ADPower and Marubeni Corporation form consortium to develop new 2.4GW power plant in Fujairah
New power plant capacity will be able to power the equivalent of 380,000 households
Abu Dhabi, UAE – 16 February 2020: Abu Dhabi Power Corporation (ADPower) and Japan-based Marubeni Corporation announced, today, the formation of a consortium to develop the Fujairah F3 independent power producer (IPP) project, which will be the largest independent thermal power plant in the UAE.
To mark the occasion, a ceremony was held at the headquarters of Emirates Water and Electricity Company (EWEC), where the project’s Power Purchase Agreement (PPA) and Shareholders’ Agreement was signed. The ceremony was attended by Jasim Husain Thabet, CEO and Managing Director of ADPower, Yoshiaki Yokota, COO of Marubeni Corporation’s Power Business Division, and Othman Al Ali, CEO of EWEC, and was witnessed by H.E. Akihiko Nakajima, Ambassador of Japan to the UAE, and H.E. Saif Mohamed Alhajeri, Chairman of the ADPower Board of Directors.
The Fujairah F3 IPP project includes the development, financing, construction, operation, maintenance and ownership of a combined cycle gas turbine (CCGT) power plant, together with associated infrastructure. Located in the Fujairah water and electricity complex, between the existing Fujairah F1 and Fujairah F2 water and electricity plants, the Fujairah F3 IPP project will have a contracted power capacity of 2.4GW, bringing ADPower’s current power generation capacity to 20.4GW. Once operational, Fujairah F3’s capacity will be able to power the equivalent of 380,000 households.
Jasim Husain Thabet, Chief Executive Officer and Managing Director of ADPower, said: “Our ambition is to transform Abu Dhabi’s water and electricity sector into a reliable, efficient, sustainable and value-generating system that optimises our robust portfolio of assets and creates unique partnership opportunities. The F3 IPP Project represents a significant milestone in this journey, deploying world-class technology and efficiency standards to meet the UAE’s evolving power needs. We are delighted to announce Marubeni Corporation as our partner in the F3 Fujairah IPP project.”
Othman Al Ali, Chief Executive Officer of EWEC, said: “The Fujairah F3 IPP project will apply one of the most efficient and advanced CCGT technologies available in the region, producing more energy that aligns with the UAE Energy Strategy 2050’s CO2 emissions reduction targets. It will play a strategic role in the growth and development of the UAE, providing secure and reliable power to match the needs of consumers in Abu Dhabi and the UAE. As part of the tender process, EWEC conducted a robust due diligence exercise, in line with the UAE energy industry’s world-class standards, in order to select the most attractive technical and commercial bid for this project.”
In early 2019, EWEC received 30 expressions of interest from potential bidders for the Fujairah F3 IPP project, of which 20 were qualified to bid after submitting statements of qualification. The project received six bids which were opened in October at EWEC’s headquarters in Abu Dhabi.
Through this project, the government of Abu Dhabi will indirectly own a 60% stake, while the remaining 40% will be owned by Marubeni Corporation. The construction of the Fujairah F3 IPP project, which is the largest CCGT power plant in the UAE’s current fleet, is expected to commence swiftly to enable EWEC to procure early power by summer 2022 and full generation by summer 2023.
The Fujairah F3 IPP project will grow ADPower’s portfolio of investments in power generation assets, which form part of the assets subject to the recently announced offer to Abu Dhabi National Energy Company (TAQA), whereby ADPower would transfer the majority of its water and electricity generation, transmission and distribution assets to TAQA. If accepted and approved by TAQA and regulatory authorities, the proposed transaction would create a combined entity that is expected to be one of the largest utilities companies in the GCC, a top-10 integrated utilities player in the EMEA region by regulated assets, and the third-largest company listed on the UAE stock markets by market cap.