Neom’s top five projects
11 October 2023
Neom has awarded major contracts over the past two years, indicating the kingdom's flagship development project is moving ahead as planned. It has also attracted local and international investment partners for the implementation of these projects.
Except for the Neom Green Hydrogen project, the majority of the contracts that have been awarded so far are for basic infrastructure such as roads, staff accommodation and utilities.
Below is a round-up of the top five projects that are under construction at Neom.
-
NGHC Green Fuels Renewable Energy Project
Saudi Arabia’s Neom Green Hydrogen Company (NGHC), a consortium of Neom, Saudi utility developer Acwa Power and the US' Air Products is developing a green fuels renewable energy facility, which will produce hydrogen to be synthesised into carbon-free ammonia for export exclusively by Air Products to global markets.
The planned facility will integrate 4GW of renewable power from solar, wind and storage that will be used for the production of 650 tonnes a day of hydrogen and nitrogen and 1.2 million tonnes a year of green ammonia.
In June 2022, Indian contractor Larsen & Toubro (L&T) secured a major engineering, procurement, and construction (EPC) contract worth $2.7 billion from NGHC for the renewable energy package of the programme.
L&T has since awarded several sub-contracts for different elements of the project. These include the supply contract for the wind turbines to China's Envision Energy, the supply of 380 kV gas-insulated substations to US-based GE Grid Solutions, the supply of solar trackers to Spanish PV Hardware and, most recently, the contract to inverter skid solutions to Chinese company Sungrow.
-
NEOM Community Villages: Wave 1
In June, Neom finalised SR21bn ($5.6bn) of public-private partnership (PPP) housing deals for worker accommodation. The developers for the first phase of its residential communities, also known as Wave I, include local companies Alfanar Global Development, Almutlaq Real Estate Investment Company, Nesma Holding Company and Tamasuk, which is involved through two separate partners, Al-Majal al-Arabi Group Company and Saudi Arabian Trading & Construction Company (Satco).
The scheme involves building ten communities across Neom, adding capacity for 95,000 more occupants once the project's first phase is completed. The temporary accommodation needed during Neom's construction period is being built sustainably as relocatable modular units that can be repurposed once the communities are no longer required.
The tender for a second phase of the project, known as Wave II, is expected to be issued to the market in the coming months.
-
NEOM Backbone Infrastructure: Drill and Blast Running Tunnels
Tunnel projects worth over $4.6bn are in the execution phase at Neom. These include the backbone infrastructure tunnels for The Line project, which involve constructing two railway tunnels in parallel using the drill-and-blast method, one for passengers and the other for goods.
In June 2022, Neom awarded $2.7bn-worth of main contracts to the joint venture of Shibh al-Jazira Contracting, China State Construction Engineering and FCC Construction for lots two and three of this scheme.
A separate contract worth about $1.8bn was awarded by Neom for lots four and five to a team of Archirodon, Samsung Engineering and Hyundai Engineering.
Beijing-based China Railway Construction Corporation (CRCC) was awarded a contract in 2021 for the adits and portals package serving the bored tunnels.
-
NEOM Oxagon Connector South
In May, Neom awarded a joint venture of Italy-based Webuild and Riyadh-headquartered Shibh al-Jazira Contracting (Sajco) an estimated $2bn contract to build the Connector South rail line that will link Oxagon with The Line at Neom.
The contract involves the construction of a 75-kilometre railway line, including earthworks, 14 viaducts, seven roads, nine rail underpasses, 152 culverts (pipe and box culverts), a freight line, infrastructure maintenance depots and associated facilities.
The infrastructure corridor will run south from The Line to Neom City Station through Neom Bay Mansions, Neom Bay airport and on to Oxagon.
-
NEOM Oxagon Port
Crown Prince Mohammed bin Salman launched Oxagon in late 2021. It includes onshore elements as well as floating structures offshore. Construction works on the 48 square-kilometre, eight-sided industrial city have already started.
In January, Neom awarded a contract to deliver the first phase of the port expansion. A team of Boskalis, Besix and the local Modern Building Leaders (MBL) was awarded that estimated SR3bn ($800m) contract in mid-January.
It was followed by another $1bn contract award in October to Belgium’s Deme with Greece’s Archirodon to complete phase two of the Duba port expansion at Oxagon industrial city.
The scope of the Duba port expansion package includes excavation and dredging, revetments for channel widening, demolition, container terminal quay expansion and earthworks, in addition to the development of a flexible quay, a roll-on/roll-off (RoRo) berth and quay walls to a marine services berth and a coast guard facility.
