Contract Signing Ceremony with Local EPC Company in Riyadh, Saudi Arabia
TOKYO, July 13, 2026 - (JCN Newswire) - Mitsubishi Power, a power solutions brand of Mitsubishi Heavy Industries, Ltd. (MHI), has received orders to supply key boiler components for a project converting existing heavy oil-fired boilers at large-scale thermal power plants in Saudi Arabia into dual-fuel boilers capable of switching between and co-firing both natural gas and heavy oil. This contract was signed between Dar Al Balad Contracting and Operations (DAB), a local EPC (engineering, procurement, and construction) company, and Mitsubishi Corporation Machinery, as authorized agent of Mitsubishi Power. Leveraging its technical capabilities as the OEM (original equipment manufacturer) responsible for the design and manufacture of the existing boilers, Mitsubishi Power supports Saudi Arabia's energy policy to transition fuel sources in power generation and contributes to reducing the country's CO2 emissions.
The targeted thermal power plants are the Jeddah South Power Plant and the Shuqaiq Power Plant, both located on Saudi Arabia's west coast. Each plant has a capacity of approximately 2.9 GW and consists of four units (Units 1 to 4). Operations began sequentially in 2017. Mitsubishi Power originally supplied the existing boilers component as the OEM at the time of plant construction and will utilize these existing assets to carry out the boiler supply work for the fuel conversion.
The fuel conversion project is progressing under Saudi Arabia's energy policy, with the end customer being Saudi Energy (SE). Through its long-standing local partner DAB, Mitsubishi Power will support the conversion of the existing heavy oil-fired boilers into dual-fuel boilers, providing technical assistance to ensure the long-term stable operation of the plants.
Saudi Arabia is advancing a shift in its power generation fuel mix from heavy oil to natural gas under the national strategy "Saudi Vision 2030," aiming to increase the share of natural gas-fired power generation to over 50%. The government has directed domestic power producers, including SE, to commence operations using natural gas, accelerating fuel conversion plans at power plants nationwide.
Particularly on the west coast, where the ratio of heavy oil-fired power generation is high, there is strong demand for electricity. Fuel conversion from heavy oil to natural gas at existing power plants is essential to simultaneously maintain stable electricity supply and meet environmental requirements.
Commenting on the contract award, Makoto Fujita, Senior General Manager, Steam Power Business Division, Energy Systems at MHI, said, "The Jeddah South and Shuqaiq power plants have played a vital role in ensuring a stable electricity supply on Saudi Arabia's west coast. As the OEM of the existing boilers, we are very proud to contribute to the country's energy transition and CO2 emissions reduction through our participation in this fuel conversion project. We will dedicate ourselves to the successful completion of this project and continue to provide support for the long-term stable operation of the plants."
Mitsubishi Power will further strengthen its efforts to promote the widespread adoption of high-performance and reliable technologies, contributing to the stable supply of electric power essential for economic development worldwide, while supporting global environmental conservation through the advancement of low-carbon and decarbonized energy solutions and the modernization of existing power generation assets.
About MHI Group
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