Siemens Energy has received a USD 1.5 bn order for two power plants in the Kingdom, the company said in a statement. The German turbine and generator manufacturer said it entered a long-term maintenance contract for the two power plants — Taiba 2 and Qassim 2 — over a 25-year period.

What we know: The two power plants — set to be built in the western and central regions in the Kingdom — will be two of the world’s largest and most-advanced combined-cycle power plants. Siemen Energy’s gas turbines and other power plant technologies will generate 2 GW of power at each site, according to the statement.

China is getting a piece: China Energy International Group will serve as the engineering, procurement, and construction (EPC) contractor for these projects, according to the statement.

The pitch: The power plants will provide additional energy to support the Kingdom’s growing population and economy — and replace parts of the aging, oil-dependent fleet. They aim to slash CO2 emissions by up to 60% compared to oil-fired plants.

The timeline: The plants will initially be connected to the grid in a simple cycle mode in 2026 and transition to a combined cycle power plant in 2027.

What they said: “The new gas-fired power plants will provide a 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,” Karim Amin, who is a member of the managing board of Siemens Energy said.

Siemens Energy has been busy with the Kingdom’s emissions reduction: Aramco said last year that it is partnering up with Siemens Energy to develop a direct air capture (DAC) test unit in Dharan. The test unit will have the capture capacity of up to 12 tons of CO2 annually and is set to be completed this year, paving the way for a larger pilot facility that will have a CO2 capture capacity of 1.25k tons per year.

All under one big plan: The Kingdom aims to reduce carbon emissions by 278 mn tons per annum (mtpa) by 2030 before reaching carbon neutrality by 2060.

IN OTHER ENERGY NEWS- The Energy Ministry launched an “unprecedented” geographic survey project to identify suitable sites to develop renewable energy sites across the Kingdom, according to a statement by the ministry. The statement said the project’s contracts were awarded to local firms to install 1.2k stations to measure solar and wind energy over 850k sqm.

The first of its kind: Energy Minister Prince Abdelaziz bin Salman said that no other country globally has attempted to conduct a similar survey on such an area scale, according to the statement. (Think the land areas of UK and France combined or Germany and Spain combined, according to the minister)

IN CONTEXT- The project will be key in having the Kingdom generate 50% of its electricity from renewable energy sources by 2030. The Kingdom plans to tender new renewable energy projects with a capacity of 20 GW annually starting this year, according to the minister. It hopes to reach between 100 GW and 130 GW by the end of the decade.

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