ACWA Power announces financial close for $12bn power JV at Jazan

Transaction is the largest project finance agreement in ACWA’s history. The JV is for the plant to supply power, steam and hydrogen for Aramco’s Jazan refinery

ACWA Power, a Saudi based developer, investor and operator of power generation, desalinated water and green hydrogen plants, has announced the financial close and completion of the acquisition of the first group of assets for the Jazan integrated gasification combined cycle (IGCC) project.

The JV will complete the commissioning and testing and commence operating, and maintaining the plant to supply power, steam, hydrogen, and other utilities for Aramco’s Jazan refinery, under a 25-year contract with Aramco.

The Jazan IGCC project’s financial close was achieved on 18th

October 2021 for the $7.2billion senior debt facilities through a diverse mix of local, regional, and international banks and financial institutions.

Some aspects of the limited recourse project financing involve the participation of the Saudi Industrial Development Fund (SIDF), a consortium of far-eastern non-bank financial institutions, traditional commercial banks and Islamic banks.

Located in Jazan, Saudi Arabia, the IGCC plant is the world’s largest facility of its kind.

The JV has purchased ASUs, gasification, syngas cleanup, utilities, and power assets from Aramco.

The JV owns and operates the facility under a 25-year contract for a fixed monthly fee, with Saudi Aramco supplying feedstock to the JV, and the JV producing power, steam, hydrogen and other utilities for Aramco.