meed-logo

line1 line2 line3
SIGN IN / REGISTER

Working towards a common energy-transition goal

28 November 2022

Published in partnership with

In the end, it went right to the wire. Just as it looked like the UN’s 27th Conference of the Parties (Cop27) would conclude without an accord, the weary delegates announced that they had reached a landmark agreement on setting up a fund to help compensate poorer nations for the economic and social destruction caused by climate change. 

The statement, two days after the Sharm el-Sheikh summit’s original 18 November end date, was a culmination of some 30 years of negotiations between developed economies and developing nations. The latter had long argued that the damage they have experienced from global warming should be paid for by richer countries responsible for the crisis in the first place.

Although far from perfect, the global ‘loss and damage’ fund was hailed as an important and symbolic step towards hitting the agreed target of limiting global temperature increases to 1.5C above pre-industrial levels by 2030. It also marked the continuing engagement and collaboration by governments across the globe.

“We rose to the occasion,” said Egypt’s Minister of Foreign Affairs and president of Cop27 Sameh Shoukry. 

“We worked around the clock, day and night, but united in working for one gain, one higher purpose, one common goal. In the end, we delivered. We listened to the calls of anguish and despair.”

Private sector involvement

While Cop27 has been and will continue to be a policy-setting mechanism negotiated at the highest level, companies played a critical role during the conference. 

Firms representing a broad range of sectors, including Vodafone, Microsoft, Boston Consulting Group and Bloomberg, partnered with the event, and many more participated in the main conference and exhibition areas. 

Ultimately, governments understand that the private sector will lead the drive towards net zero. Without corporates worldwide investing in clean energy projects and technology, there is little hope that targets will be reached.

Five consistency points

A key supporter of Cop27 was Siemens Energy. Sharing its expertise through panels covering subjects as varied as the Mediterranean’s North-South Energy Partnership, improving power access in Africa by unlocking its green hydrogen potential, and overcoming the challenges of decarbonisation, the energy technology company played a pivotal role in discussions and thought leadership.

It also participated in the world leader’s summit at a roundtable discussing green hydrogen, reinforcing its positioning of energy transition at the heart of its strategy. 

Before the Sharm el-Sheikh conference, Siemens Energy president and CEO Christian Bruch outlined five points of consistency that his company considers to be unifying elements in the decarbonisation drive.

The first is the acceleration of renewables. Replacing conventional power generation systems with solar, wind, hydro and other forms of renewable energy is essential to reduce greenhouse emissions.

Despite a considerable increase in the overall share of renewables in the past three years on the back of ever-lowering costs and more efficient technology, more must still be done.

For example, the US needs to triple its share of renewable energy as a proportion of the energy mix by 2050 for the energy transition to succeed. The Asia-Pacific region, meanwhile, will have to increase this figure fourfold. 

Regional targets

In the Middle East, every country has now set ambitious targets to increase renewable energy. The likes of Saudi Arabia, Morocco and the UAE are aiming for renewables to account for up to 50 per cent of total production by 2030. To reach these objectives, almost all new power generation projects come in the form of renewables.

However, the impact of greener electricity production could be somewhat offset by continuing demand growth caused by an increasing global population and economic growth. 

In this context, the second point is the requirement for improved energy conservation measures, such as policies to incentivise the electrification of industry and transport. 

Regionally, the industrial electrification of energy-intensive industries is an optimal opportunity to reduce harmful emissions by harnessing electric boilers and/or electricity-based fuels. Future large-scale blue and green hydrogen production will also have a role to play in industrial processes.

Siemens Energy’s third point of consistency is improving electrical efficiency. The increase in renewable energy capacity and the growth in power capacity, in general, require significant investment in transmission and distribution networks. 

This is particularly important in areas such as sub-Saharan Africa, where almost 25 per cent of the population has little to no access to electricity. 

The fourth point covers the requirement to use existing conventional power infrastructure to help bridge the gap between the fossil-fuelled economies of today and the net zero of tomorrow. 

