EDF & Masdar Close Financing for AMAALA's Multi-Utilities Project

A consortium led by EDF Group and Masdar, along with their partners Korea East-West Power Co. (EWP) and SUEZ, has announced that it has successfully reached financial close for the multi-utilities infrastructure facility at AMAALA. The total estimated cost of the project is approximately 1.5 billion USD. Developed by Red Sea Global, AMAALA is envisioned as a new wellness-oriented destination located along the Red Sea coast in the Kingdom of Saudi Arabia, with plans to begin welcoming guests in 2025.

Support from Financial Institutions

The financial close was facilitated through the support of several local and international financial institutions, including First Abu Dhabi Bank (FAB), Emirates NBD, Riyad Bank, Saudi National Bank (SNB), and Alinma Bank. This significant milestone reflects the consortium's dedication to fulfilling AMAALA's vision of providing unparalleled luxury, sustainability, and cultural enrichment.

Concession Agreement and Project Scope

This achievement follows the awarding of a 25-year multi-utility concession agreement with Red Sea Global in September 2023, which includes the option for extension. The agreement encompasses financing, engineering, development, construction, operation, maintenance, and transfer of the multi-utilities infrastructure facility to serve the AMAALA destination.

Innovative Infrastructure Features

The facility will feature a fully optimized and decarbonized off-grid renewable energy system designed to produce electricity from a 250 MW solar photovoltaic park, along with 700 MWh of battery energy storage, transmission and distribution lines, and a desalination plant capable of producing 37 million litres of drinking water per day. Additionally, wastewater treatment plants will ensure reliable service around the clock. This innovative project is expected to eliminate nearly 350,000 tons of CO2e emissions annually compared to traditional infrastructures, marking a significant step toward eco-friendly luxury tourism.

Words from Leaders

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.”

Commitment to Environmental Sustainability

AMAALA's commitment to sustainability extends beyond conventional practices; it aims to create a regenerative impact on the environment. By 2040, the destination plans to achieve a 30% net conservation benefit for local ecosystems. This will involve the enhancement of biologically diverse habitats, including mangroves, seagrass, corals, and terrestrial vegetation, thereby promoting biodiversity and contributing to carbon sequestration.

Future Development and Community

The first phase of AMAALA is anticipated to welcome its inaugural guests in 2025. Upon completion, the destination will boast over 4,000 hotel rooms distributed across 30 hotels, alongside 1,200 high-end residential villas, apartments, and estate homes. AMAALA will also establish a lively community for over 15,000 residents and workers, fostering a dynamic and sustainable living environment.