UTICO eyes major coal power projects across GCC

Utico eyes Coal Power projects across GCC

Mr. Han Youtian, Vice Chairman of Shanghai Electric, and Mr. Rashid
Mehran Al Baloushi, Chairman of Utico Middle East, signing the
agreement for the establishment of the US$408 million power plant in the UAE.

Ras Al Khaimah, UAE, October 21st, 2012: After announcing its ambitious
US$408 million (Dhs1.5 billion) coal power plant in the UAE recently, Utico Middle
East, the GCC’s largest private full service utility and solutions provider, is now
taking its mission to provide clean coal power to the rest of the GCC.

Utico Middle East and Shanghai Electric, the world’s largest coal power company,
recently announced a joint collaboration to establish the world’s greenest coal-
fired power plant in Ras Al Khaimah. The Dhs1.5 billion facility is expected to be
completed in 2015 and will generate 270 MW of power when fully functional.

Richard Menezes, Managing Director of Utico, described the facility as a milestone
development for the Arab world that would enable GCC nations to meet their utility
requirements while showcasing their commitment towards clean, green energy
resources. The project assumes special significance for Gulf States as they explore
all possible avenues to meet the growing demand for power from the region’s
industries and consumers.

“Clean coal-fired energy is acknowledged to be even cleaner and greener than gas-
reliant energy. By deploying Shanghai Electric’s superior energy-efficient and proven
technology at the plant, we are confident of reducing flue gas desulphurization,
carbon dioxide emissions almost to zero, and setting the benchmark for cleaner
energy to the world,” Menezes explained.

Coal-fired power plants produce almost 65% of the world’s energy today but none of
them are in the GCC due to the environmental concerns and high costs associated
with clean coal technology.

Coal-fired plants generate power burning coal in a boiler to heat water to more than
1000 degrees Fahrenheit (540 degrees Celsius) that, in turn, produces steam. The
steam, at tremendous pressure, flows into a turbine, which spins a generator to
produce electricity. The steam is cooled, condensed back into water, and returned to
the boiler to start the process over.

The UAE facility will utilise 100% carbon capture technology as nominal design
capacity and 80% at operational point and this will involve the establishment of
world-class power generation facilities and environmental protection standards and
related utility infrastructure. This project will also lower power tariffs, thus benefitting
consumers and providing support for economic growth.

Utico is currently in talks with Dubai which wishes to procure 12% of its power from
clean coal as well as other GCC countries to implement this unique clean energy
project at substantially lower power tariffs. Discussions are also underway with the
Oman government to finalise power, water and hospitality projects, which includes
local employment generation and lowering water and power tariffs.

As per the terms of the agreement, Shanghai Electric will be equity partners in the
project as well as provide the knowhow and technology while Utico Middle East will
be joint equity partners along with several prominent investors. Utico and Shanghai
Electric will also operate and maintain the project. Utico is the power off-taker of the
project.