TAQA and ADNOC Announce $3.6 Billion Project to Power and Decarbonize Offshore Operations

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Abu Dhabi National Energy Company PJSC (TAQA) and Abu Dhabi National Oil Company (ADNOC) announced a $3.6 billion strategic project to significantly decarbonize ADNOC’s offshore production operations, further strengthening TAQA and ADNOC’s position in driving and leading sustainability efforts and supporting the United Arab Emirates (UAE) ‘Net-Zero by 2050 Strategic Initiative’.

The innovative project will see the development and operation of a first-of-its-kind high-voltage, direct current (HVDC-VSC) subsea transmission system in the Middle East and North Africa (MENA) region. It will power ADNOC’s offshore production operations with cleaner and more efficient energy, delivered through the Abu Dhabi onshore power grid, owned and operated by TAQA’s transmission and distribution companies.

The project will be funded through a special purpose vehicle (SPV) – a dedicated company that will be jointly owned by TAQA and ADNOC (30% stake each), and a consortium comprised of Korea Electric Power Corporation (KEPCO), Japan’s Kyushu Electric Power Co. and Électricité de France (EDF). Led by KEPCO, the consortium will hold a combined 40% stake in the project on a build, own, operate and transfer basis.

The consortium will develop and operate the state-of-the-art transmission system alongside TAQA and ADNOC, with the full project being returned to ADNOC after 35 years of operation. The project is subject to relevant regulatory approvals.

The development is expected to reduce the carbon footprint of ADNOC’s offshore operations by more than 30%, replacing existing offshore gas turbine generators with more sustainable power sources available on the Abu Dhabi onshore power network. This progressive and collaborative approach will also drive operational efficiencies and improve system reliability of energy supply, while offering the potential for power supply cost optimization.

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “ADNOC is delighted to be collaborating again with TAQA, as we jointly welcome world-class industry leaders in yet another landmark transaction that will see ADNOC make a significant step forward in our ongoing decarbonization journey. As ADNOC embraces the energy transition, this bold and progressive project will replace our existing offshore local power supply with cleaner and more sustainable onshore power sources, significantly reducing our carbon footprint while enabling additional cost savings. This first-of-its-kind project is a further example of how ADNOC is advancing practical and commercially viable solutions to secure a lower carbon future, while driving significant foreign direct investment, and, in turn, cementing Abu Dhabi and the UAE’s position as a trusted global investment destination.”

More than 50% of the project value will flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) program, underpinning TAQA and ADNOC’s commitment to driving responsible and sustained investment and value creation for Abu Dhabi and the UAE.

Jasim Husain Thabet, TAQA’s Group CEO and Managing Director, said: “As the recognized low carbon power and water champion of Abu Dhabi and one of the top 5 utilities in EMEA by market value, TAQA is pleased to again partner with ADNOC on such an important project that will contribute to the decarbonization of Abu Dhabi’s energy industry in such an impactful way. This first-of-its-kind project shows how the UAE continues to demonstrate its strong leadership and innovation in the global energy transition by bringing together critical players to boost sustainability credentials and maximizing the utilization of Abu Dhabi’s diverse and efficient energy mix. Decarbonization continues to provide social and economic opportunities for collaboration and growth, which TAQA is actively pursuing through its strategic alliances and partnerships in the market.”

Seung-il Cheong, President and CEO of KEPCO, said: “It is truly an honor to participate in this strategic project with ADNOC. As the Barakah Nuclear Power Project has become a token of long friendship and cooperation between the UAE and Korea, KEPCO will strive for the successful completion of this Project and contribute to the ‘2050 Net-Zero Initiative’ of the UAE.”

Kazuhiro Ikebe, President and CEO of Kyushu Electric Power Company, said: “Kyuden Group is honored to have been selected as a business partner for this project. We are pleased that the realization of this project will contribute to the reduction of CO2 emissions at ADNOC’s oil production facilities by more than 30%. Our Group has just announced an action plan for carbon neutrality, and we are determined to promote energy businesses that contribute to the reduction of carbon emissions globally. We hope to contribute to the stable operation of this project by utilizing the know-how we have cultivated in the electric power business in Japan and overseas.”

