Top 10 UAE clean energy projects

18 October 2023

 

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The UAE is expected to showcase its growing green credentials at the Cop28 climate summit, which starts on 30 November in Dubai.

In addition to gradually phasing out fossil fuel subsidies and eliminating methane flaring, UAE-based energy and utility companies have mobilised multibillion-dollar public and private investments in utility-scale clean and renewable energy plants, reverse osmosis technology-based water desalination plants and carbon capture, utilisation and storage (CCUS) projects.   

These projects aim to reduce harmful emissions – mainly carbon dioxide – offsetting the environmental impact of the country’s oil industry while it aims to meet its nationally determined contributions (NDCs) for the Paris Agreement, its energy diversification agenda set in 2017, as well as its 2050 net-zero target.

Barakah nuclear power plant

Three of the four reactors at the $29bn Barakah nuclear power plant, located close to the UAE’s border with Saudi Arabia, are operational. Each unit can produce 1,400MW of electricity. The UAE is also looking for opportunities to export its nuclear expertise by investing in and developing nuclear power plants overseas.

Mohammed bin Rashid al-Maktoum Solar Park

The UAE’s first and largest solar photovoltaic (PV) installation is located 50 kilometres away from the Cop28 venue. Nearly all the first five phases of the solar park are operational, with a total combined installed capacity of more than 2.4GW. The project’s fourth phase, probably the world’s largest hybrid solar PV and concentrated solar power plant, is nearing completion. The contract to develop the project’s sixth phase, which is designed to have an installed capacity of 1.8GW, has been awarded this year.

Sweihan and Al-Dhafra solar power plants

Abu Dhabi’s first solar PV plant, the 935MW Sweihan independent power project (IPP), began operating in 2019. The UAE capital’s second utility-scale solar PV IPP in Al-Dhafra, which has a capacity of 1.5GW, is expected to be inaugurated imminently. Emirates Water & Electricity Company (Ewec) received world-record-low tariffs, as has Dubai Electricity & Water Authority (Dewa), for these projects.

Taweelah reverse osmosis facility

With a capacity of 200 million imperial gallons a day, the plant is the world’s largest reverse osmosis-based water desalination facility. Half of the plant’s capacity was completed in 2022, with the other half now in the final commissioning stage. Taweelah is the country’s first independent water producer project, which resulted from the drive to decouple water and power production as a key initiative to decarbonise both sectors.

Reyadah CCUS

Abu Dhabi National Oil Company (Adnoc) and Abu Dhabi Future Energy Company (Masdar) have been operating the Al-Reyadah carbon capture, utilisation and storage (CCUS) facility since 2016. It can capture up to 800,000 tonnes a year (t/y) of carbon dioxide. About 240,000 tonnes of carbon dioxide (CO2), collected by Al-Reyadah from Emirates Steel Industries, has been injected into Adnoc's reservoirs at its Rumaitha and Bab oil fields to bolster oil recovery.

The project is in line with Adnoc’s commitment to decarbonise its operations, reduce its carbon intensity by 25 per cent by 2030, and deliver on its net zero by 2045 goal. Adnoc estimates the volume of CO2 being locked away underground daily through CCUS deployment across its reservoirs is equivalent to the emissions of more than 1 million vehicles.

Habshan CCUS

Adnoc Gas recently awarded UK-headquartered Petrofac the main contract for a project to develop a $615m carbon capture facility at its Habshan gas processing complex in Abu Dhabi. The Habshan CCUS facility will have the capacity to capture and permanently store 1.5 million t/y of CO2 within geological formations deep underground.

The Habshan CO2 recovery project will be built, operated and maintained by Adnoc Gas and is expected to be commissioned in 2026. The proposed facility will feature carbon capture units at the Habshan gas processing plant, pipeline infrastructure and a network of wells for CO2 injection into oil and gas fields in Abu Dhabi.

Captured CO2 will be permanently stored in reservoirs deep in the sub-surface by deploying closed-loop CO2 capture and reinjection technology at the well site at Adnoc Onshore’s Bab Far North Field, located about 240 kilometres southwest of Abu Dhabi city.

