Aljomaih Energy & Water Company leads consortium to achieve financial close for the Taiba-2 and Qassim-2 combined cycle gas turbine power projects

The financing will be instrumental in accelerating the development and deployment of the Taiba-2 and Qassim-2 projects

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 announced the achievement of the financial close 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 (equivalent to SAR 14.6 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 2,000MW of electricity per project.

The Taiba-2 and Qassim-2 projects 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 per cent renewable energy and 50 per cent energy produced from highly efficient gas-fired plants), and the displacement of liquid fuels of power plants and reduce carbon dioxide emissions by up to 278 million tons annually by 2030, in alignment with the circular carbon economy approach.

Commenting on this significant milestone, Ibrahim Al Jomaih, chairman of the board of directors of Aljomaih Energy and Water Company, said: "We are honoured to have been selected by the Saudi Power Procurement Company (SPPC) and the Ministry of Energy, KSA 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. The successful achievement of Financial Close on these 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 decarbonized power capacity, to enhance the generation capabilities of the electrical network in the Kingdom of Saudi Arabia - the largest electrical network in the Middle East and North Africa, in line with the Kingdom’s Vision 2030, by applying a circular carbon economy approach."

"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," stated Ajlan Al-Ajlan, chairman of the board of directors of Ajlan & Bros Group. "This collaboration with Aljomaih Energy & Water and the Saudi Power Procurement Company (SPPC) aligns with our strategic vision and the objectives of the Kingdom's Vision 2030. We are proud to contribute to these essential projects, which mark significant milestones in our shared mission to support the Kingdom's energy transition and sustainable development goals."

Mutlaq Alghwairi, Buhur for Investment Company Chairman stated: "As a Saudi company, we are grateful to be part of these mega projects, proudly achieving this remarkable milestone within the first year of Buhur operation. We would like to extend our gratitude for the efforts of Ministry of Energy and Saudi Power Procurement Company (SPPC) and our consortium partners. Buhur for Investment Company affirms its commitment by its actions, to be implemented in accordance with Saudi Vision 2030, confident of its capabilities within these mega-projects implementation and coming future opportunities".

Beatrice Buffon, EDF group vice president in charge of the International Division and EDF Renewables chairwoman and CEO, said: “We would like to thank the respective governmental authorities of the Kingdom of Saudi Arabia, and in particular the Ministry of Energy and the Saudi Power Procurement Company (SPPC), for their trust in our consortium to develop, finance, build and operate the first Combined Cycles Gas Turbines (CCGT) in the Kingdom with a provision for Carbon Capture. Securing the financial close for the Taiba-2 and Qassim-2 thermal power plants, featuring a total power capacity of 3.96 GW, marks a significant milestone in our commitment to advancing sustainable energy solutions. By integrating state-of the art innovative technology, we are not only enhancing the efficiency and reliability of power generation but also actively contributing to the reduction of carbon emissions. Together with our partners, we are proud to be at the forefront of pioneering projects driving a global energy transition and supporting the Kingdom's ambitious climate goals."

Achieving this important financing milestone by the consortium marks a significant step forward for the strategic electricity sector projects in the Kingdom that contribute to achieving its ambitious goals.