Dubai Holding has partnered with Dubal Holding, ITOCHU Corporation, Hitachi Zosen Inova, BESIX Group and Tech Group to develop one of the world’s largest energy-from-waste (EfW) facility. The consortium of leading international companies will build and operate the AED 4 billion project under a 35-year concession period with Dubai Municipality. This landmark public-private partnership represents one of the most significant renewable energy investments in the United Arab Emirates.
The Dubai Centre for Waste Processing, located in the Warsan area, will treat 5,666 tonnes of municipal solid waste produced by Dubai per day. A total of 1,900,000 tonnes of waste per year will be converted into renewable energy. The approximate 200 MW of electricity generated will be fed into the local grid as clean energy. The facility will have the capacity to process up to 45% of Dubai’s current municipal waste generation, in turn significantly minimising the volume of municipal waste in landfills.
In line with the UN Sustainable Development Goals (SDGs), the facility will contribute to reaching the goals set by Dubai Municipality in minimizing the volume of municipal waste in landfills and developing alternative energy sources as well as contribute to sustainable and ecologically friendly waste management in the Emirate and the targets outlined in the Dubai Clean Energy Strategy 2050.
The Vice President and Prime Minister of the UAE and the Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, had given the start signal for implementing the project in line with international environmental standards and with a capacity of about one thousand trucks per day. Foundational works on the project are proceeding at pace.
The project finance loan agreements, in the amount of USD 900 million, have been finalized with Japan Bank for International Cooperation and financial institutions including Société Générale Bank, KfW IPEX Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Siemens Bank and Crédit Agricole Bank. Nippon Export and Investment Insurance (NEXI) will provide the insurance for a part of the loan being provided by the financial institutions.
Khalid Al Malik, Managing Director of Dubai Holding, said: “Inspired by our wise leadership’s unwavering ambition and dedication to excellence, Dubai has become synonymous with breaking records over the years. Today, we are proud to be marking yet another milestone for the Emirate to ensure a more sustainable future for generations to come. This significant investment by the group of companies that form this consortium, based on an agreement with Dubai Municipality, highlights international confidence in our market and Dubai’s continued appeal in attracting foreign direct investment, despite a more challenging global economic climate.”
Al Malik added: “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. As a responsible business, Dubai Holding is committed to the United Nations Sustainable Development Goals and ensuring everything we do contributes to the Good of Tomorrow.”
Dawoud Al Hajri, Director General of Dubai Municipality, said: “The Dubai Centre for Waste Processing is proceeding according to schedule, with His Highness Sheikh Mohammed bin Rashid Al Maktoum’s support. The strategic focus of this project is to achieve environmental protection, reduce carbon emissions, divert waste from the landfills, and contribute towards the realization of Dubai's strategy to shift towards clean energy.”
Al Hajri added: “Dubai Municipality is setting up an attractive environment for investors to support increased foreign direct investment.”
The construction of the project is being carried out by BESIX Middle East and Hitachi Zosen Innova. At the peak of the works, 2,500 workers will be deployed, and the site will use up to 16 tower cranes, including the largest tower cranes in the world for the installation of equipment inside the plant.
Commentary from the consortium
Ahmad Hamad Bin Fahad, Acting CEO of Dubal Holding, said: “Investment in green and sustainable projects is always close to our heart and we are very pleased to work with a broad spectrum of people working towards the realisation of one of the world’s largest single-site waste to energy projects in Dubai. As always, Dubai leads by example and is a trend setter and I’m confident the entire region will follow the footsteps of Dubai in implementing such a project that is good for generations to come.”
Shinichi Aburaya, Chief Operating Officer of the Plant Project, Marine and Aerospace Division of ITOCHU Corporation, said: “We are proud to participate in this important project. ITOCHU, with its strong focus on ESG, SDGs and portfolio of similar projects, looks forward to this opportunity of contributing further towards SDGs by reducing environmental burden and expanding renewable energy resources.”
Bruno-Frédéric Baudouin, CEO, Hitachi Zosen Inova, said: “Energy-from-waste (EfW) technology is considered to be the safest and most efficient technology for sustainably processing municipal solid waste. We are proud that Dubai Municipality has chosen the technology from HZI, and that we can thus make an important contribution over the entire concession period to Dubai's sustainability strategy. The construction of this EfW plant is not only a novelty for Dubai, even for HZI, this project marks the entering into a new market and we are looking forward to further projects in the Middle East, leveraging the long-term history of the Hitachi Zosen group in the region.”
