Aljomaih Energy & Water Company, a prominent Saudi investor, developer, and operator of utilities and infrastructure projects, in collaboration with Ajlan & Bros Group, Buhur for Investment Company, and the EDF Group, has successfully closed the financing for the Taiba-2 and Qassim-2 Combined Cycle Gas Turbine (CCGT) power projects in Saudi Arabia. These projects, with a total capacity of 3.96 GW, have been funded through a combination of equity bridge financing and senior debt from various financial institutions. The financing of approximately USD 3.9 billion will play a crucial role in advancing the development and deployment of the projects, which will be the first in the Kingdom to incorporate carbon capture technology in line with Vision 2030 and the Saudi Green Initiative.
The Taiba-2 and Qassim-2 projects will be equipped with advanced HL-class gas turbines from Siemens, alongside steam turbines and generators, to generate about 2,000 MW of electricity each. These projects are part of the Ministry of Energy’s initiatives in the electricity sector to achieve an optimal energy mix for electricity production, with a goal of 50% renewable energy and 50% energy from highly efficient gas-fired plants. Additionally, the projects aim to reduce carbon dioxide emissions by up to 278 million tons annually by 2030, aligning with the circular carbon economy approach.
Ibrahim Al Jomaih, Chairman of Aljomaih Energy and Water Company, expressed his appreciation for being chosen as the consortium lead for the Taiba-2 and Qassim-2 projects. He highlighted the significance of achieving financial close on these strategic projects and emphasized the commitment of the consortium to deliver nearly 4 GW of decarbonized power capacity to enhance the generation capabilities of the electrical network in Saudi Arabia. Ajlan Al-Ajlan, Chairman of Ajlan & Bros Group, also commended the collaboration, stating their dedication to advancing the utility sector and supporting the Kingdom’s energy transition and sustainable development goals.
Mutlaq Alghwairi, Chairman of Buhur for Investment Company, expressed gratitude for being part of these significant projects and affirmed their commitment to implementing projects in accordance with Saudi Vision 2030. Beatrice Buffon, EDF Group Vice President, highlighted the importance of the financial close for the Taiba-2 and Qassim-2 thermal power plants, emphasizing the consortium’s commitment to advancing sustainable energy solutions and reducing carbon emissions. The consortium’s achievement of this financing milestone marks a significant step forward for the electricity sector projects in the Kingdom, in alignment with its ambitious goals.
This milestone achievement by the consortium for the Taiba-2 and Qassim-2 projects underscores the commitment of key players in the sector to support the Kingdom’s energy transition and sustainable development. The projects not only represent a significant investment in advancing the utility sector in Saudi Arabia but also align with the goals of Vision 2030 and the Saudi Green Initiative. Through the integration of innovative technology and carbon capture solutions, these projects will contribute to enhancing the efficiency and reliability of power generation while actively working towards reducing carbon emissions and supporting global energy transition efforts.
In conclusion, the successful financing and development of the Taiba-2 and Qassim-2 projects demonstrate the collective efforts of Aljomaih Energy & Water Company, Ajlan & Bros Group, Buhur for Investment Company, and the EDF Group to advance sustainable energy solutions in Saudi Arabia. With a total capacity of 3.96 GW and a commitment to carbon capture technology, these projects are set to play a crucial role in achieving the Kingdom’s ambitious goals for the electricity sector and contributing to a more sustainable future. The financial close represents a significant milestone in the journey towards decarbonized power generation and highlights the consortium’s dedication to supporting the Kingdom’s energy transition and climate objectives.
