Related Articles

• 
  Acwa Power to assume PIF hydrogen role

  26 November 2024

  Saudi-listed utility developer Acwa Power is understood to be assuming the mandate to deliver, operate and co-invest in future green hydrogen projects in Saudi Arabia, according to an industry source.

  This follows the cancellation in October of the planned launch of Energy Solutions Company (ESC), a Public Investment Fund (PIF) subsidiary, which was expected to become Saudi Arabia's national champion in low-carbon hydrogen production, storage, transportation and marketing services and solutions.

  MEED reported in July that in addition to driving the development of the green hydrogen market in the kingdom, ESC will also co-invest with Saudi Aramco in the state energy giant's blue hydrogen developments

  "Acwa Power will assume the mandate to be the partner and co-investor for all upcoming green hydrogen projects in Saudi Arabia, which makes sense given it is already implementing the first green hydrogen and ammonia project in the kingdom," notes a source familiar with the matter.

  This development closely resembles Acwa Power's role in bilateral renewable energy projects in the kingdom, which is being procured via the PIF's Price Discovery Scheme.  

  Acwa Power said it cannot comment on rumours or speculations.

  PIF is understood to own a 44% stake in Acwa Power, down from 50% before Acwa Power's 2021 initial public offering.

  There are at least three green hydrogen projects in the conceptual design or study stage in Saudi Arabia.

  All three have PIF as their main partner or one of their partners.

  These projects include those planned by teams separately led by France's Engie, Japan's Marubeni and South Korea's Posco. 

  Acwa Power, in partnership with Saudi gigaproject developer Neom and the US' Air Products, is developing the $8.4bn integrated green hydrogen and ammonia production facility in Neom.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13005695/main.gif

  Jennifer Aguinaldo
• 
  Asyad signs 40-year Suwaiq port concession

  26 November 2024

  Oman's Transport, Communications and Information Technology Ministry (MTCIT) has signed a concession agreement with the local logistics provider Asyad Group to manage and operate the Suwaiq Port for 40 years.

  According to local media reports, the agreement involves the construction of a sea berth, which is 500 metres long and 14 metres deep, designed to accommodate various sizes of ships and handle all types of cargo, including bulk, liquid, dry and general cargo and vehicles.

  The agreement entails the endorsement of modern handling systems to "improve operational efficiency and expand storage capacities to keep pace with growing demand".

  Asyad will also expand the Suwaiq Port area to more than 360,000 square metres to meet the needs of the growing local economy, notably in the food security sector.

  Port Suwaiq is located close to Asyad’s Khazaen Dry Port between the capital, Muscat, and Sohar.

  According to data on Asyad's website, it assumed the port’s management in September 2019.

  Shortly after, Asyad embarked on an ambitious development plan that "transformed the port into a major enabler of local trade and a key provider of import and export services to Oman’s businesses and manufacturers".

  The new agreement aims to help maintain the port’s role as a multi-purpose commercial hub that meets international standards, to help create opportunities to add new international shipping lines.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13005616/main.jpg

  Jennifer Aguinaldo
• 
  Dewa reviews progress of $1.5bn solar project

  26 November 2024

  State utility Dubai Electricity & Water Authority (Dewa) has reviewed work progress on the 1,800MW sixth phase of the Mohamed Bin Rashid (MBR) Solar Park in Dubai.

  Dewa and its partner developer, Abu Dhabi Future Energy Company (Masdar), announced reaching financial close for the project in February this year.

  The MBR phase 6 solar photovoltaic (PV) independent power project (IPP) will require a total investment of AED5.5bn ($1.5bn).

  The company implementing the project is Shuaa Energy 4. Dewa owns a 60% stake while Masdar maintains the remaining 40% in the project company.

  Masdar, teaming up with engineering, procurement and construction (EPC) contractor China Machinery, submitted a low bid of $cents 1.62154 a kilowatt hour ($c/kWh) for the contract.

  Saudi Arabia’s Acwa Power, along with EPC contractor China Energy Engineering Corporation, submitted a higher bid of $c1.99/kWh, about 22% more than the levelised electricity cost offered by Masdar.

  Dewa received and opened the two bids on 7 June.

  The renewable EPC arm of the India-headquartered Larsen & Toubro (L&T) Power Transmission & Distribution will undertake the project's EPC contract.

  L&T’s project scope includes the installation of two gas-insulated switchgear units, high-voltage underground cabling and medium-voltage distribution networks, in addition to the solar PV farm.

  The solar farm will be built on a 20-square-kilometre plot at the solar park, about 50 kilometres from the city of Dubai. 

  This phase of the MBR solar complex "will provide clean energy for approximately 540,000 residences and will reduce around 2.36 million tonnes of carbon emissions annually".

  Once completed in 2026, the 1,800MW sixth phase of the solar park will increase its total production capacity to 4,660MW, according to Saeed Mohammed Al-Tayer, Dewa's managing director and CEO.

  The complex's total current production capacity is 2,860MW.

  Earlier this month, Dewa invited firms to bid for the transaction advisory package for phase seven of the MBR solar park project.

  The planned seventh phase of the solar park will include a 1,600MW solar PV plant and a 1,000MW battery energy storage system plant, which can provide up to six hours of storage.

