meed-logo

line1 line2 line3
SIGN IN / REGISTER

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

https://image.digitalinsightresearch.in/uploads/NewsArticle/11241190/main4813.jpg
Jennifer Aguinaldo

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

Click here to register
Exclusive from Meed
Related Articles
  • Egypt approves Russian nuclear financing amendment

    4 February 2025

    The Egyptian House of Representatives has approved a report, previously ratified by the North African nation's Energy & Environment Committee, that amends the government financing agreement between Egypt and Russia over the El-Dabaa nuclear power plant in Matrouh.

    The agreement secures a government export loan from Moscow to support the construction of Egypt’s first nuclear power plant.

    According to a local media report, the decree was reviewed by a joint committee that included members of the Energy & Environment Committee, as well as representatives from the Planning & Budget, Economic Affairs and Foreign Relations Committees.

    The amendments to the financing agreement aim to "align the loan's terms with the project's implementation schedule".

    The report did not disclose the nature of the financing amendment that has been approved.

    Financing details

    Egypt and Russia signed the initial inter-governmental agreement for the North African state’s first nuclear facility in November 2015.

    MEED understands that the existing agreement entails an 85:15 project financing split between Russia and Egypt.

    The project is expected to cost between $25bn and $30bn.

    According to industry sources, the funds Russia is providing are payable over 22 years in 43 semi-annual installments, with the first installment due on 15 October 2029.

    MEED understands Egypt can repay the loan in US dollars or Egyptian pounds, whichever suits the Russian party better, and that "a very affordable" 3% annual interest rate applies.  

    The power plant will be equipped with four Russian-designed, 1,200MW VVER reactor units.

    When complete, the El-Dabaa nuclear power plant is expected to generate more than 10% of electricity production in Egypt.

    The plant’s first reactor is scheduled to be operational in 2026.

    Russia’s State Atomic Energy Corporation (Rosatom), the project’s main contractor, announced that it started the production of electrical components in Saint Petersburg for a reactor vessel for the plant in June 2022.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13360633/main.jpg
    Jennifer Aguinaldo
  • Abu Dhabi plans estimated 10GW data centre capacity

    4 February 2025

     

    Abu Dhabi is planning to invest in data centres with a total combined IT load capacity equivalent to an estimated 10,000MW.

    According to industry sources, the locations that are being considered are in Abu Dhabi's Dhafra region, previously known as the Western or Al-Gharbia region, including one close to the Barakah nuclear power plant.

    In addition to the nuclear power plant, which has a total nameplate capacity of 5,600MW, Abu Dhabi's second utility-scale solar photovoltaic (PV) independent power project is located in Al-Dhafra.

    Abu Dhabi National Energy Company (Taqa) is also procuring an open-cycle gas turbine (OCGT) plant to be located in the region. The Al-Dhafra OCGT plant is being tendered on a fast-track basis and is expected to have an installed capacity of 1,000MW-1,100MW.

    State utility offtaker Emirates Water & Electricity Company and Abu Dhabi Future Energy Company (Masdar) have yet to disclose the locations for the gigawatt-scale solar PV and battery energy storage system (bess) plants that they are planning to develop as part of the UAE's national net-zero target and artificial intelligence (AI) strategy.

    The project comprises 5,200MW solar PV and 19 gigawatt-hour (GWh) bess plants that are expected to supply 1,000MW of round-the-clock renewable power.     

    Experts have advised colocating data hyperscale centres, particularly those designed for training AI large-language models that have an electrical output similar to small towns or cities, with power generation sources.

    This helps bypass complex and time-consuming grid connection upgrades and approvals processes and minimises energy waste.

    Data centres designed for inferencing AI models, however, need to be built close to load centres or cities for improved latency.  

    "Lots of data centre project activity in Abu Dhabi at the moment," said a senior technical consultant, who also cautions there might be duplications in terms of these "concept projects".

    Karen Young, senior research scholar at Columbia University’s Centre on Global Energy Policy, also observes the uptick in project activity, as well as in policies directly related to AI and data centres in the UAE.

    "It's a lot to keep track of, and the new doubt that we may be able to do supercomputing with less power and investment, and cheaper inputs, makes the race for energy infrastructure and data centre placement slightly more risky," she tells MEED.

    Related read: DeepSeek complicates regional data centre choices

    "All the same, the UAE has made a strategic decision to lead the space and it changes the global landscape of where this advances and which countries have advantages to control it."

