Electric motors to propel the UAE’s net-zero targets

UAE

Rajesh Menon, CEO of Innomotics in the Middle East, talks to The Energy Year about improving the energy efficiency and emissions profile of oil and gas facilities with electric motors and the rise in demand for electric systems from utilities across the Middle East. Innomotics is a Siemens spin-off that manufactures low- and medium-voltage motors and medium-voltage drives and drive systems.

How is Innomotics supporting the UAE’s Net Zero 2050 Strategy?
We support the UAE’s clean energy and net-zero goals for 2050 by working as partners with end customers on their decarbonisation journey. Our product portfolio includes solutions for carbon capture, gas turbine replacement and rectifiers for hydrogen electrolysis, and we collaborate with major customers in the region on energy transition and energy-saving measures by supplying equipment such as low- and medium-voltage motors and medium-voltage drives and drive systems.
We also work with customers on methods to generate carbon credits, and we help companies that export from the MENA region into Europe comply with the EU’s Carbon Border Adjustment Mechanism. Our systems improve energy efficiency and reduce carbon footprints. Our customers use different methodologies to manage their environmental impact, so we tailor our solutions to enable them to achieve their targets.
On carbon capture, we are working with carbon capture technology licensors, consultants and end customers from the early stages of new projects to support development. We provide rectifiers for electrolysers that are powered by renewable or alternative energy sources, such as green hydrogen obtained from renewables to reduce carbon dioxide emissions, and blue hydrogen.
We provide motors and drive systems for various compressor and pump applications where natural gas has to be split into hydrogen and carbon dioxide through CCUS. Across all these areas, our products support customers in meeting their energy efficiency and carbon reduction goals.

What types of companies do you target as customers?
We work with compressor and pump OEMs, providing them with components and configurations for transportation and compression systems. Although positioned at the end of the supply chain, our products are essential.
We are deeply involved with customers in the Middle East who source from various OEMs and EPCs. Our role is to deliver complete, high-efficiency drive systems – including motors, drives and transformers – that improve overall efficiency. We have been active in this space for decades and demand is growing. We see significant momentum building for the coming years and remain engaged in pre-FEED and FEED stages, to ensure we are embedded in projects from the start.

Which are your main market segments in the Middle East?
In the Middle East, we primarily serve the oil and gas and petrochemicals sectors, but water is also a very big segment for us. We work with most utilities in the UAE and with several more in Saudi Arabia, Kuwait and Egypt, supplying them with energy-efficient systems for water and sewage treatment.
We also supply to most of the leading metals manufacturers. Many are replacing mechanical systems and modernising them with advanced electric drives and automation systems; they seek our expertise and equipment to improve efficiency and reduce energy consumption at their plants.
In Egypt, we have secured our first steam turbine replacement project, which we aim to complete by December 2025. We are also seeing growing demand for turbine replacements in the UAE that include retrofits and upgrades of current products. Our high-speed, maintenance-free motors offer a cost-effective alternative to ageing steam and gas turbines in the process industries. They lower the opex and give a fast return on investment.
We are building local engineering and project management teams to ensure we are close to customers, as we are optimistic that our performance in the Middle East will set the stage for significant business growth in the coming years. Turbine replacements are scheduled around plant shutdowns, which typically take place every four or five years, so they require careful planning and execution.

Can you comment on your growth expectations for the coming years?
We expect the demand to continue up to 2030. Growth won’t just be limited to the UAE and Saudi Arabia; we expect to see a rise in demand also in Kuwait and the rest of the Middle East, driven by water injection and oil and gas projects. There will be huge potential for business in the next four years.
Innomotics is positioned well to capture this growth. We have 16 factories and more than 49 sales offices, all connected to hubs in America, China, Germany, Europe, Africa, Asia Pacific and the Middle East. Our global network allows us to support projects globally.
For instance, a project in the Middle East might have FEED work done by an EPC in France or an OEM in Italy or Germany. From our base in Abu Dhabi, we can co-ordinate with all regional and service offices, supporting OEMs and EPCs worldwide.
In the next five years, we aim to remain number one, grow faster, be highly profitable and lead the energy transition. We are a EUR 3-billion-plus company with 15,000 employees, but we want to scale further in the Middle East and globally.

How has your 2023 rebranding affected business?
Changing the company’s name and governance has required us to obtain new vendor approvals, which has been complex in some cases in the Middle East. However, thanks to our 150-year legacy and the quality of our products, our integration into the market has been mostly straightforward.
When we introduced Innomotics at ADIPEC 2024, customers, OEMs and partners welcomed our new identity. They were pleased to note that all the IPRs [intellectual property rights] were transferred to Innomotics, including the manufacturing and sales setup. The branding and marketing were top-notch and played a huge role in making the transition smooth. It has been a great success and it has provided a strong foundation to grow further.

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