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
Exclusive from Meed
-
Credit ratings key to infrastructure finance4 August 2026
-
AtkinsRealis confirms Sphere Abu Dhabi role4 August 2026
-
Oman opens door to direct power sales4 August 2026
-
Opec+ agrees sixth straight month of oil output hikes3 August 2026
-
Dewa opens bids for MBR Solar Park phase seven3 August 2026
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
-
Credit ratings key to infrastructure finance4 August 2026
A global convergence in how infrastructure is financed is creating new pools of capital for Gulf projects, but the region’s non-OECD status means credit ratings will be central to unlocking the largest of these, according to Fitch Ratings.
The ratings agency said the boundaries between project finance, corporate credit and structured finance are blurring as investors seek to optimise financing for the infrastructure required to support the digital buildout and energy transition. Rising interest from institutional investors in private credit, particularly asset-backed lending, is accelerating the adoption of tailored financing structures.
For the GCC, the shift is important because of a specific regulatory constraint. Under EU Solvency II rules, unrated infrastructure debt sourced from outside the OECD cannot be treated as qualifying infrastructure. Fitch said this means that for investors seeking to access infrastructure opportunities in Saudi Arabia, India and other non-OECD markets, a credit rating is necessary for regulatory capital treatment.
The distinction is significant for a region running one of the world’s largest project pipelines. Saudi Arabia, the UAE and their neighbours are financing large-scale projects across the power, water, transport and digital infrastructure sectors, and much of the incremental capital Fitch identifies is held by regulated institutions for which ratings determine capital charges.
Insurers pivot
Insurers and pension funds are among the most significant structural sources of infrastructure capital, with global aggregated assets of about $45tn and $40tn respectively. Fitch says their increasing involvement is directly intertwined with the role of credit ratings, as cost-of-duration mismatches within solvency regimes push insurers towards liability-driven investment strategies that better match assets with liabilities.
Insurer allocations to infrastructure have historically been low, at a global median of about 1% of investment portfolios. Fitch said this is changing rapidly. It cited a Nuveen survey conducted at the end of 2025 indicating that private market infrastructure debt is set to be the most favoured destination for fixed-income allocation for the third consecutive year, with 46% of respondents planning to grow allocations over the next two years.
Sovereign wealth funds also play a major role, with over 30% of their private market fund allocations going to infrastructure, with AI-linked infrastructure the dominant sub-theme, displacing transport and logistics for new commitments. Energy transition ranked a close second, often aligned with national strategic objectives.
Larger funds with more than $100bn in assets are deploying directly and through co-investments, bypassing fund structures to reduce fees and increase control. Fitch said such funds are increasingly price-setters in large infrastructure deals, and that their strategic national mandates mean they will absorb assets at returns that pure financial investors would reject.
Regional outlook
For the GCC specifically, Fitch said additional investment is likely to support security enhancements for core infrastructure assets in response to conflict in the region, alongside upgrades to transport and social infrastructure. It expects increased renewable power capacity and enhanced oil and gas-related infrastructure.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.
Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/18079923/main.gif -
AtkinsRealis confirms Sphere Abu Dhabi role4 August 2026
AtkinsRealis has confirmed it has been appointed lead design and supervision consultant on the $1.7bn Sphere Abu Dhabi project on Yas Island.
The Canadian engineering and project management firm said it will partner with local firm Alec Engineering & Contracting on the venue, which is scheduled to open in 2029.
AtkinsRealis will be responsible for overall design coordination across architecture, structural engineering and specialist immersive technologies. Alec – appointed by Abu Dhabi’s Department of Culture & Tourism (DCT Abu Dhabi) – will oversee procurement, construction delivery and project completion.
The project is being delivered under a design-and-build framework.
Alec Holdings confirmed in May that its subsidiary, Alec Engineering & Contracting, had received a letter of award for the construction contract. MEED previously reported that Alec was the selected contractor and had been working on the project during the pre-construction phase.
Sphere Abu Dhabi will be built on Yas Island on a plot between Yas Mall and SeaWorld Abu Dhabi. It will be the first Sphere venue outside the US and is expected to echo the scale of Sphere Las Vegas, with a capacity of up to 20,000, depending on configuration.
The venue will feature a fully programmable LED exosphere and a wraparound interior display capable of delivering 16K-resolution visuals, alongside beamforming audio technology that can direct sound to individual seats.
DCT Abu Dhabi is developing Sphere Abu Dhabi with US-based Sphere Entertainment.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.
Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/18079715/main.jpg -
Oman opens door to direct power sales4 August 2026
Commentary
Mark Dowdall
Power & water editorOman’s Direct Sales Framework has been in place since April, but its success will ultimately depend on whether developers and large electricity users choose to adopt it.
The framework establishes a regulated process that allows qualifying private renewable energy developers to sell electricity directly to eligible consumers, instead of through Oman’s traditional single-buyer model.
For the first time, large electricity consumers have a formal mechanism to procure renewable power directly from developers, rather than relying solely on electricity supplied through the wider grid.
