“Aluminium Bahrain B.S.C. (Alba), the world’s largest aluminium smelter ex-China, is on course to start the construction works for its fourth additional block in Power Station 5,” as stated by the Chairman of Alba’s Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa, during the signing ceremony with Mitsubishi Power & SEPCO III consortium on Monday 16 May 2022 at Al Oasis Hall in Alba.

Aluminium Bahrain B.S.C. (Alba), the world’s largest aluminium smelter ex-China, signed a full turnkey contract today with Mitsubishi Power, a power solution brand of Mitsubishi Heavy Industries, Ltd. (MHI), and SEPCO III consortium to expand Power Station 5 at Alba, adding a new 680.9 megawatts (MW) Combined Cycle Gas Turbine Power Block.

Present at the signing ceremony were Hideshi Kawamoto, President and CEO of Mitsubishi Power Ltd., Dr. Javier Cavada, President and CEO for EMEA Region at Mitsubishi Power, Khalid Salem President of Mitsubishi Power Middle East and North Africa region and GTCC Business Unit Leader, EMEA, SEPCO III Vice President Mr. Kong Lingfeng as well as the CEO of Alba, Mr. Ali Al Baqali, CPO Mr. Amin Sultan and other senior officials.

Under the terms of the contract, Mitsubishi Power & SEPCO III consortium will be responsible to design, engineer, procure, construct and commission a 680.9 megawatts (MW) Combined Cycle Gas Turbine Power Block. Mitsubishi Power will supply a combined cycle power plant, which comprises of M701JAC gas turbine, an air-cooled version of J-series gas turbines and a steam turbine. To meet future decarbonization needs globally, JAC gas turbines are capable of using up to 30% hydrogen fuel by volume, to reach 100% hydrogen fuel in the future with minimal existing infrastructure modification.

Adding further, Shaikh Daij Bin Salman Bin Daij Al Khalifa said:

“We are thrilled to add a fourth block into Power Station 5 to bring its power output to more than 2.4 gigawatts (GW). Investing in efficient gas turbine, our latest ambitious power project, will accelerate our ESG transition and enable Alba to reduce its Greenhouse Gas (GHG) emissions as we embrace Bahrain’s objectives to reach Net Zero by 2060.

We are also excited to partner with Mitsubishi Power & SEPCO III consortium, and we look forward to achieving all milestones together and as per schedule.”

Commenting on the agreement signature, Hideshi Kawamoto, President and CEO, Mitsubishi Power Ltd. and Senior Fellow, Deputy Head of Energy Transition & Power Headquarters of Energy Systems, MHI, said: “At Mitsubishi Power, we are proud to support Alba and the Kingdom of Bahrain to achieve their sustainable development goals by providing our advanced technology.  Working with our partners, SEPCO III, we are committed to help Alba, the world’s largest aluminium smelter ex-China, meet its operational efficiency and decarbonization goals, with our hydrogen-ready J-series gas turbine technology that leads the world in efficiency, productivity and reliability.”

Mr Kawamoto added: “The Alba Power Station 5, Block 4 Project aligns with our mission to empower our customers with the most advanced, innovative and clean energy solutions, and our ongoing commitment to help the Middle East and North Africa region achieve a robust, reliable and resilient energy infrastructure that brings it one step closer towards a carbon neutral society.”  

SEPCOIII Vice President, Mr. Kong Lingfeng said: “We are delighted to work with Alba on the landmark Alba Power Station 5 Block 4 project with our partners Mitsubishi Power. SEPCOIII will deliver a state-of-the-art power plant with superior turnkey project execution expertise that meet the highest levels of quality and safety and Mitsubishi Power’s industry-leading gas turbine technology, to demonstrate Alba’s aluminium industry leadership. In addition, we are committed to provide efficient and clean energy throughout the construction of this project, in line with SEPCOIII’s mission to build excellent projects, fulfilling customers’ aspirations and promoting the welfare of society, which will contribute to Alba's sustainable and green development strategy.”

Mitsubishi Power will further leverage decades of experience and innovation to build and supply the power technology, including the gas turbine, steam turbine, generators, and auxiliaries, in addition to providing technical support, with commercial operations set to begin in Q4 2024.

-Ends-

About Aluminium Bahrain B.S.C. (Alba)

[Ticker: ALBH]

At plus-1.561 million metric tonnes per annum (2021), Alba is the world’s largest Aluminium smelter ex-China with more than 50 years of excellence in Operations, Safety, Environment and Socio-Economic Development.

A blue-chip asset of the Kingdom of Bahrain, Alba completed five decades of commercial operations in May 2021. The Company marked its Golden Jubilee by breaking all its previous records in Safety and topping 25 million Safe working-hours without Lost Time Injury (LTI) on 30 April 2022; this Safety milestone came alongside exceeding 25 million metric tonnes (MT) in overall production since the Company began its operations in 1971.

Alba produces high-quality Aluminium products in the form of Standard and Value-Added Products (VAP)s, which are exported to more than 240 global customers through its sales offices in Europe (Zurich), Asia (Hong Kong & Singapore) and subsidiary office in the U.S. Alba is dual listed on Bahrain Bourse and London Stock Exchange and its shareholders are Bahrain Mumtalakat Holding Company B.S.C. © (69.38%), SABIC Industrial Investments Company (SIIC) (20.62%) and General Public (10%). Alba holds globally-recognised certifications such as ISO 9001, ISO 14001, ISO 27001, ISO 45001, IATF 16949:2016, ISO 22301:2012 Business Continuity Management System (BCMS) and ASI Performance Standard Certification and Ecovadis Certification.

