ACWA Power sells stake in Rabigh project, expands into green hydrogen

Saudi-based ACWA Power has agreed to sell a 30% stake in the Rabigh Independent Water Steam and Power Project to Hassana Investment Co. for SR844 million ($225 million). This project, owned by Rabigh Arabian Water and Electricity Co., is a joint venture involving ACWA Power, Marubeni Corp., JGC Corp., and Petro Rabigh. It includes components like steam turbines, generators, desulphurization units, and water production systems.

The project, managed by Mitsubishi Heavy Industries, supplies utilities to Petro Rabigh Co. ACWA Power's decision to sell part of its stake aligns with its capital recycling strategy. By divesting a portion of its 99% share, the company expects benefits. This move will impact RAWEC's contribution to the group's net income. Additionally, ACWA Power has partnered with the Tunisian government for a green hydrogen project targeting European exports. The initiative will involve renewable energy, storage systems, desalination plants, and infrastructure development.

ACWA Power aims to develop, operate, and maintain 12 gigawatts of renewable energy units, electrolyzer capacity, and battery storage facilities. The initial phase focuses on installing 4 GW of renewable energy units and 2 GW of electrolyzer capacity to produce green hydrogen for export through the SoutH2 Corridor, linking Tunisia to European nations.

ACWA Power's stake sale in the Rabigh project marks a strategic move in line with its business objectives. The company's expansion into green hydrogen projects signifies a shift towards sustainable energy solutions and international partnerships. This development highlights the growing importance of renewable energy and underscores ACWA Power's commitment to innovation and environmental stewardship.