Acwa Power agrees partnership to set up world’s largest energy project
The Saudi Arabia-based operator of power generation and water desalination plants, Acwa Power, has announced it has collaborated with three international groups in order to set up the world’s largest energy project in Dubai, according to Trade Arabia.
The groups; Spain-based Abengoa and Chinese companies, Industrial and Commercial Bank of China (ICBC) and Shanghai Electric Group Company (SEGC) has agreed a partnership deal with Acwa, which will see the Saudi firm become the lead developer of the project.
After agreeing the partnership, Paddy Padmanathan, the president and chief executive of Acwa Power, said: “The coming together of the four enterprises who are leaders in our own respective fields: Acwa Power - a leader in development and operation of power plants, Abengoa - concentrated solar power technology provider, Shanghai Electric, EPC Contractor and ICBC Project finance MLA; from three countries, Spain, China and Saudi Arabia to deliver this iconic energy plant.”
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“On completion, it will deliver electricity day and night generated entirely by solar energy at a competitive cost in yet another country such as the UAE is the proof of the immense value that can be created by collaboration than isolation very much reflecting the spirit of the belt and road strategy that is being implemented by China under President Xi’s leadership.”
It was revealed that earlier this year, Acwa Power has agreed an engineering, procurement and construction (EPC) agreement with SEGC, with it being confirmed that Abengoa was persuaded to join in as one of the main technology providers and key subcontractors for the facility.
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.