Oct 5, 2017

Bidding opens for Saudi Arabia’s first solar-powered plant

Sophie Chapman
2 min
EDF energy
The UAE’s Abu Dhabi Future Energy and EDF Energies Nouvelles have submitted the lowest bids for the utility-scale Sakaka plant.

The UAE’s Abu Dhabi Future Energy and EDF Energies Nouvelles have submitted the lowest bids for the utility-scale Sakaka plant.

Bids for the 300MW solar photovoltaic (PV) project began on 3 October, and will continue for three months.

Abu Dhabi Future Energy (Masdar) and the a wholly-owned unit of France-based EDF presented a joint bid for a levelised cost of electricity (LCOE) of 6.69 halalas/per kilowatt-hour (US$0.0178/kWh).

Acwa Power, a Saudi-based company, offered the second lowest bid of 8.78 halalas/kWh.


The bid measure covers the cost of generating a MW-hour of electricity; the upfront capital and development cost; the cost of equity and debt finance; and operating and maintenance fees.

“All of the bids opened today will now undergo stringent technical, financial and legal evaluation,” the Head of the Energy Ministry's Renewable Energy Project Development Office, Turki al-Shehri, told Reuters in a statement.

He then stated that the plant would be granted to the lowest cost measure which meets all compliance criteria.

“The LCOE quoted by the winning bidder will be the most accurate measure of the potential related to this project. The lowest bidder today is not guaranteed to be awarded the project,” added Shehri.

The three-month evaluation is predicted to have come to a conclusion by 27 January 2018.

After this conclusion, the winning bidders will build, own, and run the plant alongside the government.

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Jun 7, 2021

Trafigura and Yara International explore clean ammonia usage

Dominic Ellis
2 min
Commodity trading company Trafigura and Yara International sign MoU to explore developing ammonia as a clean fuel in shipping

Independent commodity trading company Trafigura and Yara International have signed an MoU to explore developing ammonia as a clean fuel in shipping and ammonia fuel infrastructure.

Reducing shipping emissions is a vital component of the fight against global climate change, yet Greenhouse Gas emissions from the global maritime sector are increasing - and at odds with the IMO's strategy to cut absolute emissions by at least 50% by 2050. 

How more than 70,000 ships can decrease their reliance on carbon-based sources is one of transport's most pressing decarbonisation challenges.

Yara and Trafigura intend to collaborate on initiatives that will establish themselves in the clean ammonia value chain. Under the MoU announced today, Trafigura and Yara intend to work together in the following areas:

  • The supply of clean ammonia by Yara to Trafigura Group companies
  • Exploration of joint R&D initiatives for clean ammonia application as a marine fuel
  • Development of new clean ammonia assets including marine fuel infrastructure and market opportunities

Magnus Krogh Ankarstrand, President of Yara Clean Ammonia, said the agreement is a good example of cross-industry collaboration to develop and promote zero-emission fuel in the form of clean ammonia for the shipping industry. "Building clean ammonia value chains is critical to facilitate the transition to zero emission fuels by enabling the hydrogen economy – not least within trade and distribution where both Yara and Trafigura have leading capabilities. Demand and supply of clean ammonia need to be developed in tandem," he said.  

There is a growing consensus that hydrogen-based fuels will ultimately be the shipping fuels of the future, but clear and comprehensive regulation is essential, according to Jose Maria Larocca, Executive Director and Co-Head of Oil Trading for Trafigura.

Ammonia has a number of properties that require "further investigation," according to Wartsila. "It ignites and burns poorly compared to other fuels and is toxic and corrosive, making safe handling and storage important. Burning ammonia could also lead to higher NOx emissions unless controlled either by aftertreatment or by optimising the combustion process," it notes.

Trafigura has co-sponsored the R&D of MAN Energy Solutions’ ammonia-fuelled engine for maritime vessels, has performed in-depth studies of transport fuels with reduced greenhouse gas emissions, and has published a white paper on the need for a global carbon levy for shipping fuels to be introduced by International Maritime Organization.

Oslo-based Yara produces roughly 8.5 million tonnes of ammonia annually and employs a fleet of 11 ammonia carriers, including 5 fully owned ships, and owns 18 marine ammonia terminals with 580 kt of storage capacity – enabling it to produce and deliver ammonia across the globe.

It recently established a new clean ammonia unit to capture growth opportunities in emission-free fuel for shipping and power, carbon-free fertilizer and ammonia for industrial applications.

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