Acwa Power Secures .9 Billion Financial Close for Qurayyah CCGT Plant in Saudi Arabia
In a significant development for Saudi Arabia’s energy landscape, Acwa Power, a leading global utility project developer, has announced that its affiliate, Hajar Two Electricity Company, has successfully achieved a financial close valued at SAR 10.8 billion (approximately .9 billion) for the Qurayyah Combined Cycle Gas Turbine (CCGT) Independent Power Project (IPP) Expansion. Situated in the Eastern Province of Saudi Arabia, this project represents a major investment in the nation’s ambition to enhance its energy infrastructure and diversify its energy sources.
The combined cycle power plant, once operational, is slated to produce an impressive capacity of 3,010 megawatts (MW). This capacity aligns with Saudi Arabia’s Vision 2030 goals, which aim to reduce the nation’s reliance on oil by expanding its renewable energy portfolio. Acwa Power disclosed this milestone in a recent filing to Tadawul, the Saudi stock exchange, underscoring the project’s importance within the broader context of the kingdom’s strategic energy initiatives.
Acwa Power’s involvement in the Qurayyah project highlights the company’s pivotal role in the region’s energy sector. The firm holds a 40% effective shareholding in the venture, underscoring its commitment to not only the financial success of the project but also to its operational integrity. The responsibilities of Acwa Power extend beyond mere financial investment; the company is tasked with the development, construction, ownership, and operation of the CCGT facility. This multifaceted approach is indicative of Acwa Power’s expertise in managing complex energy projects, especially in a region characterized by rapid growth and diversification.
The funding for this ambitious project has been secured through a consortium of local, regional, and international financial institutions. The 28-year financing arrangement features prominent names such as Abu Dhabi Commercial Bank, Ajman Bank, Alinma Bank, Arab National Bank, Banque Saudi Fransi, Boubyan Bank, Commercial Bank of Dubai, Eurobank, HSBC, National Bank of Kuwait, Riyad Bank, Saudi Awwal Bank, Standard Chartered Bank, Sumitomo Mitsui Trust Bank, and The Korea Development Bank, as well as The Saudi Investment Bank and The Saudi National Bank. This extensive collaboration showcases the project’s viability and the confidence that major financial players have in its potential for success.
As the world transitions toward greener energy solutions, the Qurayyah CCGT project stands out as a model for sustainable energy development. CCGT technology is lauded for its efficiency, converting about 60% of the energy in the fuel into electricity. This is significantly higher than traditional power plants, which typically operate at an efficiency of around 33%. The enhanced efficiency offered by CCGT systems not only supports the production of cleaner energy but also contributes to cost savings in electricity generation, ultimately benefitting consumers.
Moreover, Acwa Power’s commitment to sustainability is evident in its broader portfolio of projects. The company has been at the forefront of developing renewable energy sources in the Middle East, including solar and wind energy initiatives. Its efforts not only align with global trends toward decarbonization but also support the economic diversification goals outlined in Saudi Arabia’s Vision 2030.
The Qurayyah project, therefore, does not merely represent a technological advancement in power generation; it emblematises a larger movement towards sustainable development that is crucial for addressing the challenges posed by climate change. By leveraging state-of-the-art technology and securing substantial investment, Acwa Power is poised to play a vital role in shaping the future energy landscape of Saudi Arabia and beyond.
In conclusion, the successful financial closure of the Qurayyah CCGT IPP Expansion Project illustrates Acwa Power’s leading position in the energy sector, particularly in the context of Saudi Arabia’s transformative goals. As the country seeks to enhance its energy generation capacity and align its infrastructure with modern sustainability practices, projects like Qurayyah will be essential in driving economic growth and environmental stewardship in the region.
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