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May 29, 2024
UAE INVESTS IN LOW CARBON FUTURE
UAE has for long recognised the threat of climate change and hence pursued alternative means for producing the power needed to fuel its economy. UAE’s clear strategy has been driven by Masdar to deliver pioneering projects using cutting-edge clean energy technologies that are commercially viable and bankable. The broader commercialisation is taken on by strong industrial players supported by the banking sector, which too is taking the transition forward. The strategic intent combined with technology commercialisation support and financing are paving the way for multibillion project investments.
STRONG COMMITMENT TO ENERGY TRANSITION
UAE has a clear understanding about the threat of climate change and already long ago started scouting alternative means for producing the power needed to fuel its economy. This forward-looking approach has been focusing on building resilient pathways for new industries, new jobs, and long-term sustainable economic growth in line with the energy transition.
The search begun already over 15 years ago; investments were directed in nascent renewables technologies through Masdar, which is a clean energy pioneer targeted in positioning the UAE at the forefront of the worldwide energy transition. Masdar has developed projects in more than 40 countries across six continents; the committed or planned investments in worldwide projects add up to more than AED 110 billion (USD 30 billion). For example, Masdar has invested in 11 renewable energy projects in the United States alone totalling nearly 2GW across Texas, New Mexico, Nebraska, and California. [i]
The UAE will require AED 2.5 trillion (USD 681 billion) in investment to finance its transition to a net zero economy. The strong business sector is supported therein by UAE’s banking sector which is playing a vital role in supporting the transition to a greener economy. One notable commitment is the financial sector’s pledge to mobilize AED 1 trillion (USD 272 billion) in sustainable finance by 2030. The impact of these sustainable finance products on promoting environmentally friendly initiatives is significant in funding renewable energy, encouraging energy efficiency, supporting sustainable infrastructure, creating market incentives and raising awareness. [ii] The impact of these sustainable finance products is significant in promoting environmentally friendly initiatives – yet overshadowed by emissions generated by the exported products.
ZERO-CARBON IS MOVING FORWARD AT SCALE
In the UAE, the strategic commitment has translated into action. The UAE is the first country in the Middle East to operate a zero-carbon commercial scale nuclear power. The final unit of the Barakah Nuclear Energy Plant’s was connected to the transmission grid in March 2024 adding another 1,400 megawatts of clean electricity capacity. This multi-unit nuclear power plant with a total nameplate capacity of 5,600 megawatts supplies up to 25% of UAE’s electricity and prevents up to 22 million tons of carbon emissions every year, equivalent to removing 4.8 million cars from the roads. [iii] Nuclear energy program is hence significantly contributing to the decarbonization of the UAE’s power sector as well as reinforcing energy security and grid resilience.
The UAE is also leading in large solar power plants; it operates three of the largest and lowest cost solar plants in the world at 1.35 cents per kilowatt hour. The Mohammed bin Rashid Al Maktoum Solar Park, the largest single-site solar park in the world, will reduce more than 6.5 million tons of carbon emissions annually when completed, hence contributing to Dubai’s net-zero strategy.
The UAE aspires global leadership in low carbon hydrogen and its derivatives; targeting 25% market share in key import markets by 2030 with an initial focus on Japan, South Korea, India, and Europe. The National Hydrogen Strategy forecasts local demand of low-carbon hydrogen to reach 2.7 million tonnes per annum by 2031. Sizeable projects are well on the way and include large-scale green hydrogen production, green ammonia production, and green steel production. For example, Abu Dhabi has announced plans for a $1 billion Helios Industry facility to produce green hydrogen and ammonia. The facility will be powered by an 800 MW solar photovoltaic plant (PV) and is expected to produce annually 200,000 tonnes of green ammonia for export once completed. Even the project’s initial phase is sizeable as it includes a 300 MW solar PV plant and an estimated annual 35,000 tonnes ammonia production facility.[iv]
FROM FOSSILS TOWARDS MORE DIVERSE MIX
Countries which have historically enjoyed geopolitical influence due to their fossil fuels are likely to see their positions challenged when energy transition proceeds. The UAE fortunately belongs to the highly exposed and highly resilient countries, which have the capacity to reinvent their economy, adapt to the transition and even benefit from it. The already on-going economic diversification and decarbonization strategy of the UAE shows how forward-looking long-term decision-making can reduce risks. The energy policy of the UAE foresees a 44% share of clean energy and 70% decarbonization of the economy by 2050. [v]
Despite these efforts and anticipated progress even UAE will be challenged by China, the renewable energy superpower. China is by far the largest global manufacturer of clean energy technologies such as wind turbine components, crystalline silicon PV modules, and lithium-ion battery cells. Moreover, China is well positioned in the critical energy metal supply chains; it is dominating the supply of rare earth metals and graphite as well as the main player in processing of lithium, cobalt and copper. Interestingly, the top three producer countries account for 50% – 90% of mining and processing of the six critical materials whereas the share of the OPEC in world oil production is just 40%.[vi]
MAJOR GLOBAL SHIFTS AHEAD
The energy transition will gradually cause a huge shift away from coal, oil and gas to renewable generation firmed by storage solutions and followed by electrification and decarbonization of hard-to-abate sectors. This shift will radically increase our dependence on critical minerals and energy metals: copper, lithium, graphite, nickel, cobalt and rare earths. Globally, Chile dominates copper, Australia lithium, Democratic Republic of Congo is rich in cobalt – and China is a leading player in the battery value chain. The expected rapid surge in demand will outplay supply – especially towards 2030 – because it is difficult to build new mines fast enough.