Progress cannot be made in one step alone and requires a gradual transition. In the meantime, existing thermal plants can employ measures such as combined-cycle technology and carbon capture to make them as efficient and environmentally friendly as possible.

The energy transition is the biggest investment programme since the dawn of industrialisation. If governments, business and society work together, energy transition is a massive opportunity

Christian Bruch, Siemens Energy president and CEO

Mineral production

Finally, to achieve all of this, it is necessary to improve supply chains and increase the production of necessary minerals and rare earth metals required in net-zero technologies, such as lithium, nickel, cobalt and chromium. 

Bruch gives the example of a typical electric car, which requires six times more mineral inputs than one powered by an internal combustion engine. He also cites onshore wind plants, which need nine times more than a gas-fired power plant. 

If mineral production is not increased and geographically diversified, there is a risk of future supply bottlenecks.

In the Middle East, a good illustration of this is the potential future supply gap for electrolyser systems, and the anodes and cathodes typically made from metals such as zinc, nickel and lithium. 

MEED estimates that about 75GW of electrolyser production capacity will be required by 2030 to meet the demand for the raft of planned green hydrogen plants in the region alone, compared with a total global output capacity of just 8GW today.

Industrial decarbonisation alliance

All five consistency points make salient arguments. However, they can only be achieved with close cooperation between the private and public sectors. While the former can spearhead and implement the decarbonisation drive, the latter can provide the regulations and incentives to encourage these initiatives. 

The newly formed Alliance for Industry Decarbonization initiated by Siemens Energy and coordinated and facilitated by the Abu Dhabi-based International Renewable Energy Agency (IRENA) is an example of greater collaboration between the public and private sectors. 

The 28-member alliance – which encompasses a range of global energy, renewable, consulting and manufacturing companies – met for the first time during Cop27 to outline its joint vision and implementation plan. Its strategy focuses on six pillars and enablers that tie into the points of consistency: renewables, green hydrogen, bioenergy with carbon capture, utilisation and storage (CCUS), heat process optimisation, human capital and finance.

Only through this kind of stakeholder dialogue can the immense and existential challenges posed by global warming be overcome. Governments or companies acting in isolation will only achieve so much on their own. The points of consistency must be considered as a whole and in unison if the world’s climate objectives are to succeed.

As Bruch says: “The energy transition is the biggest investment programme since the dawn of industrialisation. If governments, business and society work together, energy transition is a massive opportunity. There is no excuse for waiting any longer.”

Related reads:

Click here to visit Siemens Energy 
https://image.digitalinsightresearch.in/uploads/NewsArticle/10387284/main.gif
MEED Editorial

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

Click here to register
Exclusive from Meed
Related Articles
  • Three bids submitted for Riyadh-Qassim IWTP

    18 September 2025

     

    Register for MEED’s 14-day trial access 

    State water offtaker Saudi Water Partnership Company (SWPC) has received three bids from the private sector for the development of the Riyadh-Qassim independent water transmission pipeline (IWTP) project.

    The bids were submitted by two consortiums and one individual company.

    The first consortium comprises Saudi firms Al-Jomaih Energy & Water, Al-Khorayef Water & Power Technologies, AlBawani Capital and Buhur for Investment Company.

    The second consortium comprises Bahrain/Saudi Arabia-based Lamar Holding, the UAE's Etihad Water & Electricity and China’s Shaanxi Construction Installation Group.

    The third bid was submitted by Saudi Arabia's Vision Invest.

    In August, MEED exclusively reported that SWPC had extended the bid submission deadline again for a contract to develop and operate the project. 

    The deadline for bids was 17 September.

    The project will have a transmission capacity of 685,000 cubic metres a day. It will include a pipeline length of 859 kilometres (km) and a total storage capacity of 1.59 million cubic metres.

    The scheme is the third IWTP contract to be tendered by SWPC since 2022.   

    The first two are the 150km Rayis-Rabigh IWTP, which is under construction, and the 603km Jubail-Buraydah IWTP, the contract for which was awarded to a team of Riyadh-based companies comprising Al-Jomaih Energy & Water, Nesma Group and Buhur for Investment Company.