The recently tendered 280MW Marsa solar independent power project could provide an early indication of how the framework will be used in practice.
The project has been identified as a potential early application of the new regime, with electricity generated near Haima expected to be supplied to the Marsa LNG facility at Sohar through Oman’s transmission network.
The framework also requires grid-connection studies, network approvals and annual capacity limits, underscoring that direct sales will continue to operate within a regulated market rather than an open one.
Developers will also need customers willing to sign long-term agreements, while large electricity users will need to see clear value in procuring renewable power directly.
The scale of electricity demand expected over the coming decade will be a key factor in driving these decisions. Large industrial consumers are expected to account for a growing share of Oman’s future electricity demand as mining, green hydrogen, metals and other energy-intensive industries expand.
Oman’s procurement of utility-scale generation through competitive tenders is not slowing down either, as evidenced by recent advisory tenders for up to 4GW of solar projects targeted for commercial operation by Q2 2030.
In the meantime, for some users, securing renewable electricity directly from developers may become an attractive alternative to relying solely on the traditional supply model.
https://image.digitalinsightresearch.in/uploads/NewsArticle/18038648/main.jpg -
Opec+ agrees sixth straight month of oil output hikes3 August 2026
Opec+ has approved an oil production quota increase of around 188,000 barrels a day (b/d) from September, completing the unwinding of a layer of voluntary output cuts by its main member countries.
Due to export disruptions from the Gulf, Russia and Kazakhstan caused by the Iran and Ukraine wars, successive monthly Opec+ output hikes over most of this year have remained largely on paper, with little impact on the market.
The September increase agreed by core Opec+ members – Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman – at a meeting on 2 August completes the phased rollback of a 1.65 million b/d supply cut originally agreed in 2023, when the group still included the UAE, which left Opec in May.
A separate Opec+ meeting of a panel called the Joint Ministerial Monitoring Committee also met on 2 August and reiterated concern about attacks on energy assets during the US-Israeli war on Iran, saying they are expensive and time-consuming to repair and therefore can affect supply.
With September’s output hike now agreed, Opec+ still has one more layer of output cuts in place that applies to most of the group’s members. These roughly 2 million b/d of cuts date back to 2022 and are due to remain in place until the end of this year.
Opec+ is carrying out a review of its members’ oil production capacity that will be used to set the 2027 output baselines from which quotas are calculated.
It faces potentially difficult talks over new production quotas, with some members, including Iraq, pushing for higher individual quotas to reflect their higher capacity.
Opec+ is an alliance of 21 countries, comprising members of Opec along with a group of 10 non-Opec states led by Russia.
In recent years, only the seven core countries – and the UAE until its departure – have been involved in monthly production management.
The seven members will hold their next meeting on 6 September.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.
Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/18043979/main4234.jpg -
Dewa opens bids for MBR Solar Park phase seven3 August 2026

Dubai Electricity & Water Authority (Dewa) has opened bids for the seventh phase of the Mohammed Bin Rashid Al-Maktoum Solar Park.
According to a source, technical and financial offers were opened last month. The utility received bids on 1 July.
Phase seven will add 2,000MW from photovoltaic solar panels and include a 1,400MW battery energy storage system (bess) with a six-hour capacity, providing a total storage capacity of 8,400 megawatt-hours.
It is understood that Saudi Arabia’s Acwa, the UAE’s Etihad Water & Electricity and Abu Dhabi Future Energy Company (Masdar) are among the companies that submitted bids for the project.
The winning bidder “is likely” to come from one of those three, a source told MEED.
As MEED understands, the previously prequalified Electricite de France did not submit a bid for the project.
Dewa completed the prequalification process for the latest phase of the world’s largest single-site solar park in 2025.
As previously reported, 47 firms submitted their responses to Dewa’s expression of interest request for the contract in March 2025. The main tender was issued last November.
The following companies were among those prequalified to submit main contract bids on the project:
- Acwa (Saudi Arabia)
- Abu Dhabi Future Energy Company (Masdar)
- Electricite de France (EDF)
- Etihad Water & Electricity (EtihadWE)
- China Machinery Engineering Corporation
- China Construction Eighth Engineering Division
- Power China
- Larsen & Toubro (India)
- Shanghai Electric Group
The transaction advisory team for the project comprises UK-headquartered Deloitte and US-based CMS and Sargent & Lundy as financial, legal and technical advisers, with Deloitte acting as lead adviser.
Meanwhile, construction on the 1,800MW sixth phase of the MBR Solar Park is nearing completion, with commissioning expected by the end of the third quarter.
Dewa and Masdar reached financial close for the $1.5bn project in 2024. Once completed, the sixth phase will increase the solar park’s total production capacity to 4,660MW.
Dewa increased its flagship solar project’s 2030 installed capacity target by 45% in 2025, from 5,000MW to 7,260MW. This comprises a total investment of AED50bn ($13.6bn).
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.
Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/18031819/main0723.jpg