Airbus, Sumitomo and partners plan Oman saf plant
24 June 2024
Several companies, led by Netherlands-headquartered aircraft manufacturer Airbus, have signed a joint service agreement to develop a project that integrates sustainable aviation fuel (saf) and e-gasoline production in Oman.
Airbus' partners include state-backed OQ Alternative Energy, Italy's Automobili Lamborghini, UAE-based Dutco Group Cleantech and the Middle East subsidiary of Japan's Sumitomo Corporation.
The planned greenfield plant is classified as an integrated power-to-X project, which commonly refers to converting renewable energy into various derivative products.
The saf greenfield project adds "a new layer to Airbus' strategy in new energies, besides being already a pre-financial investment decision project equity investor in Australia and the US", according to Julien Lehalle, Airbus' director for investments, project origination and strategic partnerships.
In addition to its potential for hybrid wind and solar power generation, green hydrogen and e-fuels production, Oman has two airlines, Oman Air and SalamAir, noted Lehalle.
The sultanate also has several airports managed by Oman Airports Management Company, as well as energy infrastructure and industrial ports to reach export markets in Europe and Asia Pacific, he added.
Saf pursuit
MEED reported in March that a consortium comprising Oman's Civil Aviation Authority, OQ Group and Netherlands-based saf specialist SkyNRG is undertaking a preliminary study looking at the potential of developing a saf production facility and overall saf roadmap in Oman.
The study is expected to be completed by the end of 2024.
The consortium aims to identify the opportunities for saf production within Oman, including the expected demand and its commercial applications.
According to an industry source, the feasibility study includes a feedback assessment and supply chain optimisation, and seeks to identify key regulatory and commercial measures to facilitate saf production in Oman.
The three partners signed the memorandum of cooperation for the project in Muscat in October 2023.
Alternative fuels like saf are among the top four energy transition technologies that offer varying potential in decarbonising maritime and aviation, two of the world's hard-to-abate sectors, according to a new GlobalData report.
The other three technologies are electrification; carbon capture and storage or carbon capture, utilisation and storage; and hydrogen.
Aviation and maritime represent two of the most difficult to abate sectors due to their demand for cost-competitive and energy-dense fuels.
Related read: Awards buoy Oman's green hydrogen strategy
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Siemens Energy wins $1.6bn Saudi deal
13 March 2025
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Chinese engineering, procurement and construction (EPC) contractor Harbin Electric International has awarded Germany’s Siemens Energy a contract to supply combined-cycle gas turbine (CCGT) units for the Rumah 2 and Nairiyah 2 independent power projects (IPPs) in Saudi Arabia.
The Rumah 2 and Nairiyah 2 CCGT plants will each have a capacity of roughly 1,800MW, requiring an estimated investment of $2bn each.
The value of the contract Siemens Energy won is $1.6bn.
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Photo credit: Siemens Energy
READ THE MARCH MEED BUSINESS REVIEW – clck here to view PDFChinese 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> UPSTREAM 1: Offshore oil and gas sees steady capex> UPSTREAM 2: Saudi Arabia to retain upstream dominance> 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 projectsTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/13483115/main.jpg -
Chinese builders go global
13 March 2025
Commentary
Colin Foreman
EditorRead the March MEED Business Review
It is difficult to fathom the scale of growth experienced by China’s construction sector over the past 20 years. Since 2004, it has grown by over 800%, with a compound annual growth rate of 11% to reach an estimated value of $4.5tn.
That success has created contractors that are now the largest construction companies on the planet. According to GlobalData, seven Chinese companies are among the top 10 largest construction companies in the world, with China State Construction Engineering Corporation topping the list with revenues of $320bn.
In the Middle East and North Africa, Chinese contractors dominated in 2024 by securing $90bn of the $347bn of contracts awarded, according to data from MEED Projects.
The region’s active projects market has created unprecedented demand for contractors. Most notably, project clients in Saudi Arabia have been actively courting international construction companies to come and work in the kingdom.
Many international contractors exited the region over the past decade, which has meant Chinese contractors have had little competition as they stepped in to fill the void and deliver crucial projects.
On top of exploiting the shifting competitive landscape, Chinese successes have been able to meet the budgetary requirements of many projects, offering cost-effective solutions and even providing financing.
At the same time, the maturing Chinese economy has driven contractors to seek opportunities abroad. With a slowing domestic real estate market, they are turning to international markets for growth. The Middle East presents an attractive option due to its wide range of projects, backed by financially secure clients and governments.
The scale of the contractors and the large number of players yet to meaningfully venture overseas means they possess the ability to grow even further in the Middle East and North Africa as the region continues to press ahead with large-scale projects that require vast resources.
Register for MEED’s 14-day trial access
READ THE MARCH MEED BUSINESS REVIEW – clck here to view PDFChinese 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:
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