Abu Dhabi F3 IPP reaches financial close

The F3 IPP will have a power generation capacity of 2,400MW. Marubeni will hold a 40 per cent stake in the special purpose vehicle (SPV) set up to develop and operate the plant, with the Abu Dhabi government to hold the remaining 60 per cent stake.

The special purpose vehicle (SPV) established to develop the Fujairah 3 (F3) independent power project (IPP) has reached financial close for the project, according to sources close to the scheme.

Energy & Utilities reported in February that Abu Dhabi-based Emirates Water & Electricity Company (Ewec) had awarded the contract to Japan’s Marubeni Corporation to develop the 2.4GW Fujairah 3 (F3) independent power project (IPP).

The Japanese developer signed the power purchase agreement (PPA) and Shareholder’s agreement with Ewec on 16 February.

Marubeni will hold a 40 per cent stake in the special purpose vehicle (SPV) set up to develop and operate the plant, with the Abu Dhabi government to hold the remaining 60 per cent stake.

First power from the project is scheduled to come online in summer 2022, with the full capacity to come online by the summer of 2023.

The Japanese developer submitted the second lowest bid in October last year during a competitive tendering process. The developer’s bid of 16.812 7901 fils a kilowatt hour (fils/kWh) was slightly higher than the AED16.7901 fils/kWh second lowest bid submitted by France’s Engie.

South Korea’s Samsung C&T has been appointed by the developer to provide engineering, procurement and construction (EPC) services worth $960m for the project.

Ewec is the offtaker for all of the power and water produced in the emirate of Abu Dhabi and Northern Emirates, procuring supply from 18 plants across the UAE.

Ewec falls under the umbrella of Abu Dhabi Power (ADPower), which recently completed the transaction to transfer its power and water generation assets and transmission and distribution infrastructure to Abu Dhabi National Energy Company (Taqa) in exchange for shares.