ACWA Power set to explore bringing on Oman Investment Authority as co-investor for 1.1GW Suez Wind Energy project

In the presence of His Royal Highness Prince Abdulaziz bin Salman Al Saud, Minister of Energy of Saudi Arabia; His Excellency Salim Al Aufi, Minister of Energy and Minerals of the Sultanate of Oman; and His Excellency Dr. Mohamed Shaker, Minister of Electricity and Renewable Energy of the Arab Republic of Egypt; ACWA Power Company signed a memorandum of understanding with Oman Investment Authority (OIA) to explore bringing the sovereign wealth fund on as an investor for the 1.1GW Suez Wind Energy project in Egypt. The MoU was signed at COP27, the annual conference on climate change backed by the United National Framework Convention on Climate Change (UNFCCC), being held at Sharm El Sheikh.

The MoU was signed by Mulham Al Jarf, Acting Deputy President for Investment, OIA, and Paddy Padmanathan, Vice-Chairman and CEO, ACWA Power, in the presence of Mohammad Abunayyan, Chairman of ACWA Power, and other senior executives.

According to the terms of the MoU, OIA will assess the possibility of owning up to 10% of the project, which is valued at US$1.5billion in totality. Hassan Allam Holdings, an Egyptian engineering, construction and infrastructure company, has a 25% stake in the project, with ACWA Power holding the remaining equity. When completed in 2026, the project will be the largest single contracted wind farm in the Middle East region.

“Suez Wind Energy was already a remarkable project because of its ambition and scale-- bringing together investors from within the Arab world for this regional project proves that the will for implementation, the key mission of COP 27, is strong,” said Mohammad Abunayyan, Chairman, ACWA Power. “The signing of this key MOU demonstrates the confidence of the investor community in ACWA Power’s expertise and capability to deliver giga scale projects. As we continue to build upon our renewables portfolio in Egypt, we value our continued partnership with Oman Investment Authority as well as Hassan Alam Holdings and believe their collaboration and contribution on this significant wind energy project will strongly enable the energy diversification goals of the nation” he added.

ACWA Power earlier signed a joint development agreement with OQ, an OIA-owned entity, in May 2022. Along with Air Products, the agreement involves the development of a multibillion-dollar green hydrogen project in Oman.

Mulham Basheer Al Jarf, Acting Deputy President for Investment at Oman Investment Authority, said, “We signed the MOU as it is in line with the Sultanate’s efforts to enhance joint investments with our brothers in the Kingdom of Saudi Arabia and the Arab Republic of Egypt in renewable energy projects, particularly wind power. Oman has a net zero emissions goals by 2050, and to this end, the country is developing an ambitious plan for energy transformation and decarbonisation, which includes the implementation of major projects in the field of hydrogen and renewable energy. OIA is also majorly focused on investments in the renewable energy sector to build a long-term sustainable future, whether through its companies in the same field or partnerships with regional and international investors such as Hassan Allam Holding and ACWA Power.”

By 2026, the Suez Wind Energy will mitigate the impact of 2.4 million tonnes of carbon dioxide emissions per year and provide electricity to 1,080,000 households.