Apicorp announces plans to invest almost $1bn in energy projects during 2019
Arab Petroleum Investments Corp (Apicorp) has announced plans to invest nearly $1bn in energy projects during 2019 in a move that is set to increase its assets with oil prices faltering, Arabian Business reports.
It is anticipated that new investments will see the portfolio diversified into Libya, Morocco, Egypt, Iraq and the US, according to chief executive officer, Ahmed Ali Attiga.
In an interview in Abu Dhabi, Attiga commented: “These projections will be maintained for the region in 2019. The price of oil is rebounding, and I think it will settle in a range that is conducive to making the bulk of the investments happen. I hope my success will be measured by how much we can grow, particularly in the areas where we are seeing the transformation of the energy sector in this region: renewables, energy efficiency, technology and anything related to it,” added Attiga.
With Gulf Cooperation Council putting in 24% as oil prices reached its highest position in four years, it was revealed that Apicorp’s assets increased in 2018 and rose a total of 13%.
It is believed the company plans to borrow under its current $3bn bond and $3bn sukuk programmes in order to fund the investments.
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.