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  Taqa and Acwa Power to build Morocco green hydrogen plants

  12 March 2025

  Riyadh-based utility and hydrogen developer Acwa Power and a consortium led by UAE-based Abu Dhabi National Energy Company (Taqa) are among five groups selected to develop green hydrogen-based industrial plants in Morocco.

  The projects are estimated to require investments of up to MD319bn ($32.9bn).

  "These initiatives aim to position Morocco as a global leader in sustainable energy, focusing on the production of green ammonia, industrial fuels, and steel," media reports citing an official statement said..

  The groups that have been selected include the ORNX Consortium, which comprises US-based Ortus, Spain's Acciona and Germany's Nordex, which aims to build a green ammonia plant; an alliance between Taqa and Spain's Cepsa Alliance
  that aims to develop a green ammonia and industrial fuels production facility; and the local Nareva, which proposed to develop a plant that produces green ammonia, industrial fuels and green steel.

  Acwa Power proposed to develop a green ammonia plant, while a Chinese consortium comprising United Energy Group and China Three Gorges (CTG) plan to produce green ammonia.

  These projects align with Morocco’s broader strategy to decarbonise its economy and capitalise on its renewable energy potential.

  The green hydrogen-based industrial facilities will be built in Morocco's desert regions, which provide optimal conditions for generating solar and wind energy to power the electrolysis process, producing green hydrogen, which is then converted into derivative fuels or used for steel production and other heavy industries.

  It will be the third green hydrogen project for Acwa Power in the Middle East and North Africa (Mena) region, following the under-construction $8.4bn Neom green hydrogen project in Saudi Arabia and another potential multibillion-dollar project planned in Tunisia.

  Before this announcement, there were about seven large-scale green hydrogen projects in the North African state.

  These include CWP Global's Amun project; another project planned between China Energy International Construction Group, Saudi Arabia's Ajlan & Brothers Company, and the local firm Gaia Energy Company; and the Hevo Ammonia Morocco project planned between Fusion Fuel, CCC, and Vitol.

  Moroccan phosphate specialist OCP is in the advanced stages of studying a project to produce 1 million tonnes of green ammonia annually by 2027.

  The other projects are Verde Hydrogen; White Dunes Dakhla, initiated by France-based HDF Energy and Falcon Capital Dakhla; and Chibika green hydrogen and ammonia scheme, planned between TotalEnergies H2, a joint venture of France's Total Energies and Eren, Copenhagen Infrastrcuture Partners (CIP) through its Energy Transition Fund and AP Moller Capital.

   

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  Jennifer Aguinaldo
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  Masdar plans Emerge share sale

  12 March 2025

  Abu Dhabi Future Energy Company (Masdar) plans to divest its 50% stake in Emerge Energy, a commercial and industrial (C&I) solar and storage developer headquartered in the UAE and Saudi Arabia.

  France's EDF owns the other 50% stake in Emerge.

  According to industry sources, Masdar has appointed an advisory firm, Netherlands-based KPMG, which has started to approach potential investors.

  A Dubai-based executive with an international infrastructure investor said they are aware of the planned sale and are keen to better understand the region's C&I market.

  Founded in Abu Dhabi in 2021, Emerge has 152MW of capacity in operation and delivery across Saudi Arabia and the UAE, according to its website.

  Its clients include Abu Dhabi Midfield Terminal, Etihad Rail, Sea World and Warner Bros in Abu Dhabi and Dubai Maritime City.

  In 2024, it signed a 110MW partnership with the UAE Ministry of Defence.

  In October 2023, Sharjah National Oil Corporation (SNOC) and Emerge signed an agreement for a 60MW solar power project.

  The two firms agreed to develop solar photovoltaic farms at SNOC’s Sajaa gas complex. The plant will supply power to SNOC and connect to the emirate’s main power grid. It will be implemented on a build-own-operate-transfer basis over 25 years.

  MEED has contacted Masdar and EDF for comment. EDF said that it cannot comment on market speculation. 

  Photo credit: Emerge (for illustrative purposes only)

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  READ THE MARCH MEED BUSINESS REVIEW – clck here to view PDF

  Chinese contractors win record market share; Cairo grapples with political and fiscal challenges; Stronger upstream project spending beckons in 2025

  Distributed to senior decision-makers in the region and around the world, the March 2025 edition of MEED Business Review includes:

