GE Vernova lands big Saudi gas turbine services contract
DAMMAM, June 24, 2024
GE Vernova, a purpose-built global energy company based in US, has announced that it has secured an order for six 7HA.03 gas turbines and two 7E.03 gas turbines from the engineering, procurement, and construction (EPC) company SepcoIII Electric Power Construction Company for two new power plants - Taiba 1 located in the western region of Saudi Arabia, around 100 km southeast of Madinah city, and Qassim 1 located in the central region around 30 km southeast of Buraydah city.
In addition to the equipment order, GE Vernova today (June 24) also announced the signature of a 21-year service agreement to support plant operations with Riyadh-headquartered Acwa Power’s wholly owned subsidiary, National Operations & Maintenance Company (Nomac).
The projects are aligned to Saudi Arabia’s goals to generate about half its electricity from renewable energy sources and half from gas by 2030, paving the way to net-zero greenhouse gas (GHG) emissions by 2060.
According to GE Vernova, this equipment order was booked in March this year and got reflected in the company’s first quarter earnings announcement.
Taiba 1 and Qassim 1 plants, to be powered by GE Vernova’s most advanced gas turbines, are expected to deliver up to 3.8 gigawatts (GW) of electricity to the grid in total, a capacity equivalent to what would be needed to power the energy needs of approximately 1.2 million homes in Saudi Arabia.
Expected to be completed in 2027, they are anticipated to be among the most efficient power plants in the Kingdom and can be configured with post-combustion carbon capture systems to significantly reduce carbon dioxide emissions.
In addition, 7HA.03 gas turbines currently have the capability to burn up to 50% by volume of hydrogen when blended with natural gas.
"This project, which marks our largest single order for 7HA.03 gas turbines to date in the region, is expected to open up a new chapter for gas power generation in Saudi Arabia," remarked Joseph Anis, President & CEO of GE Vernova's Gas Power business in Europe, Middle East & Africa.
"As an innovation leader in the path towards decarbonization, we are proud of developing our first 7HA.03 project at GESAT and boosting the localization of the gas turbines industry in Saudi Arabia, in alignment with the Kingdom’s goals for more diversified and sustainable economic growth. We are delighted to team with SepcoIII and Acwa Power’s Nomac to deploy our most advanced power generation technologies, services, and proven expertise in natural gas combined cycle plant engineering, operability, and plant integration, to support the transition to a lower-carbon energy future," he added.
GE Vernova spun-off from global energy giant GE and began trading as an independent company on the New York Stock Exchange (NYSE) in April. With approximately 55,000 wind turbines and 7,000 gas turbines, GE Vernova's technology base helps generate about 25% of the world's electricity and has a meaningful role to play in the energy transition in Saudi Arabia and around the globe.
Under the 21-year service contract signed with Nomac, GE Vernova plans to deliver maintenance and repairs, supply of parts. In addition, GE Vernova’s Monitoring & Diagnostics Center is expected to oversee the real-time operating conditions and provide remote diagnostics tools using digital analytics technology.
Acwa Power CEO Marco Arcelli said: "We have developed a productive and successful role-model relationship with GE Vernova that will enable our collective organizations to deliver meaningful innovation and energy contributions to the Kingdom of Saudi Arabia.
"With today’s signing of this contract, we mark not only a milestone in our cooperation but pave the way to future collaborations for the safer, more reliable, and more sustainable production of electricity in the kingdom," he added.
"The development of Taiba 1 and Qassim 1 plants is a very ambitious project, and we are proud to support it," said a spokesperson of SepcoIII.
"We are also excited to work with GE Vernova to evaluate how carbon capture solutions could potentially be integrated with these gas power plants to help lower emissions. We expect to see increased longer term demand for gas plants integrated with carbon capture technologies, which is key to reducing emissions from fossil fuels and helping fight climate change," he added.-TradeArabia News Service
