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
-
Jordan sets market briefing for Amman water PPP10 April 2026
-
-
Masdar’s move abroad will not be the last10 April 2026
-
Turkish firm launches Mecca villas project10 April 2026
-
Kuwait gives bidders more time for Al-Khairan IWPP10 April 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
-
Jordan sets market briefing for Amman water PPP10 April 2026
Jordan’s Ministry of Investment, through its Public-Private Partnership Unit (PPPU), has announced a public information session for the South Amman non-revenue water (NRW) reduction PPP project.
The session will be held on 15 April and is being organised in collaboration with the Ministry of Water & Irrigation and Miyahuna, according to a notice published by the PPPU.
The project covers the southern and southeastern areas of Amman and aims to reduce water losses and improve the efficiency of the capital’s distribution network.
According to the ministry, the scheme will serve about 1.4 million people across 17 zones and forms part of Jordan’s wider National Water Strategy.
The planned market briefing is intended to provide early detail on the project’s PPP structure, procurement pathway and performance-based contracting model.
It is also expected to outline the project’s risk allocation and bankability framework to prospective investors, operators and infrastructure companies.
The Ministry of Investment opened prequalification for the scheme in March.
Qualified companies and consortiums have been invited to participate in a two-stage procurement process for the performance-based contract.
The project aims to reduce NRW levels to 25% by 2040, while modernising and expanding the existing network using smart technologies and advanced leak detection systems.
The original deadline was 23 April. That has since been extended to 12 May.
Jordan is among the most water-scarce countries in the world, and losses from distribution networks are estimated to account for about 45% of water supplied.
The country is also advancing its $6bn Aqaba-Amman water desalination and conveyance project that aims to meet about 40% of Jordan’s municipal water demand by 2040.
As MEED recently reported, the project is nearing financial close. Once complete, it will supply about 300 million cubic metres of potable water a year from the Red Sea to Amman and other regions.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16340931/main.jpg -
OQ allows more time for natural gas liquids project proposals10 April 2026

Omani state energy conglomerate OQ Group has allowed contractors more time to prepare proposals for a major project to build a natural gas liquids (NGL) facility in the sultanate.
The planned NGL facility will extract condensates in Saih Nihayda in central Oman and transport those volumes to Duqm, located along the sultanate’s Arabian Sea coastline, for fractionation and export, OQ Group has said.
OQ Group intends to deliver the project using a front-end engineering and design (feed)-to-engineering, procurement and construction (EPC) competition model.
The state enterprise issued the main tender for the feed-to-EPC competition “earlier in March”, setting an initial deadline of 8 April for contractors to submit proposals, MEED previously reported. The deadline has now been extended to 6 May, according to sources.
MEED previously reported that OQ had started the prequalification process for the feed-to-EPC contest for the planned NGL project in November last year, with contractors submitting responses by 15 December.
The following contractors, among others, are understood to have been invited to participate in the feed-to-EPC contest for OQ’s planned NGL project, sources told MEED:
- Chiyoda (Japan) / CTCI (Taiwan)
- G S Engineering & Construction (South Korea)
- Hyundai Engineering & Construction (South Korea) / KBR (US)
- JGC Corporation (Japan)
- Kent (UAE)
- Petrofac (UK)
- Saipem (Italy)
- Samsung E&A (South Korea) / Larsen & Toubro Energy Hydrocarbon (India) / Wood (UAE)
- Technip Energies (France)
- Tecnicas Reunidas (Spain)
- Tecnimont (Italy)
The scope of work on the project covers the development, verification and integration of feed deliverables for the following facilities and systems:
- NGL extraction facility – Saih Nihayda:
- Verification and updating of the existing feed to enable dual-mode operation (ethane recovery and ethane rejection).
- Identification and implementation of required process, equipment, utilities, and control system modifications.
- NGL Pipeline – Saih Nihayda to Duqm:
Feed for a new approximately 230km NGL transmission pipeline, including routing, hydraulics, stations, pigging facilities, metering, corrosion protection, leak detection, and safety systems.
