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A consortium led by Al Jomaih Energy and Water Company has reached financial close for the independent power plant projects Taiba-2 and Qassim-2, securing around USD 3.9 bn (SAR 14.6 bn) in funding, according to a statement (pdf). The consortium includes Ajlan & Bros Holding Group, Buhur Investment Company, and French state-owned power giant EDF.
Where’s the money coming from? The projects will be financed via bridge and senior debt from Riyad Bank, Saudi Awwal Bank, Abu Dhabi Commercial Bank, Banque Saudi Fransi, Arab Petroleum Investment Corporation, Saudi Investment Bank, Bank AlJazira, Commercial Bank of Dubai, and First Abu Dhabi Bank.
About the projects: The combined cycle gas turbine plants will have a total capacity of nearly 4 GW and will be the first in the Kingdom to capture carbon emissions during electricity generation. They are set to be two of the world’s largest and most-advanced combined-cycle power plants. The Saudi Power Procurement Company signed a power purchase agreement with the consortium in November 2023.
The timeline: The plants will initially be connected to the grid in a simple cycle mode in 2026 and transition to combined-cycle mode in 2027.
BACKGROUND- The financial close comes just weeks after Siemens Energy said it received a USD 1.5 bn order from the Jomaih consortium for the plants, which are being built in the western and central regions of the Kingdom. The plants will provide additional energy to support the Kingdom’s growing population and economy — and replace parts of the existing oil-dependent power generation system.
IN CONTEXT- The Kingdom aims to reduce carbon emissions by 278 mn tons per annum (mtpa) by 2030 before reaching carbon neutrality by 2060.
SOUND SMART- What’s the difference between a combined-cycle and a single-cycle power plant? Basically, a combined-cycle plant is more efficient, allowing operators to generate more power from the same volume of feedstock. A single-cycle power plant burns fuel to turn a gas turbine that generates electricity. The leftover heat is typically vented as waste. A combined-cycle power plant captures the waste heat and uses it to create steam, which then drives a separate steam turbine to produce additional electricity.
