Saudi-listed ACWA Power has agreed to sell 30 percent of its stake in the Rabigh Independent Water Steam and Power Project (IWSPP) to Hassana Investment Co. for SR844 million ($225 million). According to a bourse filing, parties involved in the deal include Oasis Power One Conventional Energy and Water Co. and Gosi Investment Ventures Limited. The Rabigh IWSPP is operated by Rabigh Arabian Water and Electricity Co., a joint venture between ACWA Power, Marubeni Corp., JGC Corp., and Petro Rabigh. The project, under an EPC contract by Mitsubishi Heavy Industries, comprises conventional thermal power with five 118 MW steam turbines, nine steam generators, three flue gas desulphurization units, and 16 reverse osmosis trains.
ACWA Power stated that the divestment is part of its capital recycling strategy, reducing its stake from 99 percent and anticipating financial gains from the transaction upon closing. While RAWEC’s contribution to ACWA Power’s net income will decrease proportionately, the company continues to expand its portfolio. On June 2, ACWA Power signed a memorandum of understanding with the Tunisian government to produce up to 600,000 tonnes of green hydrogen annually in three phases for export to Europe. This project will develop 12 GW of renewable energy units and related infrastructure, with the first phase focusing on installing 4 GW of renewable energy and 2 GW of electrolyzer capacity for hydrogen production.