Barakah Nuclear Energy Plant project’s AED8.89 billion ($2.42 billion) refinancing, announced in 2023, has now been recognized as a Green Loan Facility.
This important classification underscores nuclear energy’s major contribution to powering the UAE’s green economy and energy transition strategy through clean, carbon emissions-free electricity.
Through the Barakah Plant, the Emirates Nuclear Energy Corporation (ENEC) is spearheading the decarbonization of the UAE’s energy-intensive and heavy industries now to accelerate the nation in reaching the goal of Net Zero by 2050.
The Barakah plant, when fully operational, forecasted for later in 2024, will generate 40 terawatt-hours (TWh) of electricity per year while simultaneously preventing the release of 22.4 million tons of carbon emissions.
Mohamed Ibrahim Al Hammadi MD & CEO – ENEC
“The recognition of the Barakah refinancing as meeting Green Loan status requirements firmly establishes nuclear energy’s role in the clean energy transition. We are breaking new ground as one of the first nuclear plants globally to be backed by green loan funding, as we sustainably power the UAE through constant and abundant clean electricity. Through Barakah, we are advancing the research and development for clean energy solutions such as clean molecules, clean hydrogen production, and Small Modular Reactors (SMRs), further highlighting the potential and broad range of applications of nuclear energy in decarbonizing heavy and energy-intensive industries. This will have long-term economic and social benefits for the nation as we enhance advanced industries, create thousands of jobs, and develop a wider supply chain to ensure sustainable growth.”
Nasser Al Nasseri, CEO of Barakah One Company, said that, “Barakah One Company has continuously strived to use innovative and collaborative routes to financing the Barakah project, back from the start of the program, through the Joint Venture created in 2016 and onwards to today, where we have four units operating and close to full fleet commercial operations. The Barakah Plant project demonstrates that nuclear energy is not only green but is a proven, bankable technology.”
“This announcement demonstrates that banks and finance houses are seeing the benefit of nuclear energy as financially sound projects for financing, with a steady stream of revenue generated for decades, and sets the foundations for the financing of the many nuclear projects set to come online in the coming decades. It has been a pleasure to arrange this financing with ADCB and First Abu Dhabi – reinforcing Abu Dhabi’s role in leading – and financing – the global net-zero economy,” Al Nasseri added.
