GE, Sumitomo to develop, build and operate Sharjah’s first independent combined cycle power plant

GE (NYSE: GE) and Japan’s Sumitomo Corporation have reached a public-private partnership milestone by signing 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 in Hamriyah.

Equipped with GE’s HA technology, including the world’s largest and most efficient heavy-duty gas turbine, the flagship project is expected to be the most efficient power plant in the Middle East’s utilities sector upon completion and will enable SEWA to substantially improve the overall efficiency of its operations. The project will consist of three combined cycle blocks, the first of which is expected to go online in May 2021.

Chairman of SEWA, Dr. Rashid Alleem, said, "We are committed to strengthening Sharjah’s electricity infrastructure and provide seamless, affordable power. 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."

Under the scope of the project, co-sponsors, Sumitomo and GE Capital’s Energy Financial Services, will partner with Shikoku Electric Power Company, and Sharjah Asset Management, the investment arm of the Government of Sharjah, to form an equity consortium for the project. This will establish the project as the first independent combined cycle power plant in Sharjah. SEWA will purchase power from the consortium over 25 years under the PPA.

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 a period of 25 years.

"SEWA has a clear vision for Sharjah’s power sector, and GE is honoured to partner with Sumitomo to deliver more efficient, reliable and sustainable power for residential and industrial users in Sharjah," said Scott Strazik, President and CEO of GE Gas Power. "The project brings together GE’s combined strengths in best-in-class technology, local presence, and infrastructure and finance capabilities with our expertise in power plant construction, operations, and management."

The record-breaking efficiency offered by GE’s HA units matters as using three GE 9HA units in combined cycle operations can also help SEWA reduce carbon dioxide emissions by up to four million tonnes per year, compared to current levels. This is the equivalent of taking one million cars off the UAE’s roads, substantially reducing the environmental impact of power production in the emirate of Sharjah.

The agreement builds on a history of strong collaboration between GE and SEWA. GE has contributed to the growth of the Gulf Cooperation Council’s power sector for over 80 years and GE-built technologies generate up to 60 percent of Sharjah’s electricity today. The company has been at the forefront of bringing industry-leading solutions to support the development of the power sector in the emirate and across the region.