UAE considers coal expansion across all emirates

24 September 2014

Emirates plan drive for a diversified energy-supply mix and energy security

The UAE wants to diversify its energy mix across all seven emirates to ensure the country achieves energy security, including the use of clean coal and nuclear.

Dubai has already stated that by 2030, its energy mix will be 71 per cent gas, 12 per cent nuclear, 12 per cent clean coal and 5 per cent solar. Speaking during the MEED Clean Energy conference, a senior adviser for the Ministry of Energy said that at a federal level, the UAE was looking at some of the lessons already learnt from Dubai, and would potentially roll those lessons out through all seven emirates.

Ahmed al-Awadi, senior adviser for clean and renewable energy at the Energy Ministry, said coal can be created as a clean energy when coupled with carbon capture. “Clean coal will play an important role in the future. Clean coal coupled with carbon capture and storage is something that should be considered.”

He added that “further development of clean coal is being considered in Abu Dhabi and the other emirates”.

Coal is an important part of the UAE’s energy security strategy, as it seeks to move away from a reliance on gas, particularly imported gas. Speaking to MEED on the sidelines of the conference, Al-Awadi said the UAE wants to use all resources available.

“Conventional energy leadership within energy will remain. We see clean energy complimenting the existing generation capacity. We look at the development of technology to drive cost reduction, specifically in [concentrated solar power], as well as technology developments in battery storage in order to have PV contribute to the grid and power generation. As [photovoltaic technology] matures, we will see more being implemented,” he said.

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Ahmed Al Awadi, Ministry of Energy (UAE)

Bidders for Dubai’s 1,200MW plant in Hassyan will propose the quality of coal used, which will dictate smoke and ash emissions. Without carbon capture, carbon dioxide will still be emitted into the atmosphere, however, most of the most of the nitrogen oxides, sulphur dioxide and particulates can be removed before burning, hence the reference to clean coal.

The plant will be developed in two phases, with the first 600MW due to come on stream in March 2020, with the next phase commissioning 12 months later. There is also the option of expanding the plant to 3,600MW, although a firm decision has not been taken on this.

However, experts were divided on the use of carbon capture and storage (CCS) technology. David Lloyd, power and utilities TAS leader for Mena, at EY said there was no large-scale CCS in place for any power plants. While Dubai’s coal plant at Hassyan will be carbon capture ready, it will not necessarily have CCS technology in place.

Vahid Fotuhi, president of the Middle East Solar Industry Association, said “CCS is very very risky. You can make a plant carbon capture ready, but that does not mean it has it.”

However, he was sanguine about its use, telling MEED that clean coal was the lesser of all evils. “It has two drivers making it attractive to Dubai’s policy makers. Firstly, it is cheaper than importing LNG, by far, so it makes commercial sense.

“Secondly, it removes your dependence on a set of fuel suppliers and diversifies your mix of fuel supply, which is good. So despite its inherent environmental weaknesses, the commercial and strategic strengths justify the investment initially and hopefully as solar improves the 5 per cent that [Dubai] has targeted will grow and will see solar encompassing a higher mix of the fuel supply.”

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