The Taiba-2 and Qassim-2 combined-cycle power plants mark a significant milestone in Saudi Arabia’s energy transition, representing the first power projects in the Kingdom to include a dedicated carbon-capture provision.
This innovation aligns closely with Vision 2030 and the Saudi Green Initiative, advancing the national objective of achieving a 50:50 energy mix between renewable sources and high-efficiency gas-fired plants while systematically phasing out liquid fuels. With a targeted annual reduction of up to 278 million tons of CO₂ emissions by 2030, the projects underscore the Kingdom’s commitment to a circular carbon economy.
The $3.9 billion financing package for the project – the Kingdom’s largest Islamic financing for a power project – blends equity-bridge and senior debt facilities arranged through a nine-bank syndicate.
Saudi Awwal Bank, supported by HSBC Saudi Arabia, took the roles of mandated lead arranger and hedge provider, while HSBC also executed the hedging strategy, insulating the deal from interest rate volatility.
This structure accelerates capital deployment and underscores growing investor appetite for green-aligned, Shariah-compliant infrastructure, positioning the Kingdom as a regional benchmark for low-carbon power finance.
