ACWA Power signs deals worth $746m for energy and water projects
ACWA Power, a global leader in water desalination and a pioneer in the energy transition, including green hydrogen, announced a series of agreements totaling US$746 million. These deals were finalized at the sidelines of the Future Investment Initiative (FII7) in Riyadh, underlining the company’s commitment to expanding its global influence in renewable energy and water desalination.
Major Agreements in Energy and Water Sectors
Among these, a significant Heads of Terms agreement valued at $500 million was signed with EIG, a prominent institutional investor in the energy and infrastructure sectors. This partnership between ACWA Power and EIG is dedicated to projects involving power generation, water desalination, green hydrogen, and green ammonia. The focus of this cooperation is primarily on investments in the Gulf countries and Uzbekistan, showcasing ACWA Power’s continued expansion in strategic regions.
Funding for Azerbaijan Wind Power Project
Additionally, ACWA Power marked a milestone by signing project financing agreements amounting to US$246 million with the European Bank for Reconstruction & Development (EBRD) and the OPEC Fund for International Development for a 240MW wind power project in Azerbaijan. This venture, with a total investment of US$347 million, stands as the first foreign investment-based independent wind power project in Azerbaijan. It’s structured as a public-private partnership, aiming to supply power to nearly 300,000 households. This initiative is expected to save 220 million cubic metres of natural gas and significantly reduce carbon emissions by over 400,000 tonnes annually.
ACWA Power’s Growing Influence and CEO’s Remarks
ACWA Power’s CEO, Marco Arcelli, expressed enthusiasm about the company’s pivotal role in assisting Azerbaijan to meet 30% of its energy needs with renewable sources by 2030. He acknowledged the European Bank for Reconstruction & Development and the OPEC Fund for their support. Previously, ACWA Power has partnered with these institutions on various projects across Central Asia, the Middle East, and Africa. Further collaborations include sustainable infrastructure projects in Uzbekistan, Azerbaijan, and Egypt.
Expanding Renewable Energy Footprint
ACWA Power’s commitment to leading the energy transition is evident in its collaborations in Azerbaijan and other regions. Notably, the company is exploring opportunities in renewable energy and green hydrogen with the State Oil Company of Azerbaijan Republic (SOCAR) and has ambitious plans for developing significant wind energy capacities and a battery energy storage system (BESS).
ACWA Power’s strategic moves at FII7 solidify its position as a significant global player in the renewable energy and water desalination sectors, marking another milestone in its journey towards sustainable energy development.