Rolls-Royce charts net-zero path
26 October 2023
UK-headquartered Rolls-Royce aims to achieve net zero carbon emissions from its operations and facilities, excluding product testing and development, by 2030.
This entails building energy-efficient facilities and a significant reduction in energy consumption and waste sent to landfills.
Meeting its long-term sustainable target will inevitably require facilitating its customers – which range from aircraft and transport operators to utilities – meet theirs.
“We have a long history of bringing to market ever more efficient technologies in aviation, transport and mobility and nuclear power generation,” says John Kelly, Rolls-Royce’s president for the Middle East, Turkiye and Africa (Meta) region. “These sectors being hard-to-abate or decarbonise does not stop us [from pursuing energy efficient solutions].”
Sustainable jet fuel
The company recognises that the adoption of sustainable aviation fuel (saf) and other synthetic fuels produced in a non-carbon-generative process, among other technologies, will play a key role in decarbonising the aviation sector.
Kelly says Rolls-Royce continues to work on and invest in more efficient gas turbine jet engines, such as the UltraFan, a demonstrator aero engine that is designed to burn 25 per cent less fuel compared to the first generation of its Trent jet engine.
UltraFan can be used for narrowbody and widebody aircraft that may be developed from the 2030s. It will also be ready to run on saf from day one of service.
“Regulations and enabling factors are key to reducing the carbon footprint of jet engines,” says Kelly.
Related read: Emirates and Shell Aviation sign sustainable fuel deal
It is understood that Rolls-Royce's ongoing research and tests drawn from initiatives such as its UltraFan programme will also contribute towards improving the efficiency of aircraft fleets and operators.
“We do not produce saf, but we work with partners and regulators and fuel offtakers to look for ways to improve its commercial viability.
“We have tested commercial and business aircraft limit of 50 per cent saf, and established that we can operate a flight safely using 50 per cent saf. We are also pushing to get to 100 per cent, which should lead to increased offtake of saf in future,” says Kelly.

The key issues today for saf, as well as other synthetic fuels, include price point, availability and competitiveness compared to conventional jet fuel.
“The key is to scale up not just saf but other synthetic fuels from manufactured chemicals, or fuels that are produced in a non-carbon-generative way," the executive explains. "This requires regulations and government incentives in line with net-zero targets. It also requires ongoing dialogues, as this obviously has a political angle."
Kelly says events like the upcoming Cop28 climate summit and the airshow in Dubai can foster an environment that allows these dialogues and conversations to advance.
Hydrogen fuel
Beyond retrofits and the development of energy-efficient jet engines, Rolls-Royce is also looking at other alternative technologies, such as hydrogen both as a direct fuel source for aircraft as well as for the electrification of transport.
“We have conducted ground tests on engines using hydrogen as a direct fuel source with excellent results. Electrification in airport shuttles and mobility also offers opportunities, leading to shorter commute time or minimising traffic and reducing or eliminating fossil fuel requirement,” explains Kelly.
Air taxis are another area of opportunity, with air taxi engines being tested today.

Kelly reiterates the need for ongoing dialogues with the region’s sovereign wealth funds and regulators, among others, about how existing products across its business can be improved.
“Technology is a route to decarbonise. We have a range of solutions that will be available at different times as we get to net-zero… these solutions offer potential incremental benefits to users and customers.”
New nuclear
Small modular reactors (SMR), or the so-called 'new nuclear', is another non-carbon power resource that Rolls-Royce has up its sleeve.
“We have products that can produce 470MW of electricity, which is another option for a non-carbon power source,” says Kelly.
“On one hand, we try to help enable synthetic fuels for aviation, on the other we also have SMR that helps enable synthetic fuels or enable utility companies and electricity grids to produce non-carbon power.”
While Rolls-Royce supports the development of wind and solar energy, both require tremendous amounts of cement and steel and using SMRs can help alleviate the carbon intensity of these materials and technologies.
“SMRs help scale up synthetic fuel production in a non-carbon-generative way,” says Kelly.
With at least two to three jurisdictions in the Middle East and North Africa region looking at SMRs, Kelly confirms ongoing discussions with those countries.
