Saudi Arabia Aims to Develop New Plant to Localise Wind Energy
The Saudi Public Investment Fund (PIF) and China’s second-largest wind turbine manufacturer are close to a deal to develop a new plant in the Kingdom to help boost renewable power production by building a wind turbine manufacturing plant in Saudi Arabia as part of the country’s efforts to localise supply chains.
The Saudi sovereign wealth fund and Vision Industries, a privately owned renewable-energy manufacturing company, could sign an agreement with Envision Energy Co., as soon as this week, Bloomberg said on Monday, quoting people familiar with the matter.
The deal would involve the PIF, which controls nearly $1 trillion of assets, and the two other partners building a wind turbine manufacturing plant in Saudi Arabia as part of the Kingdom’s efforts to localise supply chains, according to the people.
Envision is expected to be the majority investor in the partnership
Envision already has significant business in Saudi Arabia, which is investing billions of dollars in renewables to stop burning oil for power.
The Chinese firm supplies wind turbines for the almost $9 billion Neom Green Hydrogen Co., which will use 4 gigawatts of solar and wind power to create clean hydrogen.
In other news, Saudi-listed ACWA Power, the world’s largest private water desalination company, announced on Wednesday the completion of a Sale and Purchase Agreement to sell 35% of its stake in ACWA Power Bash Wind Project Holding Company Limited and ACWA Power Uzbekistan Wind Project Holding Company Limited to China Southern Power Grid International (HK) Co. Ltd (CSGIHK), the investment and development arm of China Southern Power Grid (CSG).
Following the fulfillment of the necessary conditions, a closing ceremony was held in Tashkent to mark the completion of the transaction, SPA reported.
This transaction marks the first co-investment between ACWA Power and China Southern Power Grid for a major renewable energy project in Central Asia
It follows framework agreements signed in December 2022 between ACWA Power and Chinese companies, which set the stage for financing, investment, and construction of ACWA Power’s global clean and renewable energy projects in Saudi Arabia and Belt and Road Initiative countries.
ACWA Power’s CEO expressed enthusiasm for the collaboration, highlighting the importance of international cooperation in delivering sustainable solutions.
“Through strategic collaboration with China Southern Power Grid International, we are proud to announce a significant milestone in our journey towards sustainable energy solutions. The agreement regarding our Bash and Dzhankeldy wind projects in Uzbekistan not only enhances ACWA Power’s global presence but also strengthens ties between two industry leaders from different regions. This historic partnership underscores our commitment to driving innovation and progress in the renewable energy sector,” he said.
The ACWA Power Bash Wind Project Holding Company Limited and ACWA Power Uzbekistan Wind Project Holding Company Limited hold 100% stakes in ACWA Power Bash Wind LLC (“Bash”) and ACWA Power Dzhankeldy LLC (“Dzhankeldy”), respectively, representing a combined 1GW of capacity with an investment cost of over USD 1.3 billion.
Upon completion, the Bash and Dzhankeldy wind power plants will be among Central Asia’s largest renewable energy projects. Uzbekistan is ACWA Power’s second-largest market in terms of investment cost, highlighting the company’s long-standing commitment to the country, the release said.
