Utilities Middle East

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.

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