Hassyan Clean-Coal Power Project

From Global Energy Monitor

Hassyan Clean-Coal Power Project is an operating power station of at least 2400-megawatts (MW) in Jebel Ali, Dubai, United Arab Emirates with multiple units, some of which are not currently operating. It is also known as Hassyan Power Complex.

Location

Table 1: Project-level location details

Plant name Location Coordinates (WGS 84)
Hassyan Clean-Coal Power Project Jebel Ali, Dubai, United Arab Emirates 24.911516, 54.915494 (exact)

The map below shows the exact location of the power station.

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Unit-level coordinates (WGS 84):

  • Unit 1, Unit 2, Unit 3, Unit 4, Unit 5, Unit 6: 24.911516, 54.915494
  • Unit 1, Unit 2, Unit 3, Unit 4: 25.2048, 55.2708

Project Details

Table 2: Unit-level details

Unit name Status Fuel(s) Capacity (MW) Technology CHP Start year Retired year
Unit 1 retired coal - unknown 600 ultra-supercritical 2020 2022
Unit 1 operating[1][2] gas[1][3] 600[1] gas turbine[3] not found 2020[2][1]
Unit 2 retired coal - unknown 600 ultra-supercritical 2021 2022
Unit 2 operating[1][2] gas[1] 600[1] gas turbine[3] not found 2021[2][1]
Unit 3 cancelled coal - unknown 600 ultra-supercritical 2022
Unit 3 operating[1][2] gas[1][3] 600[1] gas turbine[3] not found 2022[2][3]
Unit 4 cancelled coal - unknown 600 ultra-supercritical 2023
Unit 4 operating[1][4] gas[1][3] 600[1] gas turbine[3] not found 2023[3][2][5]
Unit 5 cancelled coal - unknown 600 ultra-supercritical
Unit 6 cancelled coal - unknown 600 ultra-supercritical

CHP is an abbreviation for Combined Heat and Power. It is a technology that produces electricity and thermal energy at high efficiencies. Coal units track this information in the Captive Use section when known.

Table 3: Unit-level ownership and operator details

Unit name Owner Parent
Unit 1 Dubai Electricity and Water Authority PJSC (DEWA) [100.0%]
Unit 1 Dubai Electricity and Water Authority [51%]; ACWA Power [27%]; Harbin Electric International Company Ltd (HEI) [15%]; Silk Road Fund [7.00%][3] Dubai Electricity and Water Authority [100.0%]; ACWA Power [100.0%]; Harbin Electric Corporation [100.0%]; Silk Road Fund
Unit 2 Dubai Electricity and Water Authority PJSC (DEWA) [100.0%]
Unit 2 Dubai Electricity and Water Authority [51%]; ACWA Power [27%]; Harbin Electric International Company Ltd (HEI) [15%]; Silk Road Fund [7.00%][3] Dubai Electricity and Water Authority [100.0%]; ACWA Power [100.0%]; Harbin Electric Corporation [100.0%]; Silk Road Fund
Unit 3 Dubai Electricity and Water Authority PJSC (DEWA) [100.0%]
Unit 3 Dubai Electricity and Water Authority [51%]; ACWA Power [27%]; Harbin Electric International Company Ltd (HEI) [15%]; Silk Road Fund [7.00%][3] Dubai Electricity and Water Authority [100.0%]; ACWA Power [100.0%]; Harbin Electric Corporation [100.0%]; Silk Road Fund
Unit 4 Dubai Electricity and Water Authority PJSC (DEWA) [100.0%]
Unit 4 Dubai Electricity and Water Authority [51%]; ACWA Power [27%]; Harbin Electric International Company Ltd (HEI) [15%]; Silk Road Fund [7.00%][3] Dubai Electricity and Water Authority [100.0%]; ACWA Power [100.0%]; Harbin Electric Corporation [100.0%]; Silk Road Fund
Unit 5 Dubai Electricity and Water Authority PJSC (DEWA) [100.0%]
Unit 6 Dubai Electricity and Water Authority PJSC (DEWA) [100.0%]