Exclusive from Meed
-
TotalEnergies signs $11bn Morocco green hydrogen deal
29 October 2024
-
Tadweer and Japanese firms to build recycling plant
29 October 2024
-
QatarEnergy to acquire 50% in Iraq 1GW solar project
29 October 2024
-
Kuwait tenders main Saad Al-Abdullah substation contract
28 October 2024
-
Emsteel and Masdar inaugurate pilot hydrogen plant
28 October 2024
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
-
TotalEnergies signs $11bn Morocco green hydrogen deal
29 October 2024
France's TotalEnergies has signed an agreement to develop an $11bn project to produce hydrogen and green ammonia in Morocco.
It was previously reported that the planned integrated facility will be located in Guelmim-Oued Noun in southern Morocco.
The deal is one of 22 that were signed during French President Emmanuel Macron's visit to the North African state on 28 October.
TotalEnergies chairman and CEO Patrick Pouyanne signed the agreement for the local production of green hydrogen and ammonia in the presence of Morocco's King Mohammed VI and Macron, according to local media reports
The counterparty includes Morocco's Minister of Energy, Leila Benali, Minister of Economy and Finance, Nadia Fattah, Minister of the Interior, Abdelouafi Laftit, and the Minister Delegate in charge of Investment, Karim Zidane.
It is understood that the project will require the development of 10GW of solar and wind energy and a land area of 187,000 hectares.
It was reported that Morocco's Unified Regional Investment Commission (CRUI) approved the project’s launch in November 2022.
The other agreements signed during Macron's visit to Morocco cover financial cooperation in the rail, forestry, aviation, logistics and energy sectors, with a particular focus on decarbonisaton and energy transition.
TotalEnergies has been exploring green hydrogen-related and other related projects across the Middle East and North Africa region.
In August, the Courbevoie- headquartered firm and Abu Dhabi Future Energy Company (Masdar), signed an agreement to assess the viability of developing a commercial green hydrogen to methanol to sustainable aviation fuel (saf) project.
It is also among the early investors in UK-based Xlinks First, which aims to deliver the $18bn Morocco-UK power interconnector project.
TotalEnergies acquired a minority stake in the company following an investment of $25.4m, which was announced in November last year.
https://image.digitalinsightresearch.in/uploads/NewsArticle/12811486/main.gif -
Tadweer and Japanese firms to build recycling plant
29 October 2024
Abu Dhabi-headquartered Tadweer Group is partnering with Japanese chemicals companies to build a plastic chemical recycling facility in Abu Dhabi.
The investment is expected to reach up to ¥40bn ($261.5m), with the facility set to be operational by 2026 or 2027.
The new facility will be capable of recycling a wide variety of plastics, including materials used in polyethylene terephthalate (PET) bottles and packaging containers, said Tadweer.
It will also introduce advanced technology that can revert plastic waste to raw materials.
Ali Al-Dhaheri, Tadweer Group managing director and CEO, said: "We are considering two or three Japanese companies with the necessary technological capabilities and hope to select partner or partners for collaboration within the next three to six months."
Al-Dhaheri added that the final investment will depend on the facility's processing capacity, and will likely range between $100m and $300m.He also mentioned the possibility of a joint investment with Japanese companies, stating, “while we are reviewing technologies from other countries, it is Japan that best meets our requirements”.
Japan is recognised for its high PET bottle recycling rate and has made significant strides in the recycling of other plastics.
Tadweer added that it has existing partnerships with Marubeni Corporation and other Japanese companies, mainly in the power generation sector, and now plans to expand its collaboration with Japanese firms that possess advanced technology and expertise.
Related read: Dhafra waste-to-energy work to start
Photo credit: Pixabay
https://image.digitalinsightresearch.in/uploads/NewsArticle/12811435/main.jpg -
QatarEnergy to acquire 50% in Iraq 1GW solar project
29 October 2024
QatarEnergy has signed an agreement with France's Total Energies to acquire a 50% interest in the 1,000MW solar photovoltaic (PV) project as part of the $27bn gas growth integrated project (GGIP) in Iraq.
Total Energies will retain the remaining 50% of the project. The shared ownership is subject to regulatory approvals.
Located in Artawi – also known as Ratawi – in southern Iraq, the solar PV project is expected to start construction soon, MEED reported on 25 October.
In a statement, QatarEnergy said: "The project will consist of 2 million high-efficiency bifacial solar panels mounted on single-axis trackers and will, upon its completion, be capable of supplying up to 1.25 gigawatts (peak) of solar-generated power to the electricity grid in the Basra region of Iraq.
"The project will be developed in phases that will come online between 2025 and 2027 and will have the capacity to provide electricity to about 350,000 homes in the Basra region."
TotalEnergies Renewables awarded China Energy Engineering International Group the engineering, procurement and construction contract for the project in August.
China Energy Engineering Tianjin Electric Power Construction, International Group and Southwest Institute will deliver the project.
It was reported at the time that construction work is expected to start later this year, and completion is expected in early 2027.
The project includes the design, procurement, construction and commissioning of the PV power station site and 132-kilovolt booster station, with a capacity of 1,000MW.
