Abu Dhabi Future Energy Company, better known as Masdar, and environmental management company Bee’ah have completed the financing of a $220 million waste-to-energy (WTE) plant in Sharjah, the UAE’s first.
The lenders to the project are Abu Dhabi Fund for Development, Abu Dhabi Commercial Bank, Siemens Financial Services, Sumitomo Mitsui Banking Corporation, and Standard Chartered Bank, a statement said.
The Sharjah Waste-to-Energy Facility is being managed by Emirates Waste to Energy Company, a joint venture formed by Masdar and Bee’ah last year, and is expected to be on stream by 2020.
Located at Bee’ah’s Waste Management Centre in Sharjah, the new plant will process more than 37.5 tonnes of municipal solid waste (MSW) per hour to generate electricity sustainably.
Once operational, it will contribute significantly to reaching the UAE’s target of diverting 75 percent of its solid waste from landfills by 2021, as well as Sharjah’s zero-waste-to-landfill goal.
The Sharjah Waste-to-Energy Facility will have a capacity of around 30 megawatts, enough power to supply around 28,000 UAE homes.
French engineering company Constructions Industrielles de la Méditerranée (CNIM) was appointed last May to design, build and operate the facility on completion.
Mohamed Jameel Al Ramahi, CEO of Masdar, said: “Achieving financial close on the region’s first commercial waste-to-energy project, and one of the largest of its type, not only illustrates the bankability of advanced renewable energy technology and the renewables sector’s growing appeal to both the local and international investment community, it is also a testament to the attractiveness of Sharjah as an investment destination.”
Khaled Al Huraimel, Group CEO of Bee’ah, added: “Through this project, Bee’ah and Masdar have exerted their collective energies towards diversifying the renewable energy sector, and identified a sustainable energy source with a long-term competitive advantage.
"At this stage, the support of these renowned financial institutions demonstrates international recognition of the project, and its feasibility in the context of the framework for sustainable economic growth.
“This project is also a testament to the growth of innovation and creativity in the commercialisation of the energy market in the UAE which in turn offers renewed optimism regarding the UAE’s ambition of deriving 27 percent of energy needs from clean sources by 2021.”
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.