Related Articles

• 
  Xlinks starts debt financing work

  3 July 2024

  UK-based startup Xlinks has commenced procurement and embarked on debt financing work following the appointment of two financial advisers in May.

  "Xinks is moving forward at quite a pace now," Paddy Padmanathan, vice chairman and an investor in the company, told MEED.

  Xlinks First, the investment company established by Xlinks to deliver the $18bn Morocco-UK power interconnector project, appointed US-based JP Morgan and France's Societe Generale as lead financial advisers for its debt financing in May.

  Xlinks is developing a project comprising wind and solar generation as well as battery storage, with a total combined capacity of 3,600MW, to be transmitted from Morocco to the UK.

  In May, US-headquartered GE Vernova invested $10.2m in Xlinks First, which equates to a minority shareholding in the company

  GE Vernova joins at least four other investors in the project, which include Africa Finance Corporation, which invested $14.1m in April; Abu Dhabi National Energy Company (Taqa), $30.7m; the UK’s Octopus Energy, $6.23m; and France’s TotalEnergies, $25.4m.

  The planned electricity generation and battery storage facilities, located in south Morocco, will be connected exclusively to the UK via 4,000-kilometre high-voltage, direct current (HVDC) cables.

  In December last year, Xlinks signed a contract with Canada-headquartered WSP to provide technical advisory services for the project.

  WSP will support Xlinks with route optimisation, power systems and interface management for the plan to construct the project.

  The Morocco-UK power project entails building 10,500MW solar and wind farms in Morocco’s Guelmim-Oued Noun region and sending 3,600MW a day of energy exclusively to the UK via four 3,800-kilometre HVDC cables.

  The HVDC network is envisaged to run from the UK’s south coast, passing France, Spain and Portugal undersea and then onshore to a planned solar and wind energy project in Morocco.

  This renewable energy-sourced electricity amounts to nearly 8% of the UK’s current requirements, equivalent to powering 7 million homes by 2030.

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  Jennifer Aguinaldo
• 
  EU-backed offtake spurs Tunisia hydrogen deals

  3 July 2024

  EU and intergovernmental support to the 3,200-kilometre South2 corridor linking Tunisia and Central Europe provides certainty and comfort on the demand and offtake side for the recently announced green hydrogen projects in the North African country.

  "The recognition and support of the EU to the South2 corridor, alongside intergovernmental support, provide substantial certainty and comfort on the demand and off-take side, enabling us to proceed with advanced project development activities," Thomas Brostrom, chief business development & investment officer of Saudi utility developer Acwa Power, tells MEED.

  Acwa Power and a consortium led by France's TotalEnergies separately announced multi-phase green hydrogen projects in Tunisia between May and June this year.

  The projects aim to export green hydrogen via the planned SoutH2 corridor, a hydrogen pipeline project connecting North Africa to Italy, Austria and Germany, which is expected to be commissioned around 2030.

  The Acwa Power project expects to reach a financial investment decision (FID) for its project within two to three years, with the first phase scheduled to start operations by 2031.

  The other team, comprising TE H2 – a joint venture of TotalEnergies and Luxembourg's Eren Group – and Austria's Verbund, aims to reach FID between 2027 and 2028.

  The two projects' initial phases aim to produce roughly 200,000 tonnes a year (t/y) of green hydrogen. Both teams say they plan to scale up their facilities' production capacity to up to 1 million t/y in their final phases.

  Acwa Power's "strong track record on green hydrogen projects globally and the strong governmental relationships between Saudi Arabia and Tunisia are an upside for our project", says Bromston, who adds that his firm is open to considering partners who can add value to the project.

  "The corridor partners recognise and target Tunisia as an ideal location for renewable hydrogen production. The South2 corridor has been awarded Project of Common Interest status on 28 November 2023 by the EU," the executive explains.

  "This status recognises the project's potential to contribute to Europe's green transition and facilitates access to funding, regulatory support, and streamlined permitting processes, accelerating the project's development and implementation."

  Major European transmission system operators (TSO) such as Italy’s Snam, Trans Austria Gasleitung (TAG),  Gas Connect Austria and Germany’s Bayernets lead the SoutH2 Corridor project.

  The pipeline has a hydrogen import capacity of 4 million t/y, which means it can potentially supply 40% of the EU bloc’s diversified import target under its REpowerEU programme.

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  Jennifer Aguinaldo
• 
  SWCC expects desalination plant bids by 4 July

  2 July 2024

  

   

  Saudi Arabia's main producer of desalinated water, Saline Water Conversion Company (SWCC), has extended the tender closing date for two of the four seawater reverse osmosis (SWRO) desalination plants that it is procuring using an engineering, procurement and construction (EPC) model.

  According to a source familiar with the projects, SWCC received bids in May for the contract to build the Yanbu phase five and Shuaiba 6 SWRO schemes.

  However, it has extended until 4 July the deadline for companies to submit proposals for two other water desalination plant projects located in Jubail and Ras Al-Khair.

  According to an industry source, bids were submitted on 14 May for the contract to build the Yanbu 5 SWRO project, which has a baseline capacity of 300,000 cubic metres a day (cm/d).

  Bids were submitted five days later for the Shubaiba 6 SWRO, which has a capacity of 545,000 cm/d.

  SWCC has yet to disclose the bidders and the prices submitted for either scheme, although sources familiar with its procurement programme tell MEED that several international and local EPC contractors are likely to have submitted bids, either individually or as members of consortiums.    

  SWCC has tendered the contract to build the Shuaiba 6 SWRO before. It was most recently tendered in 2022, when a team comprising the local firms Wetico and Alfanar, and Italy's Fisia Italimpianti submitted bids for the contract.

