Energy

ADNOC sees steady revenue increase in 2024

Both onshore and offshore operations, and oilfield services did well. (Image source: Adnoc Drilling)

Driven by operational expansion across all business segments, ADNOC Drilling’s second quarter and first half 2024 revenue increased to US$935mn, surpassing US$1.8bn, up year-on-year by 29% and 26% respectively

There was a steady revenue increase in both onshore and offshore operations, and in oilfield services as well.

“ADNOC Drilling has continued to deliver on its strategic initiatives and has successfully closed the first half of the year on a strong note, achieving multiple milestones.

“The Company’s performance for the period is a continued reflection of our unwavering commitment to operational excellence and efficiency in every aspect of our business. Our achievements for the period are a testament to the relentless dedication of our people, whose efforts are central to delivering outstanding service to our customers and maximising value for our shareholders,”said Abdulrahman Abdulla Al Seiari, CEO, ADNOC Drilling.

The strong top-line translated into record EBITDA both in the quarter and the first half. Second quarter EBITDA increased by 37% year-on-year and 8% sequentially to US$472mn, yielding a 50% EBITDA margin. Consistency in revenue growth and cost-cutting strategies led to US$909mn EBITDA in the first half of the year, up 34% year-on-year and with a margin increase to 50%.

Net profit for the quarter also grew, up 29% year-on-year and 7% sequentially to US$295mn, driven by the increase in EBITDA, while for the first half the figure stood at US$570mn, up 28% year-on-year.

At the end of the second quarter, the fleet consisted of 140 rigs (136 owned plus four lease-to-own land rigs), up from 137 at the end of the first quarter due to the addition of three land rigs.

Encouraged by the positive results, the Board of Directors has approved an interim dividend of US$394mn, +10% year-on-year under new enhanced and progressive dividend policy, equivalent to 9.0468 fils per share.

The interim dividend distribution is expected to be in the last week of August 2024, to all shareholders of record as of August 12, 2024.

TotalEnergies expands hydropower portfolio

A close up of water cascading out of a hydropower plant.

The transaction will give TotalEnergies an interest in hydropower projects in Uganda, Rwanda and Malawi. (Image source: Adobe Stock)

TotalEnergies, a global integrated energy company, is set to expand its hydropower portfolio through a strategic acquisition in Africa

The company has signed an agreement with Scatec to acquire its subsidiary SN Power, which holds interests in hydropower projects through a joint venture with Norfund and British International Investment.

“We are pleased to announce today’s transaction, as we believe TotalEnergies will be a strong asset owner going forward, with the ability to further develop the projects and contribute to the energy transition in Africa,” commented Terje Pilskog, CEO of Scatec. “We would like to thank the entire hydropower team for their hard work and dedication over the years, you have made a significant impact. In addition, our gratitude goes to our joint venture partners, host governments, and lenders for the support since 2020.”

The new agreement will further develop TotalEnergies hydropower portfolio (it holds interests in a number of projects across the globe with a gross capacity of 3.7GW worldwide), and complement its existing one in Africa where it already has 1.5GW under development in Mozambique (the Mphanda Nkuwa project).

As a result of the new transaction with Scatec, TotalEnergies will acquire a 28.3% stake in the Bujagali hydropower plant currently in operation in Uganda. With a capacity of 250MW, it covers more than 25% of the country's peak electricity demand. TotalEnergies will also acquire minority stakes in two projects under development in Rwanda (260MW) and Malawi (360MW).

“This acquisition of renewable hydroelectric assets and projects in Africa reflects our desire to contribute to the continent's energy transition by bringing electricity to the people of African countries,” remarked Patrick Pouyanné, chairman and CEO of TotalEnergies. “In particular, we are delighted to be able to become a player in hydro power in Uganda, a country where we are also developing a major oil project. This is another example of TotalEnergies’ ability to implement its multi-energy strategy in oil-producing countries to support them in their energy transition.”

Masdar and TotalEnergies to collaborate on SAF project

Aviation is a key focus for Masdar's green hydrogen business. (Image source: Masdar)

Masdar has signed an agreement with TotalEnergies to look at developing a commercial green hydrogen to methanol to SAF (Sustainable Aviation Fuel) project

It follows a successful test flight conducted by the two companies during COP28 in December 2023 that demonstrated the potential for converting methanol to SAF.

The project will help decarbonise hard to abate, emission intensive sectors such as the aviation and maritime industries. The project will also capture and utilise CO2 from an industrial source to be used as a feedstock, in addition to green hydrogen from renewable energy powered electrolysis, for the production of green methanol and SAF.

Aviation is a key focus for Masdar’s Green Hydrogen business, and over the past three years the company has forged a number of strategic partnerships designed to support the development and growth of the SAF sector.

The UAE’s General Policy for Sustainable Aviation Fuel set a voluntary target of providing 1% of fuel supplied to national airlines at UAE airports using locally produced SAF by 2031 and seeks to develop a national regulatory framework for SAF by exploring potential policies to support the long-term economic operation of SAF facilities in the UAE.

