The Attarat Power Company (APCO), a leading energy company in Jordan, has won an award in the Investments category in the 2024 Mining Technology Excellence Awards for its significant contribution to the energy sector, particularly through the innovative utilization of oil shale.
The Mining Technology Excellence Awards celebrate the greatest achievements and innovations in the mining industry. Powered by GlobalData’s business intelligence, the Awards recognize the people and companies that are driving change in the industry.
APCO won the award for its groundbreaking work in harnessing Jordan’s abundant oil shale resources, reducing the country’s dependence on imported fuels and marking a major stride towards energy independence and economic development.
“APCO is a key player in shaping Jordan’s energy future, driving economic growth, and securing a sustainable energy landscape for generations to come.”
– Jason Pok, CEO, APCO
Harnessing Jordan’s oil shale resources
APCO’s investment in the oil shale mine has set a new precedent for resource utilization in Jordan. Through its affliates, Attarat Mining Company (AMCO), it has successfully established the first commercial oil shale mine in the region, unlocking the potential of Jordan’s vast untapped oil shale deposits.
The mining techniques and responsible resource management employed by AMCO have not only catalyzed the Kingdom of Jordan’s journey towards energy self-sufficiency, but have also demonstrated the viability of oil shale as a competitive energy source. AMCO’s commitment to excellence in mining operations is reflected in its safe, efficient, and sustainable approach to extracting this strategic mineral, which serves as the backbone for Jordan’s energy transformation.
“APCO plays a crucial role to provide an energy hedge on the fluctuation of international oil prices and fuel supply uncertainty due to regional conflict.”
– Yan Shaojie, Chief Financial Officer (CFO), APCO
Powering Jordan’s future
APCO’s strategic initiative to utilize Jordan’s oil shale resources has positioned the company as a leader in the nation’s energy industry. The Attarat Power Plant, a key component of this initiative, is the first commercial venture to convert Jordan’s oil shale into electricity. The project leverages Jordan’s abundant oil shale resources, which cover over 70% of the country’s landmass, making it the 7th richest nation globally in terms of these deposits. By utilizing this indigenous resource, APCO significantly reduces Jordan’s reliance on imported natural gas and oil, fostering energy security and environmental sustainability.
“The successful implementation of Attarat kickstart new opportunity for local oil shale industry and it supports renewable energy development by stabilizing the national grid.”
– Pang Hanfei, Chief Technical Officer (CTO), APCO
Since late May 2021 until the end of June 2024, APCO has extracted 18.5 million tons of oil shale from the mine, and the power plant has exported 5,885GWh to the national grid. This not only showcases APCO’s operational excellence, but also its ability to execute large-scale energy projects that have a lasting impact on the energy landscape.
The power plant is operated and maintained by Attarat Operation and Maintenance Company (OMCO) and the mine is operated by AMCO, both of which are integral to the project’s success. OMCO’s role in ensuring the power plant’s optimal performance and AMCO’s expertise in open-cast mining operations have been crucial in achieving the project’s milestones.
“This project which is now in its 2nd successful year of operation has not only helped the Kingdom of Jordan to take its next step in becoming energy self-sufficient but is also a milestone project, which is the first of its kind in Jordan and the Middle East. As a Fuel Supplier to APCO, AMCO will rise to any challenge and will always strive for continuous improvement through the empowerment of its employees and by promoting a “safe and can do” culture.”
– Kenneth Laren, Chief Mining Officer (CMO), AMCO
Unprecedented investment in Jordan’s future
APCO’s investment in Jordan is unparalleled, with a total project cost of $2.1 billion, making it the largest private inward investment the country has seen to date. This financial commitment underscores the company’s confidence in Jordan’s potential and its dedication to the nation’s long-term prosperity.
The Attarat Power Plant, with its 2 x 235MW capacity, is meeting more than 15% of Jordan’s annual electricity demand, further cementing APCO’s role in supporting the country’s energy independence. The project financing, backed by $1.6 billion and supported by the Export Credit Agency Sinosure, achieved financial closure in March 2017, marking a significant milestone in the project’s development.
Strategic partnerships and infrastructure development
APCO’s success is bolstered by strategic partnerships with experienced international shareholders, including YTL Power, Yudean, and Enefit. These alliances bring over a century of expertise in oil shale mining and power generation.
YTL Power, part of the YTL Group with a combined market cap of approximately USD 10 billion, brings extensive experience in international project developments, financing and O&M. Enefit, an Estonian state-owned utility, contributes its 100 years of experience in oil shale, while Yudean, a Chinese state-owned utility who owns more than 50,000MW, adds its significant power generation experience. Together, these partnerships have enabled the development of robust infrastructure, including the operation of nine water wells supplying 4 million cubic meters of water a year, on-site housing and mining camps, and an explosive store, all of which support the project’s sustainability and efficiency.
“APCO is revolutionizing Jordan’s energy landscape with an innovative approach to harnessing the challenging low heat content oil shale – an abundant local resource – for power generation. Through responsible management and a commitment to environmental stewardship, APCO “powers” Jordan through “rock”, marking the first implementation of this transformative energy solution in the region.”
– Kiran Kumar, Chief Technical Officer – Station Manager, OMCO
Economic growth and job creation
The economic benefits of APCO’s investment are substantial, with an estimated $300 million in annual savings for Jordan by reducing natural gas imports. The project has also created over 1,500 direct and indirect job opportunities, fostering local employment and skill development. These jobs not only provide immediate economic benefits, but also contribute to the development of a skilled workforce in the region.
APCO’s investment has It has also established the largest oil shale mine in Jordan, with an impressive production capacity of 10 million tonnes per annum, leading to a better understanding of the local resource and more opportunities in the sector. The plant and the mine have set an example for subsequent investments in oil shale in Jordan, facilitating the application of respective laws, by-laws, and procedures to the oil shale industry in the country.
APCO’s investment in Jordan’s oil shale resources is, thus, a testament to the company’s innovative approach to energy generation and its commitment to the nation’s economic and energy security.
Company Profile
APCO is a leading force in Jordan’s energy sector, spearheading the development of the country’s largest inward foreign investment: a 470MW oil shale power plant and mine.
APCO, AMCO and OMCO are joint venture companies, each owned between YTL Power (Malaysia) 45%, China Guangdong Energy Group (China) 45%, and Eesti Energia (Estonia) 10%, each contributing their expertise and resources to this ambitious project. The company has secured a 30-year Power Purchase Agreement with the National Electric Power Company (NEPCO), ensuring a stable and long-term supply of electricity to Jordan’s grid.
The project, which commenced construction in March 2017, successfully achieved commercial operation for Unit 1 in October 2022 and Unit 2 in May 2023. This landmark achievement has already positioned APCO as a vital contributor to Jordan’s energy supply.
Links
Website: https://attaratpower.com.jo/
