targets for 2030 and the Greek target of 40,000 renovations per year, in the next 12 years. The credit institutions' side is willing to finance energy efficiency projects, but retains significant reservations due to the high risk and lack of maturity of the projects.

 

Saudi Arabia halts solar project with Softbank

Saudi Arabia has shelved a $200 billion plan with SoftBank Group Corp. to build the world’s largest solar power-generation project, as reported by the Wall Street Journal’s Rory Jones and Summer Said.

According to the Wall Street Journal, the decision to put on hold the project comes on the heels of other stalled high-profile endeavors, including the effort to publicly list Saudi Arabian Oil Co., known as Aramco.

The project with SoftBank “would have turned the world’s most important oil producer into a giant in solar power, ultimately generating about 200 gigawatts of energy—more than three times what the country needs every day”, the Journal reporters note.

 

Major oil companies are turning to electrification

Large oil companies are turning to electrification, demonstrating that the international business "demon" sees opportunities on the horizon and sees prospects in a market that has remained stagnant for many years. French Total is a representative example of a company that extends its oil and gas business, in the field of electric vehicle, charging by taking over the acquisition of the French company G2mobility.

Total acquired the full ownership of G2mobility, after having first agreed with the company and other shareholders, such as the French national investment bank Bpifrance and the Nexans telecom equipment company.

Of course, the example of Total is not the only proof that the energy transition takes place with courageous business steps.

A few months ago, BP acquired Britain's largest charging company, Chargemaster, and the investment cost £130 million, while Shell bought the Dutch NewMotion.

Market players believe that such transactions are the proof that electric mobility is growing rapidly, but they also increase the risk of creating monopolies in this industry.

 

Changes in DEDA Administration

Changes in the composition of DEDA administration are on the way by the Ministry of the Environment and Energy. More specifically, Chairman of the Board of Directors is Stavros Raptopoulos, replacing Mr. Dimitris Papasotiriou, while Stefania Mossé is replaced by Theodoros Terzopoulos.

 

In the beginning of 2021 the introduction of ARAMCO in the Stock Exchange

Aramco oil giant listing is scheduled for 2021, Mohammed bin Salman al-Saud, Prince of Saudi Arabia, told Bloomberg. He added that the initial public offering would give the company a value of up to 2 trillion. dollars.

Asked about the company's time of listing, the Saudi Prince replied: "I believe in late 2020, early 2021" and continued: "Investors will decide on the price that day. I think well above the 2 trillion dollars".

Saudi Arabia originally designed the initial public offering for Aramco in 2018.

This plan was abandoned and Energy Minister Khalid al-Falih reported that the listing of the company would happen on the right time.