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Johnson Controls Arabia will deliver a state-of-the-art cooling solution powered by YORK. (Image source: JCA)

Johnson Controls Arabia has entered into a strategic partnership with Modern Building Leaders (MBL) to provide and operate a fully integrated YORK cooling system for the new CEER manufacturing facility in King Abdullah Economic City.

Johnson Controls Arabia is a global leader in HVAC systems, smart building controls, and energy efficiency.

The company said that its collaboration with CEER represents a significant advancement in Saudi Arabia’s industrial technology landscape and supports the Kingdom’s “trailblazing end-to-end electric vehicle brand.”

Under the agreement, Johnson Controls Arabia will deliver a state-of-the-art cooling solution powered by YORK technologies, featuring 12 chillers and various cooling units with a combined capacity of 33,000 TR.

The CEER facility, a cornerstone of Saudi Arabia’s electric vehicle industry, is designed to produce world-class electric cars, prioritising sustainability, efficiency, and cutting-edge technology.

The partnership aligns with the launch of the region’s first YORK air-cooled chiller production line, boasting a 600-ton capacity, at the YORK manufacturing complex in King Abdullah Economic City.

This milestone was accompanied by the opening of Saudi Arabia’s first AHRI-certified performance testing laboratory for air-cooled chillers of this capacity, cementing the Kingdom’s position as a regional hub for innovation in the HVAC and cooling sector.

The inauguration ceremony was attended by senior executives, including Tareq Telmesani, CEO of MBL, and Mohamed Fathy El-Bordany, Plant Facility and Maintenance Director at CEER.

This agreement underscores Johnson Controls Arabia’s commitment to supporting major manufacturing initiatives in Saudi Arabia, enhancing its role as a trusted partner in delivering high-efficiency, sustainable cooling solutions that meet global standards and bolstering the Kingdom’s industrial infrastructure.

Commenting on the milestone, Dr. Mohanad AlShaikh, CEO of Johnson Controls Arabia, stated, “We are proud to play a role in this ambitious national project that reflects our commitment to delivering smart, sustainable solutions aligned with Saudi Vision 2030. Our success in this initiative demonstrates the trust our partners place in YORK’s technical strength and reliability, and our ability to provide integrated solutions that rival the world’s leading providers, driven by expert engineering teams, fast execution, and excellent after-sales support.”

Scatec has previously signed equity bridge loans of around US$120mn

Power developer Scatec ASA is scaling up its presence in Egypt’s fast-growing renewables sector, with news on two major projects

The company has just achieved financial close on its 1.1GW Obelisk hybrid solar and battery storage project and has separately signed a 25-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) to build a new 900MW wind farm in Ras Shukkeir.

The landmark 1.1GW solar plus 100MW/200MWh Obelisk scheme will now be constructed in two phases, with first electricity anticipated early next year.

“Reaching financial close for this project marks a major milestone for Scatec,” said CEO Terje Pilskog. “It proves our ability to deliver large-scale hybrid projects.”

The first phase of 561MW solar, plus 100 MW/200 MWh battery storage, is targeted to reach commercial operational in the first half of 2026.

The second phase of 564MW solar will be operational in the latter half of 2026, with energy sold under a US dollar-denominated 25-year power purchase agreement also with EETC, backed by a sovereign guarantee.

Obelisk’s non-recourse project financing comprises US$479.1mn from the European Bank for Reconstruction and Development, African Development Bank and British International Investment.

Delivering EPC and other services

This corresponds to approximately 80% of the total estimated capex of US$590mn.

Scatec has previously signed equity bridge loans of around US$120mn, postponing project equity injections to the end of the construction period.

The company is currently in advanced talks with potential equity partners, which are expected to conclude in the next few months.

Scatec will also deliver engineering, procurement and construction (EPC), asset management (AM), and operations and maintenance (O&M) services for the project.

The proposed wind farm in Ras Shukeir, to be developed through its project company Shadwan Wind Power SAE, is at an earlier stage.

The signing of the PPA will now be followed by wind measurements on the site, which boasts some of the worlds’ best wind resources for onshore wind power, to be finalised in the first half of 2026 ahead of financial close and construction.

“This project is a testament to Scatec’s position as one of the leading renewables companies in Egypt,” said Pilskog.

“We are now advancing four major renewables projects in the country, with a diversified technology base.”

Vaisala’s participation aligns with its sustainability goals. (Image source: Vaisala)

Vaisala, a measurement technology company, has contributed its advanced CO2 sensors to an exhibit at the 2025 Biennale Architettura in Venice, Italy. 

The Belgian Pavilion’s exhibition, Building Biospheres, curated by landscape architect Bas Smets and commissioned by the Flanders Architecture Institute, explores the use of trees to create a comfortable indoor climate.

