Siemens Energy snags $1.5bn order for two Saudi power plants

Siemens Energy has landed a substantial $1.5bn contract to provide essential components for two cutting-edge gas-fired power plants in Saudi Arabia.

This deal, which includes a long-term maintenance agreement extending over 25 years, marks a significant step in bolstering the kingdom’s energy infrastructure.

The two power plants, Taiba 2 and Qassim 2, are set to be among the world’s largest and most efficient combined-cycle power facilities, upon completion.

Located in the western and central regions of Saudi Arabia, these plants will each generate approximately 2,000 megawatts, contributing a combined total of 4 gigawatts to the national grid. This capacity is vital for meeting the energy demands of Saudi Arabia’s rapidly growing population and economy.

Siemens Energy powers Saudi energy needs

Siemens Energy will deploy its advanced HL-class gas turbines, alongside steam turbines and generators, at both sites, it said in its official statement.

This state-of-the-art technology promises not only to enhance energy production but also to align with Saudi Arabia’s ambitious Vision 2030 goals, which aim to transform the kingdom into a leading global economy.

The power plants will be operational in a phased approach, initially connecting to the grid in a simple cycle mode by 2026, and achieving full combined-cycle operations by 2027.

Karim Amin, a member of the Managing Board at Siemens Energy, highlighted the project’s significance: “Saudi Arabia is advancing towards its Vision 2030, aiming to become a pioneering economic hub. These new gas-fired power plants will ensure a reliable energy supply and support the kingdom’s sustainable development goals.”

“Our local service hub in Dammam will play a crucial role in expanding and localizing technology and expertise within the kingdom,” he added.

Path to Net Zero

In collaboration with China Energy International Group, Siemens Energy will undertake the engineering, procurement, and construction responsibilities for these projects.

This partnership is poised to deliver efficient and modern power solutions that are in line with Saudi Arabia’s broader strategy to achieve net-zero emissions by 2060, the statement added.

The new plants are not only set to deliver significant energy savings by reducing CO2 emissions by up to 60 per cent compared to traditional oil-fueled power stations but also align with the kingdom’s strategic focus on sustainability.

They are designed to be compatible with future CO2 capture and storage technologies, ensuring a carbon-neutral energy supply as Saudi Arabia transitions away from its aging, oil-dependent power infrastructure.

With the deals, Siemens Energy is a crucial link in Saudi Arabia’s energy transformation and positions the company as a key player in the region’s push towards a greener and more sustainable energy matrix.