The net zero targets require fast action and huge investments, which to date have plateaued amid the energy crisis and geopolitical tensions. Despite the broad progress on clean sustainable energy, challenges remain due to not only nascent technologies, critical supply chains and geopolitical shifts but also renewed focus on energy security. Amidst all the uncertainties, we might be relying on oil and gas for somewhat longer than anticipated in the most ambitious net zero strategies.
When improving the existing assets and moving forward with the clean transition, Rejlers Abu Dhabi is well positioned to support investment planning, engineering and project execution – welcome!
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More information, please contact:
Jarmo Suominen, SVP, Middle East Region, General Manager, Rejlers Abu Dhabi,
Jarmo.suominen@rejlers.ae
Marita Niemelä, SVP, Sustainable Energy Solutions, Rejlers Finland
marita.niemela@rejlers.fi
Jan 10, 2024
ADNOC GAS selects Rejlers Abu Dhabi for combined FEED and EPCM project
Rejlers Abu Dhabi (RAD) have been selected by ADNOC GAS to implement the combined FEED & EPCM services for Grid Power Integration Project related to one of the Mega Sustainability Projects announced earlier by ADNOC.
ADNOC has recently launched Project Lightning (PL Project) in alignment with its strategies for cleaner energy and significantly lowering the carbon dioxide emissions in its Offshore operations. Project Lightning is covering an onshore power supply to offshore facilities using state of the art technology of HVDC. The New HVDC Converter Stations and connecting subsea cable will be built by other entity. Project Lightning total investment cost is USD 3.6 billion. The project aims to reduce ADNOC’s offshore carbon footprint by more than 30%, further strengthening its environmental credentials and supporting the UAE ‘Net Zero by 2050 Strategic Initiative. The ADNOC partners in the project Lightning are Korean Kyushu Electric Power Co. (KEPCO) and Electricite De France (EDF) who hold combined 40% stake, developing alongside ADNOC and TAQA of UAE. HVDC technology is provided by Hitachi Energy.
The FEED and EPCM project “DAS ISLAND GRID INTEGRATION” (GPI project) now awarded to RAD includes the connection from forthcoming HVDC Converter Station to the existing Sub-Stations (LNG SS-1 and PDAS Substations) located in Das Island. Das Island is in Arabia Gulf some 160km north-west from mainland Abu Dhabi.
RAD is providing comprehensive FEED+EPCM services for the GPI project . This includes Engineering, Procurement & Construction Management and overall Project Management and Control. This is an extensive brownfield project involving handling of multiple interfaces.
EPCM project model is the first of its kind implemented by ADNOC GAS.
“This project is significant win for Rejlers Abu Dhabi combining our strong FEED and EPCM competence with the sustainability drive of ADNOC GAS. Electrification is one of the mega trends in net zero target and it is great to be part of this.” says Mr. Jarmo Suominen, Rejlers SVP, The Middle East Region and General Manager of Rejlers Abu Dhabi.
The Project duration is 24 months for the FEED + EPCM activities completion. The project throughput (engineering, project management, procurement, and construction management services) is estimated to exceed 150,000 hrs during execution.
ADNOC GAS is a world-class integrated gas company operating an unmatched asset base that supplies around 60% of the UAE’s natural gas requirements and serves customers in more than 20 countries.
Rejlers is listed in Nasdaq OMX Nordic and is one of the leading engineering consultancy firms in the Nordic region, having it’s Middle East Engineering hub in Abu Dhabi, UAE.
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More information, please contact:
Jarmo Suominen, SVP, Middle East Region, General Manager, Rejlers Abu Dhabi,
Jarmo.suominen@rejlers.ae
March 6, 2023
REJLERS AWARDED MAJOR EPCM CONTRACT FOR INFINITED FIBER COMPANY’S CIRCULAR TEXTILE FIBER FACTORY INVESTMENT
Rejlers Finland and Infinited Fiber Company, planning to build a circular textile fiber factory in Kemi, Finland, have signed a letter of award regarding engineering, procurement, and construction management services for the investment.
Fashion and textile technology company Infinited Fiber Company turns trashed textiles into premium-quality fiber for the textile industry using its patented technology. Infinited Fiber breaks waste down to molecular level and captures its value by giving it new life as Infinna™ textile fiber that looks and feels like cotton and is known scientifically as cellulose carbamate fiber. While Infinited Fiber focuses on using cotton-rich textiles as feedstock, the technology can also turn other cellulose-rich materials – old newspapers, used cardboard, crop residues like rice and wheat straw – into new fiber.
