Abu Dhabi National Energy (TAQA), Japanese power generation company JERA, and AlBawani Capital have finalised the financial arrangements for two power plants in Saudi Arabia with a combined capacity of 3.6GW.
The projects are Rumah 2, whose holding company is Rihab ElAwal Power, and Al Nairyah 2, which is owned by Nawras Power. Together, these gas-fired power plants involve an investment of nearly $4bn.
They are supported by two 25-year power purchase agreements (PPAs) with Saudi Power Procurement (SPPC).
The plants will use advanced combined cycle gas turbine technology (CCGT) and will be prepared for future carbon capture integration. Each of them will be able to generate 3.6GW of power.
TAQA generation business CEO Farid Al Awlaqi said: “We are developing the plants to be built for the future utilising the highest efficiency CCGT turbines, which demonstrates our firm commitment to growth and decarbonisation.”
Development of these projects is said to align with Saudi Arabia’s growing energy requirements and sustainability goals, including Vision 2030 and the Saudi Green Initiative.
The financing includes senior debt and equity bridge loans from a consortium of regional and global banks, including Al Rajhi Bank, Riyadh Bank, and Bank of China, among others.
TAQA, JERA, and AlBawani will undertake the construction through their special purpose entities, with 49%, 31%, and 20% stakes, respectively.
AlBawani group CEO Fakher AlShawaf said: “Achieving financial close marks a significant milestone in AlBawani’s ongoing commitment to supporting the Kingdom’s energy transition, in alignment with the ambitious goals of Vision 2030, and in partnership with TAQA and JERA.
“These strategic projects will deliver reliable, sustainable energy solutions and contribute meaningfully to Saudi Arabia’s long-term growth and prosperity.”
Engineering, procurement, and construction contracts were given to Harbin Electric International and China Tiesiju Civil Engineering Group.
Furthermore, Siemens Energy has been engaged as the Original Equipment Manufacturer (OEM) for the Saudi power projects.
