Is water and power integration the future of desalination in Kuwait?

Az-Zour North 2 & 3

Located 100km south of Kuwait City, the new plant will actually be phases two and three of the existing Az-Zour North plant. With a total investment cost of €3.5 billion, the project is expected to be a huge boost to electricity generation and water security infrastructure in Kuwait, while creating employment opportunities during both construction and operational phases.

Ibrahim Ali Al-Qadhi, CEO of Gulf Investment Corporation, told the media: “We are proud to contribute to the development of strategic infrastructure projects in Kuwait through Az-Zour North Phase 2 & 3.”

He added: “This project represents a landmark investment in our portfolio, utilising the latest technologies and highest global standards in power generation and water desalination. GIC is committed to ensuring the provision of sustainable electricity and water resources at competitive economic costs to support Kuwait’s social and economic prosperity.”

 

A 25-year off-take agreement with future public ownership

As a consortium, ACWA Power and Gulf Investment Corporation signed an agreement to develop the plant with the Kuwait Authority for Partnership Projects Authority (KAPP) and the Ministry of Electricity, Water and Renewable Energy (MEWRE).

Under the terms of a 25-year offtake agreement, ACWA Power and Gulf Investment Corporation will lead the design, finance, and build phases, and then handle operation and maintenance, before transferring the plant and its associated facilities under a BOT (Build-Operate-Transfer) model. 

A project company is being established, with the consortium holding 40 per cent and KAPP, 60 per cent, of the company’s share capital. Once the project becomes fully operational, KAPP will allocate 50 per cent of the company’s capital for public subscription via a listing on the Kuwait Stock Exchange.

Raad Al Saady, vice chairman and managing director of ACWA Power, said: “This landmark agreement for the Az-Zour North Phase 2 & 3 IWPP reflects ACWA Power’s commitment to supporting Kuwait’s ambitious development agenda through a project of strategic national importance. We look forward to bringing our experience from a diverse portfolio of projects worldwide and applying our expertise in the Build-Operate-Transfer model in close partnership with our counterparts in Kuwait.”

He added: “Together, we will work to enhance the reliable and sustainable delivery of power and water in Kuwait, further strengthening our shared efforts towards energy transition and water security.”

 

AZ-Zour North phase 1 power and water

Phases 2 and 3 of the Az-Zour North complex are being built next to Phase 1, which was commissioned in 2016. Phase 1 was the first integrated desalination and power project to be developed on a public-private partnership (PPP) model in Kuwait. It features a 1,500MW gas-fired combined-cycle power plant and a 486,000 m³/d seawater desalination plant and provides approximately 10 per cent of Kuwait’s total power generation capacity, and 20 per cent of the country’s total desalination capacity.

 

A founding member of the Global Water Organization

Kuwait is a founding member of the Global Water Organization (GWO), which brings together eight nations facing severe water stress. GWO members have agreed to work together to achieve global water resource sustainability while addressing escalating challenges within the sector.

 

ACWA Power addressing water scarcity in other countries

ACWA Power is currently tackling water scarcity issues in Senegal. To increase desalination capacity in the country, a 400,000 m3/day plant is being constructed on the Senegalese Grande-Côte.

Bassirou Diomaye Faye, President of the Republic, said on social media: “The strategic and win-win partnership between Senegal and the Kingdom of Saudi Arabia has reached a new milestone with the signing of the renegotiated contract for the construction of the Grande-Côte water desalination plant, with ACWA Power.”

In Dubai, the company is also collaborating with Veolia and the Dubai Electricity and Water Authority (DEWA) to build a desalination plant with a capacity of 818,000 m3/d, which will provide safe and reliable drinking water for two million people. At the time of commissioning, the plant was claimed to be the second-largest reverse osmosis plant in the world, and the largest powered solely by solar energy.