Street lighting PPP

Abu Dhabi awarded two public-private partnership (PPP) contracts in 2020 and 2022 to replace over 176,000 street lights with LED lights. The first phase of the 12-year PPP project is designed to save the municipality AED264m ($71.9m), while the larger second phase is designed to result in cost savings amounting to close to $200m. The project's phase two aims to reduce power consumption by 74 per cent over the 12-year concession period, equivalent to almost 2,400 million kilowatt hours of electricity savings.

Green data centre

Work is progressing on the first phase of the 100MW data centre powered by solar energy at Mohammed bin Rashid al-Maktoum Solar Park in Dubai. Hub Integrated Solutions (Moro Hub), a Dewa subsidiary, is the project client. The data centre is envisaged to become the largest solar-powered Uptime Tier 3-certified data centre in the Middle East and Africa, offering digital products and services based on fourth industrial revolution technologies, such as cloud services. The project supports the emirate’s goal of achieving net-zero carbon emissions by 2050 and the UAE 2031 Artificial Intelligence Strategy.

Hydrogen pilot site

Dewa, in partnership with Expo 2020 Dubai and Germany’s Siemens Energy, inaugurated the AED50m ($14m) green hydrogen plant at Dubai’s Mohammed bin Rashid al-Maktoum Solar Park in 2021. The integrated facility was developed with electrolysis, storage and re-electrification capabilities. Daylight solar power from the solar park will enable the pilot project to produce about 20.5 kilograms an hour of hydrogen at 1.25MW of peak power.

Large green hydrogen projects

There is an expectation that the Abu Dhabi Department of Energy will issue the UAE capital's green hydrogen policy before the start of, or during, the Cop28 climate summit. If this happens, planned green hydrogen projects worth at least $12bn could see rapid progress.

These projects include the 150MW green hydrogen-based ammonia production plant in Ruwais being developed by France's Engie and Abu Dhabi's Fertiglobe and Masdar; the $1bn green ammonia facility being planned by a South Korean-led consortium in Khalifa Economic Zones Abu Dhabi (Kezad); and the Masdar City green hydrogen and sustainable aviation fuel project being developed by Masdar, France's Total Energies, Germany’s Siemens Energy and Japan's Marubeni Corporation.

Other projects that are likely to be highlighted include the planned 400MW battery energy storage system in Abu Dhabi and the seawater reverse osmosis facilities that are under construction or in the bid phase across the UAE. 

Projects to retrofit public buildings to improve their sustainability, and the adoption of district cooling and electric vehicle policies, among others, will also likely share the spotlight as the UAE prepares to host its most important event of 2023.

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Jennifer Aguinaldo
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    Abu Dhabi National Energy Company (Taqa) completed its full 2024 fiscal year with a net income of AED7.1bn ($1.9bn) on the back of revenues that reached AED55.2bn.

    The previous year’s net income is only 1.5% higher compared to the prior year, excluding one-off items worth AED10.8bn related to the acquisition of a 5% stake in Adnoc Gas and AED1.1bn deferred tax charge due to the introduction of the UAE corporate tax.

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    This was offset by the repayment of AED3.5bn in matured corporate bonds, AED2.9bn in scheduled loan repayments and AED500m of other minor movements.

    Some of the firm’s highlights in 2024 included merging Abu Dhabi Distribution Company (ADDC) and Al-Ain Distribution Company (AADC) into one brand, known as Taqa Distribution.

    Taqa also continued to focus on Saudi Arabia, having reached financial close with its partners last year for the Juranah independent strategic water reservoir project and the Najim cogeneration plant project.

    Along with partners Japan’s Jera and the Saudi firm Albawani, Taqa signed two 25-year power-purchase agreements with the Saudi principal buyer last year for the Rumah 2 and Nairiyah 2 combined-cycle gas turbine power plants, which have a combined generation capacity of 3.6GW.

