ACWA Power signs agreements worth USD 1,784 million at FII8 in Riyadh

(MENAFN- Hill & Knowlton) Riyadh, Saudi Arabia; 29 October 2024: ACWA Power, the world’s largest private water desalination company, leader in energy transition and first mover into green hydrogen, has signed four agreements worth USD 1,784 million (SAR 6,690 million) on the first day of the Future Investment Initiative (FII8) in Riyadh. The agreements encompass streams including projects in GCC, China, Central Asia and North Africa, in financing, renewable energy and storage projects, as well as research and development. These agreements encompass key areas such as project financing, renewable energy and storage projects, as well as research and development initiatives.
The first agreement involves a USD690 million (SAR 2,588 million) framework agreement with the National Bank of Kuwait (NBK) for general corporate finance facilities that will support the company’s future project pipeline in Saudi Arabia, Kuwait and other target markets.
A separate financing agreement includes a USD240 million (SAR 900 million) shariah-compliant equity bridge loan (EBL) by the International Finance Corporation (IFC), part of the World Bank Group. The loan will finance two solar power projects in Uzbekistan. Located in Samarkand, the Sazagan 1 and 2 projects each consist of 500MW solar photovoltaic (PV) and 334MW battery energy storage systems (BESS) capacity. Both projects are expected to achieve commercial operations between Q3 2025, Q4 2026.The agreement marks the first corporate financing partnership with IFC, establishing a new avenue of collaboration for ACWA Power.
ACWA Power also announced a joint development agreement with battery solutions provider Gotion Power Morocco. As part of the agreement, ACWA Power will develop a 500MW wind power plant, incorporating a 2,000 MWh BESS solution. The project will supply energy to Gotion Power’s battery manufacturing plant in Morocco, which is expected to begin production in the first half of 2026. The initial investment of the project is for USD800 million (SAR 3,000 million)
Meanwhile, ACWA Power also signed a Research and Development Cooperation Agreement with China’s Lujiazui Administration Bureau to establish an R&D centre in Shanghai. The USD54 million (SAR 202 million) project will focus on advancing technologies related to solar, wind, energy storage, green hydrogen, and desalination. The centre will collaborate with local and global partners to develop advanced sustainable water and energy solutions for deployment across ACWA Power's portfolio.
Reflecting on the agreements, Marco Arcelli, CEO of ACWA Power, stated, “These agreements exemplify the extensive breadth of our portfolio and the diverse initiatives we pursue. By collaborating with a variety of partners, we enhance our capabilities, particularly in the areas of innovation and research within our key sectors. This approach underscores our commitment to fostering strategic alliances that drive growth and advancement in the industry. Such strategic alliances reinforce ACWA Power’s dedication to its mission of delivering affordable and reliable power and water solutions on a global scale, thereby strengthening our role in shaping a sustainable future.”

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