Related read: Small reactors top nuclear agenda
The confluence of significant growth and the drive to achieve long-term economic programmes such as Saudi Vision 2030, which in turn places a strong focus on manufacturing and development, means Rolls-Royce is on hand to explore partnerships and potential local production for relevant products or technologies.
“We are here to partner… the Rolls-Royce vision is to enable local development and to be able to manufacture globally and foster a global supply chain,” he concludes.
Photos: Rolls-Royce
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Israeli offensive leaves Beirut in limbo5 June 2026
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Kuwait prepares to tender refinery project deal5 June 2026
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Kuwait tenders downstream consultancy contract5 June 2026
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Iraq tenders three cement plant projects5 June 2026
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Israeli offensive leaves Beirut in limbo5 June 2026

Lebanon is being held in economic and political limbo by Israel’s open-ended offensive in the south, which has killed more than 3,500 people since March and is characterised by strategic objectives that offer no clear end in sight.
Political leaders in Tel Aviv are justifying the operation on the grounds of eliminating Hezbollah – a far‑fetched goal against a dispersed guerrilla organisation, as with Hamas in Gaza – while ignoring overtures from Lebanon’s leadership for a ceasefire.
The recently formed Lebanese government, meanwhile, continues to look impotent: unable to secure its territory from Israeli incursions or Hezbollah activity, and unable to deliver on promises of stability, reform, IMF funding and reconstruction.
Echoes of the past
The overarching shape of Israel’s military campaign is ominously familiar, echoing the 1978, 1982, 1985 and 2006 Israeli invasions of southern Lebanon – all entailing creeping encroachment without strategic resolution.
Since fighting resumed on 2 March 2026, Israeli forces have gradually pushed north, crossing north of the Litani for the first time since the 2006 Lebanon war and seizing Beaufort Castle above Nabatieh on 31 May.
Israeli Prime Minister Benjamin Netanyahu has framed the goal as establishing a “security zone” – the same term and concept Israel used to justify the occupation of a roughly 800-square-kilometre belt of southern Lebanon from 1985 to 2000.
That occupation was a debacle for Israel’s military and ended in unilateral withdrawal.
Israeli analysts are already drawing the modern parallels as the cost of holding ground in southern Lebanon rises, driven by Hezbollah’s deployment of cheap fibre‑optic first‑person‑view (FPV) drones that inflict a steady drip of Israeli casualties and losses.
As with Russia in Ukraine, Tel Aviv is being tactically embarrassed by the advent of these fibre‑optic drones, which are immune to jamming and – of particular concern to Israeli forces – are too small to be reliably detected and intercepted by conventional counter‑drone systems.
This leap in Hezbollah’s operational threat – based on cheap technology that can be locally assembled – has sharply raised the price of maintaining a military presence in the country.
In an attempt to exact a retaliatory price, Israel’s air strikes rose by 110% between 19-22 May and 23-26 May as Hezbollah’s drone successes accumulated, according to conflict monitor Acled. But the underlying tactical dilemma remains.
Israeli politicians, irate at the situation, have demanded escalation and intensified strikes on civilian areas, including in Beirut – only to face US pushback.
Tehran as the lever
Planned strikes on Beirut, including on 3 June, have been held off in recent weeks under pressure from Washington after Tehran made Lebanon a bargaining chip in its wider negotiations with the US, repeatedly suspending talks following Israeli escalation in the Levant country.
Tehran has also gone further than walkouts, warning it could respond directly if Israel strikes Beirut – adding an explicit threat of retaliation to diplomatic pressure.
With a Gulf ceasefire and the reopening of the Strait of Hormuz both riding on the outcome, Washington is strongly motivated to keep Israel from striking Beirut.
In this way, Iran is one of the few powers wielding any leverage over Israel’s actions in Lebanon – even if that leverage is a source of discomfort for Lebanon’s leaders, for whom Tehran’s clout contrasts starkly with their own lack of influence.
That protection nevertheless remains narrowly tied to the Lebanese capital, with Washington turning a blind eye to Israel’s ongoing destruction of civilian infrastructure in Lebanon’s south.
Within the border belt that Tel Aviv has dubbed the “yellow line” – amounting to about 7% of Lebanese territory – Israeli forces have accelerated the demolition of villages since the April truce and barred residents from returning.
