EDF Group and Masdar-Led Consortium Achieves Financial Close on Multi-Utilities Infrastructure Facility
A consortium led by the EDF Group and Masdar, along with partners Korea East-West Power Co. (EWP) and SUEZ, has successfully secured financial backing for a pioneering infrastructure project at AMAALA. The cumulative build cost of the project, supported by various local and international financial institutions, stands at approximately 1.5 billion USD. Developed by Red Sea Global, the AMAALA destination, nestled along the pristine Red Sea coast of Saudi Arabia, is slated to open its doors to guests by 2025.
This financial milestone highlights the dedication of the consortium to bringing AMAALA’s vision of unmatched luxury, sustainability, and cultural enrichment to life. The financial close follows a 25-year multi-utility concession agreement with Red Sea Global, sealed in September 2023, which may be extended. This agreement covers the project’s financing, engineering, development, construction, operation, and maintenance, alongside the transfer of ownership upon completion.
The facility is designed to be a completely optimized and decarbonized off-grid renewable energy system. It comprises a 250 MW solar photovoltaic park, 700 MWh battery storage, transmission and distribution networks, and a desalination plant capable of producing 37 million liters of potable water daily. Additionally, it includes wastewater treatment facilities to ensure a reliable base load of utilities around the clock.
This groundbreaking initiative is projected to save nearly 350,000 tons of CO2 emissions each year compared to conventional infrastructure, setting a new standard for eco-friendly luxury tourism.
John Pagano, Group CEO of Red Sea Global, remarked, “We have showcased that large-scale tourism destinations can thrive on 100% renewable energy while delivering luxurious experiences and robust financial returns. This collaboration with EDF, Masdar, EWP, and SUEZ positions AMAALA as our second destination powered round the clock by solar energy.”
Beatrice Buffon, EDF Group Vice-President, International Division, emphasized the project’s significance by stating, “Achieving financial close with the support of Red Sea Global and our committed team and partners marks a significant milestone. We are proud to contribute our technical expertise and strong socio-environmental commitment to a large-scale off-grid system delivering carbon-free electricity to 65,000 individuals and ensuring uninterrupted access to water. This effort sets new benchmarks for EDF Group and demonstrates potential for replication in other regions.”
Masdar’s Chief Executive, Mohamed Jameel Al Ramahi, expressed enthusiasm, stating, “Masdar, as a global innovator in clean energy solutions, is delighted to contribute to this unique, fully integrated utility project at AMAALA, alongside EDF Group, EWP, and SUEZ, with crucial support from key lenders. We aim to implement this innovative infrastructure project comprising solar energy, battery storage, and desalination to power AMAALA’s vision and aid Saudi Arabia’s Vision 2030 goal of defining the Kingdom as a sustainable luxury tourism hub.”
Kim Young-Moon, CEO of EWP, highlighted the broader impacts of the project, stating, “Finalizing the financial backing for our renewable energy initiative in Saudi Arabia signifies a pivotal step toward a sustainable future. It underscores our commitment to reducing carbon emissions, enhancing air quality, and fostering local economic growth by creating jobs.”
Pierre Pauliac, COO Water at SUEZ, underscored SUEZ’s role by adding, “Contributing to Saudi Arabia’s strategic development project, SUEZ is tasked with constructing all water utilities. Operating a state-of-the-art desalination plant for 25 years, we will secure AMAALA’s access to drinking water and maintain high-water quality for irrigation through advanced wastewater treatment. This further demonstrates SUEZ’s dedication to providing resilient water services.”
Beyond achieving sustainability, AMAALA aims for a regenerative impact on the environment. By 2040, the site plans to enact a 30% net conservation benefit in local ecosystems by enhancing diverse habitats including mangroves and corals, boosting biodiversity, and aiding in carbon sequestration.
The first phase of AMAALA is expected to host guests by 2025, with plans to expand to over 4,000 hotel rooms across 30 hotels, and 1,200 luxury residential options. The project anticipates building a vibrant community for more than 15,000 residents and workers, promoting a sustainable and dynamic living atmosphere.
About AMAALA and Red Sea Global
AMAALA represents an unmatched ultra-luxury wellness destination along Saudi Arabia’s Red Sea coast. Known for its pristine environment, AMAALA is developed sustainably by Red Sea Global, centering on a coastal lifestyle with wellness and regeneration as core tenets. AMAALA will launch more than 1,400 hotel rooms spread across eight luxury resorts, solidifying its reputation as the world’s most comprehensive health and wellness destination. Ultimately, the project aims to offer 30 hotels, 4,000 lodging units, and 1,200 luxury residences, alongside high-end retail and gastronomy experiences.
Part of AMAALA’s allure includes the Corallium Marine Life Institute, a hub for educational and scientific research, and the AMAALA Yacht Club, which aims to establish itself as a key player in international luxury yachting.
Red Sea Global integrates innovative responsible development practices, contributing to Saudi Arabia’s objective to diversify its economy and promoting sustainable community development.
As part of the Kingdom of Saudi Arabia’s Vision 2030, AMAALA and other renewable energy projects spearheaded by the consortium represent pivotal steps towards building a sustainable tourism and energy landscape driven by renewable resources and cutting-edge infrastructure.
