TAQA, JERA To Build New Cogeneration Plant For Saudi Petrochemical Complex

The Abu Dhabi National Energy Company (TAQA) and JERA Co., Inc, Japan's largest power generation company, have announced a significant collaboration with the Saudi Aramco Total Refining and Petrochemical Company (SATORP). This partnership marks the commencement of a project to develop a greenfield industrial steam and electricity cogeneration plant intended to serve the Amiral petrochemical complex in Jubail, Eastern Province of Saudi Arabia.

This initiative is poised to support one of the Arab Gulf region's largest mixed-load steam crackers at the Amiral petrochemical complex. The cogeneration plant will be equipped with advanced power and steam generation systems, alongside necessary gas and water receiving systems and gas-insulated switchgear interconnections. It aims to adhere to the high efficiency standards set by the Saudi Energy Efficiency Centre. Additionally, the project includes provisions for the future installation of a carbon dioxide capture plant and the capability for hydrogen cofiring.

Ownership of this cogeneration plant will be divided between TAQA, holding a 51% stake, and JERA, owning 49%. The project will operate on a 25-year build, own, and operate basis, with an option to extend by five years upon mutual agreement. Furthermore, TAQA and JERA will manage the operation and maintenance (O&M) of the plant through a dedicated O&M entity.

Farid Al Awlaqi, Chief Executive Officer of TAQA Generation, expressed confidence in the project's success. He highlighted the significance of the offtake agreements for the cogeneration power and steam project at the Amiral petrochemical facility. Al Awlaqi emphasized TAQA's commitment to delivering essential utilities efficiently and its role in supporting SATORP's decarbonisation goals. He also mentioned that this agreement aligns with TAQA's growth strategy and its objectives for 2030.

Steven Winn, Chief Global Strategist of JERA, shared his enthusiasm for the project. He underscored the partnership's dedication to providing stable, efficient, clean, and reliable power and steam to SATORP. Winn also pointed out that the Amiral Cogeneration plant would not only boost operational efficiency at the Amiral Complex but also reflect JERA's commitment to environmental stewardship. He concluded by expressing optimism about sustainable power generation solutions in Saudi Arabia and the broader region.

This collaboration between TAQA, JERA, and SATORP represents a strategic move towards enhancing energy efficiency and sustainability in one of Saudi Arabia's key industrial zones. It underscores the growing emphasis on clean energy solutions and carbon emission reduction in the region's petrochemical sector.

With inputs from WAM