Siemens Energy has entered a long-term maintenance contract for two gas-fired power plants in Saudi Arabia, worth $1.5bn (SR5.63bn).

The contract will last for 25 years, with Siemens also supplying power plant technologies that will provide almost 4GW to the country, said a statement released on Tuesday. The power plants, known as Taiba 2 and Qassim 2, will be built in the western and central regions of Saudi Arabia over the next few years.

Siemens Energy’s gas turbines will be installed, generating 2GW of electricity at each site, with each of the plants set to be connected to the grid in simple cycle mode in 2026 and permanently operated as combined cycle power plants one year later.

In the statement, Siemens said the gas-fired power plants will help to replace some of Saudi Arabia’s ageing power plant fleet, much of which relies on oil as an energy source.

Siemens Energy, a German publicly traded energy corporation formed through the spin-off of the former Gas and Power division of Siemens, claims the new power plants will save up to 60% of CO₂ compared with oil-fuelled power plants.

Karim Amin, member of the executive board of Siemens Energy and responsible for the gas services, said: “Saudi Arabia is driving forward its vision 2030 to transform the kingdom into a pioneering economic location.

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“The new power plants will provide reliable energy supply and contribute to the sustainable and future-oriented development of the country.”

He continued that his company’s local service hub in Dammam “will make an important contribution in expanding and localising technology” in the country.

According to a recent report by the World Wind Energy Council, Saudi Arabia is also looking to develop 106GW of offshore wind capacity along its eastern and western coasts.

The country currently has only one onshore wind farm in operation, at Dumat al Jandal, but aims to generate half of its energy supply from renewable sources by 2040.

Saudi Arabia revealed in late 2021 that it plans to achieve net zero by 2060, with the nation revealing a number of new schemes that will be rolled out under the Saudi Green Initiative.

These upcoming projects are intended to boost the country’s environmental status and achieve carbon emission reductions of more than 278 million tonnes per annum by 2030.