The 2.4GW Hassyan power complex is a gas-fired power plant project in Saih Shuaib, Dubai, United Arab Emirates (UAE).
The Hassyan project is one of the biggest power plants under China’s Belt and Road Initiative (BRI). It is also among the Silk Road Fund’s first investments in the Middle East.
Construction of the $3.4bn power plant commenced in November 2016, and the site comprises four 600MW units.
The first two units began operation in May 2020 and May 2021, respectively. Unit three was commissioned in May 2022 while unit four began operation in May 2023.
The Hassyan Power Complex was originally built to run on both natural gas and clean coal, but now it operates only on natural gas. The transition was completed following approval from Dubai Supreme Council of Energy chairman Sheikh Ahmed bin Saeed Al Maktoum in February 2022.
The Hassyan Energy Company joint venture (JV) between Dubai Electricity and Water Authority (DEWA, 51%) and the consortium of ACWA Power, Harbin Electric and the Silk Road Fund (49%) developed the project.
The project supports the Dubai Clean Energy Strategy 2050, which is aimed at producing environment-friendly energy. The programme aims to produce 25% of energy from solar power, 7% from nuclear power, 7% from clean coal and the remaining 61% from gas by 2030.
The power plant is estimated to supply Dubai with 20% of its total power needs. It will also help avoid about 30 million tonnes of carbon dioxide (CO₂) emissions by 2030.
Hassyan power project details
The Hassyan power plant was developed on a build-own-operate (BOO) basis using the independent power producer (IPP) model.
The plant is equipped with Alstom Energy’s (now GE) USC technology (boiler and steam turbine generator), which is capable of burning natural gas and sub-bituminous coal.
The flue gas emission levels at the plant are maintained in accordance with the Industrial Emissions Directive (IED) of the European Union and International Finance Corporation (IFC) guidelines.
The wastewater produced at the plant undergoes processing and recycling to meet the requirements of internal systems, contributing to zero wastewater being released.
A 400kV substation was constructed as part of the project, which is connected to the existing 400kV electricity transmission network.
Technology used at the Hassyan power complex
The USC technology enables the power plant to run at a higher steam temperature and pressure than traditional coal-fired plants, improving the plant efficiency and decreasing stack emissions. The project also features a carbon capture-ready design.
Advanced electrostatic precipitators (ESP) and seawater flue gas desulphurisation (SWFGD) systems of the USC technology lower the NOₓ, SOₓ and particulate emission levels.
Abu Dhabi National Oil Company (ADNOC), a state-owned oil and gas company based in the UAE, signed an agreement with the Dubai Supply Authority (DUSUP) for the supply of natural gas for the Hassyan power complex in September 2022.
Power purchase agreement for the gas-fired power plant
DEWA entered a 25-year power purchase agreement (PPA) and shareholders agreement (SHA) with the ACWA Power-led consortium in June 2015.
According to the agreement, DEWA purchases the electricity generated at Hassyan at a tariff rate of less than ¢5 per kilowatt-hour.
Financing details of the Hassyan power facility
The power plant was provided with limited recourse project financing comprising senior-secured financing and a protected mezzanine tranche.
The lender group included banks and financial institutions such as the Industrial and Commercial Bank of China, Bank of China, Agricultural Bank of China, China Construction Bank and Silk Road Fund. It also included First Gulf Bank, Union National Bank and Standard Chartered Bank.
The consortium of Harbin Electric International, ACWA Power and Harbin Electric was awarded the contract for the construction and implementation of the Hassyan clean coal power plant in October 2015.
Hassyan Energy awarded the engineering, procurement and construction (EPC) contract for the project to Harbin Electric International and General Electric (GE) in June 2016.
Alstom Power, which is now part of GE, was awarded the contract for the supply of the boiler, steam turbine generator and advanced environmental control systems for the project.
GE subcontracted the steel fabrication works to Huaye Steel Structure (HYSS) in August 2016. The contractual scope included the fabrication of the boiler support system for the four 600MW units.
NOMAC, a wholly owned subsidiary of ACWA Power, is the operations and maintenance services provider for the project while ACES-Dubai was engaged by Consolidated Contractors Company (CCC) and Nepti for preparing the geotechnical study.