China-based clean energy company Sungrow has signed a memorandum of understanding with Saudi Arabia’s power generation company ACWA Power to supply an energy storage system for the city of NEOM, according to a statement.
Under the terms of the MoU, Sungrow will provide a 536 MW / 600 MWh facility for the Giga project.
In addition, Sungrow and ACWA Power signed a strategic cooperation agreement in an effort to encourage cooperation between China and the Kingdom in the clean energy industry.
This will also increase the contribution of both countries to the Belt and Road Initiative and Saudi Vision 2030, respectively.
NEOM is one of the pillars of the Kingdom of Saudi Arabia’s Vision 2030, and it was meticulously built with an organization that serves nine specialized investment sectors: energy, biotechnology, food, mobility, advanced manufacturing, technological and digital sciences, tourism, media, and entertainment. All sectors are strategically designed to attract international investment, all part of a major push to diversify Saudi Arabia’s oil-centric economy.
The deal between Sungrow and ACWA Power comes just days after Chinese President Xi Jinping visited the Kingdom, which witnessed the signing of 35 investment agreements with the participation of organizations from both countries.