More than a million people, overwhelmingly Shia from the south and the Bekaa, have been displaced since March, and UN human-rights experts have pointed to the blanket evacuation orders and levelling of housing as mirroring Israel’s conduct in Gaza.
The Lebanese state remains trapped in inaction, partially of its own making. Beirut was initially close to indifferent to renewed strikes on Hezbollah, whose unilateral re-entry into the war it had condemned for endangering the state.
But as the strikes have shifted methodically towards civilian areas, Beirut’s restraint satisfies no one: the domestic audience wants protection, while Israel and the US want decisive Lebanese army action against Hezbollah.
Yet the Lebanese army – still adhering in spirit to the November 2024 ceasefire framework and loath to move seriously against Hezbollah for fear of stoking civil war – has remained aloof from the conflict.
Parliament speaker Nabih Berri, who is close to Hezbollah and maintains dialogue with the group, says it would honour a genuine ceasefire if only Washington could deliver one.
But repeated attempts to shore up the ceasefire have remained conditional on the Lebanese army stepping up to rein in Hezbollah, while failing to guarantee an end to Israel’s destruction of civilian structures in areas it is occupying.
On 3 June, a fourth round of US‑mediated trilateral talks produced a fresh ceasefire announcement, hailed in Washington as a step towards comprehensive peace.
Yet its conditions – a complete halt to Hezbollah fire, the group’s withdrawal south of the Litani and Lebanese army control of undefined “pilot zones”– merely reiterate past failed protocols. The declaration was unsigned by Hezbollah and unenforceable by Beirut.
Within hours, Hezbollah leader Naim Qassem rejected the declaration, stating that any ceasefire must cover the south and begin with Israeli withdrawal, not Hezbollah’s.
Both Israeli strikes and Hezbollah attacks have continued since the ostensible deal.
Recovery on hold
The economic cost to Lebanon, meanwhile, compounds by the day. The country entered 2026 already in crisis: cumulative GDP down close to 40% since 2019, the pound down 98%, public debt at 150% of GDP, and reserves as low as $11bn as of June 2025.
The government of President Joseph Aoun and Prime Minister Nawaf Salam staked its credibility on a long‑deadlocked IMF programme finally unlocking external support. The war has upended this, driving away investment and delaying reform.
The World Bank’s November 2024 assessment – covering only the previous round of fighting, before the March resumption – placed the economic cost at $14bn and recovery needs at $11bn, figures that the current war is now inflating by the day.
Lebanon’s Bank Audi has warned of zero growth this year if the war continues, versus a pre‑escalation projection of reconstruction‑led recovery. Tourism, historically a fifth of the economy and the engine of the 2024 rebound, has been the biggest casualty.
Looking ahead, no reconstruction can be financed while the destruction continues, and no IMF programme can advance while the state cannot ensure stability.
Iran’s leverage may be keeping the bombs off Beirut, but the south’s entrenchment as a war zone is only deepening – with hopes for recovery receding further with every village levelled.
While the costly occupation is imposing a rising political price on the Israeli government that may, in time, bring it to an end, this will be little consolation for those displaced – many of whom now have no communities to return to, and homes built over decades that are gone.
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Saudi Energy commissions 2.5GW battery storage project5 June 2026

Saudi Energy, formerly Saudi Electricity Company, has commissioned a major 2.5GW battery energy storage project across five regions in Saudi Arabia.
The project, which serves power grids in Riyadh, Rabigh, Dawadmi, Jouf and Qassim, completed all grid-tied charging and discharging tests at the end of May, said Chinese supplier NR Electric in a statement.
National Grid Saudi Arabia, a wholly owned subsidiary of Saudi Energy, awarded Saudi firm Alfanar Company and China’s BYD Energy Storage the contract to build and install five battery energy storage system (bess) facilities with a total combined installed capacity of up to 2,500MW, equivalent to a rated capacity of up to 12,500 megawatt-hours, in January 2025.
Alfanar was appointed as the project’s engineering, procurement and construction contractor, while BYD Energy Storage was responsible for the design, supply, supervision of installation, testing and commissioning, and maintenance of the bess plants.
The 12.5 gigawatt-hour (GWh) project is the world’s largest grid-scale energy storage deployment, requiring 2,364 system cabinets in total.
NR Electric said it supplied the project’s grid-forming control technology and more than 2,000 power conversion system units.
