Energy

THE SHARJAH PROJECT Masdar and Bee'ah are developing the Sharjah Project on a 50/50 basis, with Bee'ah supplying municipal solid waste (MSW) and Sharjah Electricity and Water Authority (SEWA) purchasing the power produced. The Sharjah Project will be located adjacent to Bee'ah's existing landfill site in Sharjah and, once completed in 2020, will incinerate approximately 300,000 tonnes of MSW and displace almost 450,000 tonnes of CO2 emissions per year. It will contribute to Sharjah's effort to reach its "zero waste-to-landfill" target by 2020 and the UAE's goal of diverting 75% of MSW from landfills by 2021. 4 DEVELOPING WASTE TO ENERGY PLANTS IN THE GULF REGION – LESSONS LEARNED FROM SHARJAH IN RECENT YEARS THERE HAS BEEN INCREASED ENVIRONMENTAL AWARENESS AND A GREATER FOCUS ON SUSTAINABLE AND "GREEN" ENERGY PRODUCTION IN GCC COUNTRIES. BUDGETARY PRESSURES CAUSED BY THE RECENT LOW OIL PRICES HAVE LED GCC COUNTRIES TO START DIVERSIFYING THEIR ENERGY MIXES AWAY FROM HYDROCARBON-DEPENDENT TECHNOLOGIES AND TOWARDS WASTE TO ENERGY (WTE) PROJECTS TO PROVIDE A SOLUTION. Although WtE is not new technology, with established WtE markets in Europe and the US, it is still very much in its infancy in the Gulf Cooperation Council countries (GCC). The lack of project financed WtE projects in the GCC, meaning there are no established "precedent" projects, undoubtedly impacts developers when considering these projects. Furthermore, WtE projects, although beneficial, are not a simple solution to waste and energy challenges. A number of key factors contribute towards a successful WtE project, including an appropriate site, a well- functioning waste management system with a stable supply of MSW (and a sufficient minimum energy content); and a suitable environmental, regulatory and legislative framework in the host country (or the desire to develop one). On that basis, what are the key considerations that might impact the successful development of such a project? PROJECT DEVELOPMENT CONSIDERATIONS In practical terms, potential lenders to GCC WtE projects will, unsurprisingly, be looking for developers and contractors with a proven track record of developing, constructing and operating WtE facilities in the region (if not in the specific jurisdiction). However, given the infancy of WtE in the GCC, it is likely that it will be difficult to find developers or contractors with specific, relevant experience. As a result, experienced Middle Eastern developers may instead partner with experienced European WtE contractors that bring their specific industry expertise to WtE projects in the GCC. A key consideration in any WtE project will be the location of the WtE facility itself. WtE facilities need to be reasonably proximate to infrastructure (e.g., gas, water and roads) which, in rural areas in certain GCC countries, may be challenging.

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