Integrated utility company Abu Dhabi National Energy Company (TAQA) and JERA, Japan’s power generation firm, have achieved the financial closing of Najim industrial steam and electricity cogeneration plant in Saudi Arabia.
The proposed new cogeneration plant will have a capacity to deliver up to 475MW of power and around 452 tonnes per hour (TPH) of steam.
By utilising advanced combined-cycle gas-fired technology, the Najim cogeneration facility will supply electricity and steam to a petrochemical complex in Jubail located in Saudi Arabia’s Eastern Province.
Both companies reached the financial close for the Najim facility after they signed a power and steam purchase agreement in March 2024 with Saudi Aramco Total Refining and Petrochemical Company (SATORP).
SATORP is a joint venture between Saudi Arabian Oil Company (Saudi Aramco) and TotalEnergies. Aramco holds a 62.5% stake in the JV while its French partner owns the remaining 37.5% stake.
The Saudi Arabian industrial steam and electricity cogeneration plant will be developed by a special purpose entity. The company will be owned by TAQA and JERA with an interest of 51% and 49%, respectively.
TAQA and JERA will set up the Najim plant on a 25-year build, own, and operate basis, with an option to extend for an additional five years subject to mutual agreement.
In addition, both parties will manage the operation and maintenance (O&M) of the plant through an O&M special purpose entity.
The plant will feature advanced power and steam generation systems, gas and water receiving systems, and gas-insulated switchgear interconnections.
JERA chief global strategist Steven Winn said: “This new cogeneration plant, based on advanced J-class gas turbine technology, is designed to optimise energy efficiency, and reduce environmental impact, and it will play a crucial role in supporting SATORP’s Strategic Expansion operations.”
According to TAQA, the Najim industrial steam and electricity cogeneration plant is designed to meet the stringent efficiency standards set by the Saudi Energy Efficiency Center.
Besides, the project includes provision for the installation of carbon capture plant and the potential for hydrogen co-firing.
TAQA generation business CEO Farid Al Awlaqi said: “This is our third generation project in the Kingdom of Saudi Arabia and we will be developing an advanced cogeneration steam and power plant using the latest highly efficient J-Class gas turbine technology in partnership with JERA.
“We are building our track record of excellence as a responsible and reliable operator and lead developer of generation projects.”
In May this year, SATORP’s Amiral petrochemical facility construction project was offered $1bn in project financing by the Export-Import Bank of Korea (Korea Eximbank).
The funding was for Hyundai Engineering & Construction, which holds contracts for two EPC packages, worth around $5bn, for the Saudi Arabian petrochemical project.