The main applications for the planned bess facilities include load shifting, black start, frequency regulation and voltage support.
They are expected to replace part-load operation of existing power plants by charging and discharging electricity according to system load variations and primary and secondary reserves, among other potential applications.
Shenzhen-based BYD previously announced that the five bess plants would take its total deployments in Saudi Arabia to about 15.1GWh.
It deployed its bess products on Saudi Arabia’s first on-grid bess plant in Bisha, one of 17 projects globally with a capacity of over 1GWh that entered operations in 2024.
> Be recognised among the best in the industry at the MEED Projects Awards 2026 …
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Kuwait prepares to tender refinery project deal5 June 2026
State-owned downstream operator Kuwait National Petroleum Company (KNPC) has announced that it is preparing to tender a contract to develop a gauging system for a tank farm at the Mina Al-Ahmadi refinery.
The system will replace an older, now obsolete system at the South Liquid Tank Farm.
The contract will include engineering, procurement, construction, testing and commissioning of the new gauging system.
KNPC is planning to invite 24 companies to participate in the bidding process.
These are:
- JGC Corporation (Japan)
- Almeer Technical Services Co. (Kuwait)
- CTCI Corporation (Taiwan)
- Kellogg Brown & Root (US)
- Kentz Overseas (UAE)
- IMCO Engineering & Construction Company (Kuwait)
- National Petroleum Construction Company (UAE)
- Sinopec Luoyang Engineering (China)
- Sinopec Engineering Incorporation (China)
- Tecnicas Reunidas (Spain)
- SK Ecoplant (South Korea)
- Gulf Spic General Trading & Contracting Company (Kuwait)
- Hyundai Engineering (South Korea)
- Enppi (Egypt)
- Hyundai Engineering & Construction (South Korea)
- Saipem (Italy)
- Technip Energies (France)
- Larsen & Toubro (India)
- Hanwha Engineering & Construction Corporation (South Korea)
- Sinopec Engineering Group (China)
- Samsung E&A (South Korea)
- Daewoo Engineering & Construction (South Korea)
- Fluor (US)
- Hyundai Heavy Industries (South Korea)
If a company has not been included in the list and would like to participate in the tender, it can file a complaint with the chairman of Kuwait’s Higher Purchase Committee within 30 days.
The Mina Al-Ahmadi refinery has been attacked and damaged as part of the regional war that broke out after the US and Israel attacked Iran on 28 February.
Several units were shut down at Kuwait’s largest oil refinery after it was hit by drones and fires broke out in the morning of 20 March 2026.
The refinery normally processes about 730,000 barrels of oil a day.
Kuwait’s oil and gas sector has been severely disrupted by the ongoing regional conflict, which has led to a dramatic drop in crude exports via the Strait of Hormuz.
READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDFGCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.
Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
> AGENDA: Gulf races to reroute trade> EXPORT ROUTES: Regional war boosts oil and gas pipeline project activity> CURRENT AFFAIRS: UAE’s Opec departure fulfils multiple ends> MEED TOP 100: Middle East stocks recover unevenly> LEADERSHIP: Building the infrastructure that makes net zero possible> TRADE DEAL: UK-GCC trade deal talks concludeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17119568/main.gif -
Kuwait tenders downstream consultancy contract5 June 2026
State-owned downstream operator Kuwait National Petroleum Company (KNPC) has tendered a consultancy contract focused on a liquid sulphur degassing facility for four sulphur recovery units at the Mina Al-Ahmadi refinery.
This type of unit removes dissolved hydrogen sulphide and other sulphur compounds from molten sulphur before it is stored, loaded onto trucks, or exported.
This makes the sulphur safer to handle and reduces emissions.
A total of 21 companies have been invited to participate in the tender.
