Abu Dhabi National Energy Company (TAQA), along with Japan’s JERA and Saudi Arabia’s Al-Bawani Financial (a subsidiary of Al-Bawani Holding), announced the completion of a financing deal for the construction of two new power plants in Saudi Arabia. The plants are Rumah 2, under Rehab Al-Awwal Energy Company, and Nairiyah 2, under Norus Energy Company.

The company stated that this significant milestone was achieved under the supervision of the Saudi Ministry of Energy in partnership with the Saudi Power Procurement Company, following the signing of 25-year power purchase agreements for each plant among TAQA, JERA, and Al-Bawani.

The two new plants will use combined cycle gas turbines to generate a total capacity of 3.6 gigawatts. The project is being implemented under a build-own-operate model and will support efforts to meet the growing energy demand in the Kingdom.

The total investment for the two plants is approximately 4 billion USD (about 14.7 billion AED), with financing secured from a consortium of leading regional and international banks through senior debt and equity loans, with a debt ratio exceeding 80%, reflecting the strong fundamentals of the project and lender confidence. The lenders include Al Rajhi Bank, Riyadh Bank, Saudi British Bank, National Commercial Bank, Arab Petroleum Investments Corporation, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Bank of China, and First Abu Dhabi Bank.

The plants will be established through special purpose companies with ownership shares distributed as follows: TAQA 49%, JERA 31%, and Al-Bawani 20%. Operation and maintenance will be handled by other private companies with the same ownership shares. Engineering, procurement, and construction contracts for both plants were awarded to Harbin Electric International Limited and China Taisei Civil Engineering Limited.

The plants will be equipped with highly efficient, state-of-the-art combined cycle gas turbines, with future readiness for carbon capture technologies, supporting the Saudi Ministry of Energy’s carbon capture goals outlined in Saudi Vision 2030. The projects also align with the Saudi Green Initiative’s ambition to achieve net-zero greenhouse gas emissions by 2060 within a circular carbon economy framework.

The consortium selected Siemens Energy as the main equipment manufacturer and signed long-term service agreements with them. The projects support the Kingdom’s ambitions to enhance its energy mix and meet growing demand.

Fred Aloulqi, CEO of Power Generation and Water Desalination at TAQA, said: “We are pleased to complete this financing deal, a significant step forward in developing the two plants, reinforcing our position as the preferred business partner in world-class projects and facilities. As the lead developer, we will leverage our global capabilities and expertise to support the Kingdom’s ambitions for an optimal energy mix. Construction is progressing steadily with the recent completion of the preliminary works phase. We are developing the plants with highly efficient combined cycle gas turbines, reaffirming our strong commitment to growth and decarbonization.”