TotalEnergies and Aljomaih to Develop 300 MW Solar Project

Coinciding with the visit of French President Emmanuel Macron to Saudi Arabia, a consortium comprising TotalEnergies and Saudi developer Aljomaih Energy and Water Company (AEW) on Tuesday signed a 25-year Power Purchase Agreement (PPA) with the Saudi Power Procurement Company (SPPC) related to the 300 MW solar power project in Rabigh.

The French President, along with Saudi Minister of Energy Prince Abdulaziz bin Salman Al Saud and other dignitaries were present at the PPA signing ceremony. The solar plant will be developed, built, owned and operated by the consortium with a connection to the grid planned in 2026.

This renewable project is a new milestone for TotalEnergies in Saudi Arabia where it is currently building the 119 MW Wadi Al Dawasir solar power plant, which will start operation in early 2025.

This project, which is part of Round 5 of the National Renewable Energy Program (NREP), is supervised by the Ministry of Energy aiming to achieve an optimal energy mix for electricity production by having gas and renewable energy at approximately 50% each by 2030 and reduce dependence on liquid fuels in electricity generation in line with Saudi Vision 2030.

Patrick Pouyanné Chairman and CEO of TotalEnergies, said that through their large participation in refining and petrochemical Satorp and Amiral projects, it has been a close partner of Saudi Arabia.

“This new project is another example of our multi-energy strategy to accompany Oil & Gas producing countries in their energy transition. This also demonstrates our ability to provide more energy with less emissions, while contributing to our growth in electricity and renewable energy,” he said.

Aljomaih Energy and Water Company Chairman Ibrahim Al Jomaih said that leveraging their local market expertise and global reach, his company’s mission is to play a key role in advancing the energy transition underscored by their philosophy of partnership and excellence.

SAF Production

TotalEnergies also signed a Joint Development and Cost Sharing Agreement (JDCSA) with Saudi Aramco, and Saudi Investment Recycling Company (SIRC), to assess the development of a sustainable aviation fuels (SAF) production unit in the Kingdom.

This collaboration will draw on the expertise of the three partners to develop a production unit of sustainable aviation fuel by converting local residues from the circular economy, such as used cooking oil and animal fats.

Aramco President and CEO Amin H Nasser said that as the demand for air travel is forecast to grow, it has become imperative to address aviation emissions through lower-carbon alternatives such as sustainable aviation fuels.

“We already have a well-established partnership with TotalEnergies and this new collaboration demonstrates our intent to explore ways to leverage our combined strengths, in this case with a view to establishing a sustainable aviation fuels plant in the Kingdom with SIRC. As Saudi Arabia’s tourism and aviation sectors expand, this could potentially benefit both domestic and international airlines,” he added.

Patrick Pouyanné said that SAF is at the heart of his company’s transition strategy, as they strive to meet the aviation industry’s demand to reduce its carbon footprint.

“Saudi Arabia is emblematic of our multi-energy strategy aimed at supporting the energy transition of oil and gas producing countries. This SAF production project contributes to the country’s Green Initiative and Vision 2030’s objectives,” he added.

SIRC CEO Ziad Al-Sheha said that the new partnership to assess the feasibility of a renewable aviation fuels plant signifies a major leap forward in their mission as it will enrich and energize our efforts to lead the development of the Kingdom’s circular economy.