Saudi Basic Industries Corporation (SABIC) is planning to develop the world’s first renewable energy powered chemical plant in Spain, the media reported.
The polycarbonate facility in Cartegena is expected to be fully operational by 2024, powered by a 100MW PV solar plant.
SABIC has signed a deal with Spanish utility company Iberdrola who will invest €70 million to install 263,000 panels for the project.
Reportedly, it will be the largest industrial renewable power plant in Europe.
The renewable energy powered chemical plant project by SABIC is in line with the company’s plan to have 4 gigawatts (GW) of either wind or solar energy installed for its sites globally by 2025, rising to 12GW by 2030.
Saudi Arabia-based oil giant Aramco recently acquired a 70 percent stake in SABIC in a deal worth $69.1 billion.
According to the deal, Aramco acquired 2.1 billion of SABIC’s shares on the Saudi stock exchange, the Tadawul.
A deal was agreed with the Public Investment Fund (PIF) last year. Reportedly, the payment for SABIC will be funded in part by four bonds issued by Aramco to the PIF.
“The deal completion is on-track with expectations to be finalised before the end of the second quarter,” Aramco told Reuters in a statement when asked about the transactions.
In the month of May, Saudi Aramco sought a review of the buying price for SABIC after its value dropped by 40 percent due to a slump in oil prices amid the coronavirus pandemic.