- Consortium, led by EDF Group and Masdar, alongside their partners Korea East-West Power Co. (EWP) and SUEZ, secured finance from local and global financial institutions
- Overall project build cost is approximately 1.5 billion USD
- New multi-utility infrastructure facility will service AMAALA, saving 350,000 tons of CO2 emissions annually
- Developed by Red Sea Global, regenerative destination AMAALA is expected to start welcoming guests in 2025
Riyadh – October 31, 2024 – The consortium led by EDF Group and Masdar, alongside their partners Korea East-West Power Co. (EWP) and SUEZ, announced today that it has reached the financial close for its multi-utilities infrastructure facility at AMAALA. The overall project build cost is approximately 1.5 billion USD. Developed by Red Sea Global, AMAALA is a new destination with wellness at its core, nestled along the Red Sea coast of the Kingdom of Saudi Arabia and expected to start welcoming guests in 2025.
The financial close was made possible due to the support of local and global financial institutions including: First Abu Dhabi Bank (FAB), Emirates NBD, Riyad Bank, Saudi National Bank (SNB), and Alinma Bank. The milestone underscores the consortium’s commitment to realising AMAALA’s promise of unparalleled luxury, sustainability, and cultural enrichment.
This achievement follows the awarding of a 25-year multi-utility concession agreement with Red Sea Global in September 2023, with the option to extend, and involves the financing, engineering, development, construction, operation, maintenance and transfer of a multi-utilities infrastructure facility to service the AMAALA destination.
The facility consists of a fully optimised and decarbonised off-grid renewable energy system, which will generate electricity from a 250 MW solar photovoltaic park, 700MWh battery energy storage, transmission and distribution lines, and desalination plant, with a capacity of 37 million litres of drinking water per day and wastewater treatment plants securing the needed base load around the clock.
The innovative project will avoid the equivalent of nearly 350,000 tons of CO2e emissions every year compared to average infrastructures of this kind, and it will be a cutting-edge infrastructure project, paving the way for a new era of eco-friendly luxury tourism.
John Pagano, Group CEO of Red Sea Global said: “We have demonstrated that large scale tourism destinations can be powered using 100% renewable energy, while providing luxury experiences for guests and strong financial returns for partners. This agreement with EDF, Masdar, EWP and SUEZ means we are on track to making AMAALA our second destination powered by sunlight, day and night.”
Commenting on the announcement, Beatrice Buffon, EDF Group Vice-President, International Division, and Chairwoman & CEO of EDF Renewables, said: “Reaching the financial close of AMAALA is a milestone achieved with Red Sea Global’s support and the dedication of our team and partners. We are proud to bring our technical expertise as well as our strong environmental and social commitment to this unique large scale off-grid system that will deliver sufficient carbon-free electricity to power 65,000 individuals, as well as uninterrupted water access 24/7. This project mixing renewable energies, energy storage, transmission, and a desalination plant, sets new standards for the EDF Group and should be replicable in other geographies.”
Masdar Chief Executive Mohamed Jameel Al Ramahi said: “As a global pioneer in developing clean energy solutions, Masdar is delighted to be involved in developing this unique fully integrated utility project in the beautiful tourism destination of AMAALA, in partnership with EDF Group, EWP and SUEZ, and thanks to the support and backing of the projects lenders: First Abu Dhabi Bank (FAB), Emirates NBD, Riyad Bank, Saudi National Bank (SNB), and Alinma Bank. With our invaluable combined expertise and experience, we look forward to implementing this innovative infrastructure project, incorporating solar, battery storage and desalination, to deliver the sustainable clean energy that will power the vision and promise of AMAALA, and support the Kingdom’s Vision 2030 objective of establishing KSA as a sustainable luxury tourism destination in the region.”
Commenting on the announcement, Kim Young-Moon, CEO of EWP said: “We are excited to announce the financial close of our renewable energy project in Saudi Arabia, a significant step in our commitment to a sustainable future. This project will reduce carbon emissions, improve air quality, and create jobs, boosting local economic growth. As we aim to lead the global energy transition, this project is a key milestone, driving innovation in the renewable energy sector and advancing our ambitious goals.”
Pierre Pauliac, Chief Operating Officer Water, Executive Vice-President at SUEZ, said: “We are delighted to contribute to this strategic project for the development of Saudi Arabia. SUEZ will be part of the construction of all the water utilities equipment. In addition, the Group will operate during 25 years the state-of-the-art desalination plant to secure AMALAA’s access to drinking water, as well as the water networks. SUEZ will also ensure the operation and maintenance of a wastewater treatment plant with advanced treatment, to produce high-quality water for irrigation. It’s a new demonstration of SUEZ’s commitment to providing access to water services through resilient and innovative solutions.”
AMAALA will go beyond sustainability to have a regenerative impact on the environment. By 2040 AMAALA plans to achieve a 30% net conservation benefit for local ecosystems. This will be accomplished by enhancing biologically diverse habitats such as mangroves, seagrass, corals, and land vegetation, promoting biodiversity while contributing to carbon sequestration.
The first phase of AMAALA is set to welcome its first guests in 2025. Upon completion, the destination will feature over 4,000 hotel rooms across 30 hotels, and 1,200 high-end residential villas, apartments, and estate homes. AMAALA will also host a vibrant community for more than 15,000 residents and workers, creating a dynamic and sustainable living environment.