  > AGENDA 1: Chinese firms dominate region’s projects market > AGENDA 2: China construction at pivotal juncture > LIBYA: Uncertainty and instability damage Libyan oil sector optimism > UPSTREAM 1: Offshore oil and gas sees steady capex > UPSTREAM 2: Saudi Arabia to retain upstream dominance > BAPCO: Bahrain to benefit from $7bn project by year’s end > MASDAR: Masdar meets renewable’s moonshot challenge > DIRIYAH: Diriyah CEO sets the record straight > SAUDI POWER: Saudi power projects hit record high > AUTOMOTIVE: Saudi Arabia gears up to lead Gulf’s automotive sector > EGYPT: Egypt battles structural issues > GULF PROJECTS INDEX: Gulf hits six-month growth streak > CONTRACT AWARDS: High-value deals signed in power and industrial sectors > ECONOMIC DATA: Data drives regional projects > OPINION: Trump’s foreign policy shakes global relations

  To see previous issues of MEED Business Review, please click here

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  Jennifer Aguinaldo
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  Abu Dhabi to award Khazna solar IPP contract

  11 March 2025

  

   

  Abu Dhabi state utility and offtaker Emirates Water & Electricity Company (Ewec) is expected to award the contract to develop the emirate’s fourth utility-scale solar photovoltaic (PV) project in the second quarter of this year.

  French utility developer and investor Engie submitted the lowest bid for a contract to develop the Khazna solar independent power producer (IPP) project, also known as PV4, in October last year.

  The solar power PV plant will have an installed capacity of 1,500MW.

  MEED reported in October that Engie had offered a levelised cost of electricity (LCOE) of AEDfils 5.35502 ($c1.459) a kilowatt-hour (kWh) for the contract, beating by about 3% the second-lowest offer made by a team of China’s Jinko Power and Japan’s Jera of AEDfils 5.54126/kWh.

  A team of France’s EDF Renewables and its partner, Korea Western Power Company (Kowepo), emerged with the highest offer of AEDfils 5.86311/kWh. 

  Ewec opened the bids on 30 October.

  A transaction advisory team comprising UK-headquartered Ashurst and Alderbrook Finance and Norwegian engineering services firm DNV is advising Ewec on the 1,500MW Khazna IPP scheme.

  Solar energy is integral to achieving Abu Dhabi’s target of producing nearly 50% of its electricity from renewable and clean energy sources by 2030.

  In April last year, Ewec awarded the contract to develop PV3, the 1,500MW Al-Ajban solar IPP, to a team led by EDF Renewables and including Kowepo.

  In 2020, a team comprising EDF Renewables and Jinko Power won the contract to develop the 1,500MW Al-Dhafra solar PV scheme, which was inaugurated last year.

  In 2016, a team of Japan’s Marubeni and Jinko Power won the contract to develop and operate Abu Dhabi’s first utility-scale solar PV project in Sweihan, the 934MW Noor Abu Dhabi IPP.

  Like the first three schemes, the Khazna solar PV project will involve the development, financing, construction, operation, maintenance and ownership of the plant and associated infrastructure.

  The successful developer or developer consortium will own up to 40% of the entity, while the Abu Dhabi government will retain the remaining equity.

  The developer will enter into a long-term power-purchase agreement with Ewec.

  Once fully operational, the Khazna solar PV, along with Noor Abu Dhabi, the Al-Dhafra solar PV and Al-Ajban solar PV, will raise Ewec’s total installed solar PV capacity to 5.5GW and collectively reduce carbon dioxide emissions by more than 8.2 million metric tonnes a year by 2027. 

  In January, Ewec issued the request for proposals for a contract to develop the emirate’s fifth solar PV scheme in Al-Zarraf, with a bid deadline set for Q2 2025.

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  READ THE MARCH MEED BUSINESS REVIEW – clck here to view PDF

  Chinese contractors win record market share; Cairo grapples with political and fiscal challenges; Stronger upstream project spending beckons in 2025

  Distributed to senior decision-makers in the region and around the world, the March 2025 edition of MEED Business Review includes:

  > AGENDA 1: Chinese firms dominate region’s projects market > AGENDA 2: China construction at pivotal juncture > LIBYA: Uncertainty and instability damage Libyan oil sector optimism > UPSTREAM 1: Offshore oil and gas sees steady capex > UPSTREAM 2: Saudi Arabia to retain upstream dominance > BAPCO: Bahrain to benefit from $7bn project by year’s end > MASDAR: Masdar meets renewable’s moonshot challenge > DIRIYAH: Diriyah CEO sets the record straight > SAUDI POWER: Saudi power projects hit record high > AUTOMOTIVE: Saudi Arabia gears up to lead Gulf’s automotive sector > EGYPT: Egypt battles structural issues > GULF PROJECTS INDEX: Gulf hits six-month growth streak > CONTRACT AWARDS: High-value deals signed in power and industrial sectors > ECONOMIC DATA: Data drives regional projects > OPINION: Trump’s foreign policy shakes global relations

  To see previous issues of MEED Business Review, please click here

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  Jennifer Aguinaldo
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  Saudi water contracts set another annual record

  11 March 2025

  

   

  Stakeholders in Saudi Arabia's water sector awarded contracts totalling $14.9bn in 2024, exceeding by 3% the previous year's figure, which set a record high.