    Like the first two IWTPs, the Riyadh-Qassim IWTP project will be developed using a 35-year build-own-operate-transfer contracting model.

    Commercial operations are expected to commence in the first quarter of 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14691078/main.jpg
    Mark Dowdall
  • Saudi Arabia seeks firms for six renewable projects

    17 September 2025

    Register for MEED’s 14-day trial access 

    Saudi Arabia's principal buyer, Saudi Power Procurement Company (SPPC), has invited interested companies to prequalify for the contracts to develop and operate solar photovoltaic (PV) and wind independent power producer (IPP) projects with a total combined capacity of 5,300MW.

    The following schemes comprise round seven of the kingdom's National Renewable Energy Programme (NREP):

    • 1,400MW Tabjal 2 solar PV IPP (Tabrijal, Al-Jouf Province)
    • 600MW Mawqqaq solar PV IPP (Mawqqaq, Hail Province)
    • 600MW Tathleeth solar PV IPP (Tathleeth, Aseer Province)
    • 500MW South Al-Ula solar PV IPP (Al-Ula, Medina Province)
    • 1,300MW Bilgah wind IPP (Bilgah, Medina Province)
    • 900MW Shagran wind IPP (Shagran, Medina Province)

    These projects are part of the NREP, which aims to achieve an optimal energy mix and supply 50% of the kingdom's electricity from renewable energy by 2030.

    Earlier rounds under the NREP have already put in place large capacities.

    Round six solicited around 4,500MW of solar and wind projects:

    • 1,500MW Dawadmi wind IPP  (Riyadh)
    • 1,400MW Najran solar PV IPP (Najran)
    • 600MW Samtah solar PV IPP (Jizan)
    • 600MW Al-Darb solar PV IPP (Jizan)
    • 400MW Al-Sufun solar PV IPP (Hail)

    In April, MEED reported that prequalified developers were forming teams to bid for the contracts to develop solar farms under the sixth round of the NREP.

    A separate set of bidders were prequalified for the 1,500MW Dawadmi wind farm, with contracts due to be awarded before the end of the year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14684103/main3708.jpg
    Mark Dowdall
  • Qatar tenders Smaisma infrastructure contract

    17 September 2025

     

    Register for MEED’s 14-day trial access 

    Qatar’s Public Works Authority (Ashghal) has tendered a contract inviting construction firms to bid for the remaining works on roads and infrastructure in the small seaside town of Smaisma.

    The contract covers package two in the south area of Smaisma, located 52 kilometres (km) north of Hamad International airport.

    The scope of work includes the completion of the remaining works and remedial works on three zones. Each zone is further divided into three sub-zones.

    The scope also covers the remaining works on road C1017.

    The contract duration is two years from the start of construction works.

    The tender was floated on 15 September with a bid submission date of 28 October.

    The latest notice follows the tendering for the construction of roads and infrastructure in Wadi Al-Banat North (Zone 70).

    Market overview

    After 2019, there was a consistent year-on-year decline in contract awards in Qatar’s construction and transport sectors. The total value of awards in that year was $13.5bn, but by 2023 it had fallen to just over $1.2bn.

    In 2024, the value of project contract awards increased to $1.7bn, bucking the downward trend in the market in the preceding four years.

    Of last year’s figure, the construction sector accounted for contract awards of over $1.2bn, while transport contract awards were about $200m.

    There are strategic projects in the bidding phase in Qatar worth more than $5bn, and these are expected to provide renewed impetus to the construction and transportation market, presenting opportunities for contractors in the near term.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14682452/main.jpg
    Yasir Iqbal
  • Dragon Oil to boost exploration and production in Egypt

    17 September 2025

    Register for MEED’s 14-day trial access 

    Dubai-based Dragon Oil has signed a deal with the state-owned national oil company Egyptian General Petroleum Corporation (EGPC), agreeing to increase exploration and production activities in the Gulf of Suez.

    Under the terms of the agreement, Dragon Oil will make investments worth about $30m.

