Siemens Energy has been awarded a significant contract worth $1.5 billion to supply key components for two state-of-the-art gas-fired power plants in Saudi Arabia. The agreement also encompasses a 25-year service period for maintenance, indicating a robust commitment to strengthening the kingdom’s power generation capabilities.
The power facilities in question, named Taiba 2 and Qassim 2, are poised to become some of the world’s most efficient and sizable combined-cycle power plants upon their completion.
Strategically situated in Saudi Arabia’s western and central regions, these installations will each have a capacity of about 2,000 megawatts, cumulatively adding 4 gigawatts to the national power grid. This boost is essential for accommodating the increasing energy needs of the kingdom’s burgeoning population and economy.
Siemens Energy to Drive Saudi Power Expansion
In an official release, Siemens Energy announced its plans to implement its leading HL-class gas turbines, in addition to steam turbines and generators, at both plant locations.
These advanced technological solutions not only aim to elevate power production but also demonstrate alignment with Saudi Arabia’s Vision 2030 initiative, which seeks to revolutionize the kingdom into a globally influential economic force.
The development of the power plants will proceed in stages, with initial grid connection in simple cycle mode anticipated by 2026 and transition to full combined-cycle operations expected by 2027.
Karim Amin, a member of Siemens Energy’s Managing Board, underscored the importance of these projects: Saudi Arabia is progressing towards its Vision 2030, aspiring to evolve into a pioneering economic hub. These new gas-fired power plants will bolster a steadfast energy supply and facilitate the kingdom’s sustainable development ambitions.
Amin further noted the critical part played by Siemens Energy’s local service hub in Dammam in fostering the expansion and localization of technology and expertise within Saudi Arabia.
Forging a Path to Net Zero
In a collaborative effort with China Energy International Group, Siemens Energy will assume the engineering, procurement, and construction tasks for these significant projects.
This alliance is set to forge ahead with efficient, contemporary power solutions that support Saudi Arabia’s overarching goal of achieving net-zero emissions by 2060.
The new facilities are designed to achieve up to a 60% reduction in CO2 emissions compared to conventional oil-powered stations, aligning with the national agenda that prioritizes sustainability.
Furthermore, the design of these plants is compatible with prospective CO2 capture and storage technologies, ensuring they can contribute to a carbon-neutral energy supply as the country moves away from its traditional oil-reliant power infrastructure.
In securing these contracts, Siemens Energy becomes an integral component of Saudi Arabia’s energy sector evolution, marking its stance as a pivotal contributor to the region’s shift toward a more sustainable and greener energy landscape.