RIYADH, SAUDI ARABIA – JULY 19: (—-EDITORIAL USE ONLY â MANDATORY CREDIT – ” ROYAL COURT OF SAUDI ARABIA / HANDOUT” – NO MARKETING NO ADVERTISING CAMPAIGNS – DISTRIBUTED AS A SERVICE TO CLIENTS—-) Crown Prince of the United Arab Emirates (UAE) Mohammed bin Zayed Al Nahyan (L) meets with Crown Prince of Saudi Arabia Mohammed bin Salman (2nd L) within his visit in Riyadh, Saudi Arabia on July 19, 2021. (Photo by Royal Court of Saudi Arabia/Handout/Anadolu Agency via Getty Images)
Anadolu Agency | Anadolu Agency | Getty Images
DUBAI, United Arab Emirates — The unexpected rift between Saudi Arabia and the United Arab Emirates within OPEC in early July came as a shock to many in the Gulf region and those watching from abroad.
The dispute over oil production levels temporarily froze the group’s ability to lay out their plans for the markets, sending crude prices upward. But it wasn’t the first appearance of tension between the Arab neighbors and longtime close allies, and likely will not be the last, experts who’ve long been watching the region say.
“What is happening here is these are the two biggest economies in the region, in the Arab world,” Abdulkhaleq Abdulla, a political science professor in the UAE, told CNBC. “And as Saudi Arabia wants to reform its economy, privatize, etc, there is bound to be competition between them.”
“Competition between the two biggest Arab economies is, I think, just starting,” Abdulla said. “And it is bound to intensify in the days to come.”
Conflicting interests
The strategic alignment between Riyadh and Abu Dhabi, both of which have become increasingly active on the world stage, is evident in many areas. And it’s often associated with what is said to be a close relationship — some have even called it a “bromance” — between Saudi Crown Prince Mohammed bin Salman and his Emirati counterpart Mohammed bin Zayed.
But conflicting interests have cropped up in recent months that preceded the OPEC rift. In February, Saudi Arabia announced that its government would cease doing business with any international companies whose regional headquarters were not based within the kingdom by 2024. The move was widely seen as targeting Dubai, the Middle East’s current headquarters hub.
Bahrain Foreign Minister Abdullatif bin Rashid Al Zayani, Israeli Prime Minister Benjamin Netanyahu, U.S. President Donald Trump and UAE Foreign Minister Abdullah bin Zayed Al Nahyan (L to R) attend a signing ceremony for the agreements on “normalization of relations” reached between Israel, the United Arab Emirates and Bahrain at the White House in Washington.
The White House | Shealah Craighead | Anadolu Agency | Getty Images
DUBAI, United Arab Emirates — The UAE last year announced a normalization deal with Israel, becoming the first Gulf country to do so, while Saudi Arabia has so far publicly refused to do the same. Saudi Arabia meanwhile has been working on a tentative rapprochement with rival Sunni power Turkey, with which the UAE has significant tensions as Ankara supports an Islamist ideology that Emirati leaders see as a threat.
And the two Gulf powers had some diverging interests in the war in Yemen, despite being on the same side, with the Saudis supporting an Islamist party distrusted by the UAE and Abu Dhabi supporting separatist tribes that did not align with Riyadh’s goals. The UAE drew down its military activity in Yemen in 2019, while Riyadh remains embroiled in the conflict.
“It has been a common assumption that the UAE and Saudi Arabia have effectively indistinguishable worldviews and interests — that the UAE is sort of an appendage or dependency of Saudi Arabia,” Hussein Ibish, a senior resident scholar at the Arab Gulf States Institute in Washington, wrote in a blog post in July. “That has never been the case.”
Economic consequences
In early July, Saudi Arabia upped the ante by ending preferential tariffs for goods made in free zones or affiliated with Israeli manufacturers, also seen as a direct shot at the UAE, which is the free zone hub of the region. The move was followed by waves of patriotic Saudis launching a campaign via Twitter to boycott Emirati goods.
