Abu Dhabi Nationwide Power Firm (TAQA) along with JERA Co., Inc, Japan’s largest energy era firm and Al Bawani Capital, a subsidiary of AlBawani Holding, introduced that they’ve entered into two 25-year energy buy agreements (PPAs) with Saudi Energy Procurement Firm (SPPC) on a construct, personal and function foundation, to develop two new greenfield mixed cycle gasoline turbine (CCGT) energy initiatives with a complete energy era capability of over 3.6 GW in Saudi Arabia.
The PPAs observe SPPC’s announcement to award contracts for the 1.8 GW Rumah 2 and 1.8 GW Al Nairyah 2 typical impartial energy producer (IPP) initiatives to a consortium comprising TAQA, JERA and AlBawani.
The Rumah 2 IPP and Al Nairyah 2 IPP will use the best effectivity CCGT generators out there and allow the utilisation of carbon seize applied sciences. The initiatives assist the Kingdom’s power combine ambitions, which intention to satisfy energy demand via an optimum power combine for electrical energy manufacturing of fifty% from renewable power and 50% from gasoline know-how by 2030.
The crops are additionally in alignment with the Saudi Inexperienced Initiative, which goals to realize net-zero greenhouse gasoline emissions via the round carbon financial system by 2060 or earlier, relying on the supply of mandatory applied sciences.
The 2 new crops can be developed by respective particular objective entities owned by TAQA (49%), JERA (31%) and AlBawani (20%), with operation and upkeep (“O&M”) of the crops to be undertaken by the companions via respective O&M particular objective entities with the identical shareholding construction.
Farid Al Awlaqi, Chief Govt Officer of TAQA’s Technology enterprise, stated, “TAQA has bold development targets of 150GW by 2030, and right this moment’s announcement marks a serious milestone for 2024 with the addition of an extra 3.6 GW of low-carbon gas-fired energy capability within the Kingdom of Saudi Arabia, making it 5 greenfield initiatives within the Kingdom below growth in TAQA’s portfolio.
Along with signing the PPAs, we’re taking up the position because the lead developer and can oversee the operations and upkeep of those two world-class crops, demonstrating our expanded operational capabilities. Right this moment’s announcement of those two greenfield energy initiatives cements TAQA’s place as a low-carbon energy and water champion and as a trusted and sustainable developer, investor and operator in a number of key markets. Alongside our companions, JERA and AlBawani, TAQA is happy to be supporting the Kingdom and SPPC on its power transition journey with these two pivotal energy crops.”
Steven Winn, Chief World Strategist, JERA, stated, “Consistent with JERA’s objective to realize internet zero by 2050, the award of those two high-efficiency impartial energy initiatives, that includes state-of-the-art HL class gasoline generators, reinforces JERA’s dedication to decarbonising thermal energy era. This key milestone was efficiently achieved because of the superb teamwork of all stakeholders, SPPC and our companions, TAQA and AlBawani, together with our contractors in reaching this crucial milestone.”
Fakher AlShawaf, Group CEO of AlBawani Holding, emphasised, “The partnership with TAQA and JERA on these state-of-the-art energy crops marks a transformative milestone for AlBawani, reinforcing our dedication to advancing the Kingdom’s power diversification initiatives. This challenge represents our dedication to sustainable practices and our dedication to advancing the objectives of Imaginative and prescient 2030.
By means of this challenge, we intention to ship a extremely environment friendly and dependable energy answer that may play an important position in assembly the Kingdom’s rising demand for power, whereas additionally advancing native experience and creating new alternatives for financial development. We sit up for working carefully with all stakeholders to grasp this imaginative and prescient and convey lasting worth to Saudi Arabia’s power panorama.”
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