The acquisition enhances Linz's energy business portfolio. (Image source: Linz Electric)

Linz Electric SpA, a key subsidiary of the Pedrollo Group, has acquired a 60% stake in Germany’s KW Generator GmbH (KWG), marking a pivotal milestone in its ambitious international growth strategy.

With an annual turnover of €500mn, the group is now a formidable player in the global energy transition, addressing the evolving demands of sustainable and reliable power solutions.

The transaction builds on a nearly two-decade partnership between Linz Electric and KWG, merging Italian innovation with German engineering precision to create a European powerhouse in the energy sector.

By combining their complementary alternator ranges, the two companies have established one of the most comprehensive product portfolios globally, serving a wide array of applications.

These range from traditional generator sets to advanced energy transition support systems, as well as specialised solutions for mobile refrigeration, earthmoving equipment, and machinery requiring continuous, reliable, and flexible power.

This strategic alignment positions Linz Electric and KWG to tackle pressing global energy challenges, particularly as the reliability of power supply becomes increasingly critical amid growing concerns over blackouts and grid instability.

KWG brings to the partnership its advanced product lines and deep-rooted relationships with leading original equipment manufacturer (OEM) customers in demanding sectors, including material handling, heavy-duty environments, and mobile refrigeration.

These industries require robust, high-performance power solutions capable of operating in extreme conditions, and KWG’s expertise enhances the partnership’s ability to meet these needs.

Linz Electric’s well-established global distribution network within the Pedrollo Group, along with its direct subsidiary in the United States, plays a key role in opening up new markets and customer segments for KWG..

Growing customer base

This infrastructure opens new markets and customer segments for KWG, enabling the partnership to expand its reach and deliver innovative power solutions to a broader audience.

The acquisition underscores Linz Electric’s rising prominence in a rapidly transforming energy market, where innovation, sustainability, and strategic alliances are critical drivers of industrial value and long-term competitiveness.

By integrating KWG’s capabilities, Linz Electric strengthens its ability to deliver cutting-edge solutions that address the complexities of modern energy demands.

The partnership also aligns with the Pedrollo Group’s broader mission to drive progress across its core business areas.

With a diversified portfolio spanning water management, applied technology, and now a reinforced presence in energy, the group solidifies its reputation as an authoritative and innovative leader in international markets.

This move positions the Pedrollo Group as a key contributor to the global energy transition, offering solutions that support sustainable development and energy resilience worldwide.

As part of the Pedrollo Group, Linz Electric benefits from the Group’s financial stability and global reach, which amplify the strategic value of this partnership.

The acquisition not only enhances the energy business area but also reinforces the Group’s commitment to fostering innovation and collaboration across its operations in Italy, the United States, Spain, Germany, and beyond.

By uniting Linz Electric’s and KWG’s expertise, vision, and industrial strengths, this partnership is poised to deliver concrete, scalable solutions to meet the evolving needs of the global energy sector, ensuring reliability and sustainability for future generations.

Giulio Pedrollo, CEO of the Pedrollo Group and founder of Linz Electric, said," After years of collaboration, I am excited about the opportunities this transaction offers: the partnership between Linz Electric and KWG is a clear example of how international cooperation between companies that share values, vision and expertise can generate new opportunities for growth and development. Together, we are ready to face the great challenges of global energy transformation. We will continue to invest with determination in innovation, quality and customer service, while keeping our production roots firmly anchored in our home territories. For us, this project represents a concrete testimony to the value of European manufacturing excellence, capable of competing and innovating on an international scale.'' 

Michael Werner, CEO and shareholder of KWG, added, "With Linz as our majority partner, we are confident in our ability to address the competitive landscape and capitalize on new growth opportunities. This partnership demonstrates our commitment to providing superior products and services to our customers." 

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.”

Also read: A bullish growth for renewables in the Middle East?

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.”

Also read: Vaisala highlights its newest solutions

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.