Iraq breaks ground on waste-to-energy project
3 April 2025
Iraq broke ground on its first waste-to-energy project in the capital, Baghdad, in March.
According to local media reports, the estimated $500m project will have a design capacity of 3,000 tonnes a day (t/d).
It will feature three incineration lines and a 100MW steam turbine generator set.
On completion, the facility will generate 780,000 megawatt-hours (MWh) of electricity a year.
Prime Minister Mohammed Shia Al-Sudani witnessed the project’s ground-breaking ceremony, along with Eric Zhan, CEO of Shanghai-headquartered SUS International, reportedly one of the world’s “largest providers of waste incineration equipment and technology”.
Haider Mohammed Makkiya, chairman of the National Investment Commission (NIC); Ziyad Ali Fadel, minister of electricity; Abdul Alawi, governor of Baghdad; Ammar Mosa, mayor of Baghdad; and representatives of Chinese-funded enterprises in Iraq attended the ceremony.
Al-Sudani commended the officials for launching the waste-to-energy project, which is part of the government’s plans to transition to clean and renewable energy.
Iraq’s Council of Ministers approved the WTE power generation project in Nahrawan, Baghdad, and the award of the project to SUS Environment, in February.
The project covers a two-year construction period and a 25-year investment period.
The cabinet also authorised the NIC to issue the investment licence and sign the contract with SUS Environment.
NIC, in coordination with the Municipality of Baghdad, the Electricity Ministry and the Environment Ministry, received proposals for the contract between August and September last year, as MEED reported.
The Baghdad Municipality will provide 3,000 t/d of municipal solid waste, finalise the land allocation and sign the contract within six months, the Prime Minister’s office said in early February.
The energy purchase fee will be based on committee recommendations, covering landfill costs and environmental and public health requirements.
It added: “Payment will be managed by the ministries of health, electricity and environment and the Baghdad Municipality for a maximum production of 100MW, with further negotiations required if production exceeds this limit.
“Based on Cabinet Decision No. 24305 of 2024, the Ministry of Electricity is obligated to purchase the energy produced from the project. The Ministry of Finance will provide the necessary funding, and the Ministry of Electricity is authorised to sign the power-purchase agreement.”
During the tendering proceedings, the NIC specified that power generation “from mixed solid waste must be with high-efficiency and at least fourth-generation grate incineration technology with an electrical power generation efficiency higher than 30% and a landfill rate less than 5%”.
The project will be developed using a design-build-own-operate model.
The NIC invited investors and developers to qualify for the WTE scheme in August 2022.
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READ THE FEBRUARY 2026 MEED BUSINESS REVIEW – click here to view PDFSpending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.
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Abu Dhabi-based developer Modon Holding has tendered several contracts as part of the first phase of development at Ras El-Hekma, a planned new city on Egypt’s Mediterranean coast.
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