EBRD Supports Mideast Gas, But Developer Backs Coal
The European Bank for Reconstruction and Development (EBRD) is providing a $95mn loan for the construction of a 485 MW modern gas-fired power plant in Jordan costing $460mn.
The loan - billed as reducing emissions by the bank -- will be provided to a Jordanian firm that is 60%-owned by the Saudi developer ACWA Power -- which a few days ago committed to building a giant coal-fired plant in Dubai.
The new Zarqa combined-cycle gas turbine plant in Jordan, 40km northeast of the capital Amman, will replace an obsolete oil-fired plant at the same site and be twice as efficient and cut emissions. It is needed to stabilise the Jordanian grid as older plants are decommissioned and as demand increases.
ACWA signed a 25-year Power Purchase Agreement (PPA) to supply Jordan’s state National Electric Power Company from the plant in January 2016. It said the cost to develop it is $460mn and that it can run on diesel as a back-up fuel. China’s Shandong Electric Power Construction Corporation III is the main contractor for the project, with Jordan’s Central Electricity Generating Company a sub-contractor.
EBRD says that in Jordan it has co-financed six solar power plants (totaling 164 MW), an 82 MW wind power plant, and the IPP4 240 MW thermal power plant – its first investment in 2012 in the kingdom.
Giant coal plant for Dubai
While the bank wants to cut emissions, ACWA said December 11 it has signed $2.47bn financing on a 2,400 MW supercritical coal-fired power plant in Dubai that will enter service in four stages, each of 600MW, each March between 2020 and 2023. The Hassyan ‘clean coal project’ will run off gas as a back-up fuel but be the Middle East’s first ultra-super critical coal development, costing $3.4bn.
Hassyan Energy is owned 49% by ACWA and 51% by Dubai Electricity & Water Authority (DEWA) Earlier this year, both parties signed a PPA to enter into a 25-year contract to supply 2400MW electricity at a levelised tariff of less than 5 US Cents per kWh.
ACWA said that the project "reflects DEWA’s commitment to achieving the Dubai Clean Energy Strategy 2050, which focuses on producing electricity from clean coal as part of Dubai's energy mix."
Six floating LNG import terminals operate in the Middle East: one each in Dubai, Jordan, Israel and Kuwait, plus two in Egypt. The Kuwaiti one will be replaced by a 30bn m3/yr onshore terminal in 2020.
Mark Smedley