- Fractionation unit at Duqm:
- Feed for a new fractionation facility to process ethane and propane + NGL and recover propane, butane, condensate, and provision for future ethane recovery.
- Design accommodating licensed or open-art technology and future tie-in to a planned petrochemical project in Duqm.
- Product pipelines, storage and export facilities at Duqm jetty:
- Feed for product pipelines, cryogenic and atmospheric storage tanks, vapour recovery systems, marine loading arms, and export facilities.
- Integration with existing port and refinery infrastructure, where feasible.
- Supporting systems and studies:
Utilities, offsites, flare systems, safety and environmental studies, cost estimates (class 2+10%), project schedules, constructability assessments, and EPC tender documentation.
Natural gas liquids projects
Gulf national oil companies have been allocating significant capital expenditure to building or expanding NGL production facilities.
QatarEnergy, in September last year, awarded the main EPC contract for its project to add a fifth NGL train at its fractionation complex in Qatar’s Mesaieed Industrial City. The aim of the project, which is estimated to be worth $2.5bn, is to build a fifth NGL train (NGL-5) with the capacity to process up to 350 million cubic feet a day of rich associated gas from QatarEnergy’s offshore and onshore oil fields.
The main EPC contract for the QatarEnergy NGL-5 project was won by a consortium of India’s Larsen & Toubro Energy Hydrocarbons Onshore and Greece-headquartered Consolidated Contractors Group.
Separately, the gas processing business of Abu Dhabi National Oil Company (Adnoc Gas) has also selected the main contractor for a project to install a fifth NGL fractionation train at its Ruwais gas processing facility in Abu Dhabi.
The fifth NGL fractionation train will have an output capacity of 22,000 tonnes a day, or about 8 million tonnes a year.
The Ruwais NGL Train 5 project represents the second phase of Adnoc Gas’ ambitious Rich Gas Development (RGD) programme, and its budget value is estimated to be around $4bn, Peter Van Driel, Adnoc Gas’ chief financial officer, confirmed in February. The company expects to achieve final investment decision on the project within the first quarter of 2026, Van Driel said at the time.
ALSO READ: PDO awards Oman gas plant expansion project
https://image.digitalinsightresearch.in/uploads/NewsArticle/16340039/main5958.jpg -
Masdar’s move abroad will not be the last10 April 2026
Commentary
Mark Dowdall
Power & water editorMasdar’s new joint-venture agreement with France’s TotalEnergies will not be the last time we see regional energy investors use strong balance sheets and domestic growth to build larger positions overseas.
For Masdar in particular, the deal broadens its international exposure at a time when investors are asking questions about the Middle East’s geopolitical risk.
By combining portfolios, the two companies start with 3GW of operational capacity and another 6GW in advanced development.
The deal covers nine Asian countries, reflecting a prudent strategy that spreads capital across markets with different risk profiles and growth trajectories.
In Kazakhstan, which already includes 2.6GW of assets under development, there is clear logic behind this move.
The country is expected to see a significant increase in renewable generation over the next decade, supported by strong wind resources and the availability of large land areas for utility-scale developments.
There is also a practical advantage in partnering with TotalEnergies, which already has project delivery experience and an established presence in several of these markets.
The US-Iran ceasefire announced on 8 April has brought some respite to energy infrastructure stakeholders in the region.
For investors and developers, however, the long-term uncertainty remains. Until there is clear evidence of regime change, the removal of sanctions or lasting peace in the region, the outlook will be less clear.
With uncertainty one of the biggest killers of investor confidence, many will now be looking at this agreement and thinking whether they should also follow suit.
READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDFEconomic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.
Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:
> AGENDA: Gulf economies under fire> GCC CONTRACTOR RANKING: Construction guard undergoes a shift> MARKET FOCUS: Risk accelerates Saudi spending shift> QATAR LNG: Qatar’s new $8bn investment heats up global LNG race> LEADERSHIP: Shaping the future of passenger rail in the Middle EastTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16340038/main.jpg -
Turkish firm launches Mecca villas project10 April 2026
Register for MEED’s 14-day trial access
Turkish real estate investment firm Emlak Konut has announced the launch of Hayat Makkah, its first development in Saudi Arabia.
