Hassyan Clean-Coal Power Project

From Global Energy Monitor

Hassyan Clean-Coal Power Project is a 2,400-megawatt (MW) coal-fired power station in Dubai, United Arab Emirates under development.

An additional 1,200 MW is also tentatively planned.

Location

The undated satellite photo below shows the power station in Jebel Ali, Dubai.

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Background on Plant

Hassyan is a planned 3,600 MW coal-fired power station by state-owned Dubai Electricity and Water Authority (DEWA), to be built in two phases, Phase I of 2,400 MW and Phase II of 1,200 MW.[1] According to reports in August 2016, the 2,400 MW project would be fully operational in March 2023.[2]

The station is reportedly a reworked version of earlier plans to build a US$1.3 billion gas-fueled Hassyan power and water project, which DEWA put off indefinitely in April 2013. Upon completion, the project is set to be the first, and perhaps last, coal-based power plant in the region.[3][4]

Phase I: 4 x 600 MW

The project was announced in August 2013, with Phase I described as 1,200 MW in size.[5]

In September 2014, Dubai's state utility, Dubai Electricity and Water Authority (DEWA), said that it had shortlisted eight international developers to send bids for the first phase of the project.[6]

In May 2015, DEWA was still deciding between four bidders, with Saudi Arabia's ACWA Power submitting the lowest bid and pledging to develop the plant for DEWA in return for US$5.177 cents per kWh.[7]

In October 2015, DEWA said Harbin Electric of China would build the plant while those companies as well as Saudi Arabia's ACWA Power would operate it.[8] The deal was for a levelised cost of energy tariff (LCOE) of 4.501 cents a kilowatt hour (kWh).[9]

The deal was initially for 1,200 MW, but the developer consortium signed the PPA in June 2016 for a 2,400 MW coal-fired facility, which could comprise of four 600 MW units.[9]

Construction of the US$3.4bn power plant commenced in November 2016. The four 600 MW units were expected to start operations in 2020, 2021, 2022 and 2023 respectively.[10][11] In the summer of 2016, a contract was awarded for the 200 kV substation.[2]

In June 2020, China-based Xinhua News reported that Unit 1 had achieved synchronization.[12] In July 2020, it was reported that Unit 1 had begun full-load trial operations.[13] The new unit was expected to be commissioned in 2021.[14]

Hassyan's first 600 MW unit was connected to the grid in November 2020, according to contractor Harbin Electric, with steam blowing at the second 600 MW unit in early March 2021.[15] The second unit was reportedly completed on May 3, 2021.[16]

Phase I Financing

The companies were in talks for a loan to finance the project with Chinese-state owned credit agency Export-Import Bank of China and lenders including Industrial and Commercial Bank of China, Bank of China, Standard Chartered, Abu Dhabi's First Gulf Bank and Saudi Arabia's Samba Financial Group.[17]

In December 2016, financing for US$2.47 billion was secured. Lenders included Industrial and Commercial Bank of China, Bank of China, Agricultural Bank of China, China Construction Bank, Silk Road Fund, First Gulf Bank, Union National Bank, Standard Chartered Bank, National Commercial Bank, Commercial Bank International and Emirates NBD.[10] US$650 million in equity was provided by Dubai Electricity & Water Authority, ACWA Power, Harbin Electric, and Silk Road Fund. The financial advisors for the deal include EY, HSBC, and Deloitte.[18]

Phase II: 2 x 600 MW

According to the Pakistan publication PK, DEWA planned to launch a tender for a 1,200 MW coal IPP in Dubai in November 2017.[19]

On February 21, 2019, Thomson Reuters reported that DEWA will wait for its Hassyan 1 & 2 units to be completed before deciding whether to push ahead with phase II. The decision came as Asian coal prices jumped from US$50 a tonne in early 2016 to US$120 in 2017, and then US$90 in 2018.[20]

Project Details

  • Sponsor: Hassyan Energy
  • Parent company: ACWA Power and Harbin Electric International, under PPA arrangement with Dubai Electricity and Water Authority (DEWA)
  • Developer:
  • Location: Jebel Ali, Dubai, United Arab Emirates
  • Coordinates: 24.911516, 54.9154939 (exact)
  • Status: Phase I: Operating (Units 1-2), Construction (Units 3-4); Phase II: Shelved
  • Capacity: Phase I: 4 x 600 MW; Phase II: 2 x 600 MW
  • Type: Ultra-supercritical
  • Start date: Unit 1: 2020, Unit 2: 2021, Unit 3: 2022, Unit 4: 2023
  • Coal Type:
  • Coal Source: Imported
  • Source of financing: phase 1: US$2.47 billion in debt from Industrial and Commercial Bank of China, Bank of China, Agricultural Bank of China, China Construction Bank, Silk Road Fund, First Gulf Bank, Union National Bank, Standard Chartered Bank, National Commercial Bank, Commercial Bank International and Emirates NBD;[10] US$650 million in equity from Dubai Electricity & Water Authority, ACWA Power, Harbin Electric, and Silk Road Fund[18]
  • Permits and applications:

Articles and resources

References

  1. "Dubai to purchase power from 2400 MW clean coal power plant," Power Engineering, June 8, 2016
  2. 2.0 2.1 "DEWA awards AED 197 million construction contract for Hassyan clean coal power plant 400 kV substation," Your Nuclear News, August 17, 2016
  3. Karlee Weinmann, "Dubai Authority Details Plans For 1,200-MW Clean Coal Plant," Law360, August 20, 2013
  4. "Dubai Gets Arab Gulf’s First, and Perhaps Last, Coal Power Plant," Bloomberg Green, November 26, 2020
  5. "GE and Harbin to build clean coal-fired power plant in UAE," Power Engineering, July 5, 2016
  6. Andy Sambidge, "Dubai's DEWA shortlists 8 for clean-coal power project," Arabian Business.com, September 6, 2014
  7. "ACWA Power submits low bid for Hassyan coal plant," Utilities ME, May 3, 2015
  8. "Dewa announces preferred bidder for $1.8 billion clean coal plant," Khaleej Times, October 13, 2015
  9. 9.0 9.1 "Second major coal power project planned in UAE," Meed, March 1, 2017
  10. 10.0 10.1 10.2 "Dubai Hassyan clean coal plant secures $2.47bn of financing," Gulf Business, December 11, 2016
  11. "UAE: Hassyan Energy inks deal for clean coal plant," Utilities-me, July 11, 2016
  12. "China-UAE joint projects achieve progress amid COVID-19 pandemic," Xinhua, June 30, 2020
  13. "Testing underway at Hassyan clean coal-fired power plant in Dubai," The Asset, July 29, 2020
  14. "Eight International Power Sector Trends to Watch in 2021 and Beyond," POWER Magazine, January 4, 2021
  15. "Drummond ships first coal to UAE," Argus Media, April 13, 2021
  16. "Innovation key to a prosperous future," China Daily, May 17, 2021
  17. "Harbin, ACWA near loan for Dubai clean coal plant," Arabian Industry, April 13, 2016
  18. 18.0 18.1 "Preview of Hassyan Coal-Fired Power Plant Phase 1 (2400MW) IPP," IJGlobal, updated June 16, 2020
  19. "Oman moves ahead with its 1,800MW coal-fired project, picks IPP," PK On Web, November 1, 2017
  20. Rod Morrison, "Coal IPPs on hold - Project Finance International," Thomson Reuters (paid subscription service), February 21, 2019

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