Dubai is planning to build a power plant, which will be the world's largest carbon capture scheme. Saul Loeb / AFP
Dubai is planning to build a power plant, which will be the world's largest carbon capture scheme. Saul Loeb / AFP
Dubai is planning to build a power plant, which will be the world's largest carbon capture scheme. Saul Loeb / AFP
Dubai is planning to build a power plant, which will be the world's largest carbon capture scheme. Saul Loeb / AFP

Clean coal plant as important to Dubai as its landmarks


Robin Mills
  • English
  • Arabic

Dubai has become known worldwide for its ambitious projects - the tallest, largest, longest, most expensive or prestigious. Its latest venture matches all those superlatives - but is being adopted more from necessity than pride.

At its latest meeting early this month, Dubai's Supreme Council of Energy confirmed it is pressing ahead with a "clean coal" power plant. This behemoth will not only be the first coal power station in the Gulf, but also potentially by far the world's largest carbon capture scheme, three times bigger than any other currently planned.

Dubai's plant will be an innovative type which converts the coal to a gas before burning it, improving efficiency and reducing pollutants - poisonous mercury and gases responsible for acid rain - dramatically. Only a few of these are operating around the world.

This plant alone would more or less double Dubai's emissions of carbon dioxide, the main gas responsible for global warming. Dubai residents' carbon footprint is already one of the world's biggest.

To prevent this, the power station would have to be fitted with carbon capture - a system to trap the carbon dioxide so that it can be permanently disposed of several kilometres underground, in carefully chosen locations. Several schemes are moving forward in the United States, Canada and China, but there is so far no commercial-scale power plant with carbon capture.

Masdar, Abu Dhabi's clean energy vehicle, announced in January that it would move ahead with carbon capture at the Emirates Steel plant in Mussaffah. Almost 1 million tonnes of carbon dioxide per year will be used to increase recovery at the emirate's oil fields.

But that is tiny compared with Dubai's coal power station, which could produce some 30 million tonnes of carbon dioxide annually. Some of that could be used to revitalise Dubai's declining oil production. The rest will have to go to Abu Dhabi's fields or other safe disposal sites, as indicated by Nejib Zaafrani the chief executive of the Dubai Supreme Council of Energy. "We also aspire to play an active role at the federal level in the UAE's efforts to develop and implement carbon capture and storage activities," Mr Zaafrani said in February.

The project clearly fits in Dubai's tradition of groundbreaking endeavours. It is being pursued for solid economic reasons, not only prestige.

With Dubai's electricity demand continuing to grow, the emirate cannot continue to rely solely on increasing imports of expensive liquefied natural gas (LNG) for fuel. Enhanced energy efficiency will help, but clean coal, solar and nuclear power, presumably in cooperation with the Emirates Nuclear Energy Corporation (Enec), are needed to diversify supply.

In contrast to its bounty of oil and gas, the Middle East has minimal coal deposits. But the fuel is globally abundant and countries such as the US, Indonesia, Australia and now Mozambique export large quantities.

Coal power with carbon capture is on my calculations somewhat more expensive than nuclear power, but cheaper than solar or LNG. Relying solely on Enec's nuclear plants would be risky in the case of delays to the programme or a prolonged safety shutdown.

If Dubai is to secure attractive terms for new gas supply from neighbours such as Abu Dhabi, Qatar or perhaps Iran, or for nuclear-generated electricity with Enec, it needs a convincing alternative. Thus even if the coal plant is never built, its virtual existence is a key part of negotiations.

Building such a plant, operating it, ensuring coal supplies and potentially running the carbon capture system will be a formidable challenge. It will not be as aesthetically pleasing as the Palm Jumeirah or Burj Khalifa or as familiar to residents as the Metro. But it is as necessary to the city and, perhaps, even more ambitious.

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Man of the match Kari Arnason (Iceland)

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

The smuggler

Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple. 
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.

Khouli conviction

Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.

For sale

A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.

- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico

- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000

- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950

UAE currency: the story behind the money in your pockets
AUSTRALIA SQUAD v SOUTH AFRICA

Aaron Finch (capt), Shaun Marsh, Travis Head, Chris Lynn, Glenn Maxwell, D'Arcy Short, Marcus Stoinis, Alex Carey, Ashton Agar, Mitchell Starc, Josh Hazlewood, Pat Cummins, Nathan Coulter-Nile, Adam Zampa

What is Diwali?

The Hindu festival is at once a celebration of the autumn harvest and the triumph of good over evil, as outlined in the Ramayana.

According to the Sanskrit epic, penned by the sage Valmiki, Diwali marks the time that the exiled king Rama – a mortal with superhuman powers – returned home to the city of Ayodhya with his wife Sita and brother Lakshman, after vanquishing the 10-headed demon Ravana and conquering his kingdom of Lanka. The people of Ayodhya are believed to have lit thousands of earthen lamps to illuminate the city and to guide the royal family home.

In its current iteration, Diwali is celebrated with a puja to welcome the goodness of prosperity Lakshmi (an incarnation of Sita) into the home, which is decorated with diyas (oil lamps) or fairy lights and rangoli designs with coloured powder. Fireworks light up the sky in some parts of the word, and sweetmeats are made (or bought) by most households. It is customary to get new clothes stitched, and visit friends and family to exchange gifts and greetings.  

 

THE APPRENTICE

Director: Ali Abbasi

Starring: Sebastian Stan, Maria Bakalova, Jeremy Strong

Rating: 3/5

The biog

Family: wife, four children, 11 grandchildren, 16 great-grandchildren

Reads: Newspapers, historical, religious books and biographies

Education: High school in Thatta, a city now in Pakistan

Regrets: Not completing college in Karachi when universities were shut down following protests by freedom fighters for the British to quit India 

 

Happiness: Work on creative ideas, you will also need ideals to make people happy