  MEED understands the Ras Al-Khair and Jubail SWRO projects will each have the capacity to treat 600,000 cm/d of seawater.

  The four contracts are being procured using an EPC model, in contrast to the SWRO facilities being procured on a public-private partnership basis by the state offtaker, Saudi Water Partnership Company.

  SWCC is the world's largest producer of desalinated water, with a capacity of at least 6.6 million cm/d. Plants utilising older and energy-intensive techniques such as multi-stage flash technology account for the majority of its current capacity.

  According to data from regional projects tracker MEED Projects, SWCC has awarded the EPC contracts for several SWRO plants in the past few years, including:

  • Ras Al-Khair production system expansion: 200,000 cm/d
  • Jubail SWRO plant: 1,000,000 cm/d
  • Shuqaiq 1 SWRO plant: 400,000 cm/d.

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  Jennifer Aguinaldo
• 
  PDO confirms 200MW wind projects

  1 July 2024

  State-backed Petroleum Development Oman (PDO) has launched three renewable energy plant projects to support its target for 30% of its power capacity to come from renewable sources by 2026 and 50% by 2030.

  PDO’s 2023 Sustainability Report, released in late June, said that bid evaluation is under way for two wind power projects, each with a capacity of 100MW.

  The Riyah-1 and Riyah-2 wind farm projects are located at Amin and Nimr West, respectively.

  According to PDO, it floated the request for proposal documents for Riyah-1 and Riyah-2 in April 2023.

  It is evaluating the technical and commercial bids for the two projects, according to its 2023 Sustainability Report.

  The two facilities are expected to be completed by Q2 2026.

  PDO also plans to develop a 100MW solar independent power project (IPP). Known as the North Solar IPP,  the project will use a photovoltaic (PV) single-axis tracking system.

  

  Photo: Miraah solar plant (PDO)

  “The developer will be encouraged to optimise the design of the plant and offer the lowest tariffs for the delivery of electrical energy at the delivery point,” PDO said.

  The plant will be located close to Saih Nihayda, next to Qarn Alam airport, in the northern region of Oman, approximately 170 kilometres south of Nizwa.

  It is due to come on stream in Q4 2025.

  PDO envisages the North Solar IPP to replicate the success of its landmark 100MW Amin PV power plant, which started commercial operations in May 2020 and was commissioned three months ahead of schedule.

  “The IPP near Nimr provides power to our interior operations and is the world’s first utility-scale solar project to have an oil and gas company as the sole buyer of electricity,” said PDO.

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  Jennifer Aguinaldo
• 
  SPPC sets new Remah and Nairiyah bid deadline

  28 June 2024

  Saudi Power Procurement Company (SPPC) has extended the tender closing date for qualified bidders to submit proposals for contracts to develop and operate four combined-cycle gas turbine (CCGT) power generation plants in Saudi Arabia.

  According to industry sources, the principal buyer expects to receive bids for the contracts by 31 July.

  The projects, each with a generation capacity of 1,800MW, are:

  • Remah 1
  • Remah 2
  • Al-Nairiyah 1
  • Al-Nairiyah 2

  Remah 1 and 2, previously known as PP15, will be located in Saudi Arabia’s Central Region, while Al-Nairiyah 1 and 2 will be in the Eastern Region.

  MEED previously reported that the consortiums likely to bid for the four gas-fired independent power producer (IPP) contracts include:

  • Abu Dhabi National Energy Company (Taqa, UAE) / Jera (Japan) / Albawani (local)
  • Acwa Power (local)
  • Korea Electric Power Corporation (Kepco, South Korea) /  Saudi Electricity Company (SEC, local)

  Except for the Taqa-Jera-led team, the latest lineup of potential bidders presents a major reshuffle from the team compositions MEED reported in March, following the project site visits. 

  SPPC indicated that the four power plants are envisaged to operate using natural gas combined-cycle technology with a carbon capture unit readiness provision.

  Plans for PP15 were first announced in 2015. Originally intended to be developed on a build-operate-transfer basis, the initial plan entailed three phases, each with a design capacity of 1,800MW. 

  The four power generation facilities will be developed using a build-own-operate (BOO) model. 

  SPPC’s transaction advisory team for the Nemah 1 and 2 and Nairiyah 1 and 2 IPP projects comprises US/India-based Synergy Consulting, Germany’s Fichtner and US-headquartered Baker McKenzie. 

  SPPC has started preparing for the next batch of gas-fired IPPs it plans to tender, as MEED reported.

  The Saudi principal buyer is understood to have received bids for the financial, legal and technical consultancy roles for the Al-Rais and Riyadh 16 IPPs. The Al-Rais IPP will have a capacity of 2,400MW, while the Riyadh 16 IPP has a planned capacity of 3,600MW.

  Awarded gas IPPs

  SPPC awarded contracts to develop four gas-fired power generation IPP projects last year.

  A consortium comprising Saudi Electricity Company and Acwa Power signed the 25-year power-purchase agreements with SPPC to develop and operate the Qassim 1 and Taiba 1 IPP projects on 13 November. Each plant has a capacity of 1,800MW. The two projects are valued at SR14.6bn ($3.9bn).

  China’s Sepco 3 will undertake the engineering, procurement and construction contract for the two projects, while US-based GE will supply the CCGT for the power plants. 

  A team comprising Jomaih Energy & Water, France’s EDF and the local Buhur for Investment won the contract to develop the 1,800MW Taiba 2 IPP and 1,800MW Qassim 2 IPP schemes.

  Each project will be developed on a BOO basis by the winning consortiums, which will be 100% owned by the successful bidders.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/12015805/main.jpg

  Jennifer Aguinaldo