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GE Secures Project Financing in $1.0B for the First Independent Combined Cycle Power Plant in Sharjah

The Co-developers GE Energy Financial Services (GE EFS) and Japan’s Sumitomo Corporation (SUMITOMO) along with Shikoku Electric Power Company and Sharjah Asset Management (SAM) have secured financing for power project that will be the first independent combined cycle power project in Sharjah that is expected to be the most efficient power plant in the Middle East on completion.

An association of banks and JBIC will co-finance this project for the amount of approximately $1.0B. GE EFS worked with several private financial institutions in order to secure financing which will be partly insured by Nippon Export and Investment Insurance (NEXI) and a Japanese insurance corporation owned by the Japanese government.  A new initiative launched by the government of Japan in 2018 was ‘Global Facility to Promote Quality Infrastructure Investment for Environmental Preservation and Sustainable Growth’ (QI-ESG). 

The co-developers have formed an equity association for the project with Shikoku Electric Power Company and SAM. Their part will be to build, own and operate the project which will encompass three combined cycle blocks. The first is planned to come online in 2021. The electricity production will be sold to SEWA under a 25-year Power Purchase Agreement (PPA) and the project is expected to reach its full commercial operations by summer 2023.

Susan Flanagan, GE Energy Financial Services’ Global Power Leader, said: “Sourcing financing from the public and private sectors to fund Sharjah’s first independent combined-cycle power plant demonstrates the region’s attractiveness for foreign investment and GE’s ability to connect global capital to significant infrastructure projects. We are proud to partner with Sumitomo to deliver sustainable energy that utilizes GE’s state-of-the-art gas turbine technology and financial expertise.”

GE will supply three steam turbines, six generators, turnkey engineering, procurement and construction services, three heat recovery system generators (HRSG) for its flagship power plant in Sharjah. For a long period as much as 25 years, GE will provide parts, repair and maintenance services for the power generation assets at the site. 

Joseph Anis, President & CEO of GE’s Gas Power Systems and Power Services businesses in the Middle East and South Asia, said: “GE has contributed to the growth of the Gulf Cooperation Council’s (GCC’s) power sector for over 80 years and GE-built technologies generate up to 60 percent of Sharjah’s electricity today. This project is another major milestone in our ongoing collaboration with SEWA and we are honored to provide technological and financial solutions that support the vision of a sustainable, secure energy future for the people of Sharjah.”

GE’s HA heavy duty gas turbine is one of the world’s largest and most efficient turbines. The efficiency offered by three of GE’s HA in combined cycle operation will greatly help SEWA in reducing carbon dioxide emissions by up to four million tons per year. 

GE has always been on the forefront in bringing industry-leading solutions in order to support the rapid development in the power sector in the emirate and across the region.