In addition to the solar PV independent power project (IPP), the three main projects that make up the $27bn GGIP project include:
- A treatment facility for associated natural gas from five southern oil fields – West Qurna 2, Majnoon, Artawi, Tuba and Luhais
- The $4bn common seawater supply project
- Development of the Artawi gas field
QatarEnergy announced in June 2023 that it had entered into a consortium to implement the GGIP project in Iraq, with a 25% participating interest, together with TotalEnergies (45%) and Iraq’s Basra Oil Company (30%).
https://image.digitalinsightresearch.in/uploads/NewsArticle/12811027/main.jpg -
Kuwait tenders main Saad Al-Abdullah substation contract
28 October 2024
Kuwait's Public Authority for Housing Welfare (PAHW) has tendered a contract to construct a main substation project at South Saad Al-Abdullah Residential City.
The selected bidder will supply, install, implement and maintain the planned 11/132/400-kilovolt (kV) substation
The PAHW expects to receive bids for the contract, for which it set a bid bond of KD500,000 ($1.6m), on 28 October.
Located in Kuwait's Al-Jahra Governorate, the South Saad Al-Abdullah housing project covers an area of 64 square kilometres and consists of five residential areas with 24,508 housing units.
The PAHW recently awarded two substation contracts for another city, which is being developed in Al-Jahra.
The Kuwait branch of Saudi Arabia's National Contracting Company (NCC) won a contract to build 10 132/11-kV substations in Sabah Al-Ahmad City, MEED reported earlier this month.
The substations will cater to neighbourhoods N5, N6, N8 and N10 in South Sabah Al-Ahmed City. The 24-month contract is valued at SR534m ($142m).
Al-Ahleia Switchboard Company won the other tender for the supply, installation, implementation and maintenance of 10 11/132kV main transformer stations in Sabah Al-Ahmed's N5, N7 and N9 neighbourhoods.
Located 80 kilometres south of Kuwait City, the South Sabah Al-Ahmad residential development will be home to an estimated 280,000 people when complete.
https://image.digitalinsightresearch.in/uploads/NewsArticle/12804333/main2244.gif -
Emsteel and Masdar inaugurate pilot hydrogen plant
28 October 2024
Register for MEED's 14-day trial access
Emsteel and Abu Dhabi Future Energy Company (Masdar) have inaugurated a pilot green hydrogen plant at Emsteel's manufacturing complex in Mussafah, Abu Dhabi.
The pilot project's electrolyser capacity and equipment supplier have not yet been disclosed.
MEED understands the plant utilises solar power from the grid to produce hydrogen on site.
The project sets the stage for Emsteel to use green or renewable hydrogen, instead of natural gas, to extract iron from iron ore.
Emsteel Group CEO, Saeed Ghumran Al-Remeithi, said the partnership with Masdar is part of a commitment to "accelerate decarbonising green steel production in the UAE and the wider Middle East and North Africa (Mena) region".
During the launch event for the plant, Al-Remeithi said the project marks a significant step towards making the UAE "a world green hydrogen leader" and Emsteel "a hub for green steel".
In a press briefing on 28 October, Saeed Al-Ghafri, CEO of Emirates Steel, said the plan is to scale up the pilot green hydrogen facility to enable it to meet demand for green steel both locally and from abroad.
"We are decarbonising across verticals through carbon capture and green hydrogen … to serve the UAE market and eventually to go global," he said.
Al-Ghafri declined to confirm whether the plan entails developing a major integrated facility with Masdar in one of two planned green hydrogen oases in Abu Dhabi, or offtaking the hydrogen produced at one of the future facilities planned in the emirate.
Previously known as Emirates Steel Arkan, the steel and cement producer rebranded as Emsteel in September as part of a broader strategy to accelerate operational transformation and expand its global footprint.
Headquartered in Abu Dhabi, Emsteel operates 16 plants with an annual production capacity of 3.5 million tonnes a year (t/y) of steel and 4.6 million t/y of cement. The company exports its products to over 70 markets, which account for 30% of its sales.
The rebranding followed the merger of Emirates Steel and Arkan Building Materials in late 2021, establishing the UAE’s largest steel and construction materials company, valued at $3.53bn.
Emsteel, which contributes 11% of Abu Dhabi’s manufacturing output, operates through two main divisions: Emirates Steel and Emirates Cement.
The cement division includes Al-Ain Cement Factory, Emirates Blocks Factories, Anabeeb and Arkan Bags.
Emsteel has a focus on low-carbon products, with the group committing to reduce carbon emissions as part of the UAE’s Net Zero by 2050 strategic initiative, with 80% of its operations powered by clean energy.
The company is also a key player in the UAE’s industrial strategy, Operation 300bn, holding a 60% share of the UAE’s steel market.
https://image.digitalinsightresearch.in/uploads/NewsArticle/12803934/main.jpg