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• 
  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 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
• 
  Samsung E&A wins $1.7bn Abu Dhabi methanol project

  3 February 2025

  Abu Dhabi’s Taziz has awarded South Korean contractor Samsung E&A the main engineering, procurement and construction (EPC) contract to build the UAE’s first methanol plant in the Taziz Industrial Chemicals Zone in Ruwais Industrial City.

  The nameplate production capacity of the planned methanol complex is 5,000 metric tonnes a day, or 1.8 million metric tonnes a year (t/y).

  Switzerland-based energy and chemicals company Proman is a joint investor in the methanol project.

  The value of the EPC contract won by Samsung E&A is $1.7bn, with the duration of works being 44 months.

  “Upon completion in 2028, it will be powered by clean energy from the grid, making it one of the world’s most energy-efficient methanol plants,” Taziz said in a statement on 3 February.

  MEED had in November reported about Samsung E&A emerging as the frontrunner to win the main EPC contract for the project.

  The only other bidder for the project is a consortium of French contractor Technip Energies and India-based Larsen & Toubro Energy Hydrocarbon.

  The two entities submitted technical bids for the project by the deadline of 22 July, and commercial bids by the deadline of 16 September.

  Methanol is a critical chemical building block with industrial applications in fuels, adhesives, solvents, pharmaceuticals and construction materials. Emerging economies in Africa and Asia are expected to drive growth in methanol demand, while methanol production in the UAE will reduce reliance on imports.

  Proman signed a shareholder agreement with Taziz for the planned methanol project in January 2023. The two companies initially announced the project in March 2022.

  Technip Energies has performed the front-end engineering and design (feed) work on the methanol project, having won the contract in September 2022.

  The Proman/Taziz joint venture (JV) had issued the expressions of interest document to contractors for the methanol project’s EPC tendering exercise in August 2023. Contractors submitted prequalification documents by 21 August.

  Proman and Taziz issued the main tender for EPC works on the planned methanol project on 17 January, last year. The JV initially set a deadline of 17 April for the submission of technical bids, which was then extended to 17 June, and later to 22 July.

  Taziz chemical investments

  Taziz, a 60:40 JV of Abu Dhabi National Oil Company (Adnoc Group) and Abu Dhabi’s industrial holding entity ADQ, has attracted investments from several foreign investors for its chemicals projects in the under-construction petrochemical derivatives complex in Ruwais.

  Adnoc first announced in May 2021 that it would proceed with developing a “world-scale” blue ammonia production facility in Abu Dhabi’s industrial hub of Ruwais.

  UAE-based Fertiglobe, South Korea’s GS Energy Corporation and Japanese investment firm Mitsui & Company eventually formed a JV to develop the blue ammonia facility, which will have an output capacity of 1 million t/y.

  The JV later awarded Italian contractor Tecnimont the EPC contract for the project, and construction on the facility started in June.

  In June 2021, Fertiglobe signed an agreement with Taziz to become the project’s lead developer. In January 2023, Fertiglobe signed a shareholder agreement with GS Energy and Mitsui to develop the planned blue ammonia facility.

  In addition to the blue ammonia and methanol projects, MEED previously reported that feed contracts had been awarded for Project Salt, a planned cluster of three chemicals plants that will produce ethylene dichloride, chlor-alkali and polyvinyl chloride.

  In December 2021, Taziz secured agreements from eight UAE-based entities for investments in its planned chemicals projects in Ruwais. The agreements marked the first domestic public-private partnership in Abu Dhabi’s downstream oil, gas and petrochemicals sector.

  Regarding infrastructure to support units in the chemicals production zone, Taziz awarded three EPC contracts totalling $2bn, in November, for infrastructure works at the industrial chemicals zone in Ruwais.

  Abu Dhabi government-owned NMDC Group was awarded the EPC contract to build a chemicals port. Once complete, the port will facilitate the export of chemicals and fuels.

  Singapore-based Rotary Engineering won the EPC contract for a chemicals terminal, known as Project Landing. The contract includes developing storage facilities, tank-to-jetty pipelines, jetty-to-tank pipelines, inter-site pipelines and liquid product storage. Taziz is building the chemicals handling terminal in partnership with Netherlands-based midstream energy company Advario.

  Abu Dhabi-based Al-Geemi Contracting was awarded the EPC contract to develop essential infrastructure for the 17-square-kilometre Taziz chemicals production site, including internal roads, security fencing and buildings.

  Taziz also said it was close to awarding the EPC contract to develop a centralised utilities facility for the chemical zone, including power transmission, steam, cooling water and water units. Adnoc has signed an agreement with Abu Dhabi National Energy Company (Taqa) to develop the cogeneration power facility in Ruwais.

  ALSO READ: Local firms invest in Taziz industrial complex

  Taziz has planned seven petrochemicals derivatives projects as part of the first phase of its industrial chemicals zone.

  UK-headquartered Wood Group has performed the feed works on the seven projects, which are:

  Anchor product	End use
  Chlor-alkali	Water treatment, metallurgy and textiles
  Ethylene dichloride	Housing, infrastructure and consumer goods
  Maleic anhydride	Piping, construction and heavy transport
  Methanol	Energy, consumer goods and pharmaceuticals
  Blue ammonia	Agriculture, apparel and energy
  Isopropyl alcohol	Healthcare and cosmetics
  Elastomers	Automobiles, adhesives, food production and storage

  Chemicals production is a priority sector for Operation 300bn, the UAE’s industrial growth strategy.

  The industrial strategy is being overseen by the Industry & Advanced Technology Ministry, which aims to raise the UAE industrial sector’s contribution to the national GDP to AED300bn ($81.7bn) by 2031.

  ALSO READ: Fertiglobe begins next growth chapter in Abu Dhabi

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13356606/main4151.jpg

  Indrajit Sen