Spain’s Tecnicas Reunidas and Egypt’s Orascom Construction have secured a $2.6 billion contract to enhance a 3-gigawatt combined cycle gas-fired power plant. This joint venture, evenly split between the two companies, underscores a strategic move to bolster the Kingdom’s energy infrastructure while integrating carbon capture technology.
The ambitious project, announced by Orascom, involves the construction of critical components like a 380-kilovolt electrical substation and sophisticated carbon capture infrastructure. This initiative not only aims to expand the plant’s capacity but also aligns with Saudi Arabia’s Vision 2030 goals of reducing carbon emissions and diversifying energy sources.
This contract marks part of a broader trend where Tecnicas Reunidas has successfully secured multiple projects across the Middle East, positioning itself for substantial growth. According to market analysts, the company is on track to potentially triple its net profit by 2026, compared to 2023. This optimism is mirrored in its stock performance, which has surged nearly 50% this year, a rebound facilitated by recovering energy investments post-pandemic and geopolitical tensions in Ukraine.
Eng. Nassef Sawiris, CEO of Orascom Construction, commented, “This collaboration is a testament to our commitment to innovating within the energy sector. By integrating advanced carbon capture solutions, we’re setting a new standard for sustainable energy projects in the region.”
Recognized for its expertise in building energy infrastructure, Tecnicas Reunidas’ engagement in such projects not only highlights the company’s recovery but also its pivotal role in the transition to more sustainable energy practices globally.
Global energy expert Dr. Amina El-Sayed noted, “The integration of carbon capture in energy projects is crucial for meeting international climate goals. This joint venture sets a precedent that could inspire similar projects across the region.”
