Abu Dhabi – Mubasher: Abu Dhabi National Energy Company (TAQA) joined forces with Japan-based JERA Company and Al Bawani Capital, a subsidiary of Al Bawani Holding, for power projects in Saudi Arabia.
The three companies entered into two 25-year power purchase agreements (PPAs) with Saudi Power Procurement Company (SPPC) to develop two new greenfield combined cycle gas turbine (CCGT) power projects in the Kingdom, with a total power generation capacity of over 3.60 gigawatts (GW).
The PPAs follow SPPC’s announcement for the award of contracts for the 1.80 GW Rumah 2 and 1.80 GW Al Nairyah 2 conventional independent power producer (IPP) projects to a consortium comprising of TAQA, JERA, and Al Bawani.
The projects back the Kingdom’s energy objectives to meet power demand through an optimal energy mix for electricity production of 50% from renewable energy and 50% from gas technology by 2030.
They also align with the Saudi Green Initiative's goal of achieving net-zero greenhouse gas emissions through the circular carbon economy by 2060, or earlier, depending on the availability of necessary technologies.
TAQA will hold a 49% stake in the joint venture, while JERA and Al Bawani will own a 31% and 20% shareholding, respectively.
Farid Al Awlaqi, CEO of TAQA’s Generation business, said: “TAQA has ambitious growth targets of 150GW by 2030, and today’s announcement marks a major milestone for 2024 with the addition of a further 3.60 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.”
Steven Winn, Chief Global Strategist at JERA, commented: “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.”
Fakher Al Shawaf, Group CEO of Al Bawani Holding, indicated: "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."
Earlier in August, TAQA and JERA reached the financial close of an industrial steam and electricity cogeneration plant in Jubail.
