Wärtsilä’s visionary role in the energy transition

Given the growing focus on energy sustainability and decarbonisation in the Middle East, how has Wärtsilä contributed to this effort in recent years?
Wärtsilä was among the first to understand the high demand renewable energy would have in the future and we wanted to pave the way for its adoption.
I believe we sparked a global shift because we recognised very early on the impact renewable energy production would have on our traditional business model, including our existing engine and power plant sales. We understood that renewable energy penetration would become extraordinarily high. So, the question became: how do we adapt and survive in this new landscape? Unlike other major technology companies, we acknowledged that the reliance on baseload thermal power plants would decrease, replaced by renewable sources.
Thankfully, the world has finally grasped the reality of intermittent solar and wind power. To optimise their use, we need either load banks that keep electricity flowing continuously or additional technologies that can accommodate the inevitable fluctuations. From a global perspective, it’s gratifying to see our long-term strategy come to fruition. It’s as if the world is finally catching up on the path we’ve been pioneering.

How do you see the company’s activities growing in renewable energy in the region?
In the Middle East today, Wärtsilä remains focused on the C&I [commercial and industrial] market, where we have a strong presence. However, utilities are increasingly prioritising renewable energy integration. As such, our focus complements their strategy by providing reliable and flexible power solutions to support the grid during the integration of renewables.
Also, Wärtsilä is particularly well positioned in the future of marine fuels. We boast the industry’s largest engine portfolio for methanol, capable of power output ranging from 0.8 MW to 21.6 MW. We’re also confident in the future of ammonia as a marine fuel and to some extent could have a card to play in the energy market, with its potential to become a more cost-competitive energy source in the coming years.
Hydrogen, however, represents a longer-term solution due to the significant infrastructure investment required for energy applications. Wärtsilä’s strength lies in its adaptability. We offer a diverse portfolio of solutions, including methanol, which appears to be a more practical option for marine storage compared to ammonia. In essence, ammonia can be considered a stepping stone towards hydrogen adoption.
For example, in Jordan, the IPP 3 power plant is powered by 38 Wärtsilä 50DF multi-fuel engines with a combined capacity of 573 MW. A 25 vol% hydrogen blend could be added to these immediately.

As Saudi Arabia is one of your biggest markets, how do you view the future of the country’s energy production?
Saudi Arabia has a very ambitious target: achieving 50% clean energy by 2030. Solar will likely be the main driver, but the kingdom has already begun implementing wind power as well. Saudi Arabia’s current renewable energy penetration is only around 5%. Therefore, understanding the mechanism of the energy transition and adding flexibility is crucial. Ideally, their plan wouldn’t just involve issuing tenders for renewables, but would take a more holistic approach that includes new infrastructure and environmental system impacts. Wärtsilä’s experience aligns perfectly. In the past 90 years or so, we’ve transitioned from engines combusting various fuels (distilled fuel, crude oil, gas, natural gas) to exploring cleaner options such as ammonia, methanol and hydrogen.
The Saudi government is committed to economic diversification beyond oil, which is illustrated by the recent deployment of the fuel displacement programme, which currently only addresses C&I industries. The aim of this initiative is to move some industries to connect to the grid or alternatively switch to gas as the main fuel. This would reduce the industry’s dependence on heavily emitting liquid fuels. It opens opportunities for industries to look at, for instance, a hybrid approach: implementing small-scale renewables along with flexible technologies to reduce their dependence on this historical fossil fuel. Adding renewables also necessitates infrastructure improvements, and this should constitute a key part of the focus.
While Saudi Arabia recognises the need for flexibility in its energy mix, translating this into concrete future plans remains a challenge. They understand and acknowledge the need, but the formulation requires further work.

