TAQA, Mubadala reach financial closure on 2.4GW gas-fired plant in UAE

WCN Editorial Team 8 Jul 2020 MIDDLE EAST ENERGY & UTILITIES

Abu Dhabi National Energy (TAQA) has completed financial closure on the 2.4GW gas-fired plant to be built in the UAE.

The total cost of the power plant is expected to be around AED4.2bn ($1.14bn). Considered to be the largest gas-fired plant in the country, the Fujairah F3 power project will generate enough energy to power 380,000 UAE households. The project is expected to begin early power generation by the summer of 2022, with full power generation taking place in 2023.

The financial closing follows the signature of the power purchase agreement and shareholder’s agreement between Abu Dhabi Power Corporation (ADPower), Emirates Water and Electricity Company (EWEC), Mubadala Investment Company and Japan-based Marubeni.

TAQA and Mubadala will jointly hold a 60% of stake in the project and the remaining 40% stake will be held by Marubeni.

The Fujairah F3 plant is expected to be powered by JAC-class gas turbine supplied by Mitsubishi Heavy Power Systems (MHPS) and once constructed, it is claimed to use an efficient combined cycle technology in the region.

TAQA generation executive director Farid Al Awlaqi said: “The Fujairah F3 project is a landmark for TAQA and its generation assets, following the company’s integration with ADPower. It will be the largest gas-fired power plant in the UAE, and, by utilising advanced combined cycle technologies, it will be one of the most efficient in the region.

“Announcing the financial close of this project accelerates the transformation of the power and water sector, as TAQA delivers significant progress on important large-scale infrastructure projects in the UAE.”

The power plant will be located in the Qidfa area of the Emirate of Fujairah and will sit between the existing Fujairah F1 and Fujairah F2 water and electricity plants.

Funding for the power plant project is being provided by a consortium of international multi-lateral and commercial banks such as Japan Bank for International Cooperation, BNP Paribas, Mizuho Bank, Sumitomo Mitsui Banking Corporation, Sumitomo Trust Bank and Standard Chartered Bank.

Mubadala utilities head Mohammed Al-Huraimel Al-Shamsi said: “The Fujairah F3 project stands as a testament to the resiliency of this nation and our ability to overcome challenging times to continue to deliver the needs and expectations of our communities.

“To achieve financial closing of such a large scale project is not only recognition of the viability and sound economics of the project itself, but also to the strength of the partners involved and Mubadala is proud to partner with TAQA, EWEC and Marubeni to deliver such essential infrastructure in the UAE.”

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TAQA reaches financial close build power plant in UAE. (Credit: Unsplash/Andreas Felske.)

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