Abu Dhabi National Energy Company (TAQA) and Japan’s JERA announced they have financial closing of Najim Cogeneration Company Limited, a new industrial plant that will produce electricity and steam for a petrochemical complex located in Jubail in Saudi Arabia.
The new cogeneration plant will supply up to 475 megawatts (MW) of power and approximately 452 tonnes per hour (TPH) of steam from advanced combined cycle gas-fired technology. In partnership with JERA, it will use the latest J-Class gas turbine technology.
TAQA and JERA partner for new plant
The plant will be developed by a special purpose entity – owned 51 percent by TAQA and 49 percent by JERA on a 25-year BOO (build-own-operate) basis. The contract is extendable by five years on mutual agreement. Another special purpose entity of the two organisations will undertake the operation and maintenance (O&M) of the plant.
Financial closing comes after TAQA and JERA entered into a power and steam purchase agreement with Saudi Aramco Total Refining and Petrochemical Company (SATORP), a joint venture between Saudi Aramco and TotalEnergies.
Farid Al Awlaqi, Chief Executive Officer of TAQA’s Generation business, commented: “We are proud to have reached financial close, an important milestone reinforcing our position as a partner of choice for utility projects of this scale.
“TAQA is proud to take on a developer role as well as the operations and maintenance at the plant, two focus areas for capability expansion for our company, as well as adding 475 MW of power generation and 452 TPH of steam generation to our overall capacity.
“This is our third generation project in the Kingdom of Saudi Arabia and we are building our track record of excellence as a responsible and reliable operator and developer of generation projects.”
Steven Winn, Chief Global Strategist, JERA, added: “Achieving financial close for the Cogeneration plant marks a significant success for TAQA, JERA and SATORP.
“This project aligns perfectly with our strategy to provide efficient, sustainable, and technologically advanced energy systems, contributing to the Kingdom’s and to our customer’s vision for a sustainable and optimised energy supply.
“Based on advanced J-class gas turbine technology, the new plant is designed to optimise energy efficiency, and reduce environmental impact, and it will play a crucial role in supporting SATORP’s Strategic Expansion operations.”
The plant is designed to meet the stringent efficiency standards imposed by the Saudi Energy Efficiency Center. It also has provision for the future installation of a carbon capture plant and is capable of hydrogen cofiring.
The SATORP Strategic Expansion petrochemical complex is expected to house one of the largest mixed-load steam crackers in the GCC region.
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