Saudi Arabia’s $1.5 billion gas-fired power project: Siemens...

Saudi Arabia’s $1.5 billion gas-fired power project: Siemens provides technology

Posted 2024-08-01 06:20:09

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In June 2024, Siemens Energy announced that it had been awarded a $1.5 billion order from Saudi Arabia to build two high-efficiency combined cycle power plants for the country.

Siemens Energy, as the core technology provider for the project, will be responsible for bringing nearly 4 gigawatts of power capacity to Saudi Arabia.

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In addition to the construction of the power plants, Siemens has also signed a 25-year long-term maintenance contract with the Saudi side to ensure that the two power plants will continue to operate efficiently in the future.

The EPC (design, procurement, construction) and contracting partner for this project is China International Energy Group. This means that China will be responsible for the construction of the two power plants on the basis of the advanced power generation technology provided by Siemens.

This cooperation model not only utilizes Siemens’ expertise in the field of energy technology, but also makes full use of China’s extensive experience and strong capabilities in infrastructure construction.

In the coming years, two of the world’s largest, most modern and efficient combined-cycle power plants — Taiba 2 and Qassim 2 — will rise in Saudi Arabia’s western and central regions.

Built by Chinese companies, Siemens Energy’s gas turbines (HL class) will be combined with steam turbines and generators to produce around 2,000 MW of power at each plant, providing strong energy support for Saudi Arabia’s economic and social development.

Saudi Arabia has developed a strategy to achieve net-zero emissions by 2060 and plans to significantly reduce emissions through a combination of modern, efficient gas-fired power plants and carbon dioxide capture and storage (CCS) technology.

The new gas-fired power plants will replace aging plants that rely in part on oil as an energy source, and the new plants will save up to 60 percent of CO2 emissions compared to oil-fired plants.

The two power plants will not only provide additional energy for Saudi Arabia’s growing population and booming economy, but will also be in line with the Kingdom’s energy strategy to build carbon dioxide capture and storage (CCS) facilities in the medium term to achieve a carbon-neutral energy supply.

The implementation of this strategy will help transform Saudi Arabia into a pioneering economic region as it advances its Vision 2030 and make a significant contribution to the country’s sustainable and future-oriented development.

It is planned that the Taibah 2 and Qassim 2 power plants will first be connected to the grid in a simple cycle mode in 2026, and will be permanently operated as combined cycle power plants a year later.

This timetable reflects the efficiency and professionalism of the Chinese project team and ensures that Saudi Arabia will be able to successfully upgrade and transform its energy supply in the coming years.