meed-logo

line1 line2 line3
SIGN IN / REGISTER

Masdar meets renewable’s moonshot challenge

31 January 2025

 

Register for MEED’s 14-day trial access 

Abu Dhabi Future Energy Company (Masdar) is off to a great start this year by taking on a project that addresses what UAE Minister of Industry and Advanced Technology Sultan Al-Jaber describes as the “moonshot challenge of our time”, the intermittency of renewables.

Masdar, along with state utility Emirates Water & Electricity Company (Ewec), announced the project on 14 January. The $6bn project comprises 5,200MW solar and 19 gigawatt-hour (GWh) battery energy storage system (bess) plants.  

It is designed to deliver up to 1,000MW of uninterrupted “baseload” power from a renewable source, a first in the world in terms of its scale.

“The country leadership’s will to deploy cutting-edge technology despite perceived risks, the growing experience of Masdar in developing battery energy storage projects globally, along with the decline in battery prices helped expedite the project,” Abdulaziz Alobaidli, chief operating officer of Masdar, tells MEED. “It’s a major achievement, over 15 years since the first single-site 10MW project was procured in Abu Dhabi.”

It has a lot to do with our culture to never say no to the impossible 

Alobaidli was referring to Masdar’s first 10MW solar photovoltaic (PV) plant located on the north side of Masdar City, which was connected to the Abu Dhabi electricity grid in April 2009.

The executive says the 5.2GW/19GWh project was fast-tracked thanks to the broader collaboration of the key relevant stakeholders who facilitated the overall permitting proceedings.

He also stressed that they have obtained the necessary experience by developing renewable energy projects in developed and developing countries over the past decade and a half, with their current portfolio sitting at around 32GW.

“It has a lot to do with our culture to never say no to the impossible,” explains Alobaidli.

“We solved a two-decade problem by jointly evaluating the technical and commercial feasibility of the project, doubling down on our global development experience, and the strategic relationship we have built with key solar and bess suppliers … it helped that the battery technology has reached a desired level of cost competitiveness along with improved efficiency.

“The collaborative spirit of our client, Ewec, has facilitated the development of the project and gave us confidence that we can bring it to the finish line.”

Fast-track project

Masdar announced the selection of contractors and sub-contractors for the project a few days after its launch.

It selected India’s Larsen & Toubro and Beijing-headquartered PowerChina to undertake the project’s engineering, procurement and construction (EPC) contract.

Masdar also picked Shanghai-based Jinko Solar and Beijing-headquartered JA Solar to supply solar PV modules. They will supply solar PV modules amounting to 2.6GW each, with maximum efficiency and production for 30 years.

Another Chinese firm, Fujian-based Contemporary Amperex Technology Company Limited (CATL), will supply its Tener product line for the bess plant.

The project will be structured as a classic public-private partnership (PPP), funded by equity and syndicated debt.

It is being deployed on a fast-track basis, with financial close expected by the second quarter of 2025 and commercial operations set for 2027.

Alobaidli says they are in the process of deployment and starting the mobilisation of contractors, following months of technology assessments and technical workshops.

He also says Masdar is open to considering co-investors or codevelopers in the project “if they will complement” its capability to deliver the project.  

Masdar has also engaged several banks and lenders, which have been conducting due diligence on the project, particularly on the selected battery technology.

The executive, who previously served as general manager of Masdar subsidiary, Shams Power Company, says declining battery prices provide significant opportunities for their adoption at larger scale and long-hours applications.

“This is significant for the industry, and we see demand and supply growing, including the number of suppliers in the market. Security of supply and more competitive battery price is key.”

AI connection

MEED first reported on the planned round-the-clock renewable project in October last year. At the time, sources indicated that the project was envisaged to support the state’s artificial intelligence (AI) strategy.

This was confirmed by a social media post on 14 January, when UAE President Sheikh Mohamed Bin Zayed Al-Nahyan said the project would help power advancements in AI and emerging technologies in addition to being a significant step on the UAE’s journey towards net zero.

Alobaidli says the project, which will be the first of many, “will definitely unlock opportunities for AI and other industries, which require base and round-the-clock load”.

Global expansion

While the 5GW/19GWh project is the largest single project by far to be deployed by Masdar, the experiences it gained by growing organically and through mergers and acquisitions, especially over the past decade, should help ensure it delivers the project within time and budget.

The project’s execution is also unlikely to hamper Masdar’s ongoing global expansion, given its goal to expand its renewable energy portfolio to 100GW by 2030.

Masdar has been expanding its global footprint as well as the type of assets it deploys or acquires, which range from onshore and offshore solar, onshore and offshore wind and, now, battery energy storage plants.