    Global expansion

    Last year, Taqa acquired a 50% stake in US-based Terra-Gen Power Holdings II, while in Europe and through Abu Dhabi Future Energy Company (Masdar), it completed the acquisition of Saeta Yield from Brookfield Renewable.

    Masdar and Spain’s Endesa finalised a partnership agreement last year, with Masdar acquiring a 49.99% stake in EGPE Solar, an Endesa subsidiary. Masdar also acquired Greece’s Terna Energy, which had an operating capacity of 1.2GW at the time of acquisition and is targeting 6GW of operational renewable capacity by 2029.

    Oil and gas

    In terms of the firm’s oil and gas business, it concluded the sale of its stake in the Atrush oil field in the Kurdish Region of Iraq in 2024.

    The firm said it is also making “significant progress” in the UK, transitioning its focus towards safe and efficient decommissioning.

    The firm ended production in the Northern North Sea with the cessation of production at its North Cormorant, Cormorant Alpha, Eider and Tern platforms.

    Onshore gas production in the Netherlands also ceased in 2024, 50 years after the start of production in the Dutch Alkmaar region, said Taqa. 

     

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    13 February 2025

     

    Saudi Aramco and Korea Electric Power Corporation (Kepco) are understood to be undertaking talks to expand the capacity of the $500m Jafurah cogeneration independent steam and power plant (ISPP) in Saudi Arabia.

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    The oil giant issued the letter of award to Kepco for the contract to develop the Jafurah ISPP scheme in July 2022.

    The South Korean utility developer and investor saw off competition from two Saudi-headquartered firms, Acwa Power and Al-Jomaih, to win the contract.

    Kepco subsequently awarded South Korea’s Doosan Heavy Industries & Construction the project’s engineering, procurement and construction (EPC) contract.

    US/India-based Synergy Consulting provided financial advisory services to Kepco on its bid.

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  • Ewec invites Al-Sila wind bids

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    Abu Dhabi state offtaker Emirates Water & Electricity Company (Ewec) has invited prequalified developers to submit their proposals for a contract to develop a 140MW wind power project in Abu Dhabi.

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    In October last year, Ewec and Abu Dhabi Future Energy Company (Masdar) signed a power-purchase agreement for several wind power plants in Abu Dhabi and Fujairah, with a combined capacity of over 100MW.

    Their locations and capacities are:

    • Sir Baniyas Island (Abu Dhabi): 45MW
    • Delma Island (Abu Dhabi): 27MW
    • Al-Sila Abu Dhabi: 27MW
    • Al-Halah (Fujairah): 4.5MW

    Masdar developed the 103.5MW wind power projects, which use “the latest technology and innovation to capture low wind speeds at utility scale, adopting advances in material science and aerodynamics to make wind power possible in the country”.

    The Al-Sila wind farm takes the total number of IPPs under various procurement stages in Abu Dhabi to six. The other schemes are:

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    • Al-Khazna solar IPP: 1,500MW
    • Al-Zarraf solar IPP: 1,500MW
    • Battery energy storage system (Bess) 1: 400MW

    These IPPs have a total combined capacity of over 7,000MW. 


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    Contractors have submitted proposals to build a manufacturing facility in Riyadh for Chinese computer maker Lenovo.

    MEED understands that the proposals for the project, known as the Oasis Project, were submitted on 10 February.

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    The funding will also support Lenovo in establishing a regional headquarters for the Middle East and Africa market in Riyadh. The headquarters will include customer centres, research and development centres, and manufacturing facilities for personal computers and servers.

    In February last year, the PIF unveiled its $100bn capital-backed company Alat, which aims to transform Saudi Arabia into a global hub for electronics and advanced industries. 

    The company aims to create 39,000 direct jobs and achieve a direct non-oil GDP contribution of $9.3bn in Saudi Arabia by 2030.

    It was reported that Alat would have seven business units focusing on areas such as semiconductors, artificial intelligence, next-generation infrastructure, and smart appliances and smart buildings.

