EDF consolidates low-carbon business
27 May 2025
Register for MEED’s 14-day trial access
Seven years after securing its first project in the region, the 800MW third phase of Dubai's Mohammed Bin Rashid Al-Maktoum Solar Park, the Middle East subsidiary of French utility developer group EDF now boasts a cumulative gross capacity of about 12 gigawatts of alternating current (GWac) from power generation plants that are operating and under construction.
"We have a strong technical team, and we will continue to bid for new contracts across all power generation technology types," Luc Koechlin, managing director and CEO of EDF Middle East, tells MEED.
The firm aims to continue bidding for new contracts, despite the fact that some of the more established utility developers are deliberately stepping back from bidding on new tenders in the region in line with shifts in geographic or technical focus.
We are bidding for most of the low-carbon projects in the region because we have the ability and capacity to do so
This strategy will be strengthened as the firm consolidates its two business divisions – the erstwhile EDF International and EDF Renewables, which have been merged under an entity that will be known as EDF Power Solutions.
"EDF Power Solutions will become the low-carbon energy arm of EDF worldwide," Koechlin says, adding that the new business division will cover renewables, hydro pumping storage plants, thermal plants with carbon capture, power transmission, as well as battery energy storage systems (bess).
In addition to growing its low-carbon energy fleet, which is expected to reach a global production capacity of 600 terawatt-hours in 2035, EDF Power Solutions will be focusing on opportunities in the power transmission space, the optimisation of electricity system flexibility and more efficient consumption of electricity.
"It will include battery energy storage systems, especially if they are integrated as part of grid solutions or renewable energy projects, as well as demand-side management and energy efficiency," Koechlin tells MEED.
Alongside its partners, South Korea's Korea Electric Power Corporation (Kepco) and Japan's Kyushu Electric Power Company, EDF is implementing the $3.8bn project to connect Abu Dhabi National Oil Company's offshore sites to cleaner onshore generation plants.
Koechlin says the company expects similar projects to come up in time, as Middle Eastern countries ramp up the deployment of intermittent renewable power into their electricity grids.
On the generation front, EDF Power Solutions will be looking at adding 2GW of new low-carbon capacity every year in the Middle East region.
"We will focus on all types of technology, so long they are low-carbon, and across the entire value chain, from the design to the operation of these assets," he says.
The executive adds that combined-cycle gas turbine plants are part of EDF Power Solution's generation spectrum, "so long as they involve committed carbon capture solutions".
Fastest-growing region
Koechlin notes that the Middle East is one of EDF's most rapidly growing regions globally – if not the fastest.
According to data from regional projects tracker MEED Projects, more than 100GW of renewable energy projects are in the planning and procurement stage in the Gulf region.
In the past three years, there has also been a major resurgence in gas-fired power plants, due to the fact that expanding intermittent renewable power necessitates the deployment of baseload capacity, in addition to storage solutions.
Besides Saudi utility developer Acwa Power, EDF is the only other developer that has been consistently bidding for contracts across a wide cross-section of power generation and transmission assets in the Middle East in recent years.
"We are bidding for most of the low-carbon projects in the region because we have the ability and capacity to do so," Koechlin says, adding that the firm has adopted an expansionary mode to match the volume of projects on the ground.
"The Middle East region accounts for between 25% and 30% of our [global] portfolio. We expect this to continue growing. The competition is tough and … this market is extremely competitive, that's why we need to be innovative. We keep finding new ways to optimise our projects … to gain every single point of competitiveness."
Koechlin says he is aware that some of the more established international utility developers operating in the region have taken on a more selective approach when bidding for new contracts, but he is confident that finding innovative approaches will keep EDF in good standing in the coming years.
"What makes EDF different is we have strong technical teams … we like highly technical projects because that's where we can add value," he says.
To illustrate, he points to the multi-utility package for the Amaala tourism development project in Saudi Arabia, which EDF is developing in partnership with Abu Dhabi Future Energy Company (Masdar).
Understood to be worth $2bn, the total package entails the development of solar power, battery energy storage, transmission, water desalination and wastewater treatment facilities under one long-term contract.