It has been bidding for new projects close to home, such as in Saudi Arabia and Oman, as well as in developing countries or acquiring stakes in projects across nearly every region of the world, from the Philippines, Malaysia and Indonesia in Southeast Asia, to Africa, more mature markets in Europe such as Greece and Spain, and the Americas.

“We are not just running after capacity. We look at profitability and the impact of these acquisitions on our earnings and P&L,” explains Alobaidli. “More importantly, we focus on the impact of these projects on the local communities.”

Alobaidli stresses that Masdar is focusing on prudent risk-reward factors as it expands its operations to avoid overexposure and ensure every deal is robust and backed by objective risk analysis.

“We are backed by three very strong institutions,” he points out, referring to Abu Dhabi National Oil Company, Abu Dhabi National Energy Company (Taqa) and sovereign wealth fund Mubadala. “So every investment opportunity is thoroughly assessed to ensure it meets our growth objectives and stakeholders’ expectations.”

READ MEED’s YEARBOOK 2025

MEED’s 16th highly prized flagship Yearbook publication is available to read, offering subscribers analysis on the outlook for the Mena region’s major markets.

Published on 31 December 2024 and distributed to senior decision-makers in the region and around the world, the MEED Yearbook 2025 includes:

> GIGAPROJECTS INDEX: Gigaproject spending finds a level
https://image.digitalinsightresearch.in/uploads/NewsArticle/13347001/main.jpg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Algeria tenders 310km Tamanrasset railway

    16 October 2026

     

    Algeria’s state railway project developer, Agence Nationale d’Etudes et de Suivi de la Realisation des Investissements Ferroviaires (Anesrif), has invited national and international contractors to bid for the construction of a 310-kilometre (km) railway line between Hotel Station and Moulay Lahcen Station. 

    The planned line is a key segment of the proposed railway corridor connecting El-Menea, In-Salah and Tamanrasset across the southern wilayas of In-Salah and Tamanrasset.

    The tender notice was issued on 12 October, with bids due by 10 November.

    The tender is open to single contractors and consortiums. To qualify, single firms must have executed at least 200km of new railway lines or track-doubling works since 2010, with accepted project certificates covering sections of at least 100km, along with a cumulative 800 metres of railway bridges with individual spans exceeding 30 metres.

    Bidders must also provide at least two rail-tamping machines, two ballast regulators, and a project director with an engineering degree and at least five years of railway construction management experience.

    From a commercial and classification perspective, single bidders and consortium leaders must hold a category-nine (IX) professional qualification in public works.

    Bidders must also demonstrate an average annual turnover in construction of at least DZ260bn ($1.96bn) across the 2023-2025 financial period.

    For joint ventures, the cumulative turnover of all members must meet the $1.96bn threshold, with the consortium leader accounting for at least $1.3bn.

    Offers must be accompanied by a bid bond exceeding 1% of the total bid value for submissions exceeding $7.4m, with proposals remaining valid for 90 days beyond the submission date.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20665591/main.jpg
    Yasir Iqbal
  • Joint venture wins $246m RCRC bridges contract

    16 October 2026

     

    A joint venture of local contractor Mofarreh Group and Turkey-based Gulsan Holding has won an estimated SR923m ($246m) contract from the Royal Commission for Riyadh City (RCRC) to construct a series of grade-separated steel flyovers across the capital.

    The contract, known as Package 2 (Groups 2 and 3), is part of RCRC’s urgent bridges programme under the wider project to build steel bridges at 10 junctions across Riyadh.

    The works have a 12-month execution timeline to fast-track traffic decongestion across major arterial corridors.

    The joint venture’s scope covers the engineering and construction of grade-separated steel bridge interchanges across seven key intersections:

    • IC04: Al-Khair Road and King Salman Bin Abdulaziz Road
    • IC05: Prince Turki Road and Imam Saud Road
    • IC06: Al-Takhassosi Road and Saeed Al-Sulami Road
    • IC07: Khurais Road and Al-Hareth Bin Abdullah Road
    • IC08: Khurais Road and Ash-Sharq Road
    • IC09: Khurais Road and Marmar Road
    • IC10: Al-Kharj Road and Al-Hilla Road

    The total length of the flyovers is 8.86 kilometres, excluding Junction IC10.

    In addition to the structural steel superstructures, concrete bridge foundations, decks and approach ramps, the contract includes retaining walls, utility diversions, temporary phased traffic arrangements, associated roadworks, drainage networks, roadway lighting, intelligent transportation systems and landscaping.

    The client received commercial proposals from several local and international contractors. Other bidders included:

    • Masco
    • Nesma & Partners
    • Al-Omaier Trading & Contracting Company 
    • Yuksel Saudia 
    • Batco 
    • Modern Building Leaders
    • Sapac

    The urgent bridges initiative is part of Riyadh’s rapid transport infrastructure programme to improve traffic throughput, enhance safety and ease vehicular congestion across central and ring-road corridors ahead of major events, including Expo 2030 and the 2034 Fifa World Cup.

