$693 million major acquisition deal
ACWA Power, the top utility in Saudi Arabia, has completed a deal to buy shares in four gas-fired power plants and water desalination units in Bahrain and Kuwait that are held by Engie, a French business. $693 million is the entire value of the transaction.
Increasing the Capacity for Energy and Water Desalination
With a combined capacity of 4.61 gigawatts (GW) in gas-fired power generation and 1.11 million cubic meters per day (m3/day) of water desalination, the acquisition expands ACWA Power’s operational footprint. According to ACWA Power’s announcement on Wednesday, the agreement also includes associated operations and maintenance firms in Kuwait and Bahrain.
Minority Shares in Four Facilities Are Acquired by ACWA Power
Engie’s minority interests in four current energy assets—three in Bahrain and one in Kuwait—will be transferred to ACWA Power as part of the agreement. This action fits nicely with ACWA Power’s larger regional expansion plan.
Engie’s emphasis on smart and green energyThe divestiture is in line with Engie’s pledge to give green energy projects top priority. The massive French utility recently promised to concentrate on providing smarter and more sustainable energy solutions.
Enhancing the Long-Term Strategy of ACWA Power
Acquiring these properties helps ACWA Power achieve its ambitious objective of growing its asset base to $250 billion by 2030 by securing long-term revenue streams. A major step towards realising its strategic objective has been taken with this acquisition.
Bahraini expansion and Kuwaiti entry
This acquisition enables us to join Kuwait, where we just put in a bid for a significant power and desalination project, and strengthens our position in Bahrain, where we are already a major supplier of water and power,” stated Marco Arcelli, CEO of ACWA Power.
The Green Energy Transition of ACWA Power
In recent years, ACWA Power has made a significant shift towards renewable energy and green hydrogen initiatives, despite its previous reliance on oil and gas power stations and desalination projects.
Green Ammonia and Hydrogen Initiatives
With a 600,000-ton-per-year starting production capacity, ACWA Power and Itochu of Japan inked a deal in 2023 to investigate co-developing and off-taking ammonia from a green hydrogen factory in Egypt.
An important part of the Neom Green Hydrogen initiative
One of the main players in the Neom Green Hydrogen Project, the biggest export-focused green hydrogen plant in the world, is ACWA Power. The project, which was created in partnership with Neom and Air Products, has successfully obtained a 30-year offtake agreement and a $8.5 billion financial close.
ACWA Power solidifies its position as a major force in the changing global energy scene with this most recent acquisition and its ongoing emphasis on renewable energy.
