Taqa, JERA to build industrial steam and electricity cogeneration plant
The plant will produce electricity and steam for the Amiral petrochemical complex to be developed in Jubail in the Eastern Province of Saudi Arabia
Abu Dhabi National Energy Company (Taqa), together with JERA Co, Japan’s largest power generation company, announced recently that they have entered into a Power and Steam Purchase Agreement with Saudi Aramco Total Refining and Petrochemical Company (SATORP), a joint venture company owned by Saudi Arabian Oil Company (Saudi Aramco) and Totalenergies.
They will develop a greenfield industrial steam and electricity cogeneration plant that will produce electricity and steam for the Amiral petrochemical complex to be developed in Jubail in the Eastern Province of Saudi Arabia.
The Amiral petrochemical complex is expected to house one of the largest mixed-load steam crackers in the Arab Gulf region.
The Amiral cogeneration plant will include state-of-the-art power and steam generation systems, gas and water receiving systems, and gas-insulated switchgear interconnections while meeting stringent efficiency standards imposed by the Saudi Energy Efficiency Centre. The project also provides for the future installation of a carbon dioxide capture plant and is capable of hydrogen cofiring.
The Amiral cogeneration plant will be developed by a special purpose entity owned by Taqa (51%) and JERA (49%) on a 25-year build, own, and operate basis extendable by five years on mutual agreement. Taqa and JERA will also undertake the operation and maintenance (O&M) of the plant through an O&M special purpose entity.
Farid Al Awlaqi, Chief Executive Officer of Taqa Generation, said, “The signing of the offtake agreements for the cogeneration power and steam project at the Amiral petrochemical facility, a key downstream project being developed by two of the world’s leading energy companies, demonstrates the confidence in TAQA’S ability to deliver critical utilities, including power and steam effectively.
Together with our partner JERA, Taqa is looking forward to developing an efficient cogeneration plant that reduces carbon emissions and supports SATORP with its long-term decarbonisation programme. The agreement will bolster Taqa’s efforts in building on our growth and executing on our 2030 goals.”
Steven Winn, Chief Global Strategist of JERA, said, “Together with our partner Taqa, we will be providing stable, highly efficient, clean and reliable power and steam to our customer SATORP. The Amiral Cogeneration plant will not only enhance the Amiral Complex’s operational efficiency, but also demonstrates our commitment to environmental stewardship and our growth ambitions for sustainable power generation solutions in the Kingdom of Saudi Arabia and the region.”
Separately, Adnoc and Abu Dhabi National Energy Company (Taqa) announced recently the award of a strategic investment project estimated at up to $2.4 billion (Dhs8.8 billion) to provide sustainable water supply for ADNOCS onshore operations, reinforcing Adnoc and Taqa position as responsible energy leaders and underscoring their efforts to drive sustainable initiatives that deliver long-term value.
The project will develop a centralised worldclass seawater treatment facility and transportation network for operations at the Bab and Bu Hasa fields in Abu Dhabi. This project will replace the current high-salinity, deep aquifer water systems at the fields, thereby reducing water injection-related energy consumption by up to 30%. The project will be connected to the grid and will receive 100% of its power from clean energy sources.
ADNOC and TAQA will jointly hold a 51% majority stake (25.5% each) in the Project Company and the remaining 49% stake has been awarded to a consortium comprised of Orascom Construction and Metito (the Consortium).
The Consortium will arrange the project financing for the construction phase and develop the project under a build, own, operate and transfer (BOOT) model, with the full project being returned to ADNOC ater 30 years of operation.
Abdulmunim Al Kindy, ADNOC Upstream Executive Director, said, We are delighted to partner with TAQA and other industry leaders in this strategic project that will reduce our environmental footprint and unlock significant value as we continue to decarbonise and future proof our operations. The project will enhance our onshore energy efficiency by replacing lessefficient, high-salinity, deep aquifer water systems with a centralised seawater treatment facility and transportation network. With a substantial portion of the project value flowing back into the UAE economy, this landmark initiaitive will further stimulate economic and industrial growth and create commercial opportunities for the private sector, in line with the UAE Leaderships wise directives.
More than 60% of the project value during the development and operation phases will flow back into the UAES economy under ADNOCS highly successful In-country Value (ICV) programme.