    In July, Mofarreh Group and Turkiye’s Gulsan Holding formed a joint venture to bid for and deliver transport infrastructure projects in Riyadh for RCRC.

    The joint venture said it will target road, bridge, viaduct and interchange projects.

    Mofarreh will provide local market access and operational capacity, while Gulsan will contribute international experience in large-scale transport projects.

    The companies said the new venture will support knowledge transfer and localisation, and promote the use of international engineering and construction standards aligned with Saudi Arabia’s Vision 2030 infrastructure and sustainability goals.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20663255/main.png
    Yasir Iqbal
  • Humain tenders 100MW Riyadh AI data centre

    16 October 2026

     

    Register for MEED’s 14-day trial access 

    Saudi artificial intelligence infrastructure developer Humain has issued a request for proposals for an engineering, procurement and construction (EPC) contract to deliver a 100MW artificial intelligence (AI) data centre facility in Riyadh’s Al-Saad area.

    The tender was issued on 17 September, with bids due by 8 November.

    The contract includes core-and-shell works; civil works; mechanical, electrical and plumbing installation; testing and commissioning; and site infrastructure across a 350,200-square-metre plot.

    The project also includes an optional expansion phase that could raise total site capacity to 200MW.

    The initial 100MW development is split into two equal 50MW phases, structured across two single-storey IT buildings housing four 25MW data halls.

    Phase one targets a ready-for-service date by October 2028, followed by phase two in January 2029.

    Under the optional phase three, an additional 100MW facility would be brought online by July 2029.

    The data centre will be designed to support high-density graphics processing unit clusters and AI-compute workloads, with rack densities of 240kW to 250kW.

    The facility will be built to Uptime Institute Tier III topology and LEED Silver standards as a baseline, targeting LEED Gold.

    The operational design targets an annualised power usage effectiveness below 1.35.

    Power will be delivered through four 33kV connections supplied by Saudi Electricity Company from two separate high-voltage/medium-voltage primary substations. The scope requires 15 transformers, 15 static 2,250kW IT uninterruptible power supply (UPS) units, and 450kW mechanical UPS systems with lithium-ion battery storage for each 25MW block. 

    Backup emergency diesel generators will be provided on an owner-furnished, contractor-installed basis, with the EPC contractor handling their installation, connection and testing. Fuel storage will provide 24 hours of autonomous run-time, split between on-site underground bulk tanks and generator belly tanks.

    Thermal management combines air and liquid cooling. High-density server racks will be equipped with direct-to-chip liquid cooling loops using coolant distribution units and technical water distribution, paired with air-cooled chillers operating in dual high- and low-temperature loops, alongside fan-wall units.

    The total construction timeline is capped at 25 months from site handover or contract signing, with pre-execution early mobilisation scheduled to start in January 2027.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20661045/main.jpg
    Yasir Iqbal
  • Adnoc Onshore seeks bids for Bu Hasa field EOR project

    16 October 2026

     

    Register for MEED’s 14-day trial access 

    The onshore oil and gas business of Abu Dhabi National Oil Company (Adnoc Onshore) has sought bids from contractors for a key project to increase the oil production capacity of the Bu Hasa oil field, primarily through enhanced oil recovery (EOR) techniques.

    The main objective of the Bu Hasa-Shuaiba EOR Unit 1 (Phase 1) project is to achieve a targeted 70% increase in oil production, extend the Bu Hasa field development’s production plateau and maximise the field’s potential in an economical manner.

    The project aims to confirm and validate the optimum EOR technology for the top-ranked reservoirs/units; assess incremental recovery on top of the improved oil recovery (IOR) wedge; extend the field plateau for as long as is economically feasible; and achieve an ultimate recovery factor of 70% from the Shuaiba reservoir. It will evaluate and execute the recommended EOR option through pattern phasing for any technology proven by Adnoc.

    Adnoc Onshore is understood to have issued the tender for the project on 20 September, with an initial technical bid submission deadline of 8 October, according to sources. The client later extended the technical bid submission deadline to 17 October, sources told MEED.

    The chosen contractor will execute the project under a hybrid contracting strategy comprising:

    • A lump sum (turnkey) EPC scope covering the complete pipeline system from East Hub to the separation plant
    • A call-out-based scope for execution of all WAG injector and WSW tie-in works

    Unless otherwise specified, all activities defined under the contractor’s scope will be deemed included within the lump-sum contract price. This will cover engineering, procurement, construction, testing, pre-commissioning and support to commissioning for a complete and operable system.

