Safi power station

From Global Energy Monitor
This article is part of the CoalSwarm coverage of Morocco and coal
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The Safi power station is a 1,386-megawatt (MW) coal-fired power station in Cap Ghir Safi, Morocco.

Location

The undated satellite photo below shows the plant in Cap Ghir Safi, Morocco.

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Background

GDF Suez (now Engie) and Nareva won the US$2.68 billion tender to build and operate the plant in 2010, and Mitsui joined the venture in 2013, and became the Safi Energy Company. In September 2013, L’Electricité et de l’Eau Potable and Safi Energy Company entered into a 30-year "Power Purchase Agreement" for the Safi coal-fired power project. The project includes the construction and operation of a 2 × 693 MW ultra-supercritical coal-fired power plant in the coastal Safi region and the sale of electricity to Morocco's national utility ONEE for 30 years following completion of the plant.[1]

The project cost is estimated at US$2.6 billion. Safi Energy secured the financing in 2014, including US$900 million from the Bank of Japan, $500 million from Moroccan banks Attijariwafa Bank and BMCE Bank, and $485 million from international banks from France and Britain. The plant is expected to be completed in 2018. The plant will be constructed by Daewoo Engineering & Construction of South Korea.[2]

Construction began in 2015 and is being carried out by Daewoo Engineering & Construction, with O&M provided by Safi Energy Company. The total investment is US$2.6 billion.[3]

In February 2018, it was reported that plant contractor Daewoo Engineering and Construction was expected to face losses of up to US$400 million in the US$1.8 billion project, as the heating facilities of the plant broke during test operations under construction.[4]

The plant began operation in December 2018.[5][6]

Financing

In September 2014, a financing agreement for the project was closed. US$2,103 million in loans was provided by Japan Bank for International Cooperation, Mizuho Financial Group, Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Financial Group, Societe Generale, Credit Agricole Group, BNP Paribas, MUFG Bank, Islamic Development Bank, Attijariwafa Bank, and Banque Centrale Populaire de Maroc. US$520 million in equity was provided by Nareva Holding, Engie, and Mitsui & Co. HSBC acted as the financial adviser to the National Electricity Office.[7]

Project Details

  • Sponsor: Safi Energy Company
  • Parent company: Engie (35%), Nareva Holding (35%), Mitsui (30%)
  • Location: Cap Ghir Safi, Morocco
  • Coordinates: 32.1491154, -9.2822943 (exact)
  • Status: Operating
  • Capacity: 1,386 MW (Units 1-2: 693 MW)
  • Type: Ultra-supercritical
  • Start year: 2018
  • Coal Type:
  • Coal Source:
  • Source of financing: US$2,103 million in debt from Japan Bank for International Cooperation, Mizuho Financial Group, Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Financial Group, Societe Generale, Credit Agricole Group, BNP Paribas, MUFG Bank, Islamic Development Bank, Attijariwafa Bank, and Banque Centrale Populaire de Maroc; US$520 million in equity from Nareva Holding, Engie, and Mitsui & Co[7]

Articles and resources

References

  1. "Power Purchase Agreement signed for Safi independent power project (2x693 MW) in Morocco" GDF Suez, September 10, 2013.
  2. "Safi independent power project (2x693 MW) in Morocco reaches Financial Close and will start construction," GDF Suez, Sep 18, 2014
  3. "Safi Power Plant, Morocco," Heidelberg Cement, accessed May 2017
  4. "Daewoo E&C faces big loss in Morocco," Korea Times, Feb 8, 2018
  5. "Spain to build 700 MW cable with Morocco amid import surge," Montel, February 15, 2019
  6. "Spain could use by-pass clause to fend off Moroccan power exports," S&P Global, May 9, 2019
  7. 7.0 7.1 "Preview of Safi Coal-fired Power Plant (IPP) (1320MW) | Transaction | IJGlobal". ijglobal.com. Retrieved 2020-12-10.

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