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Abu Dhabi National Energy Company PJSC (TAQA), UAE, together with JERA Co., Inc (JERA), Japan and Al Bawani Capital (AlBawani), a subsidiary of AlBawani Holding, Saudi Arabia, announced that they have signed power purchase agreements (PPAs) to develop two new greenfield combined cycle gas turbine (CCGT) power projects of capacity 3.6GW in Saudi Arabia.
The PPAs was signed with Saudi Power Procurement Company (SPPC) on a build, own and operate basis for the duration of 25 years.
The PPAs follow SPPC’s announcement for the award of contracts for the 1.8 GW Rumah 2 and 1.8 GW Al Nairyah 2 conventional independent power producer (IPP) projects to a consortium comprising of TAQA, JERA and AlBawani.
The Rumah 2 IPP and Al Nairyah 2 IPP will use the highest efficiency CCGT turbines available and will enable the utilisation of carbon capture technologies.
The 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 (“O&M”) of the plants to be undertaken by the partners through respective O&M special purpose entities with the same shareholding structure.
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. |
