Siemens Energy Secures $1.6 Billion Saudi Power Project
Deal News | Mar 12, 2025 | Zawya
Siemens Energy has secured a USD 1.6 billion contract to deliver key technologies for the Rumah 2 and Nairyah 2 gas-fired power plants in Saudi Arabia, with Harbin Electric International serving as the EPC contractor. These plants will cumulatively add 3.6 GW to Saudi Arabia's energy grid, sufficient to power about 1.5 million homes. The project also includes long-term maintenance agreements to ensure operational reliability for the next 25 years. Components for the plants will be manufactured locally at the Siemens Energy Dammam Hub. These new combined-cycle power plants will replace older oil-fired stations and are expected to reduce CO2 emissions by up to 60%. The plants will also be compatible with CO2 capture and storage technologies to meet national emissions reduction goals. Siemens Energy aims to integrate these plants into the grid in a simple cycle mode by 2027, with full operation expected the following year. This project further solidifies Siemens Energy's role in Saudi Arabia’s Independent Power Producer market and strengthens local manufacturing capabilities.
Sectors
- Energy
- Manufacturing
Geography
- Saudi Arabia – The project and the energy transition activities discussed in the article are taking place in Saudi Arabia.
- Global – Siemens Energy is a global company with activities in more than 90 countries, and the project has implications for its global operations.
Industry
- Energy – The article discusses Siemens Energy's project in Saudi Arabia related to the energy sector, specifically involving gas-fired power plants and CO2 reduction technologies.
- Manufacturing – The article highlights Siemens Energy's expansion of local manufacturing capabilities through the production of critical components at their Dammam Hub.
Financials
- USD 1.6 billion – The contract value awarded to Siemens Energy for the power plant project.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Siemens Energy | Technology Provider | Company | A leading global provider of energy technology solutions, responsible for supplying technologies for the power plants. |
| Harbin Electric International | EPC Contractor | Company | Responsible for engineering, procurement, and construction of the power plants. |
| Saudi Arabia | Location of Power Plants | Government | The country where the project to enhance energy generation and reduce emissions is based. |