    According to the PIF, Alat will manufacture more than 30 product categories, including robotic systems, communications systems, advanced computers and digital entertainment products, as well as advanced heavy machinery used in construction, building and mining.

    Alat is expected to focus on providing sustainable manufacturing solutions for international companies by accessing clean energy resources in Saudi Arabia to reach carbon-neutral goals by 2060, while the PIF’s own goal is to be carbon-neutral by 2050.

    According to GlobalData, China is the largest producer of laptops, manufacturing a significant portion of the world’s supply. In recent years, it has faced challenges due to supply chain disruptions, including the impact of the Covid-19 pandemic and geopolitical tensions, particularly affecting markets like Ukraine and Russia.

    Following China, the US also plays a crucial role in laptop production, with major companies like Dell and HP operating extensively within the country. South Korea, Japan and Taiwan are also notable players in the laptop manufacturing sector.

    South Korea is reported to produce about 20% of the global supply of semiconductors, which are essential for laptop production, while Taiwan is recognised for its advanced semiconductor manufacturing capabilities. Additionally, India is working to enhance its domestic laptop production, although it currently imports over 80% of the laptops in use.

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    Saudi Arabia’s Matarat Holding, through the National Centre for Privatisation & PPP (NCP), invited firms to express interest in bidding for the contract in early December.

    The international and local firms that expressed their interest are: 

    • Abdul Ali Al-Ajmi Company (local)
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    • Al-Jaber Contracting (local)
    • Al-Modon Al-Arabia Company (local)
    • Al-Rashid Trading & Contracting Company (local)
    • Al-Sharif Contracting & Commercial Development (local)
    • Al-Yamama Company for Trading & Contracting (local)
    • Al-Ayuni Investment & Contracting Company (local)
    • Alghanim International General Trading & Contracting (Kuwait)
    • Almabani General Contractors (local)
    • Almansouryah Company General Contracting (local)
    • AlMozaini Real Estate (local)
    • Almutlaq Real Estate Investment Company (local)
    • Alternative Resources Investment 
    • Annasban Group (local)
    • Asyad Holding Company (local)
    • AVIC-KDN Airport Engineering (China)
    • Bangalore International Airport (India)
    • Binladin International (local)
    • Bouygues Batiment (France)
    • CACC International Engineering 
    • China Harbour Engineering Company (China)
    • Surbana Consultants (Singapore)
    • Buna Al-Khaleej Contracting (local)
    • China National Aero-Technology International Engineering Corporation (China)
    • China Railway Construction Corporation (China)
    • Clavrix (US) 
    • Consolidated Contractors Company (Greece)
    • Contrax International (UAE)
    • Corporacion America Airports (Luxembourg)
    • Currie & Brown (UK)
    • DAA International (Dublin Airport Authority, Ireland)
    • Dar Al-Handasah Consultants (Shair & Partners, Lebanon) 
    • DG Jones & Partners (UAE)
    • EB Cornerstone (UK)
    • Edgenta Arabia (Malaysia)
    • Egis Project (France)
    • Enzar Company for Operation & Maintenance (local)
    • Erada Advanced Projects (local)
    • EXP Arabia (Canada)
    • FAS Energy (local)
    • Ghesa Ingeniera Technologia (Spain)
    • GMR Airports (India)
    • Gulf Investment Corporation (Kuwait)
    • Haji Abdullah AliReza & Company (local)
    • IC Ictas (Turkiye)
    • Indiza Airport Management (South Africa)
    • Innovative Contractors for Advanced Dimensions (ICAD, local)
    • International Energy (local)
    • Kalyon Insaat (Turkiye)
    • Kolin Insaat (Turkiye)
    • Korea Airports Corporation (South Korea)
    • Koushan Real Estate Development Company (local)
    • Lamar Holding (local)
    • Limak Insaat (Turkiye)
    • Lynx Contracting Company (local)
    • Mada International Holding Company (local)
    • Makyol Insaat (local)
    • Manchester Airport Group (UK)
    • Middle East Tasks (local)
    • Modern Airports (local)
    • Mota-Engil (Portugal)
    • Mowah Company (local)
    • Munich Airport International (Germany)
    • Namaya Investment Company (local)
    • Nasser Abdullah Abu Sarhad (local)
    • National Transportation Solution Company (local)
    • Nesma & Partners (local)
    • Nesma Company (local)
    • Pini Group (Switzerland)
    • Ports Projects Management & Development Company (local)
    • Salso & Associates (Greece)
    • Samsung C&T Corporation (South Korea) 
    • Sarh Developments (local)
    • Saudi Arabian Trading & Construction Company (local)
    • Saudi Binladin Group (local)
    • Saudi Building Technic Maintenance Company (local)
    • Skilled Engineers Contracting (local)
    • Sumou Real Estate Company (local)
    • Tamasuk Holding Company (local)
    • Tatweer Buildings Company (local)
    • Tav Airports Holding (Turkiye)
    • Technical Development Company for Contracting (local)
    • Terminal Yapi Ve Ticaret (Turkiye) 
    • Vantage Group (Australia)
    • Vision International Investment Company (local)
    • WCT International (Malaysia)
    • Zamil Group (local)

