Abu Dhabi National Energy Company (Taqa), one of the largest listed integrated utility companies in Europe, the Middle East and Africa, has announced that it consortium comprising top Japanese power generation company Jera and Saudi -based Al Bawani Capital, has entered into two 25-year power purchase agreements with Saudi Power Procurement Company (SPPC) for the development of two new greenfield combined cycle gas turbine (CCGT) power projects with a total power generation capacity of over 3.6 GW in the kingdom.
For these projects, Taqa will be playing a bigger role as the lead developer and also it will oversee their operations and maintenance.
Both the projects - Rumah 2 IPP and Al Nairyah 2 IPP - will be implemented on a build, own and operate (BOO) basis. These plants will use the highest efficiency CCGT turbines available and will enable the utilisation of carbon capture technologies.
According to SPPC, these projects support the kingdom’s energy mix ambitions which aim to meet power demand through an optimal energy mix for electricity production of 50% from renewable energy and 50% from gas technology by 2030.
The plants are also in alignment with the Saudi Green Initiative that aims to achieve net-zero greenhouse gas emissions through the circular carbon economy by 2060, or earlier depending on the availability of necessary technologies.
The two new plants will be developed by respective special purpose entities owned by Taqa (49%), Jera (31%) and AlBawani (20%) with operation and maintenance of the plants to be undertaken by the partners through respective O&M special purpose entities with the same shareholding structure.
On the deals, Farid Al Awlaqi, the CEO of Taqa’s Generation Business, said the Abu Dhabi group has set ambitious growth targets of 150GW by 2030. "Today’s announcement marks a major milestone for 2024 with the addition of a further 3.6 GW of low-carbon gas-fired power capacity in the Kingdom of Saudi Arabia, making it five greenfield projects in the Kingdom under development in Taqa’s portfolio," he noted.
"In addition to signing the PPAs, we are taking on the role as the lead developer and will oversee the operations and maintenance of these two world-class plants, demonstrating our expanded operational capabilities," said Al Awlaqi.
According to him, today’s announcement of these two greenfield power projects cements Taqa’s position as a low carbon power and water champion and as a trusted and sustainable developer, investor and operator in several key markets.
"Alongside our partners, JERA and AlBawani, Taqa is pleased to be supporting the Kingdom and SPPC on its energy transition journey with these two pivotal power plants," he stated.
Steven Winn, the Chief Global Strategist at Jera, said: "In line with our goal to achieve net zero by 2050, the award of these two high-efficiency independent power projects, featuring state-of-the-art HL class gas turbines, reinforces Jera’s commitment to decarbonising thermal power generation."
"This key milestone was successfully achieved thanks to the excellent teamwork of all stakeholders, SPPC and our partners, Taqa and AlBawani, including our contractors in reaching this critical milestone. These projects align perfectly with our strategy to provide efficient, sustainable, and technologically advanced energy systems, contributing to the Kingdom’s and our customers’ vision for a sustainable and optimised energy supply," he added.
AlBawani Holding Group CEO Engineer Fakher AlShawaf said: "The partnership with Taqa and Jera on these state-of-the-art power plants marks a transformative milestone for AlBawani, reinforcing our commitment to advancing the Kingdom's energy diversification initiatives."
"This project represents our dedication to sustainable practices and our commitment to advancing the goals of Vision 2030. Through this project, we aim to deliver a highly efficient and reliable power solution that will play a crucial role in meeting the Kingdom’s growing demand for energy, while also advancing local expertise and creating new opportunities for economic growth," he added.
Earlier this year, Taqa, together with Jera reached the financial close of a new industrial steam and electricity cogeneration plant that will produce electricity and steam for a petrochemical complex located in Jubail in the Eastern Province of the Kingdom of Saudi Arabia.-TradeArabia News Service
