Siemens Energy lands $1.6bn Saudi power plants deal

13/03/2025 06:10 AST

Siemens Energy, a global leader in energy technology, has been awarded a $1.6-billion project to provide technology for two Saudi gas-fired power plants - Rumah 2 and Nairyah 2 - located in in the country's western and central regions.

These plants will add 3.6 gigawatts of power to the national grid - enough to supply around 1.5 million homes.

Rumah 2 and Nairyah 2 will rank among the world's largest combined-cycle power plants. They will replace aging oil-fired stations, reducing CO2 emissions by up to 60% compared to traditional oil-based power generation.

Additionally, the plants are being designed to be compatible with advanced CO2 capture and storage technologies, supporting Saudi Arabia's long-term emissions reduction goals, it stated.

Harbin Electric International is the EPC contractor for the project which includes long-term maintenance agreements to support the plants' operational reliability over the next 25 years.

Core components for the power plants will be manufactured at the Siemens Energy Dammam Hub, which is currently expanding to increase local production capacity and support Saudi Arabia's energy sector, said the German company in a statement.

Under this contract, Siemens Energy will supply six SGT6-9000HL gas turbines, four SST6-5000 steam turbines, eight SGen6-3000W generators, two SGen6-2000P generators, and associated auxiliary equipment, with each site generating approximately 1.8 gigawatts of electricity.

This order further strengthens its established presence in Saudi Arabia's Independent Power Producer (IPP) market, solidifying its role in delivering a significant share of Saudi Arabia's modern power generation.

Building on the success of previous projects like Taiba 2 and Qassim 2 - which together add 4 gigawatts to the national grid - Siemens Energy continues to drive local manufacturing expansion and infrastructure modernization, playing a key role in the country's energy sector.

"Supplying key technologies for the Rumah 2 and Nairyah 2 power plants directly supports Saudi Arabia's energy transition and its goal of achieving net zero emissions by 2060," remarked Ahmed ElSerry, Head of Gas Services Sales, Middle East.

"By manufacturing critical components at our Siemens Energy Dammam Hub, this project further strengthens local production capabilities and builds expertise within the Kingdom, contributing to a more resilient energy sector," he noted.

The Rumah 2 and Nairyah 2 will initially be integrated into the grid in simple cycle mode in 2027, transitioning to full operation as combined-cycle power plants by the following year, he added.