The new plant, which calls for AED1.5bn ($408.38m) investment, is expected to be completed in 2015 and generate 270MW of power.
Utico Middle East executive vice-chairman and MD Richard Menezes told Gulf News that the project will be funded through debt and equity.
"On debt, we are talking to a consortium of banks for finance. This project also will be able to lower power tariffs, thus benefitting consumers and providing support for economic growth," Menezes said.
The project will utilize 100% carbon capture technology as nominal design capacity and 80% at operational.
"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 tried and proven technology to for the plant, we are confident of reducing Flue Gas Desulphurisation, carbon dioxide emissions almost to zero, and setting the benchmark for cleaner energy to the world and not only to the UAE," Menezes added.
UAE-based Utico is a subsidiary of Ghantoot Group.
