Saudi Arabia Strikes $1.5 Billion Deal for Power Plants with Siemens

As part of Saudi Arabia's ambitious goal to achieve net-zero emissions by 2060, the nation is strategically leveraging modern and highly efficient gas-fired power plants, complemented by carbon capture and storage technologies, to drive substantial emission reductions. In alignment with this vision, Siemens Energy has secured a pivotal role, supplying essential power plant technologies set to generate nearly 4 gigawatts of power for the Kingdom.

Furthermore, Siemens Energy has committed to a long-term maintenance agreement spanning 25 years for the 2 power plants, worth USD 1.5 billion. This collaboration not only underscores Saudi Arabia's commitment to sustainable energy solutions but also highlights Siemens Energy's position as a key partner in driving the transition towards cleaner and more efficient power generation technologies.

Saudi Arabia is set to witness the establishment of Taiba 2 and Qassim 2, two monumental combined-cycle power plants situated in the western and central regions of the nation. These projects, boasting Siemens Energy's cutting-edge gas turbines (HL-class) alongside steam turbines and generators, are poised to deliver approximately 2,000 megawatts of electricity at each location. Spearheading the engineering, procurement, and construction (EPC) endeavors is China Energy International Group, a distinguished contracting partner of Siemens Energy in this venture.

Designed to cater to the escalating energy demands of Saudi Arabia's burgeoning population and thriving economy, Taiba 2 and Qassim 2 represent a transformative leap forward. These state-of-the-art facilities not only promise to supplant aging power plant infrastructure, some of which rely on oil-based energy sources, but also offer a compelling environmental advantage. With the potential to curtail CO2 emissions by up to 60% compared to oil-fueled counterparts, these plants align seamlessly with the Kingdom's energy strategy, which underscores the deployment of CO2 capture and storage infrastructure to realize a carbon-neutral energy landscape. Initially operating in simple cycle mode from 2026, these plants are slated for full-fledged combined-cycle operations a year later, symbolizing a landmark milestone in Saudi Arabia's pursuit of sustainable energy solutions.

Karim Amin, a Member of the Managing Board of Siemens Energy overseeing Gas Services, highlights Saudi Arabia's commitment to its Vision 2030, aimed at propelling the nation into an advanced economic landscape. The establishment of gas-fired power plants is integral to ensuring a stable energy supply and fostering sustainable growth. Amin emphasizes the significance of Siemens Energy's local service hub in Dammam, stating it will play a pivotal role in expanding and localizing technological capabilities within the Kingdom. This initiative aligns with Saudi Arabia's vision for a diversified and innovative economy, positioning Siemens Energy as a strategic partner in the country's journey towards a prosperous and sustainable future.