As the first Aluminium smelter in the Middle East, Alba has been a major contributor to the social, industrial and economic development of the Kingdom of Bahrain. Alba sits at the heart of a thriving Aluminium downstream sector in Bahrain, which accounts for approximately 12% of the Kingdom's GDP. As one of the biggest national companies, Alba has ensured not only the employment of Bahrain nationals (84% in 2021) but also the enhancement of their capabilities through education, training and development initiatives at every stage of their career.

Alba is recognised as one of the top industrial companies in the world with high standards in Environment practices, Social contribution and Corporate Governance. Launched in February 2022, the Company’s ESG Roadmap outlines 6 priority areas - (1) Decarbonisation, (2) Green Energy & Aluminium, (3) Circular Economy & Secondary Aluminium, (4) Employee Welfare, (5) Collaboration & Partnership and (6) Transparency, Communications & Due Diligence. Since its inception, Alba has invested into numerous environment, sustainable and socio-economic development projects that have had a positive impact on the society. Alba’s recent projects such as the first-of-its-kind US$37.5 million zero-waste Spent Pot Lining Treatment Plant and the upcoming 5-7 MW Solar Farm Project are tangible efforts to meet the goals of Bahrain’s Economic Vision 2030 as well as the Net Zero Carbon targets led by HRH the Crown Prince and Prime Minister of Bahrain. Alba will play a crucial role in the upcoming Aluminium Downstream Park, which will increase the contribution of non-oil sectors to the GDP of Bahrain.

Alba’s motto ‘Safety First, Safety Always’ has ensured that the Safety and well-being of its employees and contractors’ workforce remain a top priority. The Company has been recognised internationally for its excellent Safety and Health track record with awards such as the RoSPA Gold Award (9 years in a row) and International Safety Award with Merit from British Safety Council. Alba has also been recognised for its initiatives to produce Aluminium responsibly through awards such as Top ESG performer in Bahrain by ESG Invest, Safeguard Label from Bureau Veritas, Best Corporate Governance Award by Ethical Boardroom.

Alba Power Station 5 Block 4 Expansion Project

Alba Power Station 5 (PS5) Block 4 is a Combined Cycle Power Plant that is an expansion of the existing PS 5.

PS5 Block 4 Project is the addition of a fourth Block of similar 1:1:1 configuration with J-class gas turbine technology and with minimum nominal ISO rating of a 680.9 MW and includes tie into the existing 220kV Substation. The efficiency of this combined cycle power plant is much higher than the combined cycle power plants of PS3 and PS4. On completion of PS5 Block 4 Expansion Project, the capacity of PS5 will increase from 1,800 MW to 2,481 MW.

Mitsubishi Power & SEPCO III consortium will be responsible to design, engineer, procure, construct and commission Block 4. PS5 Block 4 commercial operations are expected to begin in Q4 2024.

Alba External Grievance Mechanism

Alba’s External Grievance Mechanism receives and facilitates the resolution of any affected communities’ concerns and grievances about Alba’s Environment and Social (E&S) performance. External grievances about Alba’s E&S performance can be logged via the Alba Integrity Line - an independently operated confidential reporting hotline in multiple languages - via a toll-free phone system or via the intranet 24 hours a day.

Alba Response to COVID-19 Pandemic

Alba’s response strategy to COVID-19 was initiated back to January 2020 in line with the guidelines of Bahrain National Taskforce for Combating Coronavirus (COVID-19). The Company was able to maintain safe operations throughout 2021 thanks to its nimble workforce – employees and contractors’ personnel.

For further details, please contact:
Eline Hilal
Director, Investor Relations, Insurance & Corporate Secretary
Investor Relations Department
E-mail:   eline.hilal@alba.com.bh
Website: www.albasmelter.com

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About Mitsubishi Power

Mitsubishi Power is a power solutions brand of Mitsubishi Heavy Industries, Ltd. (MHI). Across more than 30 countries worldwide, Mitsubishi Power designs, manufactures and maintains equipment and systems that drive decarbonization and ensure delivery of reliable power around the world. Among its solutions are a wide range of gas turbines including hydrogen-fueled gas turbines, solid-oxide fuel cells (SOFCs), and air quality control systems (AQCS). Committed to providing exemplary service and working with customers to imagine the future of energy, Mitsubishi Power is also spearheading the development of the digital power plant through its suite of AI-enabled TOMONITM solutions. For more information, please visit https://power.mhi.com.

About SEPCOIII

SEPCOIII Electric Power Construction Co.,Ltd. is a global engineering corporation that specializes in the construction of various types of power plants, including CSP, PV, Energy Storage, Wind, Nuclear, Sea Water Desalination, Biomass, Gas, Oil, Coal, Rehabilitation, as well as Infrastructure, etc. SEPCOIlI's main operating models are EPCO, EPC, BOT, BOO, and PMC, and can provide clients with a full range of services including feasibility study, location, engineering, procurement, construction, commissioning, operation and maintenance. Based on the international EPC projects, SEPCOIII strives to develop engineering technology, including solar power generation technology, sea water desalination and other renewable energy solutions. We focus on mastering the core technology of power, sea water treatment and low-carbon energy in field of high-tech and environmental protection. As the first global power EPC contractor in China, SEPCOIII owns the outstanding management and execution resources of whole industrial chain, with the most projects under construction and the strongest market competitiveness among peer companies. For more information, please visit http://www.sepco3.com.