Acwa announces financial close for $12bn Saudi IGCC project
RIYADH, October 28, 2021
Acwa Power, a leading 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 Jazan refinery, under a 25-year contract with state oil giant Aramco.
Acwa Power said the Jazan IGCC project’s financial close was recently achieved for the $7.2 billion 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 air separation units (ASUs) - which play a key role in improving the efficiency, availability, and operability of an oxygen-fed IGCC power plant - 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.
Aramco, via its subsidiary Saudi Aramco Power Company, has a 20% share in the venture; Air Products 46%; Acwa Power 25%; and Air Products Qudra (a 51/49 JV between Air Products and Qudra Energy) 9%.
Air Products’ total ownership position is 50.6 percent through 46 percent direct ownership and 4.6 percent through Air Products Qudra.
The joint venture serves Saudi Aramco’s Jazan Refinery, which processes 400,000 barrels per day of crude oil to produce ultra-light sulfur diesel, gasoline, and other products.-TradeArabia News Service