Is this trend replicated in the rest of the region?
The UAE, for example, has already formulated the requirements of its energy transition and begun implementing projects. Qatar, with its abundant natural gas resources, is likely to focus on switching to sustainable fuels. Unlike the UAE, they lack the vast land space needed for large-scale solar or wind farms. As with any energy transition, successful implementation depends on adapting solutions to a country’s specific land area and capacity.
Bahrain, Iraq, Iran and Yemen present a different set of challenges due to geopolitical issues that complicate attracting investment. However, there are positive developments: Yemen already has some solar capacity installed (around 20-50 MW), and Iraq has begun similar initiatives. The future of the energy transition in these countries remains promising.
On the other hand, there is Oman, which approaches the transition in a different way. Oman is focused on immediately adopting the cleanest fuel sources available, bypassing intermediate solutions. Other countries in the Middle East are taking a more diversified approach, integrating flexible technologies, renewable energy sources and even nuclear power into their energy mixes. This flexibility allows them to adapt their strategy as new, cleaner technologies emerge.

Where will Wärtsilä’s next projects be oriented?
In Saudi Arabia, Wärtsilä remains a leading player in the C&I market. Most of our activities are in the cement industry, a backbone for mega-projects. In C&I for mining, Wärtsilä holds a significant market share in Saudi Arabia: around 75-80%. We also participate in mining developments.
This is our primary focus, particularly for captive power generation projects, where we’ve implemented successful hybrid solutions. We continue to pursue market development initiatives in this area, as current tenders don’t directly target our expertise in C&I power solutions.
As an example, while the UAE boasts a well-developed infrastructure, Abu Dhabi has specific needs that we’re working closely with different organisations to address, focusing on enabling flexibility in the power grid.
For Wärtsilä Middle East, our largest markets are regions undergoing significant infrastructure development, especially those facing challenges in securing food and water supplies. Iraq, currently our second-largest market, is a prime example. A surge in road reconstruction and housing development across the region is driving growth in industries such as cement, steel, food processing and agriculture. This presents a significant opportunity for Wärtsilä, as these growing sectors require reliable and efficient power solutions.

Could you tell us about the company’s operations and maintenance capacity?
Our key differentiator is our ability to predict maintenance needs. Predictive maintenance allows us to estimate when maintenance should be performed. This minimises disruption to their production and keeps their equipment availability high. This approach highlights our growing focus on service agreements and comprehensive support solutions.
Wärtsilä’s strength lies in our portfolio of highly customisable services. Some customers, primarily investors, prioritise guaranteed availability or reliability levels of operational machinery. We excel at delivering those outcomes. Conversely, clients with strong in-house expertise might only require our supervisory services. We happily cater to both ends of the spectrum.
Our unwavering commitment to delivering value at every stage of the customer journey positions Wärtsilä as an industry leader. With a dedicated team of 14,000-15,000 lifecycle solution specialists and an unmatched global network spanning more than 280 locations in 79 countries, we offer a depth of expertise that surpasses a mere sales presence.

What factors do you think companies will have to take into account in the coming years to remain at the forefront of power production?
Our engine technology has continuously adapted, transitioning from distillate fuel to gas, and now we’re exploring cleaner options such as ammonia, hydrogen and synthetic methane. Adaptability is ingrained in our DNA. This is why, as our management has repeatedly emphasised, our technology is now capable of running on ammonia, as evidenced by our industry-leading ammonia engine portfolio in the marine sector. The successful transition to alternative fuels hinges on the involvement of major oil companies such as ADNOC, Saudi Aramco, Shell, ExxonMobil and TotalEnergies. These companies will be the backbone of providing us with the sustainable fuels of the future.
The main word here is flexibility. A few years ago, it was perhaps considered a theoretical ideal. Today, it’s unquestionably an essential component of any future-proof power grid. I gain optimism from countries that realise that flexibility is essential.
It’s clear that utilising renewables as the most cost-effective resource requires flexible solutions alongside them. Achieving clean energy is also a critical factor. Thankfully, there seems to be a growing consensus on these points. The implementation, however, will likely take some time.