ACWA Power Company Profile

Background

ACWA Power, established in 2004 and headquartered in Riyadh, Saudi Arabia, is a leading private developer, investor, and operator of power generation and water desalination projects. The company operates across 14 countries, including the Middle East, Africa, Central Asia, and Southeast Asia. With a portfolio comprising 101 projects, ACWA Power has an investment value of approximately USD 107.5 billion, a power generation capacity of 78.85 GW, and the ability to produce 9.5 million cubic meters of desalinated water per day.

The company's mission is to deliver low-cost power and desalinated water reliably and responsibly, supporting social development and economic growth. Its vision is to be the best employer in the region, a thought leader in the industry, and the preferred partner for growth in its operating countries by 2030.

Key Strategic Focus

ACWA Power's strategic focus centers on leading the energy transition by providing reliable and responsible power, desalinated water, and green hydrogen at low costs. The company emphasizes a "Develop-Invest-Operate-Optimize" business model, encompassing the entire lifecycle of an asset. This approach involves developing projects, investing in them, operating them, and continually optimizing their financial structures to maximize returns.

The company is committed to expanding its renewable energy portfolio, with a significant portion of its projects involving solar and wind energy sources. ACWA Power is also actively involved in green hydrogen projects, positioning itself as a first mover in this emerging sector.

Financials and Funding

As of February 2025, ACWA Power's portfolio size is valued at USD 107.5 billion. The company has demonstrated strong profitability and cash flow generation, supported by an efficient capital structure with a sustainable parent leverage profile. ACWA Power's business model is underpinned by long-term, diversified power and water purchase agreements (P(W)PAs), with over 93% of contracts being USD-indexed and involving investment-grade or sovereign off-takers.

Pipeline Development

ACWA Power has a robust pipeline of projects in various stages of development, including:

• Neom Green Hydrogen Project: An equal joint venture between NEOM, Air Products, and ACWA Power, this project is based on proven technologies that will include the integration of a combined capacity of 3.9 GW of renewable power from onshore solar, wind, and storage. When operational in 2026, it will produce 600 tonnes per day of clean hydrogen by electrolysis; production of nitrogen by air separation; and production of up to 1.2 million tonnes per year of green ammonia.

• Uzbekistan Green Hydrogen Project: Construction began on ACWA Power’s first green hydrogen project outside of Saudi Arabia in November 2023. The first phase includes a 52MW wind farm capable of producing 3,000 tonnes per year of green ammonia, with a potential second phase capable of producing 120,000 tonnes per year.

• Hassyan Independent Water Plant (IWP), UAE: ACWA Power was selected in August 2023 to build and operate the first phase of the Hassyan IWP in Dubai, breaking the world record for the lowest levelized water tariff at $0.365 per cubic meter. The 818,280 cubic-meter-per-day reverse osmosis plant will be partially powered by solar energy. The water purchase agreement worth $914 million was signed in October 2023.

Technological Platform and Innovation

ACWA Power leverages a range of proprietary technologies and innovative methodologies to maintain its competitive edge:

• Renewable Energy Integration: The company has rapidly increased its share of renewable energy generation, achieving a compound annual growth rate (CAGR) of approximately 82% from 2014 to June 2021. This includes significant investments in solar photovoltaic (PV), concentrated solar power (CSP), and wind energy projects.

• Green Hydrogen Production: ACWA Power is a pioneer in green hydrogen, developing large-scale projects that integrate renewable energy sources to produce hydrogen and its derivatives, such as green ammonia. These projects utilize advanced electrolysis and air separation technologies.

• Desalination Technologies: The company employs state-of-the-art reverse osmosis technology in its desalination plants, achieving high efficiency and cost-effectiveness. The Taweelah IWP in Abu Dhabi, for example, is the world's largest reverse osmosis desalination plant by capacity.

Leadership Team

ACWA Power's leadership team comprises experienced professionals with diverse backgrounds:

• Mohammad Abdullah Abunayyan: Chairman.

• Raad Al-Saady: Vice Chairman and Managing Director.

• Marco Arcelli: Chief Executive Officer.

• Abdulhameed Al Muhaidib: Chief Financial Officer.

The leadership team is committed to driving the company's strategic objectives, fostering innovation, and ensuring sustainable growth.

Leadership Changes

In recent years, ACWA Power has seen strategic appointments to strengthen its leadership:

• Marco Arcelli: Appointed as Chief Executive Officer, bringing extensive experience in the energy sector to lead the company's growth and innovation initiatives.