PM — It’s a diplomacy-heavy end to the week

Good afternoon, friends, and a happy THURSDAY to you all. It’s one of those (very) rare occasions where we have no big or interesting news on the home front to speak of today. But considering how busy the post-Eid news cycle has been, we’re certainly not complaining.

A LOT OF DIPLOMACY HAPPENING- Prime Minister Moustafa Madbouly is in Tunisia today and tomorrow for a meeting of the Egyptian-Tunisian Cooperation Council, according to a cabinet statement. Joining Madbouly in Tunisia are Education Minister Tarek Shawki, Higher Education Minister and acting Health Minister Khaled Abdel Ghaffar, International Cooperation Minister Rania Al Mashat, CIT Minister Amr Talaat, Housing Minister Assem El Gazzar, Agriculture Minister El Sayed El Quseir, GAFI head Mohamed Abdel Wahab, Financial Regulatory Authority head Mohamed Omran, and the head of the Trade and Industry Ministry’s Egyptian Commercial Service, Yehia Elwathik Bellah.

Foreign Minister and COP27 Sameh Shoukry is co-chairing a two-day meeting of climate leaders in Copenhagen, alongside Denmark’s Climate, Energy, and Public Utilities Minister Dan Jørgensen and COP26 President Alok Sharma, according to a ministry statement. Shoukry met earlier today with Danish Prime Minister Mette Frederiksen, a separate statement reads.

Saudi Crown Prince Mohamed bin Salman could be in town next week for talks with President Abdel Fattah El Sisi, Ala Mas’ouleety’s Ahmed Moussa said last night, without giving any details (watch, runtime: 3:01).

THE BIG STORY ABROAD

Finland and Sweden plan to formally seek NATO membership amid Russia’s invasion of Ukraine. “Finland must apply for NATO membership without delay,” Finland’s President Sauli Niinisto and Prime Minister Sanna Marin said in a joint statement, with Sweden expected to follow suit, Reuters reports. The Nordic countries are the two biggest EU nations who had stayed out of NATO, and the move would be a monumental shift for the two countries’ long history of wartime neutrality. It would also result in the expansion of the Western military alliance, delivering a blow to President Vladimir Putin’s ambition to weaken it. Putin had cited NATO expansion as one of the main reasons for the country’s “special military operation” in Ukraine. Finland’s announcement drew anger from the Kremlin, with spokesman Dmitry Peskov threatening an unspecified response.

ALSO ON THE FRONT PAGES- Remember what it was like when covid-19 first landed within our borders? North Korea is just now catching up with what the rest of the world already experienced in early 2020, reporting its very first outbreak of the virus and imposing a national lockdown in a bid to contain the spread. Pyongyang — which so far has not vaccinated its population — has said the outbreak is the “gravest national emergency.” Reuters, the Wall Street Journal, and the New York Times have more.

HAPPENING NOW-

The Event Horizon Telescope team is set to announce within minutes what it says is a “groundbreaking” discovery in the Milky Way galaxy, according to Space.com. You can catch the live stream here.

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** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

• Another step towards sustainable bonds: Ministers have approved a plan by the Finance Ministry to broaden its green financing framework to include sustainable development bonds, allowing the state to raise money for a wider array of social and environmental projects, cabinet said yesterday.
• Total Eren + Enara Capital to build green ammonia facility in SCZone: Egypt inked a memorandum of understanding with an alliance that includes Total Eren and Africa-focused SME investor Enara Capital to build a green ammonia plant in the Suez Canal Economic Zone.
• Cairo-based logistics startup Mylerz has raised USD 9.6 mn in equity funding from private equity outfit Lorax Capital Partners, with participation from e-payments giant Fawry, which will also provide payments services for the company.

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FOR TOMORROW-

The PSA world squash championships get underway tomorrow. The men’s and women’s finals will be played on 22 May. There is USD 550k at stake for each of the men’s and women’s championships, making this the biggest purse on record for a squash tourney. The CIB-sponsored championships will play out at SODIC’s Club S Allegria and at the National Museum of Egyptian Civilization.

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Keep an eye out for Madbouly’s big presser at the start of next week: The promised press conference to announce new details of the state’s response to the economic turmoil fallout from Russia’s war in Ukraine will take place early next week, cabinet said in a statement yesterday following its weekly meeting. Cabinet is expected to reveal new details on how the government intends to attract more FDI and expand the private sector’s role in the economy.

A huge US “GreenTech business mission” is inbound next week. More than 40 US companies will be in Egypt during 15-17 May to kick the tires on green investment and potential business partnerships in sectors ranging from energy to healthcare, agriculture, aviation, construction and water resource management. The high-level delegation will meet with members of the business community and senior government officials, including Prime Minister Moustafa Madbouly and other members of cabinet. The mission is being organized by AmCham and the US Chamber of Commerce.