Project finance
The wave of new generation, storage and transmission projects in the region – particularly in Saudi Arabia, where at least 44GW of gas-fired and renewable energy plants are under construction – does not impact the ability of investors to attract project finance, according to Koechlin.
"We never faced any liquidity issues, certainly not with our projects. First, we deploy long-term project finance, and lenders tend to prefer to work with experienced developers like EDF. Second, the region enjoys a stable public-private partnership regulatory framework, with little to no political risks. This makes our projects in the region very attractive for lenders," he says.
Data centres
The explosion of demand for data centres, both globally and in the Gulf region in particular, where countries are racing to establish global artificial intelligence hubs, offers major opportunities, Koechlin notes.
He says that there are three reasons why data centres are good news for utility developers like EDF. First, they use a lot of electricity; second, the electricity used by data centres is stable baseload capacity, making them suitable for small modular reactors (SMRs) or small-scale nuclear power plants; and third, they open up new opportunities for solar-plus-bess combinations.
In addition, most data centre end users, such as Amazon Web Services, Microsoft, Google and other technology companies, are now requiring low-carbon electricity, which aligns with EDF Power Solutions' generation assets portfolio, Koiechlin says, adding that SMRs can offer advantages, especially in jurisdictions with less developed grids and without large-scale nuclear power plant capacity.
Green hydrogen
Having won one of the green hydrogen land blocks that Oman auctioned last year, EDF is understood to be in the early stages of studying and designing a large-scale green ammonia project.
Koechlin says that green hydrogen will play a role in the overall energy transition, and in delivering net-zero targets, although perhaps "not on the same scale as originally envisaged by some stakeholders or developers".
"Net-zero will need some green hydrogen, but the main question is the price at which offtakers are willing to purchase the product," he says.
In the interim, EDF is undertaking projects in several geographies to prepare the market and assess the willingness of offtakers to buy and use green hydrogen. "We will be ready once the market is ready," Koechlin concludes.
Register for MEED's guest program now to access this article.
Exclusive from Meed
-
-
Wood wins contract on Abu Dhabi methanol project28 May 2025
-
-
-
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Adnoc Drilling wins $1.5bn contract for jack-up rigs
28 May 2025
Adnoc Drilling has won a $1.5bn contract from fellow Abu Dhabi National Oil Company (Adnoc Group) subsidiary Adnoc Offshore to provide two jack-up rigs to support its offshore oil and gas operations.
The contract duration is 15 years, Abu Dhabi Securities Exchange-listed Adnoc Drilling said.
The rigs have been fabricated at UAE/Saudi Arabia-based contractor Lamprell’s facility in Hamriyah Free Zone in Sharjah.
“The rigs will leverage advanced digitalisation, real-time data analytics and artificial intelligence as Adnoc Drilling continues to deploy the technology throughout its fleet to improve safety, efficiency and maximise asset value and operational uptime,” the company said.
Adnoc Drilling said in its statement that the rigs are expected to commence operations around the end of the second quarter and deliver revenue in the second half of 2025 onwards.
“The contract will follow existing agreements, bringing accretive rates that generate long-term revenue and attractive returns,” it added.
This is Adnoc Drilling’s second contract from Adnoc Offshore in May. Earlier this month, Adnoc Offshore awarded a contract worth $806m to Adnoc Drilling to provide three island rigs, to be deployed at the Zakum offshore field development project.
Adnoc Drilling will build these new-generation island rigs in partnership with China’s Honghua Group. The rigs are expected to join the company’s fleet between 2027 and 2028.
First quarter financial results
Adnoc Drilling recently announced strong financial results for the first quarter of 2025. It achieved revenues of $1.17bn, which is a 32% increase compared to the same period last year.
Adnoc Drilling’s first-quarter net profit also increased 22% year-on-year to $341m, while earnings before interest, taxes, depreciation and amortisation (Ebitda) grew by 22% year-on-year to $533m.
With regards to the performance of the company’s business segments, the onshore unit saw revenue increase by 20% year-on-year to $494m, mainly due to new rigs commencing operations and a $30m contribution from the unconventional business.
