Dubai Electricity and Water Authority (Dewa) has signed an agreement for a project that aims to produce 2,400 megawatts (MW) of electricity using clean coal.

Saeed Mohammed Al Tayer, MD and CEO of Dewa signed the Power Purchase Agreement (PPA) and a Shareholders Agreement (SHA) with Mohammad Abdullah Abunayyan, chairman of Acwa Power and representative of the Acwa Power and Harbin Electric consortium.

The Hassyan clean coal power project uses the Independent Power Producer (IPP) procurement model on a Build Own Operate (BOO) basis.

The project will be supported by a 25-year PPA with Dewa and the bidder has been required to put in place a secure delivery of coal to the project over the 25-year life of the PPA. The first 2,400MW phase of the project comprises four 600MW units.

The second 1,200MW phase of the project includes two 600MW units with ultra-supercritical technology. The project has a planned commercial operation date of March 2023.

“Dewa’s Hassyan clean coal power project reflects Dewa’s commitment to its goals of energy diversification and sustainability of resources, and achieving the Dubai Clean Energy Strategy 2050, which focuses on producing electricity from clean coal as part of Dubai's energy mix,” said Al Tayer.

“Dewa works to achieve the fifth pillar of the Dubai Clean Energy Strategy 2050, which focuses on creating an environmentally-friendly energy mix, with 25 per cent coming from solar energy, 7 per cent from nuclear power, 7 per cent from clean coal, and 61 per cent from gas by 2030,” added Al Tayer.

“Signing this agreement exemplifies the success of Public Private Partnerships and the importance of involving the private sector in enhancing efficiency, productivity and cost reduction, in addition to optimising resources, transferring the technology, and training and developing local skills in the energy industry. Moreover, signing a PPA with Dewa brings us closer to the completion of the financial close of the project to start its construction as per the stated timeframe,” said Abunayyan.

The Hassyan clean-coal power plan gained the interest of many international organisations. – TradeArabia News Service