Work on the construction of the UAE’s largest gas-fired power plant will go ahead despite challenging economic times.
Abu Dhabi National Energy (Taqa) announced on Tuesday the financial closing for the Fujairah F3 Independent Power Producer (IPP), a 4.2 billion-dirham project that will have the capacity to generate power for 380,000 households in the country.
The state-owned power producer made the announcement following the signing of the power purchase and shareholder agreements between the companies involved in the venture, the Abu Dhabi Power Corporation (ADPower), Emirates Water and Electricity Company (EWEC), Mubadala Investment Company and Japan-based Marubeni Corporation.
“The financial close of this project is a major milestone that allows us to move forward with the construction of Fujairah F3. The financial terms of this highly efficient plant are among the most competitive seen in Abu Dhabi to date,” said Othman Al Ali, executive officer of EWEC.
The mega facility is scheduled to start producing power by the third quarter of 2022.
“It will be the largest gas-fired power plant in the UAE, and by utilizing advanced combined cycle technologies, it will be one of the most efficient in the region,” aid Farid Al Awlaqi, the newly appointed executive director of generation at Taqa.
According to Al Awlaqi, the financial closing of the project also fast-tracks the transformation of the power and water sector in the country, citing that Taqa “delivers significant progress on important large-scale infrastructure projects in the UAE.”
It is also a testament to the country’s resilience and ability to overcome challenges, added Mohammed Al-Huraimel Al-Shamsi, head of utilities at Mubadala.
“To achieve financial closing of such a large-scale project is not only a recognition of the viability and sound economics of the project itself but also to the strength of the partners involved,” said Al-Shamsi.
Early this year, AdPower and Marubeni announced the formation of a consortium to develop the power plant, which will be located in the Fujairah water and electricity complex. It will have a capacity of 2.4 gigawatts (GW), bringing AdPower’s current generation capacity to 20.4GW.
Through the project, the Abu Dhabi government will indirectly own a 60 percent stake, while the remaining 40 percent will be owned by Marubeni Corporation.