Abu Dhabi (Etihad)
The refinancing of the Barakah Nuclear Power Plants, which was announced in 2023 at a value of 8.89 billion dirhams, was classified as green financing, highlighting the significant contribution of nuclear energy in enhancing the green economy of the UAE, and supporting its strategy to transition to clean energy sources, by providing free electricity. of carbon emissions.
The green financing for Barakah plants is the first of its kind in Asia and Africa, and the second of its kind in the world, after the green financing worth one billion euros that was granted to EDF to maintain its nuclear power plants in 2022.
Nuclear energy financing deals that carry environmental, social, and governance standards had previously focused on green bonds, with the first being issued to the Canadian company Bruce Power in 2021.
This classification highlights the world's growing awareness that nuclear power plants are clean sources of electricity, with great potential for expansion into new areas such as clean hydrogen and ammonia production, in addition to the fact that nuclear power plants are a stable source of energy, with many of them producing electricity for 60 years. At the very least, this provides a stable financial offer to banks.
This classification was announced at the headquarters of the Emirates Nuclear Energy Corporation in Abu Dhabi, in the presence of Mohammed Al Hammadi, Managing Director and CEO of the Corporation, Nasser Al Nasseri, CEO of Barakah One Company, Engineer Abdullah Abdulaziz Al Shamsi, Head of Commercial Business for the Abu Dhabi Commercial Bank Group, and Ludovic Nobili, President of the Emirates Nuclear Energy Corporation. Corporate and Investment Banking Group, Martin Trico, Head of Investment Banking at First Abu Dhabi Bank Group, and Abdullah Al Junaibi, Head of International Government and Public Sector at First Abu Dhabi Bank.
Mohammed Al Hammadi said: “The process of refinancing the Barakah plants to meet the requirements of green financing confirms the pivotal role of nuclear energy in the process of transition to clean energy sources. The Barakah plants continue to achieve achievements by being among the first nuclear power plants in the world to receive green financing, which saves energy.” sustainable development of the United Arab Emirates through clean and abundant electricity around the clock.”
Al Hammadi added: “Through the Barakah plants, the Emirates Nuclear Energy Corporation stimulates research and development in the field of clean energy solutions and supports them, such as clean hydrogen production and miniature reactors, which will bring long-term economic and social benefits to the country, including supporting advanced industrial sectors and providing Thousands of job opportunities, and the development of a large supply chain to ensure sustainable growth.”
Nasser Al Nasiri said: “Barakah First Company is using innovative methods to finance the Barakah stations project, through the joint consortium that was established in 2016, and today we are approaching the full operation of the four Barakah stations. The Barakah power plant project shows that nuclear energy is a clean source of energy and a technology that has proven its success from a financing standpoint. We are pleased to cooperate through green financing with Abu Dhabi Commercial Bank and First Abu Dhabi Bank, to enhance Abu Dhabi’s pioneering role in supporting a global economy free of carbon emissions.”
An independent review recognized globally in the field of providing expertise and solutions confirmed that the refinancing of Barakah stations adheres to the principles of green financing by evaluating three basic elements, including the qualifications of Barakah stations in the field of sustainability, its positive contribution to the United Nations Sustainable Development Goals, and the alignment of the credit facility with the environmental profile. Social and governance.
Barakah First Company, a subsidiary of the Emirates Nuclear Energy Corporation and responsible for financial and commercial affairs, completed the refinancing process in July 2023 with two UAE banks, Abu Dhabi Commercial Bank and First Abu Dhabi Bank, and the existing loan facilities were refinanced through a competitive market process, and converted into financing. Green in partnership with First Abu Dhabi Bank as the main green coordinator, and Abu Dhabi Commercial Bank as the green financing coordinator.
Refinancing through two of the largest banks in the UAE contributes to supporting the country’s efforts to enhance local added value, as it is a major component of a carbon-free economy.
Engineer Abdullah Abdulaziz Al Shamsi said: “Classifying the credit facility for Barakah plants as green financing represents an important achievement in the development of the energy sector in the UAE, and reflects the increasingly important role that nuclear energy plays as a source of clean electricity production. In light of the country’s continued economic growth and prosperity, the Bank is committed to Abu Dhabi Commercial empowers its customers in all sectors, and supports their plans to reduce the carbon emissions of their businesses and achieve climate neutrality. We are proud of our partnership with the Emirates Nuclear Energy Corporation and look forward to strengthening our cooperation in the coming years.”
Martin Tricot said: “We congratulate the Emirates Nuclear Energy Corporation on the Barakah Nuclear Energy Plants meeting the requirements for green financing, taking into account that reducing carbon emissions is a collaborative process, and First Abu Dhabi Bank is committed to doing its part to support the UAE’s commitment to reach climate neutrality by 2050 through… Green finance partnerships. We recognize our responsibility to support the green projects of our partners during their journey towards climate neutrality, and we value this opportunity to facilitate the achievement of the climate action goals of the Emirates Nuclear Energy Corporation.”
First Abu Dhabi Bank is the first bank in the Gulf Cooperation Council countries to join the “Banking Alliance for Climate Neutrality” launched by the United Nations in 2021.
It is considered one of the leading banks in the field of sustainable finance. It is the first bank in the Middle East and North Africa to set targets to finance the process of reducing carbon emissions for sectors where this is difficult, including the oil and gas, energy production, aviation and steel sectors.
In November 2023, First Abu Dhabi Bank announced that it had covered 90% of these targets for companies and institutions in eight sectors. The bank is currently ranked among the best performing banks in the region in terms of environmental, social and governance aspects, and is also among the top 15 banks in the field of green loans globally, and has committed to facilitating more than 500 billion dirhams in sustainable and transitional financing by 2030.
The Barakah plants continue to add more economic returns to the UAE, as well as supporting and developing the local supply chain, and providing thousands of gainful job opportunities for the country’s citizens, especially as it is one of the largest nuclear power plants in the world, as it includes four APR1400 reactors. The stations have become the largest single source of clean electricity in the region, and they reduce the carbon footprint of sectors where this is difficult, and support the UAE’s strategy to become an exporter of liquefied natural gas by 2030.
Within the framework of the future vision of the UAE Peaceful Nuclear Energy Programme, the Emirates Nuclear Energy Corporation launched the “Advanced Program for Nuclear Energy Technologies,” which focuses on developing the latest nuclear technologies to accelerate the process of reducing the carbon footprint globally and the transition to clean energy, while supporting and strengthening the UAE’s march towards… Climate neutrality, by exploring and evaluating the latest technologies in the mini-, medium-sized and advanced micro-reactor categories, which can produce hydrogen and ammonia.
The Emirates Nuclear Energy Corporation plays an important role in the process of reducing the carbon footprint of heavy industries and sectors that require large amounts of energy in the UAE, to enhance the country’s march towards climate neutrality by 2050.
The Barakah plants are expected to be fully operational later in 2024, at which point they will produce 40 terawatt-hours of electricity annually and reduce 22.4 million tons of carbon emissions.
The clean electricity produced by the Barakah plants plays a key role in facilitating the access of local companies in Abu Dhabi to ESG financing through the Clean Energy Certification Programme, which leads to enhancing competitive advantage and the ability to impose a green premium on their products and services.
With three stations producing electricity commercially and a fourth station approaching commercial operation, Barakah’s stations have been able to produce more than 60 gigawatt-hours of clean electricity, while reducing nearly 30,000 kilotons of carbon emissions.
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