ADPower to build two waste-to-energy plants in Abu Dhabi and Al Ain

ADPower will own 98.6 per cent of Taqa shares following the deal, but a follow-on share offer could be made to broaden the company's investor base. Courtesy Taqa

Abu Dhabi Power Corporation and its subsidiary Emirates Water and Electricity Company signed an agreement with Tadweer to develop two waste-to-energy plants in Abu Dhabi and Al Ain.

The projects will convert 1.5 million tonnes of municipal waste per year into energy and will reduce carbon dioxide emissions by around 2.5 million tonnes annually, the company said in a statement on Tuesday.

The UAE, which accounts for 4 per cent of global oil production, has been looking to add more renewables to its power generation capacity. The country aims to reduce its carbon footprint by 70 per cent by 2050.

The planned facilities are in line with the UAE's Vision 2021 strategy to divert 75 per cent of waste away from landfill, according to ADPower chief executive and managing director Jasim Thabet.

"The proposed waste to energy plants will reduce the impact of waste on the environment and human health, helping to deliver on the water and electricity sector’s sustainability agenda," he said.

The Abu Dhabi-based waste-to-energy facility will be located in the emirate's industrial region of Mussafah and is expected to have the capacity to process up to 900,000 tonnes of waste a year. The plant is also expected to generate up to 90 megawatts of electricity and lower emissions by 1.5 million tonnes annually.

The Al Ain plant is expected to have a processing capacity of 600,000 tonnes per year with a power generation capacity of 60MW. The facility is also expected to help in reducing 1 million tonnes of carbon emissions annually.

The plants will be developed on the basis of an independent power producer model. Upon completion of the project, a long-term power purchase agreement will be signed between the offtaker Ewec and Tadweer.

The companies will also invite private sector participants to design, build, finance, operate and maintain the facilities. Ash from the waste conversion process will be recycled into reusable material, the companies said.

The schemes will be a part of the new utilities champion formed by the merger of ADPower and Taqa, also known as Abu Dhabi National Energy Company. ADPower owns most of the power and water assets in the emirate.