GDF Suez, one of the largest desalination plant operators in the world, will break ground in February on its billion-dollar Mirfa gas-fired power and water project, said a report.

The project, located 120 km west of the UAE capital Abu Dhabi, will cost $1.5 billion and generate 1,600 megawatts (MW) of electricity, with a seawater desalination capacity of 52.5 million gallons per day, stated the emirati news agency Wam, citing a top company official.

The new plant, which is likely to start operation in 2017, will replace an existing 200 MW plant that caters to local demand in Mirfa, revealed Marie-Ange Debon, the deputy chief executive and head of international activities at the utility unit Suez Environnement.

GDF Suez, the largest shareholder in Suez Environnement, had in July signed a 25-year power and water purchase agreement with Abu Dhabi Water and Electricity Authority (Adwea).

Adwea holds an 80 per cent stake in the scheme, with the remainder held by the French company.

Once operational, the plant is expected to provide enough electricity for more than one million homes, said the report.

The Mirfa desalination plant will use reverse osmosis, which removes salt and algae from seawater by using membranes and is cheaper than the other two main types of desalination used in the region, multi-stage flash and multi-effect distillation.

A major player in the region, GDF Suez operates the reverse osmosis plant at the Fujairah One independent water and power plant, the largest of its type in the region. Fujairah One deploys a hybrid of reverse osmosis and multi-stage flash distillation.