  This is a significant milestone considering that the annual value of contracts awarded in the kingdom's water sector averaged only about $6.5bn between 2018 and 2022.

  A major outlier, the $4.7bn Trojena Valley dams in Neom, boosted the total value of contracts awarded in 2024. It also allowed the gigaproject developer to outperform the usual top clients, which include National Water Company (NWC) and Saudi Water Authority (SWA), formerly Saline Water Conversion Corporation (SWCC). While NWC awarded contracts valued at approximately $4bn during the year, SWA made contract awards of $3.3bn.

  The sustained capital spending in the sector aligns with Saudi Arabia's 2030 National Water Strategy, which aims to reduce the water demand-supply gap and ensure desalinated water accounts for 90% of the national urban supply, to reduce reliance on non-renewable ground sources.

  The kingdom's main desalinator, boasting the world's largest water desalination fleet, SWA tendered and awarded several major water desalination contracts in 2024, despite ongoing restructuring in the water sector, which entailed transferring ownership of SWCC's existing desalination plants to sovereign wealth vehicle the Public Investment Fund.

  During the year, SWA awarded the engineering, procurement and construction contracts for the Jubail and Ras Al-Khair seawater reverse osmosis (SWRO) plants, respectively worth $677m and $625m.

  It also tendered the contracts for two other SWRO schemes – Yanbu 5, which was subsequently cancelled, and Shoaiba 6, which was similarly cancelled but was retendered before the end of 2024.

  In addition to these, SWA awarded the contracts for several storage or reservoir projects, including the Al-Moghamas phase two strategic storage tank project and the Riyadh Southern Ring water transmission system.

  NWC awarded $2.5bn-worth of contracts for the first phase of its long-term operation and maintenance (LTOM) programme. The initial phase comprises eight packages covering the treatment of 4.2 million cubic metres a day (cm/d) of sewage water for the next 15 years.

  The average cost of a cubic metre of treated sewage is SR0.5, which is less than $c15, including capital and operational expenditure and electricity costs.

  Local contracting firm Alkhorayef Water & Power Technologies won three contracts with a combined capacity of 2.04 million cm/d, nearly half of the awarded total. These three contracts are worth more than SR5.53bn ($1.47bn).

  A consortium of France's Suez and the local Al-Awael Modern Contracting Group with its affiliate Civil Works Company (CWC) won two packages worth a combined SR1.84bn. A consortium comprising France's Veolia and Awael-CWC won a single package worth SR1.26bn. Local utility developer Miahona won one package worth SR392m.

  Public-private partnerships

  Shifting from awarding several public-private partnership (PPP) contracts a year, Saudi Water Partnership Company (SPWC) awarded a single contract in 2024 – the $400m Al-Haer independent sewage treatment plant (ISTP) project.

  A developer team comprising the local Miahona Company and Belgium's Besix won the contract in March 2024, offering to develop the project for SR1.9407 ($c51.73) a cubic metre. Power & Water Utility Company for Jubail & Yanbu (Marafiq) subsequently joined the consortium.

  The project involves the development of a water treatment plant with a capacity of 200,000 cm/d.

  Despite widespread expectations to the contrary, SWPC did not manage to award contracts in 2024 for two of its much-anticipated independent water projects (IWPs) and one independent water transmission pipeline (IWTP) scheme.

  In April 2024, SWPC received two bids for a contract to develop the 300,000 cm/d Ras Mohaisen seawater reverse osmosis IWP. Spain’s Acciona and a team led by Saudi utility developer Acwa Power submitted bids for the contract.

  SWPC eventually selected the Acwa Power-led team as the preferred bidder, but the signing of the water-purchase agreement only took place in February 2025.

  In September 2024, SWPC received a single bid from a team comprising Acwa Power, Haji Abdullah Alireza & Company (Haaco) and AlSharif Contracting & Commercial Development for the Jubail 4 and 6 IWP located in the Eastern Region.

  Although the bid evaluation was completed in December, the offtake agreement for the 600,000 cm/d plant has yet to be signed.

  Despite several delays last year, projects activity at the start of 2025 suggests the possibility of a return to the higher levels seen by SWPC in previous years.

  In January, it tendered the contracts to develop and operate two ISTP projects in the kingdom. Located in Mecca, the first scheme, the Arana ISTP, will have an initial capacity of 250,000 cm/d, expandable to 500,000 cm/d.