Jean-Bernard Lévy, Chairman and CEO of EDF, stated: “We are grateful to have been awarded such a contract by ADNOC and TAQA in the UAE within the successful consortium, which can rely on EDF’s robust transmission engineering expertise. EDF is proud to be part of this innovative project that significantly contributes to decarbonize ADNOC operations.”

The transmission system will have a total installed capacity of 3.2 gigawatts (GW) and comprise two independent sub-sea HVDC links and converter stations that will connect to TAQA’s onshore electricity grid – operated by its subsidiary, Abu Dhabi Transmission and Despatch Company (TRANSCO). Construction is expected to begin in 2022 with commercial operation commencing in 2025.

The project also offers the potential for ADNOC to more effectively utilize its rich gas – currently used to power the offshore facilities – for higher-value purposes, allowing ADNOC to generate additional revenue.

A tender for this innovative project was issued in April 2020 resulting in very strong interest from international companies. Following this highly competitive tender process the consortium was selected.

Source: TAQA

Abu Dhabi National Energy Company (Taqa) secures funding to build world’s largest solar power plant

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Abu Dhabi National Energy Company (TAQA) – alongside partners Masdar, EDF Renewables and JinkoPower – announced, today, the successful financial closing of the Al Dhafra Solar Photovoltaic (PV) Independent Power Producer (IPP) project.

The record-breaking project, located approximately 35 kilometers from Abu Dhabi city, will have a capacity of 2 gigawatts (GW) and will supply power to Emirates Water and Electricity Company (EWEC). Once operational, the Al Dhafra Solar PV IPP will be the world’s largest single-site solar power plant, using approximately 4 million solar panels to generate enough electricity for approximately 160,000 homes across the UAE.

Financing for the project will come from seven international banks, following the signing of the power purchase agreement in July 2020. Earlier in the year, the competitive bidding for the project led to one of the most competitive tariffs for solar power, set at AED 4.97 fils/kWh (USD 1.35 cents/kWh), which upon financial closing, was further improved to AED 4.85 fils/kWh (USD 1.32 cents/kWh), primarily driven by hedging and financing cost improvements, in addition to other optimization efforts. TAQA will own 40% of the Al Dhafra project, while the remaining partners – Masdar, EDF Renewables and JinkoPower – will have a 20% stake each.

The plant will deploy the latest in crystalline, bifacial solar technology, which will enable the plant to provide more efficient electricity by capturing solar irradiation from both the front and backside of the panel. Upon full commercial operation, the plant is expected to reduce Abu Dhabi’s CO2 emissions by more than 2.4 million metric tons per year, equivalent to removing approximately 470,000 cars from the road.

Commenting on the announcement, Jasim Husain Thabet, Group CEO and Managing Director at TAQA, said: “The financial closing of the world’s largest solar plant marks the beginning of an important chapter for this IPP project, for TAQA Group and for the UAE as we continue to deliver on our bold clean energy ambitions, while demonstrating the commercial and operational viability of utility-scale single-site solar projects. Through this project and many others – such as TAQA’s Noor Abu Dhabi, currently the world’s largest operational solar power plant – we have established the company as a trusted integrated utilities partner that is leading the sector’s transformation in the UAE and beyond. We have an expanded portfolio of power and water assets that we will grow further through a disciplined approach, adding value for our shareholders and delivering a diverse supply of energy for our stakeholders and the communities in which we operate.”

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar (Abu Dhabi Future Energy Company), said: “We congratulate all the partners on achieving the financial close for this monumental solar power project, which again underlines the growing appeal of renewable energy from both a commercial and environmental perspective, and the attractiveness of the UAE as a location for the world’s largest and most cost-competitive renewable energy projects. Achieving this milestone is a significant step forward in the development of the Al Dhafra project and the realization of the UAE leadership’s vision for a diversified power sector.”

Othman Al Ali, Chief Executive Officer of EWEC, said: “Reaching the financial close for a project of this scale and efficiency marks another milestone in EWEC’s commitment to developing the UAE’s renewable energy sector. Over the past 12 months EWEC has collaborated with international, regional, and local partners during the bidding, negotiation, and financial close for a number of ground-breaking projects: the world’s largest reverse osmosis desalination project at Taweelah, the UAE’s largest and most advanced gas-fired power plant in Fujairah, and now the world’s largest solar power plant at Al Dhafra. These significant achievements are a testament to the integrity of our work, and belief in sustainable and renewable energy as a strategic pillar that will support and drive economic, social, and environmental advancements for future generations. I would like to thank our partners for sharing this collective vision and supporting us as we develop a world leading, highly competitive low-carbon energy sector in the UAE.”

