Saudi Aramco is joining a group led by ACWA Power to build a nearly $1 billion solar power plant in the kingdom as the world’s largest oil-exporting nation expands renewable energy supply. Aramco will hold a 30 percent stake in the Sudair solar project, while ACWA and partner Water & Electricity Holding Co. will each own 35 percent. ACWA, itself 50 percent owned by the Saudi sovereign wealth fund, said it had reached financial close with lenders on the 1,500-megawatt project.

Saudi Arabia has been slow to move away from fossil fuels in favor of clean energy. Energy Minister Prince Abdulaziz bin Salman announced the Sudair plant in April, saying it will be the country’s largest when it starts operating. The plant will start producing power in the second half of 2022.

Saudi Aramco is looking to spend on renewable energy projects alongside the sovereign investor, the Public Investment Fund, as global economies seek to transition to greener energy. Aramco CEO Amin Nasser said last week the company is studying hydrogen production and export even as it invests to expand oil output capacity and sales.

Source Credit: Arabian Busines