RIYADH: Saudi energy giant ACWA Power has signed a SR985.13 million ($262.7 million) power purchase agreement with Uzbekistan"s National Electric Grid for the Nukus2 200-megawatt wind project. In a Tadawul statement, ACWA Power clarified that the 25-year deal, structured as a public-private partnership, includes the installation of a battery energy storage system within the Central Asian nation. The contract follows the build, own, operate, and transfer model. The company also stated that the financial impact of the project is anticipated to become evident after the first half of 2026. It emphasized that the project is currently undergoing development, stressing that the total investment value might be subject to changes upon reaching financial closure. The utility firm initiated the first phase of a 3,000 tonne-per-year green hydrogen project in Uzbekistan in November 2023. The project was inaugurated by Uzbekistan’s President Shavkat Mirziyoyev and Saudi Minister of Investment Khalid Al-Falih. “We are honored that the leadership of Uzbekistan has bestowed their trust in our capabilities to develop the country’s first green hydrogen project,” Mohammad Abunayyan, founder and chairman of the board of directors at ACWA Power, said at that time. He emphasized that the project marked a significant milestone in the history of Uzbekistan’s energy revolution, further stating that ACWA Power is honored to spearhead the initiative. Abunayyan added: “I would like to extend my gratitude to all those who have contributed to the success of these projects and reaffirm our enduring commitment to continue our collaboration and investment in Uzbekistan"s bright, sustainable future.” The project will be developed in two phases, with the first phase, a 3,000-tonne green ammonia pilot project, already underway following the signing of hydrogen purchase and power purchase agreements in May 2023. Upon completion of the second phase, 2.4 gigawatts of wind energy will drive the production of 500,000 tonnes of green ammonia annually. “When completed in full, this will be ACWA Power’s second utility-scale green hydrogen project after the NEOM Green Hydrogen Project in Saudi Arabia, which is a joint venture between ACWA Power, NEOM and Air Products,” stated the company website. The company noted that Uzbekistan is ACWA Power’s second-largest market in terms of investments, emphasizing its long-standing commitment to the country with a portfolio that includes 12 projects, 11 of which are fully renewable.