TAQA Announces Financial Closing for the Largest Independent Gas-Fired Power Plant in the UAE

2.4 GW power plant in Fujairah will have the capacity to power the equivalent of 380,000 households
TAQA and Mubadala to own a 60% stake, while Japan-based Marubeni Corporation to own 40%

Abu Dhabi National Energy Company (TAQA) announced, today, the successful financial closing for the largest gas-fired power plant in the UAE. The Fujairah F3 Independent Power Producer (IPP) project will have a power generation capacity of 2.4 GW – equivalent to the powering of 380,000 UAE households – and is expected to begin early power generation by summer 2022, with full power generation expected by summer 2023. The financial closing follows the signing of the power purchase agreement and shareholder’s agreement between Abu Dhabi Power Corporation (ADPower), Emirates Water and Electricity Company (EWEC), Mubadala Investment Company and Japan-based Marubeni Corporation.

The Fujairah F3 plant will incorporate state-of-the-art “JAC”-class gas turbine technology, sourced from Mitsubishi Heavy Power Systems, and, once constructed, it will utilize the most efficient combined cycle technology in the region. The total project will cost approximately AED 4.2 billion, with external funding sourced from a consortium of international multi-lateral and commercial banks, including Japan Bank for International Cooperation, BNP Paribas, Mizuho Bank, Sumitomo Mitsui Banking Corporation, Sumitomo Trust Bank, and Standard Chartered Bank.

Farid Al Awlaqi, the newly appointed Executive Director of Generation at TAQA, said: “The Fujairah F3 project is a landmark for TAQA and its generation assets, following the company’s integration with ADPower. It will be the largest gas-fired power plant in the UAE, and, by utilising advanced combined cycle technologies, it will be one of the most efficient in the region. Announcing the financial close of this project accelerates the transformation of the power and water sector, as TAQA delivers significant progress on important large-scale infrastructure projects in the UAE.”

Mohammed Al-Huraimel Al-Shamsi, Head of Utilities at Mubadala, added: “The Fujairah F3 project stands as a testament to the resiliency of this nation and our ability to overcome challenging times to continue to deliver the needs and expectations of our communities. To achieve financial closing of such a large scale project is not only recognition of the viability and sound economics of the project itself, but also to the strength of the partners involved and Mubadala is proud to partner with TAQA, EWEC and Marubeni to deliver such essential infrastructure in the UAE.”

Satoru Harada, Chief Operating Officer, Power Business Division of Marubeni, added: "Fujairah F3 is our sixth I(W)PP project in the UAE, a reflection of our commitment to supporting a sustainable energy sector that offers reliable and environmentally friendly sources of power. This project will deliver operational flexibility and state-of-the-art efficiency to reinforce the security of supply and support the integration of zero-carbon power generation assets. We would like to thank TAQA, EWEC and Mubadala, as well as our financial partners, for their cooperation. We look forward to now developing the largest independent gas-fired power plant in the UAE.”

Othman Al Ali, Chief Executive Officer of EWEC, said: “The financial close of this project is a major milestone that allows us to move forward with construction of Fujairah F3. The financial terms of this highly efficient plant are amongst the most competitive seen in Abu Dhabi to date, and illustrates partners’ – and the financial community’s – strong and continued interest in Abu Dhabi’s energy sector. It is these strong partnerships that allow EWEC to rapidly progress with major projects that drive sustainability and energy efficiency, reduce our carbon footprint, and significantly improve water and electricity production in Abu Dhabi and beyond.”

The Fujairah F3 plant will be located in the Qidfa area of the Emirate of Fujairah, nestled between the existing Fujairah F1 and Fujairah F2 water and electricity plants. Once completed, the plant’s capacity will be able to power the equivalent of 380,000 UAE households. TAQA and Mubadala will jointly hold a 60% equity interest in the project, while the remaining 40% will be held by Marubeni Corporation.

Today’s financial closing follows the announcement of TAQA’s successful transaction with ADPower on July 1, 2020, which created the UAE’s 3rd-largest publicly listed company by market capitalization and a top-10 utility player in the EMEA region by regulated assets. As part of the transaction, the majority of ADPower’s power and water generation, transmission and distribution assets were transferred to TAQA in exchange for 106,367,950,000 new shares.

About TAQA

Established in 2005, TAQA is a diversified utilities and energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA). TAQA is a fully integrated utility company, with significant power and water generation, transmission and distribution assets, as well as upstream and midstream oil and gas operations. The company's assets are located in Canada, Ghana, India, Iraq, Morocco, Oman, Saudi Arabia, the United Arab Emirates, Netherlands, the United Kingdom and the United States. For more information, please visit: www.taqa.com.

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About Mubadala Investment Company

Mubadala Investment Company is a sovereign investor managing a global portfolio, aimed at generating sustainable financial returns for its shareholder, the Government of Abu Dhabi. Mubadala’s US $229 billion portfolio spans five continents with interests in multiple sectors including aerospace, ICT, semiconductors, metals and mining, renewable energy, oil and gas, petrochemicals, utilities, healthcare, real estate, pharmaceuticals and medical technology, agribusiness and a global portfolio of financial holdings across all asset classes. Mubadala has offices in Rio de Janeiro, Moscow, New York and San Francisco, with a joint venture in Hong Kong. Mubadala is a trusted partner, an engaged shareholder and a responsible global company that is committed to world-class standards of governance.

About Marubeni Corporation

Marubeni Corporation and its consolidated subsidiaries use their broad business networks, both within Japan and overseas, to conduct importing and exporting (including third country trading), as well as domestic business, encompassing a diverse range of business activities across wide-ranging fields including lifestyle, ICT & real estate business, forest products, food, agri business, chemicals, power business, energy, metals & mineral resources, plant, aerospace & ship, finance & leasing business, construction, auto & industrial machinery, and next generation business development. Additionally, the Marubeni Group offers a variety of services, makes internal and external investments, and is involved in resource development throughout all of the above industries.

About Emirates Water and Electricity Company

Emirates Water and Electricity Company (EWEC) drives the planning, forecasting, purchase and supply of water and electricity in Abu Dhabi and beyond. EWEC performs its role as the sole procurer of water and electricity from independent producers, ensuring the short- and long-term balancing of bulk supply and demand for distribution companies. EWEC is part of ADQ, one of the region’s largest holding companies with a diverse portfolio of major enterprises spanning key sectors of Abu Dhabi’s non-oil economy. For more information please visit www.ewec.ae.

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