Acwa Power, a utility located in Riyadh, Saudi Arabia, has inked deals worth $12 billion to develop three new energy projects in Uzbekistan.
The agreements include a $10 billion investment co-operation agreement to jointly develop gas-to-power, renewable energy, and green hydrogen projects in Uzbekistan, as well as a “heads of terms agreement” to develop the largest single onshore wind project in the world in the Karakalpakstan region of Uzbekistan with a total capacity of 1.5 gigawatts.
According to a statement released on Thursday, Acwa Power is also partnering with industrial gases company Air Products, which is listed on the New York Stock Exchange, to invest in a green hydrogen project in the central Asian country.
According to Azim Akhmedkhodjaev, first deputy minister of energy of Uzbekistan, “We have exceptional partners in Acwa Power, which is already carrying out four energy projects in Uzbekistan. This means that these new endeavors are based on a firm foundation of partnership and confidence.”
The new contracts are part of Acwa Power’s ongoing global portfolio expansion. The company announced earlier this year that it would collaborate with Air Products and Oman’s OQ Energy Company to build a multi-billion dollar green hydrogen-based ammonia production unit in Oman’s Salalah free zone. It is also in charge of a group building a $1.5 billion, 1.1 gigawatt wind project in Egypt.
According to Mohammad Abunayyan, chairman of Acwa Power, “Uzbekistan is at the forefront of the energy transition in central Asia, and these key agreements with the country’s Ministry of Investments and Foreign Trade and Ministry of Energy, make Uzbekistan Acwa Power’s second-largest country for overall investment.”
According to the statement, the Karakalpakstan project is anticipated to reach financial close by the end of 2023 and be fully operational by the first quarter of 2026. When finished, it will supply electricity to 1.65 million homes and contribute 19% to Uzbekistan’s overall renewable energy targets. By 2026 and 2030, respectively, the republic in central Asia aims to have 8 and 12 gigawatts of solar and wind power installed.
After Saudi Aramco’s record-breaking $29.4 billion initial public offering on the Tadawul in 2019, which raised $1.2 billion, Acwa raised $1.2 billion from its listing last year, making it one of the largest share sales in the energy sector.