Revenue for the offshore arm increased 2% year-on-year to $334m, mainly due to higher activity island rigs.
The oil field services business registered revenue growth of 134% year-on-year to $342m, mainly driven by $122m in revenue from the unconventional business, coupled with increased integrated drilling services activity and provision of more discrete services.
https://image.digitalinsightresearch.in/uploads/NewsArticle/13965553/main5859.jpg -
Wood wins contract on Abu Dhabi methanol project
28 May 2025
UK-headquartered Wood Group will provide project management consultancy services for a project to build the UAE’s first methanol plant in the Taziz Industrial Chemicals Zone in Abu Dhabi’s Ruwais Industrial City.
Switzerland-based energy and chemicals company Proman is a joint investor in the methanol project with Taziz.
The planned methanol complex’s nameplate production capacity is 5,000 metric tonnes a day, or 1.8 million metric tonnes a year (t/y).
“Around 40 Wood project management consultants, supported by experts at the company’s regional energy transition hub, will work with Taziz’s engineering, procurement and construction (EPC) contractor to successfully deliver this project,” Aberdeen-headquartered Wood said in a statement.
South Korean contractor Samsung E&A won an estimated $1.7bn contract in February to perform the project’s EPC works, which will last 44 months.
MEED reported in November last year that Samsung E&A had emerged as the frontrunner to win the main EPC contract.
The only other bidder for the project was a consortium of French contractor Technip Energies and India-based Larsen & Toubro Energy Hydrocarbon.
The two entities submitted technical bids for the project by the deadline of 22 July 2024, and commercial bids by 16 September.
Proman signed a shareholder agreement with Taziz in January 2023 for the planned methanol project. The two companies initially announced the project in March 2022.
Technip Energies has performed the front-end engineering and design (feed) work on the methanol project, having won the contract in September 2022.
The Proman/Taziz joint venture (JV) issued the expressions of interest document to contractors for the methanol project’s EPC tendering exercise in August 2023. Contractors submitted prequalification documents by 21 August.
Proman and Taziz issued the main tender for EPC works on the planned methanol project on 17 January last year. The JV initially set a deadline of 17 April for the submission of technical bids. This was then extended to 17 June, and later to 22 July.
Methanol is a critical chemical building block with industrial applications in fuels, adhesives, solvents, pharmaceuticals and construction materials. Emerging economies in Africa and Asia are expected to drive growth in methanol demand, while methanol production in the UAE will reduce reliance on imports.
ALSO READ: Fertiglobe expects Rabdan final investment decision in 2026
https://image.digitalinsightresearch.in/uploads/NewsArticle/13965454/main2024.jpg -
Qatar seeks firms for West Bay and Al-Safliya Island PPP
28 May 2025
In the latest sign of Qatar’s plan to accelerate its non-hydrocarbons economic growth, the GCC state has invited firms to express interest in developing a new coastal development connecting the West Bay area with Al-Safliya Island, located off the coast of Doha.
Qatar Tourism will develop the West Bay Waterfront and Al-Safliya Island project through a public-private partnership (PPP) in collaboration with the Public Works Authority (Ashghal), the Ministry of Commerce & Industry and Invest Qatar.
According to an official statement, the scope includes the design, construction, financing, operation and maintenance of the five beachfront plots. The project will feature accommodation, food and beverage outlets, and recreational facilities.
The launch of the expression of interest (EoI) process was announced on 22 May during the Qatar Economic Forum.
The development aligns with the targets set out by the Third National Development Strategy 2024-30, which was launched last year and aims to increase the contribution of non-oil sectors in the Qatari economy.
The statement added: “The project represents a significant advancement in Qatar’s efforts to enhance its tourism infrastructure and broaden its leisure offerings. The EoI process is open to regional and international developers and operators with a proven track record in delivering large-scale hospitality and leisure projects.”
UK analytics firm GlobalData expects Qatar’s construction industry to expand by 2.3% in real terms in 2025, supported by investments in the residential and transportation infrastructure sectors.
