Acwa Power signs $1.78bn project financing, renewables deals
RIYADH, October 30, 2024
Acwa Power, the world’s largest private water desalination company, a leader in energy transition, and first mover into green hydrogen, has signed four agreements worth $1.784 billion on the opening day of the Future Investment Initiative (FII) in Riyadh.
Announcing the strategic deals yesterday (October 29), Acwa Power said these include projects in the GCC, China, Central Asia and North Africa encompassing key areas such as project financing, renewable energy and storage projects, and research-and-development (R&D) initiatives.
The first worth $690 million is a framework agreement with the National Bank of Kuwait (NBK) for general corporate finance facilities that will support the company’s future project pipeline in Saudi Arabia, Kuwait, and other target markets.
A separate financing agreement includes a $240 million shariah-compliant equity bridge loan (EBL) by the International Finance Corporation (IFC), part of the World Bank Group.
As per the deal, the loan will finance two solar power projects in Uzbekistan. Located in Samarkand, the Sazagan 1 and 2 projects each consist of 500MW solar photovoltaic (PV) and 334MW battery energy storage systems (BESS) capacity.
Both projects are expected to achieve commercial operations between mid-2025 and late-2026. The agreement marks the first corporate financing partnership with IFC, establishing a new avenue of collaboration for Acwa Power.
Its other deal is with a joint venture with battery solutions provider Gotion Power Morocco. Under this, Acwa Power will develop a 500MW wind power plant, incorporating a 2,000 MWh BESS solution.
The project will supply energy to Gotion Power’s battery manufacturing plant in Morocco, which is expected to begin production in the first half of 2026. The initial investment of the project is for $800 million.
Acwa Power also signed a co-operation agreement with China’s Lujiazui Administration Bureau to establish an R&D center in Shanghai. The $54 million project will focus on advancing technologies related to solar, wind, energy storage, green hydrogen, and desalination.
The new facility will collaborate with local and global partners to develop advanced sustainable water and energy solutions for deployment across Acwa Power's portfolio.
"These agreements exemplify the extensive breadth of our portfolio and the diverse initiatives we pursue," said its CEO Marco Arcelli.
"By collaborating with a variety of partners, we enhance our capabilities, particularly in the areas of innovation and research within our key sectors. This approach underscores our commitment to fostering strategic alliances that drive growth and advancement in the industry," stated Arcelli.
"Such strategic alliances reinforce Acwa Power’s dedication to its mission of delivering affordable and reliable power and water solutions on a global scale, thereby strengthening our role in shaping a sustainable future," he noted.
"At Acwa Power, we believe that through innovation and collaboration, we can create a sustainable future for generations to come," he added.-TradeArabia News Service
