Business / #ForbesBusiness

January 29, 2019,   2:25 PM

GE & Sumitomo To Build Sharjah’s First Independent Combined Cycle Power Plant

Nermeen Abbas


9ha01 2 ge sumitomo sign agreement with sewa

Photo credit: GE

GE and Japan’s Sumitomo Corporation have signed a 25-year Power Purchase Agreement (PPA) with the Sharjah Electricity and Water Authority (SEWA) to develop, build and operate a 1.8 gigawatt (GW) combined cycle power plant located in Hamriyah.

The new power plant will be equipped with GE’s HA technology, including the world’s largest and most efficient heavy-duty gas turbine. GE’s HA units can help SEWA reduce carbon dioxide emissions by up to 4 million tons per year compared to current levels—this is the equivalent of taking a million cars off the UAE’s roads.

The flagship project will consist of three combined cycle blocks, the first of which is expected to come online in May 2021.

“The proposed plant underlines our focus to promote public-private partnerships to drive a robust power production and management plan that is aligned with local energy needs, as well as the optimal utilization of natural resources", said Rashid Alleem the Chairman of SEWA.                                                  

Under the project, Co-sponsors Sumitomo and GE Capital’s Energy Financial Services will partner with Shikoku Electric Power Company, and Sharjah Asset Management (SAM), the investment arm of the Government of Sharjah.

Both parties will form an equity consortium for the project, which is considered the first independent combined cycle power plant in Sharjah. SEWA will purchase power from the consortium over 25 years under the PPA. 

As per the deal, GE will supply three HA gas turbines, three steam turbines, six generators, three heat recovery steam generators (HRSG) and turnkey engineering, procurement and construction (EPC) services for the power plant.

It will also provide parts, repairs and maintenance services for the power generation assets at the site for 25 years.

GE-built technologies generate up to 60% of Sharjah’s electricity today. It seeks to meet the growing energy demand in the Middle East, which is expected to increase 76% by 2040.

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