This came despite the fact that the UAE is Saudi Arabia’s second-largest trading partner after China by import value.
“The idea once was to create a GCC market, but now there’s the realization that the priorities of Saudi Arabia and the UAE are very different,” Amir Khan, senior economist at Saudi National Bank, told Reuters in July. “This regulation is putting flesh on the bone of these political divergences,” Khan said.
So, where do things go from here?
An OPEC deal was reached in mid-July, and the Saudi and Emirati energy ministers praised each other and the work of the group of oil producers. Still, economic competition — at a time where returns for oil-producing nations are extremely volatile — isn’t set to go away anytime soon.
“We’re coming out of this pandemic where every country in the world needs to figure out a way to economically recover,” Tobias Borck, a research fellow specializing in Gulf affairs at the Royal United Services Institute in London, told CNBC. “But for the Gulf monarchies, especially for Abu Dhabi and Saudi Arabia, that is compounded by the fact that they are also under pressure to figure out a way to transform their economies and get away from relying on oil.”
“In that environment, quite frankly, everyone is going to look after number one,” Borck continued. “And for all the genuine friendship and continued pragmatic alignment, when it comes to economic matters, at some point that friendship ends and it becomes about looking after yourself.”
A ‘collision course’
For the Emirati professor Abdulla, “rivalry is too strong of a term” to describe what’s going on between the two countries.
“It could be a controlled, managed, friendly competition,” he told CNBC. “Or it could get out of hand, and we will see it intensify in the months and years to come. We are still in the first five minutes of the competition. We don’t know how it is going to evolve — and it might have some impact on the political issues that bind the two countries together, some political spillover.”
“There are clearly multiple areas where they are on a collision course in the economic sphere,” Borck said. “You’ve now sort of put your position out, and at the moment, those positions are on a collision course. Whether they’re going to remain so? We’ll see.”
The US Department of Energy (DOE) has released an encouraging new report revealing that 90% of wind turbine materials are already recyclable using existing infrastructure, but tackling the remaining 10% needs innovation.
That’s why the Biden administration’s Bipartisan Infrastructure Law has allocated over $20 million to develop technologies that address these challenges.
Why this matters
The wind energy industry is growing rapidly, but questions about what happens to turbines at the end of their life are critical. Recyclable wind turbines means not only less waste but also a more affordable and sustainable energy future.
According to Jeff Marootian, principal deputy assistant secretary for the Office of Energy Efficiency and Renewable Energy, “The US already has the ability to recycle most wind turbine materials, so achieving a fully sustainable domestic wind energy industry is well within reach.”
The report, titled, “Recycling Wind Energy Systems in the United States Part 1: Providing a Baseline for America’s Wind Energy Recycling Infrastructure for Wind Turbines and Systems,” identifies short-, medium-, and long-term research, development, and demonstration priorities along the life cycle of wind turbines. Developed by researchers at the National Renewable Energy Laboratory, with help from Oak Ridge and Sandia National Laboratories, the findings aim to guide future investments and technological innovations.
What’s easily recyclable and what’s not
The bulk of a wind turbine – towers, foundations, and steel-based drivetrain components – is relatively easy to recycle. However, components like blades, generators, and nacelle covers are tougher to process.
Blades, for instance, are often made from hard-to-recycle materials like thermoset resins, but switching to recyclable thermoplastics could be a game changer. Innovations like chemical dissolution and pyrolysis could make blade recycling more viable in the near future.
Critical materials like nickel, cobalt, and zinc used in generators and power electronics are particularly important to recover.
Key strategies for a circular economy
To make the wind energy sector fully sustainable, the DOE report emphasizes the adoption of measures such as:
Better decommissioning practices – Improving how turbine materials are collected and sorted at the end of their life cycle.
Strategic recycling sites – Locating recycling facilities closer to where turbines are decommissioned to reduce costs and emissions.
Advanced material substitution – Using recyclable and affordable materials in manufacturing.
