Siemens Energy wins $1.5bn order for Taiba 2 and Qassim 2 power plants
In a significant move toward its 2060 net-zero goals, Saudi Arabia has entrusted Siemens Energy with a $1.5 billion project to develop two of the world’s largest and most efficient combined-cycle power plants. This strategic development aims to enhance the Kingdom’s energy supply with a nearly 4 gigawatts capacity boost, facilitated by the construction of the Taiba 2 and Qassim 2 power plants.
Scheduled to be operational in a simple cycle mode by 2026 and fully functional as combined cycle plants by 2027, these plants represent a pivotal shift in Saudi Arabia’s approach to sustainable energy production. Siemens Energy’s cutting-edge HL-class gas turbines, paired with steam turbines and generators, will each deliver approximately 2,000 megawatts of electricity. The addition of these facilities will play a crucial role in replacing the country’s older oil-dependent power plants, thereby reducing CO2 emissions by up to 60% compared to conventional oil-fueled plants.
Further solidifying this initiative’s long-term impact, Siemens Energy has also secured a 25-year maintenance contract for both sites. This commitment not only underscores the project’s significance but also highlights Siemens Energy’s dedication to supporting Saudi Arabia’s Vision 2030—a plan aimed at transforming the Kingdom into a leading global economy through innovative and sustainable solutions.
Karim Amin, Member of the Executive Board of Siemens Energy and responsible for Gas Services, remarked, “Saudi Arabia is driving forward its vision 2030 to transform the Kingdom into a pioneering economic location. The new gas-fired power plants will provide reliable energy supply and contribute to the sustainable and future-oriented development of the country. Our Siemens Energy local service hub in Dammam will make an important contribution in expanding and localizing technology and competencies in the Kingdom.”
In collaboration with the China Energy International Group, which serves as the EPC and contracting partner, these projects are set to bolster the country’s infrastructure while supporting its booming population and economy. Moreover, the integration of CO2 capture and storage capabilities in the medium term aligns with the Kingdom’s broader strategy to achieve a carbon-neutral energy supply.
The strategic partnership between Saudi Arabia and Siemens Energy highlights a significant trend in global energy markets where nations are increasingly turning to advanced technology solutions to meet their climate targets and energy needs. This project not only strengthens the energy security of Saudi Arabia but also sets a benchmark for other countries in the region aiming for energy sustainability.