The UAE’s Dubai Electricity and Water Authority (DEWA) has reached a financial closure for the development of a 2,400MW Hassyan clean coal power project.
A total $3.4bn investment will be provided through Hassyan Energy Company, a joint venture (JV) between DEWA that holds a 51% stake and a consortium holding 49%.
The consortium comprises Riyadh’s electricity company ACWA Power, Chinese manufacturing company Harbin Electric, and Chinese investment company the Silk Road Fund.
The project comprises four 600MW net power units, which will respectively commence operations in March 2020, 2021, 2022, and 2023.
DEWA’s managing director (MD) and chief executive officer (CEO) Saeed Mohammed Al Tayer said: “The Hassyan clean coal power project underlines DEWA’s commitment to achieving the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, vice-president and prime minister of the UAE and Ruler of Dubai, to diversify the energy mix.
“It also reflects DEWA’s commitment to achieving the Dubai Clean Energy Strategy 2050, which focusses on producing electricity from clean coal as part of Dubai’s energy mix.”
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Supported by a 25-year power purchase agreement (PPA) with DEWA, the Hassyan project uses the independent power producer (IPP) procurement model on a build own operate (BOO) basis.
DEWA signed the PPA, shareholders agreement (SHA), and other project agreements with the consortium led by ACWA Power in June this year.
Being the first-of-its-kind in the region, the new Hassyan clean coal power plant will be fully-compliant with certain international standards and will adopt the use of ultra-supercritical technology.
Image: Hassyan clean coal power project in Dubai, UAE. Photo: courtesy of DEWA.