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(Paragraph 10 updated with legal advisory details)
Saudi-based developer and operator of utility projects Aljomaih Energy & Water Company (AEW) announced on Friday that together with consortium members Ajlan & Bros Group, Buhur for Investment Company and the EDF Group have achieved the financial close of the Taiba-2 and Qassim-2 Independent Power Plant (IPP) projects totalling 3.96 gigawatts (GW) in Saudi Arabia.
The two projects have been financed through a combination of Equity Bridge Financing and Senior Debt from Riyad Bank, Saudi Awwal Bank, Abu Dhabi Commercial Bank (SDCB), Bank Saudi Fransi Bank, Arab Petroleum Investment Corporation (APICORP), Saudi Investment Bank, Bank Al Jazira, Commercial Bank of Dubai and First Abu Dhabi Bank (FAB), according to AEC's press statement.
The estmated investment cost of the two IPPs is $3.9 billion (equivalent to 14.6 billion Saudi riyals).
The Power Purchase Agreements (PPA) for Taiba 2 and Qassim 2 IPPs were signed in November 2023.
Ibrahim Al Jomaih, Chairman of the Board of Directors of AEW, said, “We are honoured to have been selected by the Saudi Power Procurement Company (SPPC) and the Ministry of Energy to act as Consortium Lead on the development of Taiba-2 and Qassim-2, the first Combined Cycle Gas Turbines with a provision for Carbon Capture, in the Kingdom.”
Ajlan Al-Ajlan, Chairman of the Board of Directors of Ajlan & Bros Group added that the collaboration with Aljomaih Energy & Water and the SPPC aligns with the company’s strategic vision and the objectives of the Kingdom's Vision 2030.
Mutlaq Alghwairi, Buhur for Investment Company Chairman said: “As a Saudi company, we are grateful to be part of these mega projects, proudly achieving this remarkable milestone within the first year of Buhur operation.”
Beatrice Buffon, EDF Group Vice President in charge of the International Division and EDF Renewables Chairwoman and CEO, said: “By integrating state-of the art innovative technology, we are not only enhancing the efficiency and reliability of power generation but also actively contributing to the reduction of carbon emissions."
Taiba-2 and Qassim-2 IPPs will be equipped with HL-class gas turbines from Germany’s Siemens, in combination with steam turbines and generators.
Al Tamimi & Company provided legal advisory services to SPPC on Qassim 1& 2 and Taiba 1 & 2 power projects.
Saudi Arabia is targeting electricity production mix of 50 percent from renewable energy and 50 percent from highly efficient gas-fired plants together with the displacement of liquid fuels of power plants and reduction of carbon dioxide emissions by up to 278 million tonnes annually by 2030.
Read more: ACWA Power secures financing for Taiba 1 and Qassim 1 IPPs
(Editing by Anoop Menon) (anoop.menon@lseg.com)
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