TAQA Partners With JERA And AlBawani To Develop Two New Power Plants In Saudi Arabia

Abu Dhabi National Energy Company (TAQA), JERA Co., Inc from Japan, and Al Bawani Capital have secured two 25-year power purchase agreements with Saudi Power Procurement Company (SPPC). These agreements are for developing two new combined cycle gas turbine (CCGT) power projects in Saudi Arabia, with a total capacity exceeding 3.6 GW. The projects will be built, owned, and operated by the consortium.

The contracts were awarded to TAQA, JERA, and AlBawani for the 1.8 GW Rumah 2 and 1.8 GW Al Nairyah 2 independent power producer projects. These projects will use advanced CCGT turbines and incorporate carbon capture technologies. They align with Saudi Arabia's goal to balance its energy mix by 2030, aiming for equal contributions from renewable energy and gas technology.

The new plants support the Saudi Green Initiative, which seeks net-zero greenhouse gas emissions through a circular carbon economy by 2060 or sooner if technology permits. TAQA will hold a 49% stake in the special purpose entities developing these plants, while JERA will own 31% and AlBawani 20%. The same shareholding structure applies to their operation and maintenance entities.

Farid Al Awlaqi, CEO of TAQA's Generation business, stated that "TAQA has ambitious growth targets of 150GW by 2030." He noted that adding another 3.6 GW of low-carbon power capacity in Saudi Arabia is a significant milestone for TAQA in 2024. This marks five greenfield projects under development in the Kingdom within TAQA's portfolio.

TAQA will lead as the developer and oversee operations and maintenance of these plants, showcasing its expanded capabilities. The announcement reinforces TAQA's role as a sustainable developer and operator across key markets alongside partners JERA and AlBawani.

Commitment to Decarbonisation

Steven Winn, Chief Global Strategist at JERA, remarked on their commitment to achieving net zero by 2050. He said that "the award of these two high-efficiency independent power projects... reinforces JERA's commitment to decarbonising thermal power generation." He credited successful teamwork among stakeholders for reaching this milestone.

Fakher AlShawaf, Group CEO of AlBawani Holding, highlighted the partnership as transformative for AlBawani. He emphasised their dedication to advancing Saudi Arabia's energy diversification initiatives under Vision 2030 through sustainable practices.

This project aims to provide efficient and reliable power solutions to meet growing energy demands while fostering local expertise and economic growth opportunities. Collaboration with stakeholders is crucial for realising this vision and enhancing Saudi Arabia's energy landscape effectively.

With inputs from WAM