It’s interest rate week: The Central Bank of Egypt will meet to review interest rates on Thursday, 19 May. Our customary poll of analysts sees the central bank getting more aggressive with its tightening cycle, with five of seven respondents expecting rates to rise by as much as 200 bps on the back of rising inflation and emerging-market outflows.

☀️ TOMORROW’S WEATHER- Brace yourselves — a heatwave is coming: Expect the mercury to rise in the capital city over the weekend, reaching a daytime high of 33°C before cooling to a low of 22°C tomorrow, the Egyptian Meteorological Authority said yesterday. Saturday is expected to see a high of 34°C and low of 20°C.

Surprise: Big Oil isn’t all-in on mitigating climate change: Fossil fuel firms are discreetly planning “carbon bomb” oil and gas projects that would unleash close to 650 bn tons of CO2 emissions and ultimately jeopardize the 1.5°C warming threshold, according to an investigation by the Guardian. The newspaper’s investigation into major gas and oil players such as Exxon, Gazprom, and others, suggests the firms are not buying into global efforts to curb global warming. Big Oil will be shelling out USD 103 mn daily through to 2030 to fund 195 carbon bombs to exploit new oil and gas fields, with 60% of these projects already pumping. These new expansion plans would produce greenhouse gases equivalent to a decade of China’s CO2 emissions in the short-term, and the equivalent of 18 years of current global emissions in the long term.

The biggest culprits: The US, Canada, and Australia are some of the countries with the largest expansion plans, with Exxon taking the lion’s share of these climate-dooming plans. The company is on track spend USD 21 mn daily for the remainder of the decade on carbon bombs.

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SIGN OF THE TIMES- DXB just posted its best quarter since the pandemic began as revenge travel picks up: The UAE travel hub could reach pre-covid levels earlier than expected, and has upped its year-end traffic expectations to 58.3 mn, exceeding a prior forecast of 57 mn. The airport handled 13.6 mn passengers in the first quarter of 2022, more than double the 5.7 mn in the same period last year. Dubai Airports CEO Paul Griffiths thinks they’ll be close to pre-pandemic levels during 2024. “The original idea was 2025 or even beyond,” he told Bloomberg TV. “People are engaging in revenge tourism after two years of lockdown, they’re rushing out to buy tickets.” This could be bad news for travelers, who could soon start seeing more expensive travel fares due to high oil prices and inflation, Griffiths told Reuters, adding that he doubted that would turn people off traveling, due to the huge demand built up during the pandemic.

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After a long work week, sometimes all you need is a movie that makes for easy viewing: Enter The Takedown, a light action comedy, starring the quick-witted Omar Sy, with picturesque views to help you unwind this weekend. The French cop buddy movie is a sequel to 2008’s On the Other Side of the Tracks, and it’s a refreshing relative to its genre contemporaries (think Rush Hour, Bad Boys, and Lethal Weapon). The Netflix movie brings together two fiercely competitive old pals to solve a murder that involves a terrorist white supremacist group. We recommend you watch it in French with English subtitles, which feels a lot more natural than the English dubbing.

⚽ The North London derby is tonight: Tottenham face Arsenal in a highly-anticipated clash at 8:45pm, concluding the 36th week of the Premier League. Whoever lands on top tonight will be one step closer to the Champions League — the Spurs are currently in 5th place with 62 points, while the Gunners are four points ahead of them in 4th place.

Meanwhile in Spain: La Liga champion Real Madrid faces bottom-placed Levante at 9:30pm, while Real Sociedad and Cadiz face off at 7pm, and Rayo Vallecano v Villarreal is on at 8pm.

On Saturday, the 37th week of the Spanish League kicks off with two matches: Espanyol v Valencia at 6:30pm, and Celta Vigo v Elche at 9pm.

CAF Champions League semi finals: Tomorrow, we will find out one of the teams advancing to the African final, as Morocco's Wydad meets Angolan Petro Atlético at 9pm. The Moroccan team had previously won the first leg, 3-1. On Saturday, we’ll get confirmation on whether or not our very own Al-Ahly makes it to the final. The Egyptian team faces Algeria’s ES Setif in the return match at 9pm, after Al-Ahly emerged victorious 4-0 in the first leg in Cairo.

And last, but most definitely not least, the FA Cup Final: Liverpool and Chelsea clash in the FA Cup Final on Saturday at 5:45pm.

Lionel Messi is officially the highest-paid athlete in the world, according to the annual Forbes list. The Paris Saint-Germain star earned USD 130 mn over the past year, which puts him ahead of the NBA's LeBron James and Manchester United's Cristiano Ronaldo.

???? EAT THIS TONIGHT-

Get a breath of fresh air this weekend at The Finch, the Cookery Co’s latest addition to the culinary scene in the city’s west. Located in 6th of October's Palm Hills Club, the social bistro is surrounded by scenic greenery and a vast open space that will get you to unwind as you gorge on The Finch’s delicious comfort food. Their menu is full of must-trys. We highly recommend their freshly baked pastries, and their fluffy croissant is not to be missed — our bakery connoisseurs think it’s one of the best in town. You also can’t go wrong with their Steak & Fries or one of their yummy salad options.

