Petro Matad, the AIM quoted Mongolian oil company, has provided an update on its renewable energy activities in Mongolia.

Following the signature last week at the 25th WPC Energy Congress in Riyadh, Saudi Arabia of a Memorandum of Understanding (MoU) for cooperation in the field of energy between the Governments of Mongolia and the Kingdom of Saudi Arabia, Petro Matad is delighted to announce the signing of a cooperation MoU between SunSteppe Power LLC ('SSP' a subsidiary of the Company's SunSteppe Renewable Energy 'SRE' Joint Venture) and Saudi-listed Acwa, the world's largest private water desalination company, a leader in the energy transition, and a first mover into green hydrogen at scale.

The MoU covers cooperation on a renewable energy export initiative from Mongolia into China targeting a capacity of 4.5GW as a first phase, supported by 500MWh of battery storage.

Mongolia's renewable energy resources and proximity to China offer significant potential for cross-border electricity trade. With momentum recently generated by the Government of Mongolia to realise the potential of energy export this has a real chance of moving forward and would be a gamechanger for the country. With a partner of the standing and financial capability of Acwa, SSP is positioning itself to be at the forefront of this push. The MoU brings together Acwa's international project development and financing expertise and SSP's knowledge of the Mongolian market to access the opportunity.

The Export MoU will be covered in the presentation that Petro Matad and SRE management will make on the Investor Meet Company platform on Tuesday 20 October at 0900 UK time. In addition, the presentation will give further details on the SRE portfolio which currently comprises three large Solar/Battery Energy Storage System (BESS) projects and one Hybrid Wind/Solar/BESS project totalling 570MW of capacity.

Once at ready to build status and applying Mongolian benchmarks, these projects have the potential to generate development premia for SRE in the range of c.$20 million to $30 million over the period 2027 to 2029. SRE is also seeking to retain the option to hold working interests in these projects through the construction phase and into operation and revenue generation should it be able to find its share of funding to do so. With target rates of return on these projects of 15%+ they are economically very attractive.

SRE has line of sight on a further 124MW of growth projects including its OT Green Hydrogen project for which it has access to Japanese Government grant funding. Off-grid mining projects in Mongolia also offer large, near to medium term potential (500MW+) for renewable energy solutions and this is a focus for the company going forward.

Mike Buck, CEO of Petro Matad, said:

'We are delighted to have signed the Export MoU with Acwa, a company of global renown and standing. Their entry into Mongolia is a major development for the renewables sector in the country. Acwa's unrivalled reputation and their knowledge of the Chinese power market coupled with SSP's knowledge of the Mongolian renewable energy space make, we believe, the ideal partnership through which to pursue the massive potential of power export. We look forward to sharing more details with investors during the presentation on 20 October.'

Saleh Al Khabti, President, China Acwa, said:

'Mongolia's abundant renewable energy resources and its proximity to China present a compelling opportunity to advance cross-border clean energy trade. This partnership brings together Acwa's global expertise in developing and financing large-scale energy infrastructure with SSP's local market knowledge. Building on the growing cooperation between Saudi Arabia and Mongolia, we look forward to exploring how this initiative can unlock new investment opportunities, strengthen regional energy connectivity, and support China's growing demand for clean and reliable power.'

About Acwa

Acwa (TADAWUL: 2082) is a Saudi-listed company and the world's largest private water desalination company, the first mover into green hydrogen, and a leader in the global energy transition. Registered and established in 2004 in Riyadh, Saudi Arabia, Acwa employs over 4,000 people and is currently present in 16 countries in the Middle East, Africa, Central Asia, and Southeast Asia. As of July 2026, Acwa's portfolio comprises 111 assets in operation, advanced development, or under construction, representing SAR 475 billion / USD 127 billion of assets under management and the capacity to generate 98.2 GW of power (of which 52.3 GW is renewables) and manage 9.7 million m³/day of desalinated water. The energy and water capacity generated by Acwa's assets is delivered on a bulk basis to address the needs of state utilities and industries on long-term, off-taker contracts under utility services outsourcing and public-private partnership models.

Published Date:2026-10-19