Optimized material recovery –Developing methods to make recovered materials usable in second-life applications.
Looking ahead
The DOE’s research also underscores the importance of regional factors, such as the availability of skilled workers and transportation logistics, in building a cost-effective recycling infrastructure. As the US continues to expand its wind energy capacity, these findings provide a roadmap for minimizing waste and maximizing sustainability.
More information about the $20 million in funding available through the Wind Turbine Technology Recycling Funding Opportunity can be found here. Submission deadline is February 11.
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Mazda is finally stepping up with plans to build its first dedicated EV. The upcoming Mazda EV will be made in Japan and based on a new in-house platform. Here’s what we know about it so far.
The first dedicated Mazda EV is coming soon
Although Mazda isn’t the first brand that comes to mind when you think of electric vehicles, the Japanese automaker is finally taking a step in the right direction.
Mazda revealed on Monday that it plans to build a new module pack plant in Japan for cylindrical lithium-ion battery cells.
The new plant will use Panasonic Energy’s battery cells to produce modules and EV battery packs. Mazda plans to have up to 10 GWh of annual capacity at the facility. The battery packs will power Mazda’s first dedicated EV, which will also be built in Japan using a new electric vehicle platform.
Mazda said it’s “steadily preparing for electrification technologies” under its 2030 Management Plan. The strategy calls for a three-phase approach through 2030.
The first phase calls for using its existing technology. In the second stage, Mazda will introduce a new hybrid system and EV-dedicated vehicles in China.
The third and final phase calls for “the full-fledged launch” of EVs and battery production. By 2030, Mazda expects EVs to account for 25% to 40% of global sales.
Mazda launched the EZ-6, an electric sedan, in China last October. It starts at 139,800 yuan, or around $19,200, and is made by its Chinese joint venture, Changan Mazda.
Based on Changan’s hybrid platform, the electric sedan is offered in EV and extended-range (EREV) options. The all-electric model gets up to 600 km (372 miles) CLTC range with fast charging (30% to 80%) in 15 minutes.
At 4,921 mm long, 1,890 mm wide, and 1,485 mm tall with a wheelbase of 2,895 mm, Mazda’s EZ-6 is about the size of a Tesla Model 3 (4,720 mm long, 1,922 mm wide, and 1,441 mm tall with a 2,875 mm wheelbase).
Inside, the electric sedan features a modern setup with a 14.6″ infotainment, a 10.1″ driver display screen, and a 50″ AR head-up display. It also includes zero-gravity reclining seats and smart features like voice control.
The EZ-6 is already off to a hot sales start, with 2,445 models sold in November. According to Changan Mazda, the new EV was one of the top three mid-size new energy vehicle (NEV) sedans of joint ventures sold in China in its first month listed.
Will Mazda’s first dedicated EV look like the EZ-6? We will find out with Mazda aiming to launch the first EV models on its new in-house platform in 2027. Stay tuned for more.
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A view of offshore oil and gas platform Esther in the Pacific Ocean on January 5, 2025 in Seal Beach, California.
Mario Tama | Getty Images
President-Elect Donald Trump said Tuesday that he will reverse President Joe Biden‘s ban on offshore drilling along most of the U.S. coastline as soon as he takes office.
“I’m going to have it revoked on day one,” Trump said at a news conference, though he indicated that reversing the ban might require litigation in court.
Biden announced Monday that he would protect 625 million acres of ocean from offshore oil and gas drilling along the East and West coasts, the eastern Gulf of Mexico, and Alaska’s Northern Bering Sea. The president issued the ban through a provision of the 1953 Outer Continental Shelf Lands Act.
An order by Trump attempting to reverse the ban will likely end up in court and could ultimately be struck down.
During his first term, Trump tried to issue an executive order to reverse President Barack Obama’s use of the law to protect waters in the Arctic and Atlantic from offshore drilling. A federal court ultimately ruled that Trump’s order was not lawful and reversing the ban would require an act of Congress.
The Republican Party has a majority in both chambers of the new Congress.