Project-level coal details

  • Coal source(s): imported

Financing

  • Source of financing: phase 1: US$2.43 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;[6] US$650 million in equity from Dubai Electricity & Water Authority, ACWA Power, Harbin Electric, and Silk Road Fund[7]

Background

Hassyan was 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.[8] According to reports in August 2016, the 2,400 MW project would be fully operational in March 2023.[9]

The station was reportedly a reworked version of earlier plans to build a US$1.3 billion gas-fuelled Hassyan power and water project, which DEWA put off indefinitely in April 2013. Upon completion, the project was set to be the first, and perhaps last, coal-based power plant in the region.[10][11]

Phase I: 4 x 600 MW

The project was announced in August 2013, with Phase I described as 1,200 MW in size.[12]

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.[13]

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.[14]

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.[15] The deal was for a levelised cost of energy tariff (LCOE) of 4.501 cents a kilowatt hour (kWh).[16]

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.[16]

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.[6][17] In the summer of 2016, a contract was awarded for the 200 kV substation.[9]

In June 2020, China-based Xinhua News reported that Unit 1 had achieved synchronization.[18] In July 2020, it was reported that Unit 1 had begun full-load trial operations.[19] The new unit was expected to be commissioned in 2021.[20]

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.[21] The second unit was reportedly completed on May 3, 2021.[22]

As noted below, the plant reportedly began relying exclusively on gas in February 2022.

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.[23]

In December 2016, financing for over US$3 billion was secured. A loan amount of US$2.43 billion was provided by a consortium of banks, including 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. 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.[6][7]

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.[24]

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.[25]

In February 2022, the MD & CEO of DEWA stated the following about Phase I's full conversion to gas:

"This step supports the vision and directives of the wise leadership to turn Dubai into a carbon-neutral economy. This also supports the Dubai Clean Energy Strategy 2050 and the Net Zero Carbon Emissions Strategy 2050 to provide 100% of Dubai’s total power capacity from clean energy sources by 2050. The move also supports our efforts to diversify energy sources and secure energy supplies to ensure providing electricity services according to the highest standards of reliability, availability and efficiency."

Given statements regarding Phase I, Phase II will presumably exclude coal. The coal proposal was presumed cancelled.

Gas conversion

In February 2022, HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Dubai Supreme Council of Energy, blessed the decision of the Dubai Electricity and Water Authority (DEWA), with the agreement of the Hassyan Energy Company, to convert the 2,400MW Hassyan Power Complex in Dubai from clean coal to natural gas.[26][27]

According to reporting that month, the Hassyan Power Complex was initially "designed and built-for-purpose as a dual-fuel plant with the ability to operate full-time on both natural gas and clean coal," but now relied only on natural gas. Unit 3 was expected by Q4 of 2022 and Unit 4 by Q3 of 2023.[28]

May 2022 reporting confirmed that the project had progressed without the use of coal. Unit 3 of the plant was brought online, and all units of the power station are scheduled for commercial operation by 2023. The project will provide 20% of Dubai's energy needs.[29]