Bruno Bensasson, EDF Group Senior Executive Vice-President Renewable Energies and Chief Executive Officer of EDF Renewables, said: “The Al Dhafra PV project highlights EDF’s full commitment to supporting the UAE National Climate Change Plan. We are using our solar photovoltaic power best expertise to deliver the next generation of solar plants in Abu Dhabi. The achievement of financial close with our partners and the investment community is a major milestone for the project, and we are now looking forward to start the construction phase of the solar plant with the objective of reaching commercial operations in 2022.”

Source: taqa.com

Taqa project

EWEC Announces Partners to Develop the World’s Largest Solar Power Plant

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The Emirates Water and Electricity Company (EWEC), a leading company in the coordination of planning, purchasing and providing of water and electricity across the UAE, announced the award for the world’s largest solar power plant. The project was awarded to a consortium led by Abu Dhabi National Energy Company (TAQA) and Masdar, with partners EDF and JinkoPower, for the development of the 2 GW Al Dhafra Solar Photovoltaic (PV) Independent Power Producer (IPP) project, which will be located approximately 35 kilometers from Abu Dhabi city. The project’s power purchase agreement (PPA) and shareholders’ agreement were signed with EWEC.

The rigorous procurement process resulted in one of the most cost-competitive tariffs for solar PV energy, set at AED 4.97 fils/kWh (USD 1.35 cents/kWh) on a levelized cost of electricity (LCOE) basis. Upon full commercial operation, the plant is expected to reduce Abu Dhabi’s CO2 emissions by more than 2.4 million metric tonnes per year, equivalent to removing approximately 470,000 cars from the road.

Speaking about the milestone, Othman Al Ali, Chief Executive Officer of EWEC, said: “We are delighted to work with our partners and sign a PPA with a record-low tariff for solar power. We are working to secure long-term energy supply and reinforce solar power’s integral role in meeting current and future energy needs. Combined with key technological advances, the Al Dhafra Solar PV project will have a significant impact on diversifying the approach to our current electricity supply, and drive our strategic plan to further contribute towards the sector’s transformation in water and electricity production, as we develop a low-carbon grid in the UAE.”

Jasim Husain Thabet, Group CEO and Managing Director at ‎TAQA, said: “The Al Dhafra Solar PV plant is a benchmark project for our nation and the global energy sector. The project’s low tariff and utilisation of best-in-class technology further demonstrate the feasibility of utility-scale renewable energy projects that are accelerating our nation’s progress on meeting the ambitious energy objectives outlined in the UAE Energy Strategy 2050. Once fully operational, the plant will increase Abu Dhabi’s solar power capacity to approximately 3.2 GW.”

The Al Dhafra Solar PV project is expected to provide approximately 160,000 households across the UAE with electricity. It will be larger than TAQA’s existing 1.2 GW ‘Noor Abu Dhabi’ solar plant, which is currently the world’s largest operational single-project solar PV plant.

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said: “Through the award of the Al Dhafra project, the UAE is affirming once again its determination to lead the global transition to cleaner energy sources, deploying the latest advances in solar power technology at tremendous scale cost efficiently. At Masdar, we are honoured to join EWEC, TAQA, EDF, JinkoPower, and the many other prestigious partners involved in this outstanding project. We are excited to be working with them to realise the world’s largest single-site solar power plant in Abu Dhabi, building on our existing portfolio of world-class projects in the UAE, including Shams in Madinat Zayed in Abu Dhabi, and the third phase of the Mohammed Bin Rashid Al Maktoum Solar Park in Dubai.”

Bruno Bensasson, EDF Group Senior Executive Vice-President Renewable Energies and Chief Executive Officer of EDF Renewables, said: “EDF has a strong and close relationship with the UAE, providing the country with cutting-edge technology and supporting its energy policies for the long term. With this new project, we are honoured and delighted to be able to continue this strategic partnership. For EDF, the signing of the PPA for Al Dhafra Solar PV is a testimony of the confidence that the government and EWEC have in our industrial abilities. The project will use the latest in crystalline, bifacial solar technology delivering electricity to the highest efficiency and at a world record-low tariff in such irradiation conditions. It will support the UAE’s unique vision and leadership position in the development of a diverse range of renewable energy solutions that will provide sustainable and efficient power for generations to come.”

