Two Saudi Power Projects Achieve Financial Closure

Aljomaih Energy & Water Company, a leading Saudi investor, developer and operator of utilities and infrastructure projects, along with its consortium members Ajlan & Bros Group, Buhur for Investment Company and the EDF Group, have achieved financial closure of the Taiba-2 and Qassim-2 Combined Cycle Gas Turbine (CCGT) power projects, with a total capacity of 3.96 GW in Saudi Arabia.

The two projects have been financed through a combination of Equity Bridge Financing and Senior Debt, secured by Riyad Bank, Saudi Awwal Bank, Abu Dhabi Commercial Bank, Bank Saudi Fransi Bank, Arab Petroleum Investment Corporation (APICORP), Saudi Investment Bank, Bank Al Jazira, Commercial Bank of Dubai and First Abu Dhabi Bank, for the approximate value of $3.9 Billion.

The financing will be instrumental in accelerating the development and deployment of the Taiba-2 and Qassim-2 projects, which will be the first two projects in Saudi Arabia with a provision for Carbon Capture in line with the Kingdom’s Vision 2030 and the Saudi Green Initiative.

The projects will be equipped with the latest HL-class gas turbines from the German company Siemens, in combination with steam turbines and generators, which will generate approximately 2,000 MW of electricity per project.

Ibrahim Al Jomaih, Chairman of the Board of Directors of Aljomaih Energy and Water Company, said that they were honoured for being selected by the Saudi Power Procurement Company (SPPC) and the Saudi Arabia’s Ministry of Energy to act as consortium lead on the development of Taiba-2 and Qassim-2, the first Combined Cycle Gas Turbines with a provision for Carbon Capture, in the Kingdom.

Circular Carbon Economy

The financial closure of these two strategic projects is a testament to Aljomaih Energy & Water’s capabilities as a leading developer, for such vital projects, together with the collective expertise of our partners who are working as one team to deliver nearly 4 GW of decarbonised power capacity, to enhance the generation capabilities of the electrical network in Saudi Arabia – the largest electrical network in the Middle East and North Africa (MENA) region, in line with the Kingdom’s Vision 2030, by applying a circular carbon economy approach, he explained.

“The Taiba-2 and Qassim-2 projects signify Ajlan & Bros Group’s unwavering commitment to the region’s business landscape and our dedication to advancing the utility sector,” Ajlan Al-Ajlan, Chairman of the Board of Directors of Ajlan & Bros Group, said.

These two plants are part of the electricity sector projects in the Kingdom, overseen by the Ministry of Energy, in the sector’s journey towards achieving the goals of the optimal energy mix for electricity production (50% renewable energy and 50% energy produced from highly efficient gas-fired plants), and the displacement of liquid fuels of power plants and reduction of carbon dioxide emissions by up to 278 million tons annually by 2030 in alignment with the circular carbon economy approach.