    The new Taif International airport will be located 21 kilometres southeast of the existing Taif airport, with a capacity to accommodate 2.5 million passengers by 2030.

    The clients opted for a 30-year build-transfer-operate (BTO) contract model, including the construction period.

    In addition to a new airport terminal, the proposed design features a runway with a full-length parallel taxiway connecting to a single commercial apron.

    The scope includes facility buildings, utility networks, car parks and access roads, as well as provisions for additional expansions to meet future subsystem requirements.

    The new Taif International airport is expected to meet the projected increase in demand by 2055 and contribute to the economic development of Taif city and its surrounding areas, in line with the kingdom’s National Aviation Strategy.

    It is also expected to meet the needs of Umrah pilgrims as a viable alternative within the region’s multi-airport system, which includes King Abdulaziz Airport in Jeddah, Prince Mohammed Bin Abdulaziz Airport in Medina and Prince Abdulmohsen Bin Abdulaziz Airport in Yanbu.

    Other airport PPPs

    In addition to the Taif International project, three other airports comprise the first stage of Saudi Arabia’s latest plan to modernise and privatise its international and domestic airports.

    The other planned airport public-private partnership (PPP) schemes are in Abha, Hail and Qassim.

    Matarat and NCP recently tendered the contract to develop and operate a new passenger terminal building and related facilities at Abha International airport. They expect to receive bids by April.

    Located in Asir province, the first phase of the Abha International airport PPP project is set for completion in 2028. It will increase the airport terminal area from 10,500 square metres (sq m) to 65,000 sq m. 

    The contract scope includes a new rapid-exit taxiway on the current runway, a new apron to serve the new terminal, access roads to the new terminal building and a new car park area. The scope also includes support facilities such as an electrical substation expansion and a new sewage treatment plant.

    The transaction advisory team for the client on the Abha airport PPP scheme comprises UK-headquartered Deloitte and Ashurst as financial and legal advisers, respectively, and ALG as technical adviser.

    Previous tenders

    The Taif, Hail and Qassim airport schemes were previously tendered and awarded as PPP projects using a BTO model.

    Saudi Arabia’s General Authority of Civil Aviation (Gaca) awarded the contracts to develop four airport PPP projects to two separate consortiums in 2017.

    A team of Tukey’s TAV Airports and the local Al-Rajhi Holding Group won the 30-year concession agreement to build, transfer and operate airport passenger terminals in Yanbu, Qassim and Hail.

    A second team, comprising Lebanon’s Consolidated Contractors Company, Germany’s Munich Airport International and local firm Asyad Group, won the BTO contract to develop Taif International airport.

    However, these projects stalled following the restructuring of the kingdom’s aviation sector.

    Saudi Arabia has already privatised airports, including the $1.2bn Prince Mohammed Bin Abdulaziz International airport in Medina, which was developed as a PPP and opened in 2015.

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    Jennifer Aguinaldo