The plant will have a capacity to desalinate 60,000 m3 of seawater per day and will supply the local community. ----The project is valued at US$130 million.

WASHINGTON, Jan. 21, 2015 -- Abengoa (MCE:ABG.B/P SM)

(Nasdaq:ABGB), the international company that applies innovative technology
solutions for sustainability in the energy and environment sectors, has been
selected by Advanced Water Technology (AWT) to jointly develop the world's
first large-scale desalination plant to be powered by solar energy, in Saudi
Arabia. AWT is a newly formed company based in Riyadh whose mission is to
bring affordable water solutions through innovation and sustainability. It
is the commercial arm of KACST (King Abdulaziz City Science and Technology)
and is owned by Taqnia. The plant will produce 60,000 m3 of water a day to
supply Al Khafji City in North Eastern Saudi Arabia, ensuring a constant
water supply throughout the year.

This is a global pioneering project since it incorporates a photovoltaic
plant that will be capable of supplying the power required by the
desalination process, significantly reducing the operational costs. It will
also have a system to optimize power consumption and a pre-treatment phase
to reduce the high level of salinity and the oils and fats that are present
in the region's seawater.

Al Khafji desalination plant will ensure the stable supply of drinking
water, contributing to the country's socio-economic development. As in other
cities in Saudi Arabia, water is a scarce resource. Abengoa and AWT will
supply the local population with water needs in a sustainable and reliable
way.

This latest contract will further consolidate Abengoa's leadership position
in the water sector, increasing its total desalination capacity to nearly
1,500,000 m3/day, enough to supply 8.5 million people around the world. It
will also strengthen its position in the Middle East where it has already
been awarded major projects in the water sector, such as the Barka
desalination plant in Oman, and in the energy sector, such as the region's
largest solar plant, in Abu Dhabi.

For AWT, this represents its initial foray into the upstream activities of
desalination water production. It plans to expand its activities in the near
future to include downstream activities such as water reuse and water
management.

About Abengoa

Abengoa (MCE:ABG.B/P SM) (Nasdaq:ABGB) applies innovative technology
solutions for sustainability in the energy and environment sectors,
generating electricity from renewable resources, converting biomass into
biofuels and producing drinking water from sea water.
(www.abengoa.com)

About AWT

AWT is a newly formed company based in Riyadh whose mission is to bring
affordable water solutions through innovation and sustainability. It is the
commercial arm of KACST and is owned by Taqnia.
(http://www.awatertech.com)