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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Power market reshapes contractor landscape
16 October 2025
Commentary
Mark Dowdall
Power & water editorRegister for MEED’s 14-day trial access
The number of UAE-based power projects awarded under the traditional engineering, procurement and construction (EPC) model has fallen to its lowest level in the past decade.
Admittedly, this does not include the Covid year of 2020, but the point stands. Across the GCC, capital is still flowing into the sector at record levels. What has changed is how that capital is being deployed.
In a recent analysis, I revealed 2025 to be a record-breaking year, with the UAE’s power market recording its highest annual total for contract awards on record. Yet instead of a broad spread of smaller contracts, governments and utilities are concentrating investment in fewer larger and more complex schemes that are reshaping how the region’s energy systems are built and financed.
In 2025, a single solar and battery storage independent power project (IPP) in Abu Dhabi accounts for 67% of the country’s total power contract value. EPC contracts, once the mainstay of the market, have been eclipsed by developer-led models as the preferred route for large-scale power generation.
Saudi Arabia is moving in the same direction, albeit at a different pace. While EPC work remains central to grid expansion, the kingdom’s largest investments are now in utility-scale IPPs backed by the Public Investment Fund.
In my recent annual ranking of private power developers across the GCC, the surge in power generation capacity owned by Saudi Arabia’s Acwa Power was telling. Not only did the firm’s net equity grow by 70% in a single year, but it now eclipses the combined equity of the other leading developers in the region, a direct result of its dominant role in PIF-backed schemes. These projects, including multi-gigawatt solar and wind developments, are redefining the scale and structure of procurement.
Behind this shift is a combination of market maturity, financing strategy and energy transition goals. Developer-led projects concentrate capital and risk in fewer hands, streamline procurement timelines and align closely with long-term policy objectives.
For governments, they deliver capacity without requiring large upfront capital commitments. For developers, they offer stable, long-term returns through secure offtake agreements.
But this concentration also narrows the field of opportunity. Where dozens of smaller EPC packages once supported a broad ecosystem of contractors and suppliers, today’s market is increasingly revolving around a handful of mega deals.
Competition is intensifying for fewer projects, and entry barriers, ranging from balance sheet strength to technical capabilities, are rising.
Smaller EPC contractors, once central to power delivery across the GCC, risk being pushed to the margins. Some will adapt by partnering with larger developers, but others may find fewer opportunities to participate.
Which takes me back to the UAE. In the water sector, 2026 is already shaping up to be a landmark year, with nearly $31bn-worth of projects in tender. A single project, Dubai’s $22bn Strategic Sewerage Tunnel scheme, accounts for over 70% of this total.
It will follow a public-private partnership (PPP) delivery model that consolidates the entire scope under one consortium, streamlining delivery. However, this approach significantly reduces the number of prime contracting opportunities, with smaller EPC firms more likely to find themselves competing for limited subcontracting roles rather than leading bids.
It is important to note that while large-scale projects tend to dominate during major build-out phases, attention inevitably turns to smaller, more distributed schemes.
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Saudi crown prince launches King Salman Gate project
16 October 2025
Register for MEED’s 14-day trial access
Saudi Arabia's Crown Prince, Mohammed Bin Salman Bin Abdulaziz Al-Saud, has launched a mixed-use development in Mecca known as King Salman Gate.
The project will have a gross floor area of over 12 million square metres (sq m) and will be adjacent to the Holy Mosque in Mecca.
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HRH Crown Prince announces the launch of #King_Salman_Gate, a transformative multi-use development in the Holy City of Makkah. pic.twitter.com/JLxCi8J50W
— Public Investment Fund (@PIF_en) October 15, 2025
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In an official statement published by the Saudi Press Agency, the firm said: "The project will also restore and develop approximately 19,000 sq m of heritage sites, preserving Mecca’s cultural and historical legacy. The project will contribute to Saudi Vision 2030’s goals of economic transformation through generating more than 300,000 jobs by 2036."
The statement added: "The company aims to support the PIF’s strategy by advancing urban development around the Al-Masjid Al-Haram to establish Mecca as a global benchmark for real estate development."
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Local firm wins Oman wastewater consultancy deal
16 October 2025
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Muscat-based Monenco Consulting Engineers has been appointed as the consultant for a major wastewater network upgrade and extension project in Dhofar Governorate in Oman.
The three-year contract was awarded by Nama Dhofar Services, a subsidiary of state-owned Nama Group responsible for elecricity, water and wastewater services in the southern Omani governorate.
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Wood Group CEO to step down following takeover deal
16 October 2025
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Ken Gilmartin has informed the board of directors of Wood Group of his intention to step down from his position as group CEO of the company and as a director on its board, according to a statement from the UK-based engineering company.
The announcement comes less than two months after Wood agreed to a $292m conditional takeover bid from Dubai-based Sidara.
Gilmartin will step down after an upcoming shareholder vote on the Sidara transaction and until then will remain in post to support an orderly transition, according to a statement from Wood.
Iain Torrens, currently the company’s interim group chief financial officer (CFO), will take on the role of CEO following Gilmartin’s departure.
A process is under way to identify a new CFO and further announcements will be made in due course on that appointment and the timing of Gilmartin’s departure, Wood said.
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Commenting on the departure of Gilmartin and the appointment of Torrens, Franklin was quoted in the Wood statement as saying: “We are pleased to announce the appointment of Iain as Wood’s new CEO. Since joining the company earlier this year, Iain has demonstrated experience, leadership and decisiveness to guide the business through a very challenging period.
“The board is confident he is well-placed to lead the company into its next chapter.”
In June, Wood announced the appointment of Nick Shorten as the new executive vice-president of the company's projects business unit.
Wood in Mena
As of February, Wood Group employed 35,000 people across about 60 countries, many in consulting and engineering roles.
In the Middle East, the company has project contracts in Iraq; Kuwait; Oman; Qatar; Saudi Arabia; and the UAE, where it has opened its third office in Sharjah.
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Saudi firm signs $5.4bn oil and gas contract in Algeria
15 October 2025
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Algeria's national oil and gas company Sonatrach and Saudi Arabia-based Midad Energy have signed a hydrocarbons exploration and production sharing agreement related to Algeria’s Illizi South block.
The agreement is valued at $5.4bn and has a duration of 30 years, with the option to be extended for an additional 10 years, according to a statement by Sonatrach.
This contract was signed by Sonatrach CEO Rachid Hachichi and the CEO of Midad Energy North Africa, Sheikh Abdelilah Ben Mohamed Ben Abdellah Al-Aiban, at Sonatrach’s headquarters in Algiers.
The investments for exploration and exploitation of the block, which is located about 100 kilometres south of In Amenas, will be financed entirely by Midad Energy and include $288m allocated for research investments.
The contract has a research period of seven years and was singed within the framework of Algeria’s Law 19-13 for hydrocarbons, which came into effect in December 2019.
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In a statement, Sonatrach said: “The work programme associated with this contract will be implemented in strict compliance with environmental protection requirements and in accordance with applicable Algerian regulations.
“This programme also includes the use of the latest technological and digital solutions,” it added.
Projected production from the Illizi South offshore development by the end of the contractual period is estimated at 993 million barrels of oil equivalent, including 125 billion cubic metres of marketable gas and 204 million barrels of liquid fuels.
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