Abu Dhabi - Mubasher: Abu Dhabi National Energy Company (TAQA) announced the financial closing for the Fujairah F3 Independent Power Producer (IPP) project valued at AED 4.2 billion, Emirates News Agency (WAM) reported on Tuesday. 

The investment is considered the largest gas-fired power plant in the UAE that will have a production capacity of 2.4 Gigawatt (GW), equivalent to powering 380,000 homes. 

Initial power generation is expected to begin by summer 2022, before reaching its full production capacity by summer 2023, according to a statement by TAQA. 

Today’s financial closing follows the signing of the power purchase agreement and shareholder’s agreement between Abu Dhabi Power Corporation (ADPower), Emirates Water and Electricity Company (EWEC), Mubadala Investment Company, and Japan-based Marubeni Corporation.

The Fujairah F3 plant will incorporate advanced "JAC" class gas turbine technology, sourced from Mitsubishi Heavy Power Systems. Upon construction, the plant will utilise the most advanced combined cycle technology in the region.

TAQA and Mubadala will be jointly holding a 60% equity interest in the project, while the remaining 40% will be held by Marubeni Corporation.

The total project will have external funding sourced from a consortium of international multi-lateral and commercial banks, including Japan Bank for International Cooperation (JPIC), BNP Paribas, Mizuho Bank, Sumitomo Mitsui Banking Corporation (SMBC), Sumitomo Trust Bank, and Standard Chartered Bank.

In this respect, TAQA’s new Executive Director of Generation, Farid Al Awlaqi, said, "The Fujairah F3 project is a landmark for TAQA and its generation assets, following the company’s integration with ADPower."

"Announcing the financial close of this project accelerates the transformation of the power and water sector, as TAQA delivers significant progress on important large-scale infrastructure projects in the UAE," he added.