Siemens secures $1.5B contract to develop 2 power plants in Saudi Arabia

Germany’s Siemens Energy AG said it secured a 25-year contract from Saudi Arabia to develop two power plants, with a total value of $1.5 billion.

Siemens Energy will build the Taiba 2 and Qassim 2 power plants. These will be among the largest and most efficient globally, located in the Western and Central regions of Saudi Arabia, and developed over the next few years, the company said in a statement.

Siemens Energy added that Taiba 2 and Qassim 2 will initially connect to the grid as simple cycle systems in 2026 and become fully operational combined cycle plants by 2027.

The company will supply key technologies for these plants, providing around 4 gigawatts of electricity to the Kingdom. These new stations will offer additional energy for residents and replace aging power plants that currently rely on oil.

Siemens Energy highlighted that the new plants will cut carbon dioxide emissions by up to 60% compared to oil-based plants. They will also align with Saudi Arabia's strategy to build carbon capture and storage facilities in the medium term, supporting a carbon-free energy supply.