Energy Giants Join Forces to Build Power Plant for Saudi Aramco

Abu Dhabi National Energy Company (TAQA) and Japan’s JERA Co., the world’s largest power generation company, have announced a collaborative effort to construct a significant industrial facility in Saudi Arabia. The agreement involves the development of a cogeneration plant designed to produce both electricity and steam for the upcoming Amiral petrochemical complex situated in Jubail, Eastern Province.

Scheduled to be operational by 2027, the plant will leverage advanced combined cycle gas-fired technology to generate a substantial 475 megawatts (MW) of electricity. This will be supplemented by the production of approximately 452 tonnes of steam per hour, which will be critical for the operations of the Amiral complex.

The project represents a strategic partnership between TAQA and JERA, with a dedicated entity co-owned by both companies overseeing the development process. This entity will function under a 25-year build, own, and operate (BOO) agreement, with the potential for a five-year extension upon mutual consensus. Furthermore, both companies will be responsible for the long-term operation and maintenance of the plant through a separate special purpose entity.

Significantly, the forthcoming cogeneration plant is designed with an eye towards future environmental considerations. The facility incorporates provisions for the potential installation of a carbon capture unit, strategically targeting the reduction of greenhouse gas emissions. Additionally, the plant boasts the capability of hydrogen co-firing, a technology that utilizes hydrogen as a fuel source, thereby offering a cleaner burning alternative.

“TAQA is eager to contribute to the development of this efficient cogeneration plant,” remarked Farid Al Awlaqi, Chief Executive Officer of TAQA Generation. “We are confident that this project will not only serve the energy needs of the Amiral complex but will also play a vital role in supporting SATORP’s long-term decarbonization goals.” SATORP, the Saudi Aramco Total Refining and Petrochemical Company, is the joint venture behind the Amiral complex.

The agreement between TAQA, JERA, and SATORP signifies a significant development for the Saudi energy sector. The new cogeneration plant is poised to provide a reliable and efficient source of power for the Amiral complex, while simultaneously promoting advancements in sustainable energy practices within the Kingdom. This project aligns with Saudi Arabia’s Vision 2030, a strategic framework that prioritizes economic diversification and environmental responsibility.

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