The 2025 budget, announced in December 2024, will also support growth. The budget forecasts an expenditure of QR210bn ($57.8bn) in 2025, a 4.6% increase on the 2024 budget.
The 2025 budget includes allocations of QR22bn ($6bn) for the healthcare sector, QR21.9bn ($6bn) for the municipality and environment sector, QR19.4bn ($5.3bn) for the education sector and QR6.6bn ($1.8bn) for the sports sector.
https://image.digitalinsightresearch.in/uploads/NewsArticle/13965050/main.jpeg -
Mag Group and Citic sign $6bn Keturah Ardh project deal
28 May 2025
Dubai-based real estate developer Mag Group has signed a memorandum of understanding (MoU) with Beijing-headquartered Citic Construction to develop an estimated AED22bn ($6bn) project in Dubai.
The Keturah Ardh development will cover over 18 million square feet in Dubai’s Al-Rowaiyah First area.
According to an official statement, the infrastructure and mobilisation works are expected to begin in Q2 this year.
The first phase will be launched in Q4 this year, while the second phase is anticipated to be launched in Q1 2026.
The remaining phases will be launched in 2027, and the overall project is set to be completed by 2032.
The announcement follows the Mag Group’s signing of a land acquisition deal with Ajman-based Al-Zorah Development Company to develop a waterfront project in the UAE emirate of Ajman.
The project will be located within the Al-Zorah City masterplan, which covers an area of 5.4 million square metres (sq m) and has 12 kilometres of waterfront. It will have a built-up area of about 2 million square feet and will be located in the Al-Zorah Marina 1 cluster.
The waterfront development will consist of a mixed-use community featuring residential units, branded and serviced residences, office spaces, retail outlets and a hotel.
In February, Mag Group was selected by Abu Dhabi’s AD Ports Group to act as the lead developer for its Marsa Zayed mixed-use project, a beachfront resort and residential community on the Red Sea coast in Aqaba, Jordan.
The development will cover an area of 3.2 million sq m.
In February last year, Mag signed a AED2.6bn ($708m) deal with China Energy Conservation & Environment Protection Group Tiehan Tech and Middle East to construct Mag’s Keturah Creekside Resort in Dubai.
The development, also known as Ritz-Carlton Residences Dubai Creekside, is a gated waterfront community covering 80,000 sq m. It comprises 249 residences across seven buildings and 12 mansions.
Mag Group’s latest project announcement in Dubai is backed by heightened real estate activity in the UAE’s construction market. Schemes worth over $323bn are in the execution or planning stages, according to UK analytics firm GlobalData.
The company forecasts that the output of the UAE’s construction sector will grow by 4.2% in real terms in 2025, supported by developments in infrastructure, energy and utilities, as well as residential construction projects.
https://image.digitalinsightresearch.in/uploads/NewsArticle/13964824/main.JPG -
Chinese firm bids low for Kuwait electricity contracts
28 May 2025
Register for MEED’s 14-day trial access
China’s TBEA is the low bidder for two major electricity distribution projects for Kuwait’s Public Authority for Housing Welfare (PAHW) following the opening of bids on 25 May.
For the first contract, covering the installation of 10 132/11kV transformer stations in zones N2, N4 and N6 in PAHW’s South Sabah Al-Ahmed township, it submitted an offer of KD38m ($124m).
This is about 12% lower than the second-lowest price of KD42.75m offered by Saudi Arabia’s National Contracting Company.
The other bidders were India’s Larsen & Toubro at KD42.94m, and local firms Al-Ahleia Switchboard Company and IMCO Engineering & Construction at KD43.5m and KD43.9m, respectively.
The same five companies submitted identical prices for the second contract covering 10 132/11kV transformer stations in zones N1, N3, N5 and N11.
The two deals are the latest in a number of transmission and distribution projects tendered by PAHW for its various public housing developments across Kuwait.
It currently has just over $1.9bn-worth of substation and overhead line works under construction, with some $700m-worth of tenders out in the market.
The total value of transmission and development contracts it has awarded since 2020 exceeds $2.5bn, according to MEED Projects.
https://image.digitalinsightresearch.in/uploads/NewsArticle/13965094/main.gif