  The second scheme, the Hadda ISTP, will also be located in Mecca and will have an initial capacity of 100,000 cm/d, expandable to 250,000 cm/d.  

  The scopes of work include treated sewage effluent (TSE) re-use systems consisting of transmission pipelines and TSE tanks.

  Expected to be operational by 2028, both projects will be implemented on a 25-year build, own, operate and transfer model. SWPC expects to receive bids for the contracts by 5 May.

  Earlier in March 2025, SWPC awarded the $2.2bn contract to develop the Jubail-Buraydah IWTP project to a team comprising local companies Aljomaih Energy & Water, Nesma Company and Buhur for Investment Company.

  The 587-kilometre pipeline will be able to transmit 650,000 cm/d of water and will be developed at a levelised cost of SR3.59468 a cubic metre.

  2025 outlook

  Last year, NWC, which provides water distribution, sewage collection and wastewater treatment services throughout Saudi Arabia, sought interest for the second phase of its LTOM programme, which resembles a build-operate-transfer structure and risk allocation. This phase is divided into 10 packages encompassing 116 existing sewage treatment plants.

  There is an expectation that SWA, along with Water Transmission Company (WTCO), will continue to engage the market with new tenders.

  In December, WTCO initiated the prequalification process for the Ras Mohaisen-Baha-Mecca independent water transmission system project.

  It is also continuing the bid evaluation process for a contract to build phase four of the Al-Shuqaiq to Jizan water transmission system. Estimated to be worth $2.9bn, the project is split into four packages that include pipeline supply, water transmission pipelines, pumping stations and strategic reservoirs.

  Having prequalified companies that can bid separately for seven ISTPs and five water projects in November last year, there is an expectation that SWPC will issue the first tenders for this project in 2025.

  It prequalified 53 companies to bid for the seven ISTPs, which have a total combined capacity of 700,000 cm/d, and 41 to bid for the five IWPs, which have a total combined capacity of 1.7 million cm/d. The tenders for these projects are expected to be issued over two years, until 2026. 

  Project finance

  With so many independent water contracts under execution and a robust pipeline of upcoming work, the liquidity of the mostly local banks that are providing project finance could become an issue, experts say.

  “Banks are facing liquidity issues in terms of debt-versus-loan ratios,” says an executive with a Saudi Arabia-headquartered infrastructure investment group.

  He adds that since some Saudi banks have relatively low US dollar reserves, the market will likely see a mix of Saudi riyal and US dollar financing being offered for new projects.

  “Lending rates are already up from previous projects such as the Jubail 4 and 6 IWP and the Jubail-Buraydah IWTP. It will be interesting to see how bids develop this year,” he tells MEED.

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  Jennifer Aguinaldo
• 
  UAE and Saudi markets remain region’s least risky for construction

  11 March 2025

  The UAE and Saudi Arabia remain the two markets in the region with the least risk, according to GlobalData’s latest Construction Risk Index report. 

  The UAE, with a risk score of 25.30, is ranked as A2, which indicates a low risk environment. The market in 2025 is supported by a buoyant property market with offplan sales driving the launch of new projects, as well as ongoing government infrastructure spending and a strong pipeline of oil and gas projects.

  Saudi Arabia, with a risk score of 37.38, is ranked as B1, indicating a moderate risk environment. The country's construction industry continues to deliver projects for Vision 2030, and while this is positive in terms of workload, the market is expected to face challenges in 2025 due to the government's plan to delay the implementation of scheduled projects.

  The reprioritisation is still ongoing, which has impacted confidence and could have negative consequences for companies working on projects that are scaled back or slowed down.

  Other GCC countries, including Kuwait, Qatar, Bahrain, and Oman, also face varying degrees of risk. Qatar's construction industry, with a risk score of 39.03, is expected to recover in 2025, supported by investment in Liquefied Natural Gas (LNG) and renewable energy. However, a declining trend in new investment in the non-residential building sector continues to weigh on the industry.

  With a risk score of 63.50, Egypt's construction industry is expected to face high risk due to political, economic, market, and financial issues. The country's construction industry is ranked as C2, indicating a high-risk environment.

  Globally, the construction risk outlook in Q4 2025 continues to be impacted by economic headwinds. The global average score declined marginally to 49.13 from 49.65 in Q3 2024. The Middle East and North Africa region's average risk score is 53.25, indicating a higher risk environment compared to the global average.

  With a risk score of 69.00, Iraq's construction industry continues to face persistent security challenges, regional geopolitical tensions, and political instability. The country's construction industry is ranked as C2, indicating a high-risk environment. Despite investments in reconstruction and infrastructure projects, construction remains hindered by weak governance.

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  Colin Foreman