IPPToday #279: RFEOI issued for 1.2 GW clean coal project in Dubai
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Dubai Electricity & Water Authority (DEWA) has announced the commencement of a competitive tender process to select a suitable developer or developer consortium for a 1,200 MW coal-fired project - the third phase of the Hassyan clean coal power plant.
The authority has published a Request for Expressions of Interest (RFEOI) for private developers that would own 49% of the project company responsible for building and operating the plant.
The generation facility is to be located at the Saih Shuaib area on the Arabian Gulf coast of Dubai and be commissioned before the summer of 2026. The power generated by the plant will be purchased by DEWA under a long-term Power Purchase Agreement (PPA).
The deadline to submit Expressions of Interest (EOIs) is 24 September 2018. For more information, see the Business Opportunity. DEWA intends to provide additional information on the subsequent process and procedures of the tender in due course.
Phase I of the Hassyan project is currently in construction, having reached financial close in late 2016. It is owned by a joint venture between DEWA and ACWA Power. The coal-fired plant will have an aggregate capacity of 2,400 MW, comprising four units of 600 MW net power each, which are scheduled to commence operations in March 2020, March 2021, March 2022, and March 2023, respectively.
The utilisation of coal as a clean energy source is fiercely contended within the energy sector. In the case of Hassyan Phase I, the use of "clean coal" refers to ultra-supercritical technology which will enable the power plant to run at a higher steam temperature and pressure than a regular coal-fired plant. This means that the plant’s efficiency will be significantly higher than the global average, resulting in lower CO2 emissions. GE is providing this technology.
Furthermore, Hassyan Phase I will feature GE’s advanced environmental control systems which will achieve emission levels at stack (NOx, SOx and dust) equivalent to the NOx-levels of gas-fired power plants and meet the limits set for flue gas emissions. Phase III is thus likely to follow this model of clean coal generation.