TAQA, JERA to build cogeneration plant for Saudi Arabia’s SATORP

TAQA Group, also known as Abu Dhabi National Energy Company, and Japan’s JERA have signed an agreement with Saudi Aramco Total Refining and Petrochemical Company (SATORP) to develop a steam and electricity cogeneration plant that will power the Amiral petrochemical complex.

The Amiral cogeneration plant will be developed by an entity owned by TAQA (51 per cent) and JERA (49 per cent) on a 25-year build, own, and operate basis extendable by five years.

The duo will also undertake the operation and maintenance (O&M) of the plant through an O&M special purpose entity.

“Together with our partner JERA, we are looking forward to developing an efficient cogeneration plant that reduces carbon emissions and supports SATORP with its long-term decarbonisation programme. The agreement will bolster TAQA’s efforts in building on our growth and executing our 2030 goals,” said Farid Al Awlaqi, CEO of TAQA Generation.

The plant will include power and steam generation systems, gas and water receiving systems, and gas-insulated switchgear interconnections.

The facility has provision for the future installation of a carbon dioxide capture plant and is capable of hydrogen cofiring.

The petrochemical complex is expected to house one of the largest mixed-load steam crackers in the Arab Gulf region.

SATORP is a joint venture between Saudi Aramco and TotalEnergies.

TAQA’s growth strategy

With a market capitalisation of Dhs373.3bn as of March 24, 2024, TAQA reported a full-year net income of Dhs16.7bn in 2023, supported by a one-off gain of Dhs10.8bn recognised on the acquisition of a 5 per cent shareholding in ADNOC Gas.

The utilities giant’s TAQA aims to deliver 150 gigawatts (GW) of gross power generation by 2030, of which 100 GW is renewable capacity through Masdar.

The company also plans to reach a net power capacity of 50 GW by the end of the decade and a water generation capacity of 1,300 MIGD imperial gallons per day (MIGD), with two-thirds of this capacity coming from efficient and low carbon reverse osmosis (RO) technology.

“Renewable energy is expected to constitute over 65 per cent of the generation mix by 2030 versus 45 per cent as at the end of 2023,” the company said in the statement.

Building on its 2021 growth strategy, TAQA plans to invest Dhs75bn by 2030 to achieve its ambitious expansion programme. This is comprised of a Dhs40bn expenditure on UAE-based transmission and distribution networks while the remaining Dhs35bn is allocated for the generation business.

Read: TAQA Group posts Dhs16.7bn in full-year net income