    This will fund activities including a programme to drill at least two new wells in the East El-Hamd area.

    Abdulkarim Ahmed Al-Mazmi, the acting chief executive of Dragon Oil, said: “The signing of this agreement reaffirms Dragon Oil’s commitment to strengthening its strategic presence in the Arab Republic of Egypt and supporting EGPC’s efforts to develop energy resources in the Gulf of Suez region, in line with the company’s vision for growth and sustainability.”

    Dragon Oil is wholly owned by Emirates National Oil Company, which is fully owned by the Government of Dubai.

    Al-Mamzi said that the new investments are part of Dragon Oil’s broader strategy to expand in regional markets and to strengthen its position in the oil and gas sector, in line with the directions of the government of the UAE, and in particular the Government of Dubai.

    The agreement was signed at the EGPC headquarters in Cairo.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14680456/main.png
    Wil Crisp
  • Construction launched for final major projects of Iraq’s GGIP

    17 September 2025

    Register for MEED’s 14-day trial access 

    Officials have announced the start of construction on Iraq’s Common Seawater Supply Project (CSSP) and the full field development of the Ratawi oil field, which is also known as the Artarwi field.

    The two projects are the two last major contracts of the Gas Growth Integrated Project (GGIP).

    The GGIP is led by France’s TotalEnergies, which is the operator and has a 45% stake in the project.

    Its partners are Iraq’s state-owned Basra Oil Company, which has a 30% stake, and QatarEnergy, which has a 25% stake.

    An event in Baghdad to mark the launch of the two projects was attended by senior officials including Patrick Pouyanne, the chairman and chief executive of TotalEnergies; and Saad Sherida Al-Kaabi, who is Qatar’s Minister of State for Energy Affairs, as well as the president and chief executive of QatarEnergy.

    In a statement, TotalEnergies said: “All four parts (natural gas, solar, oil, water) of the GGIP are now in the execution phase.”

    The CSSP will be built on Iraq's coast, near the town of Um Qasr. It will process and transport 5 million barrels a day (b/d) of seawater to the main oil fields in southern Iraq.

    Treated seawater will be substituted for the freshwater currently taken from the Tigris, Euphrates and aquifers to maintain pressure in the oil wells.

    The project is expected to help alleviate water stress in the region and free up to 250,000 cubic metres of freshwater a day for irrigation and local agriculture needs, according to TotalEnergies.

    The Ratawi redevelopment was launched in September 2023. Phase one aims to increase production to 120,000 b/d of oil and is expected to come on stream by early 2026.

    The launch of phase two, the full field development, will enable production to be increased to 210,000 b/d starting in 2028, with no routine flaring, according to TotalEnergies.

    In a statement, it said that all 160,000 cubic feet a day (cf/d) of associated gas produced will be fully processed by the 300,000 cf/d Gas Midstream Project (GMP), the construction of which began in early 2025.

    The GMP, which will also treat previously flared gas from two other fields in southern Iraq, will deliver processed gas into the national grid, where it will fuel power plants with a production capacity of approximately 1.5GW, providing electricity to 1.5 million Iraqi households.

    An early production facility to process 50,000 cf/d of associated gas will start in early 2026, together with the Ratawi phase one oil production.

    Pouyanne said: “We are delighted today to award the two final contracts of the GGIP, in particular the seawater treatment plant, which has been long awaited by the oil industry in Iraq.

    “In less than two years since the GGIP effective date in August 2023, TotalEnergies and its partners have fully executed their commitment towards the people of Iraq and launched all projects included in the multi-energy GGIP project, the best showcase of TotalEnergies' transition strategy.

    “All these projects will bring a significant contribution to the Iraq economy and employ during the construction phase 7,000 Iraqi nationals.

    “Furthermore, I am proud to confirm that the first phase of the associated gas, oil and solar projects will start up as soon as early 2026.”

    Turkiye’s Enka has signed a contract to develop a central processing facility at the Ratawi oil field as part of the second phase of the field’s development.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14680455/main.png
    Wil Crisp