    GCC data centre market

    Over $10.6bn-worth of data centres, some catering to hyperscalers such as Amazon Web Services and Microsoft, are planned to be developed and built in the GCC states, according to the latest available data from regional projects tracker MEED Projects.

    This is a conservative estimate, given potential investments such as the $5bn planned between US asset investment firm KKR and the UAE-based Gulf Data Hub.

    It also excludes spending by government entities to develop AI capabilities in defence, security, healthcare and energy.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13360347/main1606.jpg
    Jennifer Aguinaldo
  • UAE data centre policy highlights AI-energy nexus

    4 February 2025

    Commentary
    Jennifer Aguinaldo
    Energy & technology editor

    The UAE National Team for Reviewing the Impact of Data Centres on the Energy Sector held its inaugural meeting on 3 February.

    The UAE Ministry of Energy & Infrastructure (MoEI)-attached entity was formed to assess the impact of data centres on the domestic energy sector and to work on developing a federal policy aimed at regulating the operation of local data centres.

    Sharif Al-Olama, undersecretary for energy and petroleum affairs at the MoEI, said the formation of the national team is part of the state's strategic efforts towards digital transformation and enhancing sustainability in the energy sector.

    This development follows significant initiatives aligned with the UAE's national artificial intelligence (AI) strategy.

    For instance, Emirates Water & Electricity Company and Abu Dhabi Future Energy Company (Masdar) announced the $6bn "gigawatt-scale" solar photovoltaic (PV) and battery energy storage system (bess) project in Abu Dhabi in mid-January.

    The project, comprising 5,200MW of solar PV and a 19 gigawatt-hour (GWh) bess plant, is expected to provide 1,000MW of round-the-clock, baseload renewable power.

    The UAE leadership has said this project will help advance AI and other emerging technologies while contributing to its 2050 net-zero target.

    Advanced AI models require the construction of hyperscale – large-capacity and low-latency – data centres, which consume large amounts of electricity, impacting consumption, supply, planning and carbon emissions.

    A federal policy could help streamline the entire ecosystem and mobilise plans to ensure no single point of failure once all the planned data centres start operating.

    This move comes a few months after the UAE cabinet approved the state's international AI policy in October, which focuses on advancement, cooperation, community, ethics, sustainability and security.

    In addition to helping shape future standards and guidelines in AI diffusion, the UAE foreign AI policy advocates "transparency and built-in checkpoints within AI tools, enabling governments to enforce ethical standards and implement accountability measures".

    Investors and data centre operators will be watching these evolving policies with great interest to ensure compliance, and to see what impact they might have on capital and operating expenses, if any. 

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13357411/main1654.jpg
    Jennifer Aguinaldo
  • UAE government eyes federal data centre policy

    3 February 2025

    A UAE national team has been formed to assess the impact of data centres on the domestic energy sector and work on developing a federal policy aimed at regulating the operation of local data centres.

    The UAE Ministry of Energy and Infrastructure (MoEI)-attached national team held its first meeting in Dubai, Emirates News Agency (Wam) reported on 3 February.

    At its inaugural meeting, the National Team for Reviewing the Impact of Data Centres on the Energy Sector, explored the development of data centres in the UAE and their influence on the local energy sector.

    The report added: "It also highlighted the challenges facing data centres, ways to make them more sustainable, and the importance of adopting global best practices to ensure efficient operation of these centres".

    Related read: AI chip restriction may slow down GCC data centre boom

    The team is tasked with a"nalysing and reviewing the impact of data centres on energy demand, evaluating the local market and projected economic return for this key sector, identifying all data centres in the country and classifying them according to specific standards".

    The team will also conduct a geographical study of the distribution of current and future data centres to ensure optimal infrastructure distribution, perform benchmark comparisons to review global best practices in data centres, and work on developing a federal policy aimed at regulating the operation of local data centres.

    Sharif Al-Olama, Undersecretary for Energy and Petroleum Affairs at MoEI and Saif Ghubash, assistant undersecretary for Petroleum, Gas, and Mineral Resources at MoEI participated in the meeting, along with key team members from various ministries including the Ministry of Industry and Advanced Technology, the Ministry of Climate Change and Environment, the Telecommunications and Digital Government Regulatory Authority, the Artificial Intelligence, Digital Economy, and Remote Work Applications Office, among others.

    Related read: AI underpins 5GW Abu Dhabi solar project

    During the meeting, Al-Olama underscored the importance of collaboration among member entities to achieve the team's objectives, including adopting innovative solutions to reduce energy consumption and enhancing the operational efficiency of data centres.

