Dubai to develop Dh4bn energy-from-waste project

Dubai Holding is leading a consortium of local and international companies to develop the 200MW capacity plant

Construction of Dubai Centre for Waste Processing, a Dh4 billion energy-from-waste project, has already begun. Courtesy Dubai Holding

A Dh4 billion ($1.1bn) energy-from-waste project, one of the biggest in the world, is set to be developed in Dubai as the emirate continues to pursue its clean energy and UN climate goals.

Dubai Holding is leading a consortium of local and international companies developing the 200 megawatt facility including Dubal Holding, Itochu Corporation, Hitachi Zosen Inova, Besix Group and Tech Group.

The consortium will operate the public-private partnership project under a 35-year concession period agreed with Dubai Municipality, Dubai Holding said in a statement on Monday.

To fund the development, the consortium has finalised project finance loan agreements worth $900 million with Japan Bank for International Cooperation and financial institutions including Société Générale, KfW IPEX Bank, Standard Chartered, Sumitomo Mitsui Banking Corporation, Mizuho Bank, Siemens Bank and Crédit Agricole.

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“This significant investment by the group of companies … highlights international confidence in our market and Dubai’s continued appeal in attracting foreign direct investment, despite a more challenging global economic climate,” Khalid Al Malik, managing director of Dubai Holding, said.

“By partnering with a strong consortium of strategic and financial investors, we are delivering on our promise of continuously supporting the emirate’s growth and diversification strategy.”

Dubai Holding is an investment group founded in 2004 with interests in real estate, hospitality, leisure and entertainment, media, ICT, design, education and retail. The group has an asset base of Dh130bn including hotels operator Jumeirah, Dubai Properties and business parks operator Tecom.

Dubai, the commercial and trading hub of the Middle East, is implementing a Clean Energy Strategy that aims to produce 25 per cent of its energy from clean sources by the end of this decade and 75 per cent by 2050. Launched in 2015, the strategy aims to position the emirate as a major global hub of clean energy and green economy.

Dubai is also home to Mohammed Bin Rashid Al Maktoum Solar Park, the world’s largest single-site solar energy generation project that will produce 5,000MW by 2030. The Dh50bn development's first phase became operational in 2013 and a fifth phase is currently under construction.

Besix Middle East and Hitachi Zosen Innova have already begun construction work on the Dubai Centre for Waste Processing project in the Warsan area of Dubai. At its peak, 2,500 workers will be deployed at the construction site, Dawoud Al Hajri, director general of Dubai Municipality, said.

The energy-from-waste plant will treat 5,666 tonnes of municipal solid waste per day, converting a total of 1.9 million tonnes of waste per year into renewable energy. The facility will have the capacity to process up to 45 per cent of Dubai’s current municipal waste generation, which will significantly minimise the volume of waste that goes to landfill.

Dubai Holding is committed to the UN’s sustainable development goals and “ensuring everything we do contributes to the good of tomorrow”, Mr Al Malik added.

The plant is the latest in a number of energy-from-waste projects being developed in the UAE. In January, Emirates Water and Electricity Company invited bids from consortiums to build Abu Dhabi's first waste-to-energy plant near the existing Al Dhafra landfill site, which will be capable of processing between 600,000-900,000 tonnes of waste per year.

In Sharjah, a consortium led by renewables company Masdar and environmental management company Bee'ah are developing an energy-from-waste plant capable of processing 37.5 tonnes of waste per hour. The facility is scheduled to complete in the third quarter of this year.