Marubeni, through a special purpose company (SPC), has signed a power purchase agreement (PPA) to supply electricity generated from the 105MW Amin Solar PV IPP Project to Petroleum Development Oman (PDO), in Oman.
The SPC will develop, construct, operate and maintain the Amin Solar PV project. Operations of this plant are expected to begin in May 2020 and PDO will buy the electricity from the project for a 23 year term. Marubeni also stated that project finance is being arranged for the project.
Marubeni stated that its special purpose company includes Oman Oil Facilities Development Company (OOFDC), Bahwan Renewable Energy Company (Bahwan) and Modern Channel Services (MCS). The equity participation in the SPC includes Marubeni with 50.1%, OOFDC with 30%, Bahwan with 10%, and the remaining 9.9% is owned by MCS.
The Japanese company stated that the Amin Solar project marks its second independent power project (IPP) in the country, with the first being the Sur Gas Fired Combined Cycle IPP Project (2,000MW) which has been operating since 2014.
Marubeni claims to maintain 12GW of net IPP generation assets across 22 countries and is expanding its renewable energy projects that include the Sweihan Solar PV IPP Project (1.17GW), located in the UAE.
The firm said: “In September of 2018, Marubeni issued the Notification Regarding Business Policies Pertaining to Sustainability in Relation to Coal-Fired Power Generation Business and Renewable Energy Generation Business.
“As per this notification, Marubeni will continue to expand its business activities in the renewable energy power sector throughout the world, and especially in the MENA region where many large scale projects are in the works.”
The Japanese conglomerate earlier said that it looks to expand the ratio of power produced by renewable energy sources in its own net power supply from nearly 10% to 20% or so by 2023.
In December 2018, the firm announced the finalization of project finance agreement for the construction of Jawa1 gas-fired IPP project in Indonesia. The fully integrated gas to power project will include the construction and operation of 1,760MW gas-fired power plant and an FSRU with 170,000m3 storage capacity.