“Climate change and the recent crises that we have faced, are forcing us to rethink the relationship between architecture and nature,” Smets said. “Historically and traditionally, architecture has isolated itself from the natural world, recreating an indoor climate with heating, ventilation and mechanical tools. As humans we prefer the conditions of a sub-tropical climate, so our project will investigate and demonstrate what happens when sub-tropical plants such as the camphor tree are used to manage the indoor environment.”

The Biennale di Venezia, established in 1895, is one of the world’s oldest cultural festivals, featuring around 30 permanent national pavilions. This year’s Biennale Architettura aims to eliminate waste, recycle materials, and regenerate natural systems, showcasing how the built environment can harmonise with nature.

In November 2024, a prototype of Building Biospheres was constructed at Ghent University’s Faculty of Bioscience Engineering. Professor Kathy Steppe and her team set up a greenhouse facility, monitoring sub-tropical trees with TreeWatch technology. The plants and monitoring equipment were later relocated to the Belgian Pavilion in Venice. Key environmental factors measured include light, temperature, humidity, and carbon dioxide, which significantly affect indoor comfort and well-being.

Advancing technology

“In order to maintain optimal conditions inside buildings, it is usually necessary to implement some form of heating, ventilation and/or air conditioning, but this can be very costly, both financially and from a carbon footprint perspective,” Prof. Steppe explained. “Plants actively interact with and help regulate their local climate through processes such as photosynthesis and transpiration. This means, for example, that the CO2 produced by humans, other organisms and natural processes can be taken up by plants during photosynthesis, helping to prevent excessive indoor CO2 build-up.”

Indoor CO2 levels impact comfort and performance. Well-ventilated spaces typically have 450–1,000 ppm CO2, but levels above this can cause drowsiness, while concentrations exceeding 2,000 ppm may lead to headaches, poor concentration, and other symptoms. Extremely high levels can even be fatal.

The International Energy Agency notes that buildings account for 30% of global energy consumption and 26% of energy-related emissions. The Building Biospheres exhibit investigates how plants can reduce reliance on energy-intensive building management systems, challenging conventional architectural practices.

Vaisala’s participation aligns with its sustainability goals.

“We were delighted to be invited to participate in this highly respected event,” said Pekka Ravila, Vaisala’s vice president, Industrial Measurements EMEA. “Not just because it highlights the performance of our CO2 sensors, but mostly because this represents a very exciting opportunity to help create a paradigm shift in the way that buildings are designed and managed. If we can achieve that, the potential beneficial impacts on climate change will be enormous.”

CCS capacity is forecast to grow strongly.

Carbon capture and storage capacity is forecast to quadruple by 2030, and the Middle East has ‘significant CCS ambition’, according to a new report from DNV

Cumulative investment in carbon capture and storage (CCS) is expected to reach US$80bn over the next five years, according to DNV’s Energy Transition Outlook: CCS to 2050 report.
Up to now, growth has been limited and largely associated with pilot projects, but a sharp increase in capacity in the project pipeline indicates that CCS is at a turning point. CCS will grow from 41 MtCO2/yr captured and stored today to 1,300 MtCO2/yr in 2050, which will be 6% of global emissions, DNV forecasts.

The immediate rise in capacity is being driven by short-term scale up in North America and Europe, with natural gas processing still the main application for the technology. Europe is moving projects forward amidst tightening emissions regulations and developers are advancing in the US, taking advantage of the established 45Q tax credit. Hard to abate industries such as steel and cement production are forecast to be the main driver of growth from 2030 onwards, accounting for 41% of annual CO2 captured by mid-century. Maritime onboard capture is expected to scale from the 2040s in parts of the global shipping fleet.

As the technologies mature and scale, the average costs will drop by an average of 40% by 2050.

Ditlev Engel, CEO, Energy Systems at DNV said “Carbon capture and storage technologies are a necessity for ensuring that CO2 emitted by fossil-fuel combustion is stopped from reaching the atmosphere and for keeping the goals of the Paris Agreement alive. DNV’s first Energy Transition Outlook: CCS to 2050 report clearly shows that we are at a turning point in the development of this crucial technology.

“The biggest barrier to the very much needed acceleration of CCS deployment is policy uncertainty. Policy shifts, not technology or costs, have been responsible for many CCS project failures. However, policy support for CCS is firming across most world regions.”

Recent turmoil and budgetary pressure in the global economy pose risks to CCS deployment, potentially shifting priorities and removing necessary finance needed.

