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Siemens Energy to build two power plants in Saudi Arabia worth $1.6 billion
Tadawul All Shares Index TASI.SA | 11709.43 | -0.70% |
Riyadh - Mubasher: Siemens Energy has been awarded a USD 1.6 billion contract, with Harbin Electric International as the engineering, procurement, and construction (EPC) contractor, to provide key technologies for the Ramah 2 and Nuayriyah 2 gas-fired power plants in Saudi Arabia.
The two planned plants will be located in the western and central regions of the Kingdom and are expected to add 3.6 gigawatts of power to the national electricity grid—enough to supply approximately 1.5 million homes with electricity, according to a company statement.
The project includes long-term maintenance agreements to support the reliability of the two stations' operation over the next twenty-five years .
The core components of the power plants will be manufactured at the Siemens Energy Hub in Dammam, which is currently expanding to increase local production capacity and support the energy sector in Saudi Arabia .
It's worth noting that the Al Ramah 2 and Al Nuairiyah 2 power plants will be among the largest combined-cycle gas-fired power plants in the world. The two new plants will replace older oil-fired plants, reducing carbon dioxide emissions by up to 60% compared to traditional oil-fired power plants.
In addition, the two stations will be designed to incorporate the latest carbon capture and storage technology, supporting the Kingdom's long-term goals to reduce carbon emissions .
On the other hand, manufacturing the project's key components at the Siemens Energy Hub in Dammam will contribute to supporting advanced local manufacturing capabilities and building expertise, thus giving the Saudi energy sector more flexibility ."