Acwa Power stops investing in fossil energy and focuses on renewable energy

JEDDAH: Acwa Power is working tirelessly to realize the kingdom’s mission of achieving net zero carbon by 2060, as the company has decided not to invest in oil or coal-fired power plants in the future.

“When we conducted the IPO, we had a coal-fired power plant and we were building another one, but we closed it down and saved costs,” says Paddy Padmanathan, CEO of Acwa Power, at Arab news.

The company has sold one of its coal-fired power plants and is now working to transform the other into a gas-fired power plant, he adds on the sidelines of the Innovation Days, which took place on March 23 at King Abdullah University. Science and Technology (Kaust).

Saudi Arabia has set a clear goal of producing 50% of its total energy supply from renewable sources by 2030 and the other half from natural gas, as announced by its energy ministry.

Acwa Power, owned by the Saudi Investment Fund (PIF), has sold its 32% stake in Shuqaiq Water and Electricity Co. for 391.5 million Saudi riyals ($ 105 million: $ 1 = $ 0.91), according to a stock statement. trade.

The deal is part of the economic giant’s capital recycling strategy, bringing it closer to a 50% reduction in carbon intensity by 2030 compared to 2020 levels.

Shuqaiq Acwa Hydroelectric Power Plant

Acwa Power plans to continue investing in gas-fired power plants; but because the world needs more clean energy, Padmanathan says investment will focus on renewable energy.

“We are committed that by 2030, the carbon intensity of our portfolio will be less than half that of 2020,” he states.

Mr Padmanathan points out that the world is committed to achieving net zero by 2050, but the question of how to do so has only recently emerged.

“It’s only today that the world is starting to look at how to achieve this,” he adds.

Partnership with Caust

Acwa Power and Kaust organized Innovation Days 2022 from March 23 to 24, 2022.

In 2019, both sides signed a memorandum of understanding, a memorandum of understanding, to launch the Kaust-Acwa Power Center of Excellence for desalination and solar energy.

Kaust introduces innovations in areas that can be applied in practice, while Acwa Power as an operator can implement these practices in the field. “It’s a strong partnership between theory and practice,” he concludes.

This text is a translation of an article published on Arabnews.com

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