Articles and Resources

References

  1. 1.00 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12 1.13 https://web.archive.org/web/20220923090528/https://www.dewa.gov.ae/en/about-us/strategic-initiatives/hassyan. Archived from the original on 23 September 2022. {{cite web}}: Missing or empty |title= (help)
  2. 2.0 2.1 2.2 2.3 2.4 2.5 2.6 https://www.youtube.com/watch?v=kwtSMX0ukxw. {{cite web}}: Missing or empty |title= (help)
  3. 3.00 3.01 3.02 3.03 3.04 3.05 3.06 3.07 3.08 3.09 3.10 3.11 3.12 https://web.archive.org/web/20220819082242/https://www.acwapower.com/en/projects/hassyan-ipp/. Archived from the original on 19 August 2022. {{cite web}}: Missing or empty |title= (help)
  4. https://web.archive.org/web/20231204201424/https://aawsat.com/%D8%A7%D9%84%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF/4691111-%C2%AB%D8%A3%D9%83%D9%88%D8%A7-%D8%A8%D8%A7%D9%88%D8%B1%C2%BB-%D8%A7%D9%84%D8%B3%D8%B9%D9%88%D8%AF%D9%8A%D8%A9-%D8%AA%D8%B9%D9%84%D9%86-%D8%A8%D8%AF%D8%A1-%D8%AA%D8%B4%D8%BA%D9%8A%D9%84-%D9%85%D8%AC%D9%85%D8%B9-%D8%AD%D8%B5%D9%8A%D8%A7%D9%86-%D9%84%D8%A5%D9%86%D8%AA%D8%A7%D8%AC-%D8%A7%D9%84%D8%B7%D8%A7%D9%82%D8%A9. Archived from the original on 04 December 2023. {{cite web}}: Check date values in: |archive-date= (help); Missing or empty |title= (help)
  5. https://web.archive.org/web/20230502044015/https://www.dewa.gov.ae/ar-AE/about-us/strategic-initiatives/hassyan. Archived from the original on 02 May 2023. {{cite web}}: Check date values in: |archive-date= (help); Missing or empty |title= (help)
  6. 6.0 6.1 6.2 "Dubai Hassyan clean coal plant secures $2.47bn of financing," Gulf Business, December 11, 2016
  7. 7.0 7.1 "Preview of Hassyan Coal-Fired Power Plant Phase 1 (2400MW) IPP," IJGlobal, updated June 16, 2020
  8. "Dubai to purchase power from 2400 MW clean coal power plant," Power Engineering, June 8, 2016
  9. 9.0 9.1 "DEWA awards AED 197 million construction contract for Hassyan clean coal power plant 400 kV substation," Your Nuclear News, August 17, 2016
  10. Karlee Weinmann, "Dubai Authority Details Plans For 1,200-MW Clean Coal Plant," Law360, August 20, 2013
  11. "Dubai Gets Arab Gulf’s First, and Perhaps Last, Coal Power Plant," Bloomberg Green, November 26, 2020
  12. "GE and Harbin to build clean coal-fired power plant in UAE," Power Engineering, July 5, 2016
  13. Andy Sambidge, "Dubai's DEWA shortlists 8 for clean-coal power project," Arabian Business.com, September 6, 2014
  14. "ACWA Power submits low bid for Hassyan coal plant," Utilities ME, May 3, 2015
  15. "Dewa announces preferred bidder for $1.8 billion clean coal plant," Khaleej Times, October 13, 2015
  16. 16.0 16.1 "Second major coal power project planned in UAE," Meed, March 1, 2017
  17. "UAE: Hassyan Energy inks deal for clean coal plant," Utilities-me, July 11, 2016
  18. "China-UAE joint projects achieve progress amid COVID-19 pandemic," Xinhua, June 30, 2020
  19. "Testing underway at Hassyan clean coal-fired power plant in Dubai," The Asset, July 29, 2020
  20. "Eight International Power Sector Trends to Watch in 2021 and Beyond," POWER Magazine, January 4, 2021
  21. "Drummond ships first coal to UAE," Argus Media, April 13, 2021
  22. "Innovation key to a prosperous future," China Daily, May 17, 2021
  23. "Harbin, ACWA near loan for Dubai clean coal plant," Arabian Industry, April 13, 2016
  24. "Oman moves ahead with its 1,800MW coal-fired project, picks IPP," PK On Web, November 1, 2017
  25. Rod Morrison, "Coal IPPs on hold - Project Finance International," Thomson Reuters (paid subscription service), February 21, 2019
  26. "HH Sheikh Ahmed bin Saeed Al Maktoum blesses the conversion of the Hassyan Power Plant from clean coal technology to natural gas," Government of Dubai, February 3, 2022
  27. "Dubai's DEWA will convert Hassyan coal-fired power plant to gas," S&P Global, February 3, 2022
  28. "DEWA’s Hassyan Power Complex, Which Was Recently Converted From Clean Coal to Gas, Adds 1,200 MW to Dubai’s Capacity," Business Wire, February 14, 2022
  29. "Unit 3 of the Chinese-built Hassyan clean power plant in Dubai connected to the grid for the first time," Global Times, May 17, 2022

Additional data

To access additional data, including interactive maps of the power stations, downloadable datases, and summary data, please visit the Global Coal Plant Tracker and the Global Oil and Gas Plant Tracker on the Global Energy Monitor website.