Saudi Arabia’s Acwa Power is set to deepen its footprint in China with plans to invest up to $50 billion in renewable energy projects by the end of the decade, a company executive announced.
Speaking to Bloomberg TV, Lyu Yunhe, head of Acwa Power’s China operations, outlined the company’s strategy to collaborate with Chinese state-owned enterprises in acquiring clean energy assets totaling up to 20 gigawatts (GW) and producing 1 million tonnes of green hydrogen.
“We have a huge ambition to invest $50 billion in China by 2030, spanning green energy, renewable projects, green hydrogen, and desalination water,” Lyu said.
Acwa Power, a Saudi-listed energy company, aims to close 2024 with 1.3GW of renewable capacity in China. It plans to ramp up this momentum, adding 4GW to 6GW in 2025 and targeting 5GW annually thereafter.
The company is leveraging strategic alliances with Chinese firms, including a partnership with China Southern Grid International for a wind power project in Uzbekistan and collaborations with State Power Investment Corporation on Saudi energy projects.
Lyu noted that Saudi-China relations have significantly expanded since President Xi Jinping’s visit to Saudi Arabia in 2022, spurring governmental and business exchanges.
“Saudi Arabia’s Vision 2030 promotes industrialization, necessitating strong collaboration with global manufacturing and investment leaders,” Lyu said. “China, as the world’s largest industrial hub, provides a natural synergy for Saudi development goals.”
Acwa Power has also made major strides in its collaboration with Chinese partners. In July, the company sold a 35% stake in two subsidiaries to China Southern Power Grid International for $159 million, aligning with its capital recycling strategy.
Additionally, a $972 million engineering and procurement contract was awarded in August to a consortium led by China Energy Engineering Corporation for a 2GW solar project near Mecca.
Acwa Power also signed a deal in October to establish a research and development center in Shanghai, signaling a deeper commitment to Chinese markets.
