ACWA Power signs deals for USD 12bn of clean energy, H2 in Uzbekistan

Saudi Arabia’s ACWA Power Co (TADAWUL:2082) on Thursday announced the signing of three major energy agreements with the government of Uzbekistan, envisaging total investment of USD 12 billion (EUR 11.8bn), including in what is expected to be the world’s largest single-site wind farm.

The Riyadh-based company has signed a heads of terms agreement with Uzbekistan’s Ministry of Energy and Ministry of Investment & Foreign Trade for the development of the previously-unveiled 1.5-GW onshore wind project in the region of Karakalpakstan. The new deal will serve as the foundation for the signing of a power purchase agreement (PPA) and an investment agreement in relation to the project, ACWA Power said.

The wind project is seen to reach its financial close by the end of next year and become fully operational by the first quarter of 2026.

In addition, the company has agreed on a plan with US industrial gases supplier Air Products (NYSE:APD) to invest in local green hydrogen production. The pair are already working on similar projects in Saudi Arabia and Oman.

Last but not the least, ACWA Power has sealed an investment cooperation agreement (ICA) with the two ministries to collaborate on the development of gas-to-power, wind power, hydroelectric and green hydrogen projects worth a combined USD 10 billion over a period of five years, starting in 2023.

The three deals were signed during today’s visit to Saudi Arabia by Uzbek President Shavkat Mirziyoyev. The projects they relate to are expected to help Uzbekistan diversify its energy mix. The country aims to have 8 GW and 12 GW of solar and wind capacity by 2026 and 2030, respectively. It has pledged to hit a 30% renewable power share by the end of the decade and to become net zero by 2050.

According to Mohammad Abunayyan, chairman of ACWA Power, the three new agreements make Uzbekistan the company’s second-largest country for overall investment. ACWA Power is already building two 500-MW wind parks in the Bukhara region and a 100-MW wind farm in Karakalpakstan in addition to a 1.5-GW thermal power plant.

(USD 1 = EUR 0.984)

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