AMMAN ― In a deserted area 40 kilometers east from Amman, the capital city of Jordan, stands the world’s largest diesel engine power plant, the Amman Asia Power Plant.
Thirty-eight diesel engines standing 50 meters tall can generate 573 megawatts in 30 minutes and are currently responsible of more than 14 percent of the country’s electricity demand.
“The power plant is an important component of our government goal to meet the growing electricity demand. … This is a symbolic event showing the progresses that we have the secure energy solutions,” said Jordanian Prime Minister Abdullah Ensour at the inauguration ceremony of the power plant held at the site on Wednesday.
“When the King (Abdullah II of Jordan) conceptualized the plant, he aimed at the sustainable economic growth, a secure energy supply and enhance energy infrastructure this sends a clear message that we tirelessly pursue a brighter future for Jordan,” he added.
Employees work at the Amman Asia Power Plant operated by KEPCO. (KEPCO)
The ceremony was held to mark the safe launch of the world’s only power plant that could run using three different fuels: heavy and light oils and natural gas. Since natural gas costs one-third of light oil, the multi-use engine is expected to maximize the profit for Jordan, which has no natural gas production.
Amman Asia Electric Power Co. ― composed of Korea’s state-run power generator Korea Electric Power Corporation with a 60 percent investment, Mitsubishi Corporation with 35 percent and Wartsila Development Financial Services with 5 percent ― oversaw the whole process from developing to financing and design engineering.
Rather than making a turn-key investment, the stakeholders will operate and maintain the facility, and sell the electricity to Jordan’s National Electric Power Co. KEPCO KPS, a KEPCO affiliate, will take over the project and is expected to rake in an additional $3.2 billion by 2039.
The Amman Asia Power plant, commonly referred to as the IPP3 project, is the second independent power plant established by KEPCO in Jordan. Its first project, the 377-megawatt Al Qatrana power plant located about 100 kilometers south of Amman, started operations in 2011 and is expected to generate $1.5 billion in electricity sales in 25 years.
With a total generation capacity of 946 megawatts every year, KEPCO has become Jordan’s third-largest power generator, accounting for more than 25 percent of the country’s demand.
“KEPCO has been building a new and sustainable business model here, from being a simple turn-key project developer to a sustainable manager and profit-seeker,” said KEPCO CEO Cho Hwan-eik.
“Through the successful operation of Al Qatrana and IPP3 projects, I can safely say that we have a shot at winning extra contracts in other Middle East countries,” he added, noting that KEPCO is also actively involved in the successful operation of the Shuweihat S3 independent power plant and the construction of a nuclear power plant in the United Arab Emirates.
Jordan is one of the world’s fastest-growing electricity markets. Due to the rapidly growing population ― about 1.2 million Syrian refugees have entered the country over the past four years ― and the government’s drive for industrial development, the annual demand is expected to grow by 7.4 percent annually until 2020.
A total of four independent power plants have been established and one is under construction. Market insiders forecast that the country will seek to build more plants in the near future.
By Bae Ji-sook, Korea Herald correspondent (baejisook@heraldcorp.com)