ACWA Power Secures USD 1.784 Billion In Agreements At Future Investment Initiative

ACWA Power, recognised as the largest private water desalination company globally and a pioneer in energy transition and green hydrogen, has announced four significant agreements totalling $1.784 billion. These deals were signed on the first day of the Future Investment Initiative (FII) held in Riyadh. The agreements cover various regions, including the Gulf Cooperation Council (GCC), China, Central Asia, and North Africa.

The agreements span crucial areas such as project financing, renewable energy initiatives, storage projects, and research-and-development (R&D) efforts. A notable agreement involves a $690 million framework with the National Bank of Kuwait (NBK). This deal aims to provide corporate finance facilities supporting ACWA Power's future projects in Saudi Arabia, Kuwait, and other target markets.

Another significant financial arrangement includes a $240 million shariah-compliant equity bridge loan from the International Finance Corporation (IFC), part of the World Bank Group. This loan will fund two solar power projects in Uzbekistan. Located in Samarkand, these projects—Sazagan 1 and 2—will each feature 500MW solar photovoltaic capacity and 334MW battery energy storage systems. They are expected to become operational between mid-2025 and late-2026.

ACWA Power has also entered into a joint development agreement with Gotion Power Morocco to develop a 500MW wind power plant. This project will include a 2,000 MWh battery energy storage solution to supply energy to Gotion Power’s battery manufacturing facility in Morocco. The plant is anticipated to start production in early 2026 with an initial investment of $800 million.

Additionally, ACWA Power has signed a cooperation agreement with China's Lujiazui Administration Bureau to establish an R&D centre in Shanghai. This $54 million initiative will focus on advancing technologies related to solar, wind, energy storage, green hydrogen, and desalination. The centre will work with local and global partners to develop sustainable water and energy solutions for ACWA Power's portfolio.

Commitment to Sustainable Growth

"These agreements exemplify the extensive breadth of our portfolio and the diverse initiatives we pursue," said ACWA Power chief executive 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."

Arcelli further stated that ACWA Power is committed to delivering affordable and reliable power and water solutions worldwide. He emphasised that through innovation and collaboration, they aim to create a sustainable future for generations to come.

These strategic alliances highlight ACWA Power’s dedication to shaping a sustainable future by providing reliable power and water solutions globally.

With inputs from SPA