Environment & Infrastructure - Business Overview
Fine days continue in the Emirate of Abu Dhabi throughout the year with average temperatures exceeding 35 degrees Celsius in summer
The United Arab Emirates, on the Arabian Peninsula, stretches along the shore of the Persian Gulf and consists of seven emirates. Its total area is 83,600 square kilometers, about one-fourth the size of Japan. The largest emirate in the federation is Abu Dhabi, accounting for about 80% of the UAE's total area. Abu Dhabi also surpasses other emirates in terms of population and income, and has the world's sixth largest oil reserves. Backed by these rich natural resources, the UAE has stepped up large-scale urban redevelopment projects in recent years, resulting in rapid population growth. Consequently, people's lives have become significantly wealthy; they are building larger houses and fitting them out with more sophisticated electric appliances than before.
Demand for electricity and water has grown significantly in the UAE in line with population growth and the upgrading of people's life. As a result, a large number of companies have entered businesses to generate power (and water) for sale. They are known as independent power producers (IPP) or independent water and power producers (IWPP). Among power generation plants operating in the UAE and contributing greatly to regional development is Shuweihat S1 (S1), which is one of the major power generation and desalination plants in Abu Dhabi.
Situated 250 kilometers west of the capital Abu Dhabi, S1 generates 1,500 megawatts* of electricity, the largest of any other power plants in the area. It produces 15% of the electricity consumed in the region. S1 also has a desalination facility, creating about 450,000 tons of water per day, which represents 14% of water used in the region as of 2011. Sumitomo Corporation invested in S1 in September 2008 and has been contributing to its stable operation.
*1Megawatt=1,000 kilowatts
Sumitomo acquired concession of the S1 plant in 2008
S1 is composed of combined cycle power generation systems, in which natural gas is burned as a primary fuel, and desalination facilities. When the power and desalination plant was constructed, it was the largest of its kind in the UAE. S1 is superior in its thermal efficiency. A gas turbine installed at the plant generates electricity using natural gas as fuel. Steam being generated by exhaust gas from the gas turbine is used in a steam turbine, generating more electricity. Exhaust steam outflowed from the steam turbine system is then used in a desalination system to create desalinated water. All of electricity and water being generated at S1 is purchased by Abu Dhabi Water and Electricity Company under a long-term purchase contract.
The business management system at the S1 plant is well controlled and it has received high acclaim along with the plant's efficiency. S1 has continued to receive commendation for its diligent efforts to manage safety from the Royal Society for the Prevention of Accidents (RoSPA) of Britain since fiscal 2007. S1 is also an environmentally friendly plant, addressing such environmental concerns as exhaust gas, discharged water, soil contamination and noise. Therefore, the plant has continued to meet the strict environmental standards of the UAE, which are the same level as international standards.
