TAQA, JERA secure financial closing for 475MW cogeneration plant in Saudi Arabia

Abu Dhabi National Energy Company PJSC (TAQA) and JERA Co., Inc. (JERA) have announced the successful financial closure of Najim Cogeneration Company Limited, marking a significant milestone in the development of a cutting-edge industrial steam and electricity cogeneration plant in Saudi Arabia.

The new plant, located in Jubail within Saudi Arabia’s Eastern Province, will produce 475 megawatts (MW) of power and 452 tonnes per hour (TPH) of steam, serving a petrochemical complex operated by Saudi Aramco Total Refining and Petrochemical Company (SATORP). Developed by a special purpose entity, this project is jointly owned by TAQA (51%) and JERA (49%) under a 25-year build, own, and operate agreement, with a possible five-year extension.

This strategic development follows the signing of a Power and Steam Purchase Agreement between TAQA, JERA, and SATORP in March 2024. The plant will employ advanced combined cycle gas-fired technology, integrating the latest J-Class gas turbine technology, to enhance energy efficiency and sustainability.

TAQA and JERA achieve financial closure for a new cogeneration plant in Saudi Arabia, enhancing power and steam generation with advanced technology and sustainability features.

Farid Al Awlaqi, Chief Executive Officer of TAQA’s Generation business, emphasized the significance of reaching financial close, stating, “This milestone underscores TAQA’s role as a preferred partner for large-scale utility projects, expanding our capacity with 475 MW of power and 452 TPH of steam generation. This project, our third in Saudi Arabia, reflects our commitment to growth, efficiency, and operational excellence.”

Steven Winn, Chief Global Strategist at JERA, highlighted the project’s alignment with both Saudi Arabia’s and the client’s vision for sustainable energy. “This project is designed to optimize energy efficiency and reduce environmental impact, supporting SATORP’s expansion while setting new standards in operational performance and sustainability,” he said.

The plant will feature state-of-the-art systems, including gas and water receiving systems and gas-insulated switchgear interconnections, meeting the stringent efficiency standards of the Saudi Energy Efficiency Center. Notably, the project includes provisions for future carbon capture installations and the capability for hydrogen cofiring, underscoring its long-term sustainability goals.

The SATORP Strategic Expansion petrochemical complex, which will be supported by this cogeneration plant, is set to house one of the largest mixed-load steam crackers in the Gulf Cooperation Council (GCC) region, further bolstering the region’s industrial capabilities.