Saudi Arabia intend to become World’s Green Hydrogen Largest Generator

ACWA Power intent to go public has received a strong worldwide support, especially  among the Gulf investors, according to Mohammed bin Abdullah Abunayan, Chairman of Acwa’s Board of Directors.

Connections with local and international investors, who expressed a strong willingness and interest to participate in the company activities, had been made in recent weeks, he stated.

The most important thing, according to Abunayyan, is to take the company to an international level, as the proposed subscription has a high level of confidence.

ACWA Power is the world’s largest water desalination company, with a production capacity of 6.4 million cubic meters.

Whether in terms of production or under construction capacity, the company was able to deliver sustainable energy, at a reasonable cost.

“The existence of water desalination technologies and the production of renewable energy help to manufacture green hydrogen, which is the next clean energy, as it experiences significant demand from all countries around the world,” he reasserted. Through the ACWA Company, Saudi Arabia now has the lowest cost of producing renewable energy, he elaborated, adding that “We want to be the cheapest desalination plant in the world, as well as the largest competitor in hydrogen production”.

Abunayyan emphasized that this would strengthen Saudi Arabia’s position as the world’s largest oil exporter, as well as the world’s largest producer and exporter of green hydrogen, and furthermore, the world’s largest investor in this area, to lead the energy transition to hydrogen.

He went on to say that ACWA Power was founded in 2004, with the strategic goal of becoming a Saudi corporation with a global presence, leadership and superiority.

“Storming the Saudi market gives the citizens an option to invest in ACWA Power, and to provide them with a qualitative investment, with lucrative returns that meet their goals,” Abunayan stated.

The Public Investment Fund owns a 50% stake in the company, reflecting the confidence that began a partnership journey with the Fund in 2013,  then increased in 2018, and strengthened by the fund in 2020, he highlighted, stressing that the fund Investment is a vigorously driving economic force.

Public Investment Fund receives 70% of renewable energy investments, in Saudi Arabia, and that ACWA Power has entered into a cooperation with the fund to implement the several projects by 2030.

Abunayyan discussed the Kingdom’s plan to increase its reliance on renewable energy sources by 50% by 2030, describing it as a “strategic and crucial move” that will assist the indigenization of technology and local content, while also allowing ACWA Power to compete globally.

The company’s public offering of as much as 11.1% of its capital increase, will be used to fund upcoming investments and the company’s expansions.

He anticipated that the subscription would begin by obtaining cash this month, and subsequently the company would be able to complete the subscription this month, or early next month, as stated in the prospectus.

According to Abunayyan, the initial demand for ACWA Power’s capital increase is quite high, with investors hailing from Europe, Asia, and America, as well as China, Japan, and Korea, and with an unprecedented demand from Saudi investor

Robust demand supports trust and strengthens the company’s position, and “ACWA Power” has been able to establish trust over the last 17 years, through transparent institutional work that takes social work and governance norms into account, he concluded.