  The state utility aims to have about 27% of the generation mix sourced from clean energy by 2030.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13004879/main1350.jpg

  Jennifer Aguinaldo
• 
  Samsung confirms $2.8bn Facility E contract win

  26 November 2024

  South Korean contractor Samsung C&T has confirmed winning the $2.8bn engineering, procurement and construction (EPC) contract for the project to develop Qatar's fifth independent water and power project (IWPP).

  Qatar state utility General Electricity & Water Corporation (Kahramaa) signed the power and water purchase agreement (PWPA) for Qatar’s Facility E IWPP with a consortium led by Japan’s Sumitomo Corporation on 25 November.

  The Facility E IWPP scheme will have a power generation capacity of 2,400MW and a water desalination capacity of 100 million imperial gallons a day (MIGD).

  MEED reported in July that Sumitomo had submitted a proposal for the contract. It leads a consortium that comprises fellow Japanese utility developer Shikoku Electric, Seoul-headquartered Korea Overseas Infrastructure & Urban Development Corporation (KIND) and Korea Southern Power Company (Kospo).

  The four consortium members will establish a project company along with Qatar Electricity & Water Company (QEWC) and QatarEnergy (QE).

  According to Sumitomo, the equity distribution between the project company shareholders is:

  • Sumitomo Corporation: 17%
  • Shikoku Electric: 11%
  • Kospo: 6%,
  • KIND: 6%
  • QEWC: 55%
  • QE: 5%

  Located in the Ras Abu Fontas region of Qatar, the project's total cost is $3.7bn, according to local media reports in South Korea citing Samsung C&T.

  MEED understands that when the project is completed in 2029, Facility E will be responsible for about 16% of Qatar's total electricity and 17% of potable water.

  Project background

  The contract to develop the Facility E IWPP was first tendered in 2019. The three teams that submitted bids for the contract in August 2020 were:   

  • Engie (France) / Mitsui (Japan) / Yonden (Shikoku Electric, Japan)
  • Sumitomo / Kansai Electric (Japan)
  • Marubeni / Kyushu Electric (Japan)

  The original plan was for the Facility E IWPP to have a power generation capacity of about 2,300MW and a desalination component of 100MIGD once fully operational.

  Kahramaa revised the power plant’s design capacity to 2,600MW and sought alternative prices from bidders. 

  Kahramaa eventually cancelled and reissued the tender in September 2023. 

  The state utility’s transaction advisory team includes UK-headquartered PwC and Clyde & Co as financial and legal advisers, respectively, led by Belgrade-headquartered Energoprojekt as technical adviser.

  Completed and operational IWPPs in Qatar include three projects in Ras Laffan – known as Facilities A, B and C – and Facility D in Umm Al-Houl.

  Awarded in 2015 and completed in 2018, Facility D was developed by a Japanese consortium of Mitsubishi Corporation and Tokyo Electric Power Company (Tepco). South Korea’s Samsung C&T was the EPC contractor.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13004248/main.jpg

  Jennifer Aguinaldo
• 
  Saudi Arabia prequalifies Dawadmi wind bidders

  26 November 2024

  Saudi Arabia's principal buyer, Saudi Power Procurement Company (SPPC), has prequalified firms that can bid for a contract to develop a wind independent power project (IPP) under the sixth round of its National Renewable Energy Programme (NREP).

  Located in Riyadh, the 1,500MW Dawadmi IPP is the fifth wind IPP to be tendered by SPPC since it kicked off NREP in 2017.

  The prequalified bidders are:

  • Abu Dhabi Future Energy (Masdar, UAE) / Al-Jomaih Energy & Water (local) / Nesma Renewable Energy (local)
  • EDF Renewables (France) / JInko Power (Hong Kong)
  • Kahrabel / Engie (France) / Saudi Electricity Company (local)
  • Marubeni Corporation (Japan) / China Power Engineering Consulting Group International Engineering Company (China)
  • Sembcorp Utilities (Singapore) / Posco International Corporation (South Korea)
  • Sumitomo Corporation (Japan) / Korea Electric Power Corporation (Kepco, South Korea)
  • Total Energies Renewables (France) / Nareva Holding (Morocco)
  • Goldwind Science & Technology (China) /Jera (Japan)
  • PowerChina
  • Alfanar Company
  • SPIC Huanghe Hydropower Development

  In addition to the Dawadmi wind IPP, the following schemes comprise round six of the NREP:

  • 1,400MW Najran solar photovoltaic (PV) IPP (Najran)
  • 600MW Samtah solar PV IPP (Jizan)
  • 600MW Al-Darb solar PV IPP (Jizan)
  • 400MW Al-Sufun solar PV IPP (Hail)

  These schemes take the total capacity of publicly tendered solar and wind projects by SPPC to close to 15,000MW.

  SPPC is responsible for the pre-development, tendering and subsequent offtaking of the energy from the projects.

  US/India-based Synergy Consulting is providing financial advisory services to SPPC for the NREP sixth-round tender. Germany's Fichtner Consulting and US-headquartered CMS are providing technical and legal consultancy services, respectively.

  The previous wind farms that SPPC has tendered include the 400MW Dumat Al-Jandal wind IPP, which is operational.

  Earlier this year, SPPC signed the power-purchase agreements with Japan's Marubeni Corporation for the contracts to develop and operate the 600MW Al-Ghat and 500MW Waad Al-Shamal wind IPPs. The projects recently reached financial close, as MEED reported.   

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13003451/main.jpg

  Jennifer Aguinaldo