???? OUT AND ABOUT-

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Italian artist Licia Martini’s work will be on display in an exhibition entitled Caleidoscopio at Bibliothek Egypt starting today. Through her watercolor paintings, Martini emphasizes the beauty of nature with a touch of playfulness. The solo exhibit runs through 31 May.

Fan-favorite spinners Disco Misr are launching their new album tomorrow at 8pm at Cairo Jazz Club 610. Their re-inventions of Arabic retro tunes are guaranteed to make you dance the night away.

Gather your friends and family and head to Cairokee’s concert at Zed Park October tomorrow. The prominent Egyptian rock band will be performing their favorite hits at 7pm, though doors open earlier at 2pm.

The EGX30 fell 1.6% at today’s close on turnover of EGP 957.76 mn (9.2% above the 90-day average). Foreign investors were net sellers. The index is down 10.6% YTD.

In the green: Orascom Construction (+2.6%), Fawry (+0.6%).

In the red: Palm Hills (-5.0%), Qalaa Holdings (-4.0%) and Ezz Steel (-3.9%).

Green hydrogen might have its moment sooner than previously thought: As gas prices in Europe continue to skyrocket due to Russia’s war in Ukraine, green hydrogen has suddenly emerged as a viable and lucrative substitute that has drawn interest from governments and private players who are moving fast to bring the alternative energy source into the mainstream, Bloomberg reports.

NEED A REFRESHER ON GREEN HYDROGEN? We got you covered here.

Record high gas prices sparked the scramble for green hydrogen: European countries have long planned to increase green hydrogen’s place in their energy mixes but the process has been slow. It wasn’t until gas prices began rising in Europe last year that the case for green hydrogen was solidified. Prices have soared 450% over the past year on the back of tightening global supply and, most recently, the conflict in Ukraine.

And, of course, war: The problem of heavily depending on Russian hydrocarbons has been thrown into sharp relief this year as tensions have soared following Moscow’s invasion of Ukraine. Russia supplies 45% of the EU’s gas imports and some 40% of its total gas consumption, according to the IEA. Some 93% of hydrogen producers, users and investors polled by BloombergNEF last month said that they project the war to accelerate the development of the green hydrogen industry.

The industry has long been held back by high costs, but this is expected to change:

Green hydrogen is produced using a process known as electrolysis where H2O (water) is separated into H (hydrogen) and O (oxygen), enabling hydrogen to be extracted. Only 0.1% of the world’s hydrogen supply is actually green, which is largely due to the fact that the process is more expensive than its non-green equivalent. Now, by virtue of soaring gas prices, green hydrogen has become the more cost-effective option. Adding to that is the rising price of carbon in the EU, which has nearly doubled in the past year, making the green version even less expensive by comparison.

Government policy is also helping usher in the transition: The EU has now doubled green hydrogen targets, and wants to have 80 GW of capacity by the end of the decade, up from less than 1 GW currently. The UK is doing likewise, and has set a goal of producing 5 GW of power from electrolyzers by 2030.

Companies are already pouring bn’s into production plants and infrastructure projects to facilitate the transition: Australian iron ore producer Fortescue Metals Group have agreed to a USD 50 bn project to develop the hydrogen supply chain with German utilities company E.On while hydrogen infrastructure investment platform Hy24 has earmarked some USD 1.6 bn for various projects. “The economics are moving in favor of green hydrogen. The projects we’re seeing look more bankable from a finance perspective now,” Ivan Pavlovic, executive director at French bank Natixis CIB, told Bloomberg.

Here in Egypt interest in green hydrogen is picking up steam: Two green hydrogen plants have been signed off on in recent months. Norway’s Scatec, Fertiglobe and Orascom Construction will build a 100-MW facility while Emirati renewable energy company Masdar will work with Hassan Allam Utilities to establish a facility capable of producing 480k tons of green hydrogen a year.

And there’s more to come in the lead up to COP27: The EU is gearing up to sign MoUs on green hydrogen and ammonia production during the COP27 summit in November, EU Executive Vice-President Frans Timmermans told Oil Minister Tarek El Molla last month. Timmermans also discussed a plan to develop a “Mediterranean Green Hydrogen Partnership,” for which little is known beyond it being something akin to “the East Mediterranean Gas forum, but for green hydrogen.”

This is all part of a larger policy push towards green hydrogen adoption: President Abdelfattah El Sisi last year issued a directive to establish Egypt’s green hydrogen strategy, with an eye towards launching an initial phase of projects that could be worth USD 3-4 bn. These ambitions are being supported by tax incentives that would allow companies involved in a number of key areas that include green hydrogen and green ammonia production, storage and export to deduct 30-50% of their investment costs from their tax bills.