ACWA Power Announces Financial Closure Of $12 Billion Project

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ACWA Power, a leading developer, investor, and operator of power generation, desalinated water, and green hydrogen plants, 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 Aramco’s Jazan refinery, under a 25-year contract with Aramco.

The Jazan IGCC project’s financial close was achieved on 18th October 2021 for the $7.2billion 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 ASUs, 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 percent share in the JV; Air Products 46 percent; ACWA Power 25 percent; and Air Products Qudra (a 51/49 JV between Air Products and Qudra Energy) nine percent in the JV. 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.

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