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A $100 million waste-to-energy plant will be built in Khorezm

A plant for generating electricity from solid household waste worth $100 million is planned to be built in the Khorezm region. This is provided for by President Shavkat Mirziyoyev’s decree of September 14.

The investor will be South Korean Green Hammer Co., Ltd. The plant will be able to process 800 tons of waste per day and produce 71 million kWh of electricity.

The project is planned to be implemented in 2026−2028. To this end, the Korean investor will establish a foreign enterprise in Uzbekistan — a project company.

On September 14, an investment agreement was signed between Green Hammer and the government of Uzbekistan represented by the Ministry of Investments, Industry and Trade. Earlier, on September 11, the investor concluded agreements with Uzenergosotish on the purchase of the electricity produced and with the Agency for Waste Management and Circular Economy Development on the supply of solid household waste.

Electricity and waste are guaranteed for 30 years

According to the decree, the project company will receive guaranteed sales of the electricity it produces to Uzenergosotish for 30 years. In turn, Uzenergosotish undertakes to purchase this electricity in the national currency for the same period.

The Waste Management Agency must also guarantee the supply of the required volume of solid household waste to the enterprise for 30 years.

The investor must provide a first-class bank guarantee of $7 million to secure the project company’s obligations during the construction period.

The project company will also build, at its own expense, power transmission lines and other infrastructure necessary to connect the power plant to the unified power system. After the facilities are commissioned, they will be transferred to National Electric Networks of Uzbekistan.

The enterprise will be located in an eco-industrial zone specializing in waste disposal and processing, or on adjacent territory.

The Khorezm regional hokimiyat has been instructed to provide the Waste Management Agency within one month with 15 hectares of land in the territory of the citizens’ assembly of the Yangi Urtabog mahalla in Urgench district. The plot will be transferred on the right of permanent use for the creation of an eco-industrial zone.

The rent for land plots provided to the project company and National Electric Networks of Uzbekistan will be equal to the amount of the land tax.

After paying all taxes and fees, the project company will be able, within the framework of project financing, to open accounts in foreign banks and obtain and use loans and foreign currency funds. It is also allowed to directly pay foreign contractors, suppliers and creditors without making payments through bank accounts in Uzbekistan.

For the foreign specialists to be attracted, the issuance of entry visas and work permits is предусмотрено in the established manner.

Recall that two of the six waste incineration plants in Uzbekistan are planned to be launched by the end of 2026. At the same time, the authorities presented five more projects worth $625 million. The new enterprises will not only generate electricity from waste, but also process the resulting ash.