For Rejlers, the estimated project schedule is 22 months and the estimated value for Rejlers is approximately EUR 50 million. The project is expected to start in the autumn 2023. Project preparations start in the spring. Rejlers in Finland will be leading the project involving the whole Rejlers Group. Infinited Fiber expects to start commercial Infinna™ deliveries from the Kemi factory in January 2026.
“We very much look forward to this cooperation. This extensive project represents circularity, modern technology and new venture and encompasses EPCM delivery – all of these aspects are attractive for us and in line with our strategy. Rejlers’ EPC and EPCM portfolio has increased substantially over the last years,” says Mikko Vaahersalo, CEO Rejlers Finland.
“Selecting Rejlers as the EPCM partner for our EUR 400 million Flagship factory project was a result of thorough consideration. Their leading expertise in delivering complex EPCM projects make them an ideal partner to help us build the world’s first Infinna™ fiber factory, which is a key steppingstone to scaling up our production capacity,” says Petri Alava, CEO of Infinited Fiber Company.
The new factory, at the site of a discontinued paper mill in Kemi, will have a capacity of 30,000 metric tons of Infinna™ annually, equivalent to the fiber needed for about 100 million T-shirts. The future factory’s customer-base includes several of the world’s leading apparel companies, with most of the future production capacity already sold out for several years.
Oct 26, 2021
ADNOC selects Rejlers Abu Dhabi to provide Engineering Services to support their 2030 strategy
Rejlers Abu Dhabi (RAD) has secured Strategic Frame work Agreement with ADNOC as announced by ADNOC Group on 19th. October 2021. This Agreement is highly prestigious and proves value of RAD competence and competitiveness amongst its tier group. This frame work agreement carries a core importance to RAD as it will be used across the value chain in ADNOC Group of Companies (11 companies) to support implementation of their 2030 strategy.
The agreement duration is for Five (5) Years with an option to extension of two (2) years. The Agreement is, as announced by ADNOC, estimated to be worth of $204.4 million (AED750.2 million) for Concept and Front End Engineering Design (FEED) Services.
The scope of the Agreement is based on the forecasted requirement for external project engineering services across the ADNOC Group and involves a range of services including Conceptual Studies, Front End Engineering Design (FEED), Specialized Studies and Plant Modification Requests (PMR) , through Fix Price or Reimbursable Call-Off Orders issued under the Agreement.
The services are expected to be delivered mostly from UAE based Office which in turn would enable a stable local growth for RAD.
“Over 40 international and local engineering companies were invited originally to bid, after 18 months of bidding, meetings and evaluations, we are proud to be one of the companies who have been finally selected to provide these services to ADNOC Group of Companies” says Jarmo Suominen, Generel Manager of Rejlers Abu Dhabi.
Sep 29, 2021
ADNOC Onshore awarded a mega FEED contract for Crude Oil Transportation Facility to Rejlers Abu Dhabi
The reward for work well done is the opportunity to do more! This is exemplified with Rejlers Abu Dhabi (RAD) new contract of Front End Engineering Design (FEED) for West to East Pipeline (WEP) from ADNOC Onshore.
Due to the stellar project execution by RAD for the existing contract of In-house projects engineering, ADNOC onshore has once again chosen RAD to execute this landmark strategic project.
West East Pipeline Project involves crude oil transportation system, Storage Tanks and Pumping Stations along the pipeline route. The project also involves facilities such as Offshore crude unloading, storage and pumping facilities, Intermediate pumping stations and associated power system and control system upgrade.
Sep 1, 2021
Control Contracting & Trading Company awarded Rejlers an engineering contract for Lower Zakum offshore oil field development
The offshore arm of Abu Dhabi National Oil Company (Adnoc Offshore) has awarded Abu Dhabi-based Control Contracting & Trading Company (CCTC) a contract for the maintenance and upgrade of units included in its Lower Zakum offshore oil field development. CCTC has in turn awarded an engineering contract to the Abu Dhabi Branch of Sweden-headquartered Rejlers to carry out detailed engineering works on the project, sources added.
The project aims to replace emergency diesel generators and upgrade low-voltage electrical switchgears at the Lower Zakum oil production complex, according to sources.
Source: https://www.offshore-technology.com/comment/adnoc-offshore-deal/
Jan 11, 2021
We operate now in UAE officially under name of Rejlers!
In October 1st. 2019 Neste Engineering Solutions agreed to create a strategic partnership with engineering consultancy services company Rejlers. As part of the partnership agreement, Rejlers acquired the Regional Business Unit of Neste Engineering Solutions and the parties made a long-term cooperation agreement to serve their customers even better.
Neste Engineering Solutions AB – Abu Dhabi have now officially changed its name to Rejlers International Engineering Solutions AB (in short Rejlers Abu Dhabi or RAD). As a branch office of Rejlers Group in UAE we will continue serving our current and new customers with same excellence and passion as before. This year marks also Rejlers 10th anniversary in Abu Dhabi, UAE.