Jamie Burrows, Global Segment Lead CCUS, Energy Systems at DNV said “CCS is entering a pivotal decade and the scale of ambition and investment must increase dramatically. It remains essential for hard-to-decarbonise sectors like cement, steel, chemicals, and maritime transport. But as DNV’s report shows, delays in reducing carbon dioxide emissions will place an even greater burden on carbon dioxide removal technologies. To stay within climate targets, we must accelerate the deployment of all carbon management solutions -from industrial capture to nature-based removal - starting today."

Middle East developments

DNV notes that the Middle East is home to three operational CCS projects and six under construction. Operating facilities include the Al Reyadah steel plant in the UAE, Qatar's Ras Laffan LNG Facility, and Saudi Arabia's Uthmaniyah gas processing plant.

The world’s largest CO2 utilisation facility, United Jubail Petrochemical, is also in Saudi Arabia. The facility converts 0.5 MtCO2/yr into feedstock for chemical processes.

The main focus of regional CCS development has evolved from EOR to decarbonising energy and the production of low-carbon fuels. The UAE's Long Term Strategy highlights CCS as crucial for industrial sector decarbonisation, targeting 43.5 MtCO2/yr capacity by 2050. ADNOC aims for 10 MtCO2/yr captured by 2030 and net-zero operations by 2045. ADNOC's Habshan and Ghasha Concession projects, each with capacity of 1.5 MtCO2/yr, are currently under construction.

Saudi Arabia aims to capture and store 44 MtCO2/ yr by 2035 and launched a domestic carbon crediting scheme in 2024. A CCS hub is under construction at Jubail, which will store 9 MtCO2/yr by 2027 from natural gas processing and industrial sources in an onshore saline aquifer.

Oman aims to utilise its pipeline infrastructure for hydrogen and CO2 transport in new CCS and EOR projects.

Direct air capture (DAC) projects are emerging in Saudi Arabia, the UAE, and Oman, often combined with CO2 mineralisation or sustainable aviation fuel production.

In 2024, the world’s top 10 solar photovoltaic (PV) module manufacturers shipped a record 500 gigawatts (GW) of modules, nearly doubling the previous year’s volume, according to Wood Mackenzie’s Global Solar Module Manufacturer Rankings 2025 report.

Despite this milestone, the industry faced significant financial strain, with leading players reporting collective losses of US$4bn due to declining revenues and aggressive pricing.

For the Middle East, however, the report highlights a strategic pivot as manufacturers target the region for expansion to navigate global trade challenges and tap into growing demand.

The Middle East is becoming a critical growth frontier for solar PV manufacturers.

Wood Mackenzie notes that several top 20 manufacturers are planning to establish production facilities in Egypt, Oman, Saudi Arabia, Qatar, and the UAE.

This move is driven by the need to diversify geographically amid rising trade tensions and market barriers globally.

“Establishing production in the Middle East allows manufacturers to bypass tariffs, meet local content mandates, and capitalise on the region’s increasing solar adoption,” said Yana Hryshko, head of global solar supply chain at Wood Mackenzie. “It’s a strategic play to remain competitive in a fragmented global market.”

The push into the Middle East aligns with the region’s ambitious renewable energy targets, particularly in Saudi Arabia and the UAE, where solar projects are scaling rapidly.

By setting up local production, manufacturers aim to secure a foothold in these high-growth markets while mitigating risks from import restrictions and trade policies elsewhere.

Top manufacturers leading the charge

The 2024 rankings, led by Jinko Solar (90.6/100), JA Solar (89.8), and LONGi Green Energy (86.5), reflect the dominance of Chinese manufacturers, but the report underscores the growing geographic diversification of production.

Seven of the top 10 manufacturers now operate facilities in three or more countries, with the Middle East emerging as a key focus alongside regions like Cambodia, India, Malaysia, Mexico, and Vietnam.

The top 10 manufacturers maintained a robust average utilisation rate of 69%, showcasing operational resilience despite market pressures.

Their focus on the Middle East is expected to strengthen supply chains tailored to regional needs, particularly as demand for high-efficiency N-type modules grows.

The industry’s shift to N-type modules, which accounted for over 87% of Jinko Solar’s shipments, is particularly relevant for the Middle East, where high-efficiency technologies like TOPCon (24%+ efficiency) and heterojunction (HJT, 24%) are well-suited to the region’s harsh climatic conditions.

Additionally, top manufacturers are pursuing vertical integration, with investments in wafer production to control costs and quality—an advantage for establishing cost-competitive operations in the Middle East.

As solar PV module prices remain under pressure, the Middle East offers a strategic opportunity for manufacturers to balance cost reduction with market expansion.

The region’s growing solar market, supportive policies, and strategic location make it a pivotal hub for the industry’s next growth cycle.

“Despite financial challenges, the solar industry is repositioning for global growth, with the Middle East playing a central role,” Hryshko concluded. “Technology leadership, supply chain control, and regional agility will define success in this dynamic market.”

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