GE, Sumitomo commence Sharjah's $1bn Hamriyah power project
Funding secured and construction begins on 1.8 GW Hamriyah Independent Power Project that will complete in 2023
Funding has been secured and construction has started on the $1bn (AED3.67bn) Hamriyah Independent Power Project, which Tokyo, Japan-headquartered Sumitomo Corporation is developing with America’s GE Energy Financial Services, Japan’s Shikoku Electricity Power Co, and Sharjah Asset Management – the investment arm of the Government of Sharjah – are co-developing.
The 1.8 GW plant will be Sharjah’s first large-scale independent power project, and has been co-financed by Japan Bank for International Cooperation and private financial institutions.
Among the latter organisations are Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank Limited, Norinchukin Bank, Societe Generale Bank, Standard Chartered Bank, and KFW Ipex Bank.
The private-sector loan is partly covered by overseas united loan insurance that Nippon Export and Investment Insurance is delivering.
GE Energy Financial Services, Sumitomo, Shikoku, and Sharjah Asset Management have together incorporated Sharjah Hamriyah Independent Power Co (Shipco), which will build, own, operate, and maintain the power plant – as well as oversee its electricity supply – for 25 years.
GE’s HA-class technology will be installed for the combined cycle power plant project, which will feature three combined cycle blocks, the first of which will come online in May 2021.
In a statement, GE said it would supply three 9HA gas turbines, three steam turbines, six generators, and three heat recovery steam generators for the project.
Engineering, procurement, and construction services will also be delivered by GE.
Additionally, GE will provide long-term maintenance services for the project, covering parts, repairs, and maintenance activities for the plant’s main equipment for 25 years.
Upon full commercial operational commencement in the summer of 2023, Shipco will sell power produced by Hamriyah Independent Power Plant to Sharjah Electricity and Water Authority (Sewa) under a power purchase agreement, Sumitomo said in a statement.
Commenting on the project, president and chief executive officer of GE’s Gas Power Systems and Power Services businesses in the Middle East and South Asia, Joseph Anis, said: “This project is another major milestone in our ongoing collaboration with Sewa and we are honoured to provide technological and financial solutions that support the vision of a sustainable, secure energy future for the people of Sharjah.”