    At the Bu Hasa field development, three remote degassing stations (RDS-1/2/3) and two satellite stations, Bida Al-Qemzan and Huwaila, are currently in operation. Production from oil wells completed in Shuaiba, Thamama B, Thamama F, Bida Al-Qemzan and Huwaila is routed via individual flowlines to the three remote degassing stations and the Bida Al-Qemzan and Huwaila stations across different parts of the field.

    Combined production from the wells at each of these stations is routed to the central degassing stations (CDS) via transfer lines ranging from 16 inches to 24 inches in diameter. In addition, some wells in the central part of the field are connected directly to the CDS.

    Previous studies have identified carbon dioxide (CO2) flooding as a promising tertiary recovery mechanism in the Shuaiba reservoir, delivering incremental recovery on top of the IOR wedge (P5 project), extending the field plateau as long as economically feasible, and achieving an ultimate recovery factor of 70% from the Bu Hasa Shuaiba units.

    Located 200 kilometres south of Abu Dhabi city, Bu Hasa is Adnoc Onshore’s westernmost producing field. It is one of Abu Dhabi's biggest onshore assets, with crude oil production capacity of 650,000 b/d. It is also one of the Adnoc Group’s oldest oil fields, having been discovered in 1962 and in production since May 1965.

    As part of the ongoing Bu Hasa Integrated Field Development Project (BUIFDP), 13 new well pads and two pad hubs have been added to the field. Oil, gas and water produced at these sites will be collected at a central gathering facility, then sent through production headers and transfer lines to the CDS for processing.

    Adnoc Onshore is the Adnoc Group’s largest oil-producing subsidiary, accounting for 2 million b/d of oil and about 7 billion cubic feet a day of associated gas production from four main onshore field developments in Abu Dhabi: Bab, Bu Hasa, North East Bab and South East.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20639750/main0548.jpg
    Indrajit Sen
  • OTTCO issues tender for Oman oil storage park expansion

    16 October 2026

     

    Register for MEED’s 14-day trial access 

    Oman Tank Terminal Company (OTTCO) has issued the main tender for a major project related to the expansion of the Ras Markaz crude oil storage complex at Duqm, on the sultanate’s Arabian Sea coast.

    The project, titled Trade Bridge, involves the engineering, procurement and construction (EPC) of eight large storage tanks, each with a capacity of 650,000 barrels. This will increase the Ras Markaz terminal’s total storage capacity by 5.2 million barrels.

    The project represents the next expansion phase (phase 1.4) of the Ras Markaz oil storage terminal within the Special Economic Zone at Duqm (Sezad).

    State-owned OTTCO issued the prequalification notice for the project on 28 July, with contractors submitting initial responses by 4 August and final responses by 19 August, MEED previously reported.

    According to sources, OTTCO issued the main tender for EPC works on Project Trade Bridge in the weeks following completion of the prequalification exercise.

    The following contractors, among others, are understood to have been prequalified by OTTCO to bid for Project Trade Bridge:

    • China Petroleum Pipeline Engineering Company (China)
    • China Tianchen Engineering Corporation (China)
    • Daqing Oilfield Construction Group Company (China)
    • Enppi Muscat (local branch of Egypt-based Enppi)
    • Gulf Petrochemical Services & Trading (Oman)
    • Hualu Engineering & Technology Company (China)
    • Rotary Engineering (Singapore)
    • Sinopec Ningbo Engineering Company (China)

    OTTCO commissioned the first phase of the Ras Markaz crude oil storage park, covering 10 square kilometres and with a capacity of 26.7 million barrels, in December 2022.

    The storage facility has two parts. The first is a marine services area, which includes a floating station for crude imports and exports. This zone is about 7 kilometres offshore and is connected via two 42-inch pipelines and associated facilities.

    In water depths of up to 42 metres, the floating station can accommodate very large crude carriers. It is linked to four main pumps that transfer crude oil to the storage area, which is located more than 120 metres above sea level. OTTCO could add pumps at a later stage to keep pace with future demand for oil storage.

    The second part of the storage facility features oil pumping systems, water treatment facilities, reservoirs, power station networks and other associated systems.

    Region’s largest oil storage park

    OTTCO will build the Ras Markaz oil storage facility in five phases over several years across an area of about 40 square kilometres, for which it signed a land agreement with Sezad in July 2017.

    It will be able to hold 200 million barrels of crude a year. Total investment in the scheme is understood to be $5.2bn.

    The storage terminal in the first phase of the Ras Markaz facility is connected to the estimated $7bn Duqm refinery and other oil-derivatives production plants at Sezad via a pipeline that will supply crude feedstock to the refinery when required.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20638090/main0749.jpg
    Indrajit Sen