ACWA Power inked US$746m energy deals

Of the US$746m, the US$500m deal was for power generation and green ammonia projects.

Private water desalination firm, ACWA Power, revealed it signed several deals that are in total, worth US$764m, which involved green energy projects in Gulf countries and wind energy projects in Azerbaijan. 

ACWA Power said it invested in US$500m heads of terms in agreement with global energy investor, EIG, to collaborate in “power generation, water desalination, green hydrogen, and green ammonia projects, with a specific focus on investing in projects in Gulf countries and Uzbekistan.” 

The other agreement, meanwhile, was ACWA Power’s funding agreement with the European Bank for Reconstruction & Development  and the OPEC Fund for International Development for the construction of a 240MW wind power project in Azerbaijan. Both deals are subject to the completion of the conditions precedent.

This project, which has an aggregate amount of US$246m, is the first foreign investment-based independent wind power in the Republic of Azerbaijan. It is a public-private partnership at a total investment cost of US$347m. 

“The national electrical power company Azerenerji is the sole off-taker for the project, which, once completed, is expected to power nearly 300,000 households, save 220 million cubic metres of natural gas and reduce carbon emissions by more than 400,000 tonnes annually,” read the statement.