Riyadh, Saudi Arabia-based Acwa Power and EIG, an energy and infrastructure investor headquartered in Washington, D.C., have agreed to cooperate in power generation, water desalination, green hydrogen, and green ammonia projects, with a focus on the Gulf countries and Uzbekistan.

The two signed a heads of terms agreement estimated to be worth US$500 million on the sidelines of the recent Future Investment Initiative (FII7) in Riyadh.

Also at the FII7, Acwa Power signed project finance facilities amounting to US$246 million with the European Bank for Reconstruction and Development (EBRD) and the Opec Fund for International Development for the development of a 240-megawatt wind power project in Azerbaijan.

The project, with a total investment cost of US$347 million, is the first foreign investment-based independent wind power project in the Republic of Azerbaijan to be structured as a public-private partnership (PPP). The national electrical power company Azerenerji is the sole offtaker. 

Once completed, the project is expected to power nearly 300,000 households, save 220 million cubic metres of natural gas, and reduce carbon emissions by more than 400,000 tonnes annually. 

“Acwa Power is enthusiastic about playing a pivotal role in helping Azerbaijan achieve its goal of meeting 30% of its energy needs through renewable sources by 2030," says the firm’s chief executive officer Marco Arcelli.

Abdulhamid Alkhalifa, Opec Fund director general, adds: "The Opec Fund is proud to be a key partner in the Khizi-Absheron Wind Power Project, which will mark a shift in Azerbaijan’s energy landscape by promoting foreign investment and private sector financing for a public-private partnership renewable project."

Acwa Power has previously worked with EBRD and the Opec Fund on the financing of multiple projects across Central Asia, the Middle East, and Africa.

During the 2022 edition of FII, Acwa Power and EBRD signed a memorandum of understanding to finance sustainable infrastructure projects in Uzbekistan, Azerbaijan, and Egypt.

Acwa Power has collaborated with Azerbaijan on several clean energy projects in recent years. Apart from the 240MW wind project, the Saudi power developer has also partnered with the Azerbaijan Ministry of Energy to develop a 1.5-gigawatt offshore wind facility, a 1GW onshore wind farm, and a battery energy storage system (BESS).

Acwa Power is also working with the State Oil Company of Azerbaijan Republic (Socar) to collaborate in the fields of renewable energy and green hydrogen.