Saudi Arabia set to build first wind power plant
Dubai
SAUDI Arabia, the world's biggest oil exporter, is poised to start generating wind power within three years as part of an effort to harness renewable energy to cut local demand for fossil fuels.
The renewable energy units of Electricite de France SA and Abu Dhabi's Mubadala Investment Co completed arrangements with Saudi and international banks to finance the project, according to a statement from Masdar, as the Abu Dhabi business is known. Masdar didn't identify the lenders.
EDF Renewables and Masdar won a contract in January to build the 400-megawatt Dumat Al Jandal facility, which is to begin producing electricity in the first quarter of 2022. The project will be the biggest wind power plant in the Middle East when it begins producing, Masdar said.
Saudi Arabia is seeking to develop new industries to wean its economy off oil. Its sovereign wealth fund plans to invest in renewable energy facilities and factories to make components for solar and wind farms. The country wants to use more natural gas and renewable energy to free up roughly 600,000 barrels of crude that it currently burns each day to generate power.
The wind plant is to be built at Dumat Al Jandal city in north-western Saudi Arabia, a region where state-owned Saudi Aramco installed a single wind turbine in January 2017.
The energy ministry has pre-qualified 60 companies to bid for 12 renewables projects it plans to tender this year, starting this month, with a goal of adding 3,000 megawatts of capacity. BLOOMBERG
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
Oil jumps, equities fall as Iran blasts fan Middle East tensions
Gold set for fifth weekly gain as geopolitical risks buoy demand
Oil holds near 3-week low as US sanctions interrupt easing tensions
Seatrium unit ordered to pay US$108 million in arbitration over equipment supply contracts
BP reshapes its leadership team as some executives leave
BHP to decide on future of nickel business by August, trims met coal estimates