Utico Middle East, a major private utility and solutions provider in the GCC, said it has joined hands with top coal power company Shanghai Electric to set up 'the world’s greenest coal-fired power plant' at a cost of Dh1.5 billion ($408 million) in Ras Al Khaimah.

The new plant on completion will generate 270 MW of power for UAE’s industries in 2015 and will also capture 80 per cent of the carbon, revealed Rashid Mehran Al Baloushi, the chairman of Utico Middle East after signing the agreement with HanYoutian, the vice chairman of Shanghai Electric.

As per the terms of the agreement, Shanghai Electric will be equity partner in the project as well as provide the know-how and technology while Utico Middle East will be joint equity partner alongwith several prominent investors.

The duo will also operate and maintain the project. Utico is the power off-taker of the project.

Senior officials from Ras Al Khaimah government took part in the signing ceremony held on the sidelines of the concluding day of Global IWPP (Independent Water & Power Plant) Summit today (October 3).

More than 150 high-ranking delegates and professionals from 25 countries attended the summit held at Al Hamra Convention Centre, Ras Al Khaimah. It was inaugurated by Sheikh Mohammed bin Saud Al Saqr Al Qassimi, Crown Prince of Ras Al Khaimah.

The facility will be located at the RAK Maritime City in KhorKhowir, a fast growing industrial hub with marine facilities and AlSaqr Port, the Middle East’s largest dry bulk port.

Supported by the Ras Al Khaimah government, the $408 million venture is expected to be completed in 2015 and will generate 270 MW of power when fully functional.

In his comments, Sheikh Saud bin Saqr Al Qassimi, Supreme Council Member and Ruler of Ras Al Khaimah, said the prime focus of the project should be on being environment- friendly and aiding the development and economic growth of the region, while creating jobs and opportunities for the people.

The project will utilise 100 per cent carbon capture technology as nominal design capacity and 80 per cent at operational point and this will involve the establishment of world-class power generation facilities and environment protection standards and related utility infrastructure.

This project also will be able to lower power tariffs, thus benefitting consumers and providing support for economic growth.

Richard Menezes, the managing director and executive VC of Utico ME, described the project as a milestone development that would enable RAK to meet its utility requirements and showcase the emirate’s commitment towards clean, green energy resources.

“Clean coal-fired energy is acknowledged to be even cleaner and greener than gas-reliant energy. By deploying Shanghai Electric’s energy-efficient and tried and proven technology for the plant, we are confident of reducing flue gas desulphurization, carbon emissions to almost to zero, and setting the benchmark for cleaner energy to the world and not only to the UAE,” he added.

Menezes said Utico was currently in talks with Dubai which wants to procure 12 per cent of its power from clean coal as well as other GCC countries to implement this unique clean energy project at substantially lower power tariffs and that too environment-friendly, since gas supplies all over the GCC are not available, except in Qatar, which has allocated all its gas till date.

This means alternative clean energy sources is a must which in a larger scale can be only through coal and to a lot lesser extent by solar and wind power, considering capital and tariff structures, he stated.

Discussions are also underway with the Oman government to finalise power, water and hospitality projects, which includes local employment generation and lowering water and power tariffs, he added.-TradeArabia News Service