The agreement aligns with Abu Dhabi’s Low Carbon Hydrogen Policy which is expected to significantly contribute to promoting low-carbon hydrogen as a future energy source, and the UAE’s National Hydrogen Strategy, which seeks to establish the UAE as a leading global producer of low carbon hydrogen by 2031. Masdar is looking to become a leading producer of green hydrogen by 2030.

Trinasolar opens PV stations in the Middle East

The Vertex N 720W series offers enhanced efficiency. (Image source: Trinasolar)

Trinasolar, a global leader in smart PV and energy storage solutions, inaugurated a 70MW photovoltaic power station in the Arabian Peninsula.

Utilising Trinasolar’s advanced technology, this milestone supports the journey towards a cleaner, more sustainable energy future.

“The successful completion of this solar power station is a testament to our commitment to advancing renewable energy solutions in challenging environments,” commented Zhao Lei, head of strategic key accounts at Trinasolar. “The Vertex N 720W series modules not only deliver exceptional performance and reliability but also embody our mission to drive sustainable energy practices regionally and globally. We are proud to support the transition to a cleaner energy future,” added Lei.

Despite its vast deserts, the Arabian Peninsula is now embracing solar power as a beacon of green hope. This strategic direction aligns with its focus on energy transition, highlighting the importance of photovoltaic projects in optimising the energy supply. The newly inaugurated solar power station enhances the electricity generation capacity, reduces reliance on traditional fossil fuels, and lowers electricity costs.

Vertex N 720W Series: leading the charge

Trinasolar’s Vertex N 720W (NEG21C.20) series module, based on cutting-edge N-type i-TOPCon cell technology, is at the heart of this project. With the maximum power output up to 720W and a maximum efficiency up to 23.2%, these modules are designed for optimal performance even under harsh desert conditions. The low voltage and low temperature coefficient ensure great performance and efficiency, while the 210mm platform offers lower levelized cost of electricity (LCOE) and higher value for customers.

In recognition of its superior reliability, Trinasolar's Vertex N 720W (NEG21C.20) series module achieved an outstanding score of seven out of seven in the reliability test conducted by Kiwa PVEL, the world’s leading PV module testing laboratory, in June this year.

By collaborating with governments and partners, Trinasolar aims to tackle the challenges of climate change head-on. Through continuous technological innovation and the fulfillment of its mission "Solar Energy for All," Trinasolar is set to make significant contributions to the global energy transition.

UL Solutions debuts testing protocol for BESS safety

UL Solutions, a global leader in applied safety science, has introduced a new testing protocol designed to meet the needs of fire service organisations for enhanced evaluations of battery energy storage systems (BESS) for residential applications.

Typically paired with rooftop solar installations and, occasionally, wind turbines, residential BESS units enable homeowners to store excess solar or wind energy for use at any time, even when solar or wind resources are unavailable. These systems can protect users from power outages and grid fluctuations, ensuring a consistent energy supply. Additionally, they offer cost savings by allowing users to utilise the energy already generated and stored.

UL Solutions: the BESS expert

Battery storage is essential for the energy transition, with residential battery storage playing a significant role. Rising energy prices, increased blackout risks, and government incentives are driving interest in residential energy storage systems. The market for residential BESS is projected to grow significantly, with an estimated value of US$898mn in 2023, expected to exceed US$2bn by 2028.

The newly published UL 9540B Outline of Investigation for Large-Scale Fire Test for Residential Battery Energy Storage Systems introduces a testing protocol featuring a robust ignition scenario and stringent acceptance criteria for residential BESS. This new test method addresses the fire propagation behaviour of a BESS in the event of a thermal runaway propagation incident leading to an internal fire during its lifespan.

Since battery energy storage systems were first deployed a decade ago, UL Solutions has been at the forefront of addressing associated fire safety concerns. The company has collaborated with fire protection and battery experts, original equipment manufacturers, code authorities, and other key stakeholders to enhance test methods for evaluating thermal runaway fire propagation in BESS. UL 9540, the Standard for Energy Storage Systems and Equipment, and UL 9540A, the Standard for Test Method for Evaluating Thermal Runaway Fire Propagation in Battery Energy Storage Systems, were developed to ensure the safety of and assess thermal runaway propagation behaviour in energy storage systems. UL 9540B evaluates the fire propagation behaviour of residential BESS and complements UL 9540 and UL 9540A, providing a comprehensive approach to safety and fire behaviour.

It is important to note that UL 9540B testing is not intended to replace UL 9540A fire propagation testing for compliance with BESS installation codes and standards such as the IFC and NFPA 855. Instead, this test sequence aims to generate large-scale fire data to assist fire officials in evaluating residential BESS installations.

“UL Solutions listened to fire service concerns, and together, we developed a test solution that provides an acceptable level of fire safety without introducing unnecessary impediments to the deployment of safer, cost-effective residential battery energy storage systems,” said Robert Marshall, deputy chief of San Mateo Consolidated Fire Protection District.

“At UL Solutions, we are committed to using our safety science expertise to help our many stakeholders find solutions to the challenges arising in the rapidly evolving energy transition landscape,” said Milan Dotlich, vice president and general manager of the UL Solutions Energy and Industrial Automation group. “The development of UL 9540B in just a few months demonstrates our commitment to quickly providing effective safety resources to support the transition to renewable energy.”