Red Sea Global signs 25-year agreement with Masdar and France's EDF

Contract follows independent public-private partnership model

Red Sea Global is behind luxury ecotourism development The Red Sea. Photo: Red Sea Global

Saudi Arabian developer Red Sea Global has signed a 25-year concession agreement with French utility EDF and the UAE-based clean energy company Masdar to power luxury development Amaala.

A 4,000-square-kilometre integrated wellness destination within the Red Sea Global development, Amaala will be powered entirely by solar energy, saving the equivalent of nearly half a million tonnes of carbon dioxide emissions every year, Red Sea Global said in a statement on Monday.

Amaala's utility infrastructure includes an off-grid renewable energy system powered by PV technology, a battery energy storage solution, and desalination and wastewater treatment plants that are powered by clean energy.

“Sustainability is a cornerstone of Amaala, and our new partnership with EDF and Masdar will drive us towards achieving a zero-carbon footprint once fully operational,” said John Pagano, group chief executive of Red Sea Global.

Amaala’s renewable supply system can generate up to 410,000 megawatt-hours a year, enough to power 10,000 households for 12 months, said the Riyadh-based multi-project developer that is also behind luxury ecotourism development The Red Sea.

The battery storage plant has a capacity of 700 megawatt-hours, while the desalination plant can process up to 37 million litres per day, it added.

The contract follows an independent public-private partnership model, covering the design, construction and operation of the utility systems.

The project will "help drive sustainable economic development" to Amaala, said Mohamed Al Ramahi, chief executive of Masdar.

“Saudi Arabia is a key strategic market for Masdar and as a leading renewable energy company and long-standing partner, we are committed to playing an important role in supporting the country’s Vision 2030 Strategy,” he said.

Last year, Masdar opened a new office in Riyadh to manage projects that are part of the kingdom’s plan to boost renewable energy capacity by 2030.

Masdar aims to expand its capacity to at least 100 gigawatts of renewable energy by the end of the decade. The company is active in more than 40 countries and has invested in or committed to projects worth more than $30 billion.

The world’s biggest oil exporter aims to generate 50 per cent of its electricity from clean energy sources by the end of the decade and plans to invest more than $180 billion to cut its carbon emissions to net zero by 2060.

“With more than 90 per cent of its electricity production decarbonised, the EDF group is pursuing its ambition to contribute to reach carbon neutrality by 2050,” said Beatrice Buffon, group executive vice president in charge of EDF’s International Division.

“Our objective is to continue to be a key player in the development of innovative, fully resilient and net-zero electrical systems.”