Global energy company ENGIE, in tandem with water utility company Saudi Water Partnership Company (SWPC), Saudi-based contracting firm Nesma and private desalination company Mowah, has announced that it has broken ground on the 450,000 m3/day capacity Al Rayes seawater reverse osmosis desalination plant.
The plant will run on clean energy and be built as a public-private partnership (PPP). From the fourth quarter of 2023, it is scheduled to be commercially operational. It is anticipated that it will be commercially operational from the last quarter of 2023.
The consortium, which was awarded a build, own, and operate contract by SWPC, will have a concession duration of 25 years and has inked a $450 million water purchase agreement with the Saudi government.
The plant will have a capacity of 450,000 m3/day
The plant will have a capacity of 450,000 m3/day and storage facilities for two operational days. Following construction, the plant’s electricity supply will be augmented by an on-site solar photovoltaic (PV) system, which will help to reduce CO2 emissions. Under average operating circumstances, CO2 emissions are projected to be 220,000 tCO2.d
The Al Rayes plant is expected to generate $400 million (SAR 1.5 billion) in revenue for the Kingdom. The project will attempt to fill 40% of the 500 jobs generated during construction by Saudi Arabian nationals, rising to 50% during the first five years of operation and 70% for the remaining operational term, with Saudization being a key priority for the consortium.
The consortium will have a concession period of 25 years and have signed a $450m water purchase agreement
Turki Al Shehri, CEO, ENGIE KSA, commented: “Today is a major milestone for ENGIE in the Kingdom of Saudi Arabia as we break ground on the Al Rayes desalination plant. The project provides an excellent model for how the private sector and government can work together to advance net-zero objectives, helping us transition to an emissions-free, circular economy. Moreover, in drawing overseas investment into the country and creating jobs for the local community, this project will successfully help meet the objectives of Vision 2030.”
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