ACWA Power expects financial close of NEOM green hydrogen project by Q4 2022

Logo of ACWA Power

ACWA Power reported significant progress in project development in H1 2022, expecting the financial close of NEOM green hydrogen project to reach its final stages by Q4 2022, according to the company’s Q2 2022 investor report. 

The firm submitted proposals for the next mega renewable energy projects in the Public Investment Fund’s (PIF) renewable energy deployment pipeline. 

The Tadawul-listed company described the plant outages as “undesirable,” driven increasingly by the failure of equipment supplied by world-renowned original equipment manufacturers (OEMs). It also reported high availability of power and water during the six-month period but still lower than its forecasts. 

Some procedures were taken to overcome the suspension of plants, including the digital transformation drive that will also support the reliability of supply by using technology more efficiently than today. 

According to the report, the challenges include the impact of Russia-Ukraine war on high global costs, which affected the under-construction projects and assets that reached advanced stages, especially the projects in the war area. However, the company determined there has been no significant adverse impact.   

ACWA Power expected no significant delay in target financial closes until year-end, indicating possible additional associated costs though they may not result in material deviations from their base case projections.  

The utility services provider reported a net profit of SAR 541.7 million in H1 2022, up 21%, from SAR 446.9 million in the previous year.