Saudi Arabia's energy giant ACWA Power has finalized a power purchase agreement worth SR985.13 million ($262.7 million) with Uzbekistan's National Electric Grid for the Nukus2 200-megawatt wind project.
In an announcement to the Tadawul stock exchange, ACWA Power clarified that the 25-year agreement, structured as a public-private partnership, includes the installation of a battery energy storage system in Uzbekistan. The contract follows a build, own, operate, and transfer model.
The company also indicated that the financial impact of the project is expected to become evident after the first half of 2026. It highlighted that the project is currently in the development phase, noting that the total investment value might change upon reaching financial closure.
ACWA Power initiated the first phase of a green hydrogen project in Uzbekistan, with a capacity of 3,000 tonnes per year, in November 2023.
The inauguration of the project was attended by Uzbekistan’s President Shavkat Mirziyoyev and Saudi Minister of Investment Khalid Al-Falih.
Mohammad Abunayyan, founder and chairman of ACWA Power's board of directors, expressed gratitude for Uzbekistan's trust in their capabilities to develop the country's first green hydrogen project. He described the project as a significant milestone in Uzbekistan's energy revolution and reiterated ACWA Power's commitment to leading this initiative.
Abunayyan also mentioned that the project will be developed in two phases. The first phase, a 3,000-tonne green ammonia pilot project, is already underway following the signing of hydrogen purchase and power purchase agreements in May 2023. Upon completion of the second phase, 2.4 gigawatts of wind energy will drive the production of 500,000 tonnes of green ammonia annually.
ACWA Power highlighted that this project in Uzbekistan is their second utility-scale green hydrogen project after the NEOM Green Hydrogen Project in Saudi Arabia. They emphasized Uzbekistan as their second-largest market in terms of investments, with a long-standing commitment through a portfolio of 12 projects, 11 of which are fully renewable.