K-Electric, Engro Energy sign MoU to set up Karachi’s First waste-to-energy Plant

K-Electric, Engro Energy sign MoU to set up Karachi’s First waste-to-energy Plant

Karachi, November 25, 2019: Aimed at reducing the climate change impact by converting Karachi’s municipal solid waste into indigenous and renewable resource of energy, K-Electric and Engro Energy signed a Memorandum of Understanding (MoU) to develop a 50MW Solid Waste to Energy Plant at an estimated cost of US$ 175 million. The MoU was signed by Moonis Alvi, CEO, KE and Ahsan Zafar Syed, CEO, Engro Energy MoU at KE’s head office today.

Through the project, Karachi’s municipal solid waste will be reduced by 3,000 tons per day to generate electricity, which will play a key role in addressing the municipality’s waste issue and simultaneously contribute in meeting the city’s growing power needs.

According to Moonis Alvi, CEO KE said, “KE is committed towards providing clean, reliable and affordable energy for the sustainable development of the city. Signing of this MoU today is yet another testament of our efforts towards a cleaner and greener Karachi. We are hopeful to complete this project as soon as possible with the right facilitation from all concerned quarters and regulatory approvals. As per reports, Karachi produces around 12,000 to 15,000 tons of solid waste daily and therefore has the potential to generate more than 200MW of electricity. Successful commissioning of this project will encourage development of more such projects in the future to address the pressing waste disposal issues while also resolving the problems of limited landfill spaces and gas emissions.”

Ahsan Zafar Syed, CEO of Engro Energy also spoke and said, “Engro is always at the forefront of solving the pressing issues of our time and one such challenge that our country faces is waste management in our Cities. This collaboration with Karachi Electric signals our resolve to find a solution around the waste management issues of one of Pakistan’s major cities. Karachi is home to a populace of over 20 million people and the waste-to-energy plant will not only add clean energy to K-Electric’s energy mix but will also provide a sustainable way to manage solid waste which is important for the environment whilst improving livability index of Karachi.”

KE Engro

Going forward, project site will be identified through surveys keeping in view availability of solid waste as well as suitability for evacuating power from the plant. Simultaneously, studies will also be undertaken to develop solid waste supply chain with concerned authorities to propose a suitable mechanism for its collection, sorting and transportation to the project site. Construction of the plant will commence after land acquisition, tariff determination and other required approvals.

KE is actively working to diversify its fuel mix towards clean energy and in this regard, two 25-year EPAs with IPPs have already been signed for addition 100 MW of renewable energy to KE’s system, out of which offtake of 50MW solar power has already commenced. Additionally, KE is also evaluating another 300 MWs of renewable projects to further increase the share of renewable energy based on solar, wind and biogas, in its system. The power utility has always been a responsible and environment-friendly organization which is reflected in its environmental sustainability initiatives. The power utility has till date planted more than 150,000 trees under its #PlantForPakistan campaign in collaboration with different schools, universities and organizations.