Red Sea Global, EDF, Masdar ink Amaala multi-utilities concession deal

Image: Red Sea Global

Red Sea Global (RSG), the developer of Amaala and The Red Sea, has signed a 25-year concession agreement with French multinational electric utility company EDF (Électricité de France) and UAE-based clean energy company Masdar on a multi-utilities infrastructure facility to service the Amaala destination.

Like The Red Sea, Amaala will be powered entirely by solar energy, saving the equivalent of nearly half a million tonnes of CO₂ emissions every year.

The new facility consists of an optimised off-grid renewable energy system, which generates energy from photovoltaic technology, and a battery energy storage solution that enables 24X7 power, plus a desalination plant and wastewater treatment plant, both powered by renewables.

 “Sustainability is a cornerstone of Amaala, and our new partnership with EDF and Masdar will drive us towards achieving a zero-carbon footprint once fully operational. The project follows the template for success provided by The Red Sea, where we recently completed the build of five solar farms, procuring a destination-wide utility system that enables us to operate with no connection to the national grid,” said John Pagano, group CEO of Red Sea Global.

Red Sea Global: Aiming for sustainability and carbon neutrality

Amaala’s renewable supply system has the capacity to generate up to 410,000 MWh per annum – enough to power 10,000 households for an entire year. The system includes a 700 MWh battery storage facility, which ensures Amaala will be powered by renewables, day and night.

There will also be a water desalination plant that uses reverse osmosis technology and has a capacity of 37 million litres of water per day.

 The contract covers the design, construction and operation of the systems providing utilities, accompanied by the associated networks and infrastructure.

Béatrice Buffon, group EVP in charge of EDF’s International Division, said: “With more than 90 per cent of its electricity production decarbonised, the EDF group is pursuing its ambition to contribute to reach carbon neutrality by 2050. Our objective is to continue to be a key player in the development of innovative, fully resilient and net-zero electrical systems.

“Together with Masdar, we are thrilled to take part in Red Sea Global’s Amaala project, a large scale off-grid system delivering carbon-free electricity and water 24×7.”

 Mohamed Jameel Al Ramahi, CEO of Masdar, said: “For this fully integrated utility project in partnership with Red Sea Global and EDF, we have brought together a suite of innovative solutions and technologies including solar, battery storage and desalination. 

 “Saudi Arabia is a key strategic market for Masdar and as a leading renewable energy company and longstanding partner, we are committed to playing an important role in supporting the country’s Vision 2030 Strategy as it aims to meet its ambitious targets of delivering 50 per cent of its energy needs from renewables by the end of the decade.”

The utilities concession agreement between RSG, EDF and Masdar has an initial 25-year term with the option to extend and involves the financing, engineering, development, construction, operation, maintenance and transfer of a multi-utilities infrastructure facility.

While this agreement supports its net-zero goals, Amaala will continue to focus on enabling regenerative impact on the environment, with the aim of delivering a 30 per cent conservation benefit to local ecosystems by 2040. 

Amaala phase one highlights

Phase one of Amaala is focused on the Triple Bay masterplan and will be ready in early 2025.

The destination will host more than 3,900 hotel rooms across 29 hotels and 1,200 high-end resident villas, apartments and estate homes.

More than 15,000 people who will live and work at Amaala when its complete.

In other news, Red Sea and Amaala entered into a new strategic partnership with the Royal Commission for Al Ula (RCU).

RCU is the organisation responsible for preserving the heritage-rich area of Al Ula in the northwest of the kingdom.

Read: Red Sea Global partners with Al Ula to drive Saudi Arabian tourism sector