Iraq has signed a $497 million contract with China’s Shanghai SUS Environment Co. Ltd to construct its first waste-to-energy plant. The facility, located in Baghdad’s Nahrawan district, will process 3,000 tonnes of waste daily and generate 100 MW of electricity, according to the National Investment Commission (NIC) on January 21.
The project, set to commence construction next month with a two-year timeline, marks a significant step in Iraq’s push toward clean energy. NIC Chairman Haider Makiya stated during a press conference that the initiative addresses the severe environmental challenges posed by traditional landfill practices while advancing sustainable waste management and energy production.
“This project sets a precedent for transforming waste into a sustainable energy source and tackling environmental impacts. It will serve as a pioneering model for similar projects in other provinces,” said Professor Dr. Haider Muhammad Makia. A second phase is planned in Abu Ghraib, leveraging advanced waste-to-energy technologies.
The project benefits from collaboration among Iraq’s Ministries of Electricity, Environment, Science and Technology, and Baghdad Municipality. The NIC’s Review and Approval Committee visited similar facilities in China and recommended awarding the contract to Shanghai SUS Environment based on their findings.
Representatives from the involved ministries, Baghdad Municipality, the Chinese company’s regional director, and NIC director-generals attended the announcement. Established in 2008, Shanghai SUS Environment is a prominent provider of integrated environmental and energy services, committed to sustainable development.
This contract reflects a growing trend of Chinese firms securing energy-related deals in Iraq. Recently, China’s ZPEC won contracts for developing oil fields in eastern Baghdad and the Middle Euphrates, while ZhenHua Oil secured a deal to establish the Qirn block in Najaf and Anbar. Iraq generates an estimated 23 million tonnes of waste daily, underscoring the urgency of waste management solutions.