    He added that the formation of the National Team is part of the country's strategic directions towards digital transformation and enhancing sustainability in the energy sector.

    He emphasised the need to develop innovative solutions to ensure a balance between the demands of technological development and the sustainability of energy resources in alignment with national goals.

    Al-Olama also highlighted the importance of establishing a comprehensive framework that includes analytical studies and clear recommendations based on accurate data, which will contribute to making strategic decisions capable of achieving the country's energy goals, particularly in clean and renewable energy.

    Close to $2bn worth of data centre projects are under construction in the UAE, according to latest available MEED Projects data.

    Over $10.6bn-worth of data centres, some catering to hyperscalers such as Amazon Web Services and Microsoft, are planned to be developed and built across the GCC states.

    Photo credit: Wam

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13357025/main.jpg
    Jennifer Aguinaldo
  • Saudi Arabia invites bids for 2GW battery IPPs

    3 February 2025

     

    Register for MEED's 14-day trial access 

    Principal buyer Saudi Power Procurement Company (SPPC) has invited prequalified firms to bid for the contracts to develop the first phase of independent battery energy storage system (bess) projects in Saudi Arabia.

    The group one bess – also called independent storage provider (ISP) – projects will be developed using a build, own and operate (BOO) model.

    They comprise the following schemes with a total combined capacity of 2,000MW, which equates to about four hours or 8,000 megawatt-hours (MWh) of storage:

    • Al-Muwyah bess ISP: 500MW (Mecca)
    • Haden bess ISP: 500MW (Mecca) 
    • Al-Khushaybi bess ISP: 500MW (Qassim)
    • Al-Kahafa bess ISP: 500MW (Hail)

    MEED understands a bidders conference is set for 17 February, to be followed by site visits.

    The principal buyer expects to receive the letters of intention by April and the proposals by 2 June.

    The following 21 companies have been prequalified to bid for the contracts as managing or technical partners:

    • Abu Dhabi Future Energy Company (Masdar, UAE)
    • Abu Dhabi National Energy Company (Taqa, UAE)
    • Acwa Power (local)
    • Akaysha Energy (Australia)
    • China Energy Overseas Investment Company (CEECOIC, China)
    • China Power Engineering Consulting Group International Engineering (China)
    • China Southern Power Grid International (HK) Company (CSGIHK)
    • Cox Energy (Spain)
    • EDF (France)
    • Envision Energy (China)
    • FRV-X Renewable (Spain)
    • International Power (Engie, France)
    • Jera Nex (Japan) 
    • Jinko Power (Hong Kong) 
    • Korea Electric Power Corporation (Kepco, South Korea)
    • Marubeni Corporation (Japan)
    • Pro-Power Investment (China)
    • Samsung C&T Corporation (South Korea)
    • SPIC Huanghe Hydropower Development Company (China)
    • TotalEnergies Renewables (France)
    • X-Elio Energy 

    The following firms may bid as technical partners:

    • Al-Gihaz Holding Company (local)
    • Al-Jomaih Energy & Water Company (local)
    • Alfanar Company (local)
    • FAS Energy (local)
    • GCL Intelligent Energy (Suzhou, China)
    • Gulf Energy Development Public Company (Thailand)
    • Nesma Renewable Energy (local)
    • Posco International Corporation (South Korea)
    • Power Construction Corporation of China (PowerChina) 
    • Saudi Electricity Company (local)
    • Shell Overseas Investment (UK)
    • Sumitomo Corporation (Japan)

    The successful bidders will hold 100% equity in the special purpose vehicle (SPV) set up to develop and operate each ISP.

    The SPVs will enter into a 15-year storage services agreement with the principal buyer.

    According to SPPC, the energy storage programme will enable the kingdom’s energy mix to contain 50% renewable energy by 2030 while enhancing the reliability and resilience of the electric power system.

    MEED reported in May last year that SPPC was several months away from seeking developers’ interest in the contract to develop and operate the 2,000MW first phase of an energy storage system catering to the kingdom’s electricity grid.

    It is understood that SPPC plans to procure up to 10,000MW of bess capacity by 2030.

    The planned bess facilities are to be built near demand centres. As more renewable energy enters the electricity production mix, they will boost the grid’s spinning reserves.

    Bess comprises rechargeable batteries that can store and discharge energy from various sources when needed. It is one of the key solutions being considered to address the intermittency of renewable energy sources.

    US/India-based Synergy Consulting is advising SPPC on the energy storage capacity procurement programme.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13356657/main4004.jpg
    Jennifer Aguinaldo