Siemens Energy recently signed a $1.5 billion agreement to supply core technology to two gas-fired power plants in Saudi Arabia and is responsible for long-term maintenance for 25 years.

The company stated that in the next few years, two of the world's largest, most modern, and most efficient combined cycle power plants, Taiba 2 and Qassim 2, will be built in the western and central regions of Saudi Arabia. Siemens Energy will provide critical power plant technology for these two newly built power plants, combining gas turbines (HL level) with steam turbines and generators, with an installed capacity of approximately 2,000 megawatts per power plant.

A combined-cycle power plant is a large-scale power plant that combines a gas turbine and a steam turbine together. The fuel (usually fuel oil) is first vaporized and burned to generate power in the gas turbine, which drives the generator set. The exhaust gas of the gas turbine (about 600℃) is used to raise the steam temperature in the depleted gas boiler, and the steam then enters the steam turbine to expand and generate power, resulting in less starting, less cooling water, and less nitrogen oxide pollution for this type of power plant.

Siemens Energy AG was founded in 2020 by spinning off and reorganizing the former natural gas and power division of Germany's Siemens AG. The company's product portfolio mainly includes power transmission and distribution, generator, power plant technology, etc.

China Energy International Group will be the company's engineering, procurement, and construction (EPC) and contracting partner in the project.

The new power plants will provide additional energy for Saudi Arabia's growing population and booming economy and replace some of the country's aging fuel-fired power plants.

Compared with fuel-fired power plants, the new power plants will reduce carbon dioxide emissions by up to 60%. The two new power plants will be initially connected to the grid in simple cycle mode in 2026 and will permanently operate as combined cycle power plants a year later.

Saudi Arabia is the world's largest crude oil exporter and the largest economy in the Arab world. To address climate change and reduce carbon emissions, the country has set a goal of achieving net zero carbon emissions by 2060 and is undergoing economic reforms to reduce its dependence on oil.

Karim Amin, a member of the Siemens Energy board, said, "The new gas-fired power plants will provide reliable energy supply and contribute to Saudi Arabia's sustainable and future-oriented development."