These are:
- Asprofos Single Member Engineering Societe Anonyme (Greece)
- Enereco (Italy)
- EPC Constructions India (India)
- Engineering for the Petroleum & Process Industries (Enppi) (Egypt)
- Gulf Spic General Trading & Contracting Company (Kuwait)
- Heavy Engineering Industries & Shipbuilding Company (Kuwait)
- ILF Consulting Engineers (Austria)
- Larsen & Toubro (India)
- Litwin PEL (UAE)
- Mott MacDonald (UK)
- National Petroleum Construction Company (UAE)
- Penspen International (UK)
- Petro6 Engineering & Construction (India)
- Petrocil Engineers & Consultants Pvt. (India)
- PL Engineering (India)
- Processes Unlimited (US)
- Tebodin (Netherlands)
- Technip Energies France (France)
- Tecnicas Reunidas (Spain)
- Triune Energy Services (India)
- Toyo Engineering Corporation (Japan)
A pre-tender meeting for the project is scheduled for 8 June 2026, and the bid closing date is 25 June 2026.
The Mina Al-Ahmadi refinery has been attacked and damaged as part of the regional war that broke out after the US and Israel attacked Iran on 28 February.
Several units were shut down at Kuwait’s largest oil refinery after it was hit by drones and fires broke out in the morning of 20 March 2026.
The refinery normally processes about 730,000 barrels of oil a day.
Kuwait’s oil and gas sector has been severely disrupted by the ongoing regional conflict, which has led to a dramatic drop in crude exports via the Strait of Hormuz.
READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDFGCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.
Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
> AGENDA: Gulf races to reroute trade> EXPORT ROUTES: Regional war boosts oil and gas pipeline project activity> CURRENT AFFAIRS: UAE’s Opec departure fulfils multiple ends> MEED TOP 100: Middle East stocks recover unevenly> LEADERSHIP: Building the infrastructure that makes net zero possible> TRADE DEAL: UK-GCC trade deal talks concludeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17119564/main.gif -
Iraq tenders three cement plant projects5 June 2026

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The government-owned Iraq Cement State Company (ICSC) has invited companies to bid for three projects to develop cement plants in the country.
The first and second projects are focused on developing two new plants to produce Portland cement, each with a capacity of 6,000 tonnes a day (t/d).
The first facility is due to be developed in the Kufa quarries area in Al-Najaf Al-Ashraf Governorate, and the second is due to be developed in the Mosul district of Iraq’s Nineveh Governorate.
The third project is focused on expanding the existing Hadbaa cement plant, which is also located in the Mosul district.
The scope of this project includes establishing a new dry-process, gas-fuelled line capable of producing 3,200 t/d of ordinary and resistant Portland cement.
Normally, this kind of production line includes a raw mill that grinds and dries the raw materials before they are fed into the kiln.
It also typically includes a preheater, precalciner, rotary kiln, clinker cooler and associated equipment.
The new line needs to be capable of producing cement suitable for dam filling, according to ICSC.
ICSC has invited “Iraqi and Arab investors” to participate in the projects, as well as companies specialised in developing cement plants.
The deadline for submitting bids for all three projects is 23 June 2026.
Iraq’s state-owned cement producer produced more than 676,000 tonnes of cement across its plants in February, with key plants posting double-digit growth compared to production levels in 2025.
Its Kubaisa cement plant produced 37% more than it did in 2025, according to a statement by the company’s director general, Awad Kazem Abd Al-Amir, in April.
Its Qaim plant was producing cement at a rate 17% higher than in 2025, and its Sinjar plant at a rate 14% higher.
Fallout from the regional conflict that broke out after the US and Israel bombed Iran on 28 February has had a significant negative impact on Iraq’s energy sector and wider economy.
It has disrupted a wide range of projects and is likely to create uncertainty about future cement demand in the country.
Prior to the war breaking out, Beijing-based Sinoma won a contract from Iraq’s Nargis Group for engineering, procurement and construction (EPC) work on a 6,000 t/d cement production line in Basra.
Sinoma’s scope of work under the contract, awarded in February, covers the EPC of the complete production system, from raw materials handling and clinker preparation to cement grinding, storage and shipping.
MEED’s June 2026 report on Iraq includes:
> COMMENT: Iraq’s reform window narrows
> GOVERNMENT: Al-Zaidi takes Iraq’s premiership under US shadow
> BANKING: Financial challenge tests Iraq’s resolve
> ECONOMY: Iraq enters era of resilience, reform and rising risks
> OIL & GAS: Iraqi oil and gas sector in crisis
> POWER & WATER: Focus shifts to delivery of Iraq utilities expansion
> CONSTRUCTION: Momentum builds in Iraq’s post-war construction sectorTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17119561/main.jpg