Charles Bai, President of JinkoPower International Business, commented: “Jinko is once again privileged to be a partner in developing the new largest PV generation plant in the world, following our successful partnership in building the current world’s largest single solar project, Noor Abu Dhabi. The UAE energy industry is known for its world-class standards, operating with fairness and transparency. It is an attractive environment for investors and underpins our strategy to continue investing in renewable energy projects in the UAE. The Al Dhafra Solar PV project raises the bar in the energy sector and also sets the foundation to demonstrate how new records can be made. Today, Jinko and our partners are proud to begin to execute the world’s largest PV project and diligently deliver the latest world-class technology and construction methods.”

Through this project, 60% will be owned by a consortium comprising TAQA and Masdar, while the remaining 40% will be owned by EDF and JinkoPower. The project’s financial closure is expected to occur in Q3 2020, enabling initial power generation in H1 2022 and full generation by H2 2022. Once fully operational, the plant will increase Abu Dhabi’s solar power capacity to approximately 3.2 GW.

Source: Taqa.com

Taqa _Petropipe

TAQA Awards AED 900 Million Projects to Expand Its Recycled Water Distribution Program

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Abu Dhabi National Energy Company (TAQA) announced, that its subsidiary, Abu Dhabi Distribution Company (ADDC), awarded projects worth up to AED 900 million to expand the company’s recycled water distribution program. The two new projects will, upon completion, have a combined capacity to transmit approximately 85 million imperial gallons per day (MIGD) of recycled water – enough to irrigate more than 3.5 million palm trees.

The program’s expansion will significantly increase the use of recycled water beyond municipal landscaping to include commercial and agricultural operations. Following completion of the projects, approximately 4,000 farms could benefit from the supply of recycled water, which would further support the program’s objectives to optimize the use of desalinated water, prevent the depletion of ground water resources and divert more recycled water towards a wider range of uses.

This phase of ADDC’s recycled water distribution program builds on its announcement in January, when the company began transmitting a capacity of 4.4 MIGD of recycled water for landscaping irrigation on Saadiyat Island, through a new transmission scheme supplied from the existing network on Yas Island. Now, ADDC’s expanded transmission infrastructure will serve commercial and agricultural clients along the outskirts of the city of Abu Dhabi. These two new projects will, collectively, encompass the laying of approximately 150 kilometers of pipelines in two phases, with the first 30 MIGD pipeline project slated for completion by Q3 2021 and the second 55 MIGD project slated for Q4 2021.

Omar Abdulla Alhashmi, Executive Director of Transmission and Distribution at TAQA, said: “Our expanded recycled water program directly supports TAQA’s vision for a future in which we are not only a sustainable, reliable and efficient supplier of water, but an organization whose operations directly contribute to the realization of the UAE’s broader sustainability and environmental goals. We are particularly focused on the goals outlined in the national strategies for energy and water supply, which anticipate an increase in demand and the deployment of more clean technologies and sustainable methods of service delivery. The expansion of ADDC’s recycled water distribution program plays a key role in TAQA’s transformative impact on Abu Dhabi’s utilities sector – across the value chain and for decades to come.”

H.E. Saeed Mohamed Al-Suwaidi, Managing Director of ADDC, added: “ADDC’s recycled water distribution program plays an integral role in meeting the objectives set forth in the UAE’s Water Security Strategy 2036. By implementing practical and sustainable solutions that optimize desalinated water usage and protect our precious groundwater resources, we will continue to reinforce the Emirate’s strategic approach to achieving water and environmental sustainability.”

Today’s recycled water expansion follows the announcement of TAQA’s successful transaction with ADPower on July 1, 2020, which created the UAE’s 3rd-largest publicly listed company by market capitalization and a top-10 utility player in the EMEA region by regulated assets. As part of the transaction, the majority of ADPower’s power and water generation, transmission and distribution assets, including ADDC, were transferred to TAQA in exchange for 106,367,950,000 new shares.

Source: Taqa Press Release