TAQA reaches financial closing for 2.4 GW Fujairah F3 Combined Cycle Gas Turbine IPP in Qidfa

Abu Dhabi National Energy Company (TAQA) has achieved 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 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 AED4.2 billion or US$1.14 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.

The Fujairah F3 plant will be located in the Qidfa area of the Emirate of Fujairah, installed between the existing Fujairah F1 and Fujairah F2 water and electricity plants. TAQA and Mubadala will jointly hold a 60% equity interest in the project, while the remaining 40% will be held by Marubeni Corporation.