TAQA And JERA Finalize Funding For SATORP Plant Expansion In Saudi Arabia

Abu Dhabi National Energy Company (TAQA) and JERA, Japan's largest power generation company, have announced the financial closing of Najim Cogeneration Company Limited. This new industrial steam and electricity cogeneration plant will serve a petrochemical complex in Jubail, Eastern Province of Saudi Arabia.

The plant will generate up to 475 megawatts (MW) of power and around 452 tonnes per hour (TPH) of steam using advanced combined cycle gas-fired technology. It will be developed by a special purpose entity owned by TAQA (51%) and JERA (49%) on a 25-year build, own, and operate basis, extendable by five years upon mutual agreement.

In March 2024, TAQA and JERA entered into a Power and Steam Purchase Agreement with Saudi Aramco Total Refining and Petrochemical Company (SATORP). SATORP is a joint venture between Saudi Arabian Oil Company (Saudi Aramco) and TotalEnergies.

The SATORP Strategic Expansion petrochemical complex will house one of the largest mixed-load steam crackers in the GCC region. The new cogeneration plant will play a crucial role in supporting these operations by leveraging cutting-edge technology.

Farid Al Awlaqi, CEO of TAQA's Generation business, highlighted the significance of this project. He stated, "Representing a cornerstone of our commitment to growth and efficiency, TAQA is proud to take on a developer role as well as the operations and maintenance at the plant, two focus areas for capability expansion for TAQA, as well as adding 475 MW of power generation and 452 TPH of steam generation to our overall capacity."

Steven Winn, Chief Global Strategist of JERA, praised the collaboration among stakeholders. He said, "This key milestone was successfully achieved due to the excellent teamwork of all stakeholders. This project aligns perfectly with our strategy to provide efficient, sustainable, and technologically advanced energy systems, contributing to the Kingdom's and to our customer's vision for a sustainable and optimised energy supply."

The cogeneration plant will feature state-of-the-art power and steam generation systems along with gas-insulated switchgear interconnections. It is designed to meet stringent efficiency standards set by the Saudi Energy Efficiency Centre.

Additionally, there are plans for future installation of a carbon capture plant capable of hydrogen cofiring. This aligns with efforts to reduce environmental impact while ensuring reliable power and steam generation.

TAQA and JERA will also manage the operation and maintenance (O&M) through an O&M special purpose entity. This involvement underscores their commitment to operational excellence in energy projects.

The project's development marks TAQA's third generation project in Saudi Arabia. Farid Al Awlaqi noted that they are building their track record as a responsible operator with this advanced cogeneration steam and power plant using highly efficient J-Class gas turbine technology.

By focusing on efficiency and sustainability, this project aims to set new standards in operational performance. The collaboration between TAQA and JERA exemplifies their dedication to providing advanced energy solutions that support regional growth.

This initiative not only enhances energy supply but also contributes significantly to environmental sustainability goals. The use of advanced technology ensures that the plant operates efficiently while minimising its ecological footprint.

The successful financial closing signifies a major step forward in achieving these objectives. It reflects both companies' strategic vision for sustainable energy development in Saudi Arabia.

The Najim Cogeneration Company Limited project represents a significant investment in the region's energy infrastructure. It demonstrates how international partnerships can drive progress towards more efficient and sustainable energy systems.

Overall, this development highlights the importance of collaborative efforts in advancing technological innovation within the energy sector. By combining expertise from TAQA and JERA, this project aims to deliver substantial benefits for both industry stakeholders and local communities alike.