The project is part of the National Housing Company’s (NHC) wider Mecca Gate masterplan.
According to the company, Hayat Makkah will feature 1,014 villas, with home sizes ranging from 150 to 5,000 square metres.
NHC and Emlak Konut signed an investment agreement worth over SR1bn ($266m) in November last year to develop the project.
The agreement was signed on the sidelines of the Cityscape Global 2025 event in Riyadh.
Ertan Keles, chairman of Emlak Konut, said the firm is in talks with stakeholders about launching a second project, while a third development is also being lined up in Jeddah.
GlobalData expects the Saudi Arabian construction industry to grow by 3.6% in real terms in 2026, supported by an increase in foreign direct investment (FDI) and investments in the housing and manufacturing sectors.
The residential construction sector is expected to grow by 3.8% in real terms in 2026 and register an average annual growth rate of 4.7% between 2027 and 2030, supported by the country’s aim – under Saudi Vision 2030 – to increase homeownership from 65.4% in 2024 to 70% by 2030, including by building 600,000 homes by 2030.
According to the General Authority for Statistics, Saudi Arabia attracted a net FDI inflow of SR72.3bn ($19.3bn) in the first nine months of 2025, an increase of 32.7% year-on-year (YoY) compared to the same period in 2024.
Similarly, the total value of real estate loans from banks grew by 11.5% YoY in 2025, preceded by an annual growth of 13.3% in 2024, according to the Saudi Central Bank (Sama).
READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDFEconomic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.
Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:
> AGENDA: Gulf economies under fire> GCC CONTRACTOR RANKING: Construction guard undergoes a shift> MARKET FOCUS: Risk accelerates Saudi spending shift> QATAR LNG: Qatar’s new $8bn investment heats up global LNG race> LEADERSHIP: Shaping the future of passenger rail in the Middle EastTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16340004/main.png -
Kuwait gives bidders more time for Al-Khairan IWPP10 April 2026

Kuwait has extended bidding for the first phase of the Al-Khairan independent water and power producer (IWPP) project.
The project is being procured by the Kuwait Authority for Partnership Projects (Kapp) and the Ministry of Electricity, Water & Renewable Energy (MEWRE).
The facility will have a capacity of 1,800MW and 150,000 cubic metres a day of desalinated water. It will be located in Al-Khairan, adjacent to the Al-Zour South thermal plant.
The new deadline is 30 April. The original deadline was 31 March.
The main contract was tendered last September. Three consortiums and two individual companies were previously prequalified to participate.
These include:
- Abu Dhabi National Energy Company (Taqa) / A H Al-Sagar & Brothers (Saudi Arabia) / Jera (Japan)
- Acwa (Saudi Arabia) / Gulf Investment Corporation (Kuwait)
- China Power / Malakoff International (Malaysia) / Abdul Aziz Al-Ajlan Sons (Saudi Arabia)
- Nebras Power (Qatar)
- Sumitomo Corporation (Japan)
The Al-Khairan IWPP project is part of Kuwait’s long-term plan to expand power and water production capacity through public-private partnerships (PPPs).
The winning bidder will sign a set of PPP agreements covering financing, design, construction, operation and transfer of the project.
The energy conversion and water purchase agreement is expected to cover a 25-year supply period.
Kapp extended another deadline recently for a contract to develop zone two of the third phase of the Al-Dibdibah power and Al-Shagaya renewable energy project.
The PPP authority is procuring the 500MW solar photovoltaic independent power project (IPP) in partnership with the ministry.
The bid submission deadline was moved to the end of April, a source close to the project told MEED.
According to the MEWRE, the total generation capacity currently offered under partnership projects has reached 6,100MW, equivalent to about 30% of Kuwait’s existing power capacity.
The ministry and Kapp are also preparing to tender the main contract for the 3,600MW Nuwaiseeb power and water desalination plant after plans were approved by Kuwait’s Council of Ministers last November.
https://image.digitalinsightresearch.in/uploads/NewsArticle/16339960/main.jpg