Pierre Sironval, Chief Operating Officer, BESIX Group, said: "BESIX Middle East is involved in the project in three ways: the investment, construction and operations of the plant for 35 years. We have just started construction and look forward to delivering and then managing, together with Hitachi Zosen Inova, these world-leading facilities. With the EfW plant, the Emirate of Dubai has once again confirmed its leading role in the field of sustainability and the environment. We would like to thank all the partners involved in the development of this prestigious project for their trust, perseverance and excellent collaboration."
Shiraz Hasan, CEO of Tech Group, said: “We are excited to be part of this flagship EfW project – one of the world’s largest. This project is a testament to Dubai’s commitment towards a clean and sustainable future. With the expertise and value brought in by all partners, we expect this project to be a huge success.”
About Dubai Holding
Dubai Holding is a diversified global company with operations in 13 countries and employing over 20,000 people. Established in 2004, Dubai Holding manages an extensive portfolio with over AED 130 billion worth of assets, which support the diversification and growth of Dubai’s economy across 10 sectors, including Real Estate, Hospitality, Leisure & Entertainment, Media, ICT, Design, Education, Retail, Manufacturing & Logistics and Science.
About Dubai Municipality
Dubai Municipality was founded in 1954 commencing its activities with a cadre of seven employees undertaking simple tasks to keep the city clean. The first decree establishing the Municipality was on February 28, 1957, whereby 23 municipal council members were appointed from the elders of the country and traders. It gave the Municipality specific powers, the most important of which was to take care of health and architectural affairs of the city as well as to organize construction and beautification of the city and provide constructive suggestions to the government.
Dubai Municipality has developed significantly since then, evolving over the years and taking on multiple tasks. The Municipality grew in line with h the expansion of the Emirate of Dubai, currently it has more than 12,500 employees working in 34 departments in six sectors. It is one of the largest governmental institutions in terms of services rendered and projects executed. The municipality is a leading driver of growth and evolution of the Emirate of Dubai.
About Dubal Holding
DUBAL Holding LLC (Dubal Holding) was established in 2014 as an investment arm of the Investment Corporation of Dubai (ICD), the Sovereign Wealth Fund for the Government of Dubai. Dubal Holding owns a 50% stake in Emirates Global Aluminium (EGA) in the UAE. Dubal Holding’s focus is to develop a balanced portfolio of assets through careful investments in green and sustainable projects in the downstream value chain and progressively expand its industrial footprint in the region.
About ITOCHU Corporation
ITOCHU Corporation, a leading trading and investment house established in 1858 having its headquarters in Tokyo and 100 bases in around 60 countries, is engaging in domestic and international trading of various products such as textile, machinery metals & minerals, energy & chemicals, food, general products & reality, ICT & financial business. ITOCHU is rapidly expanding its presence in the waste management sector including 6 investment portfolios in Energy from Waste projects (4 in UK, 1 in Serbia and 1 in UAE/Dubai).
ITOCHU generated total revenue of 104.5 billion US dollars for the fiscal year 2019 ended on 31st March 2020. To find out more about ITOCHU, please visit https://www.itochu.co.jp/en/.
About Hitachi Zosen Inova
Zurich-based Hitachi Zosen Inova (HZI) is a global leader in energy from waste (EfW), operating as part of the Hitachi Zosen Corporation Group. HZI acts as an engineering, procurement and construction (EPC) contractor and project developer delivering complete turnkey plants and system solutions for thermal and biological EfW recovery. Its solutions are based on efficient and environmentally sound technology, are thoroughly tested, and can be flexibly adapted to user requirements. HZI’s Service Group combines absolute commitment to research and development with extensive manufacturing and assembly capabilities and looks after your plant throughout its entire life cycle.
HZI’s innovative and reliable waste and flue gas treatment as well as gas upgrading and power-to-gas solutions have been part of over 700 reference projects delivered since 1933. To find out more about HZI, please visit www.hz-inova.com.
About BESIX Group
BESIX is a leading Belgian group, based in Brussels and operating in 25 countries and on 5 continents, in the construction, real estate development and concessions sectors. Active since 1909, its iconic achievements include Dubai's Burj Khalifa, the tallest tower in the world, buildings of the European Parliament in Brussels as well as the Grand Egyptian Museum, on the Giza pyramids plateau. The Group's engineering department enables BESIX to carry out complex and unique projects, particularly in terms of technical and environmental aspects. As such, BESIX designs and builds state-of-the-art environmental facilities, particularly in the fields of drinking water, wastewater treatment and waste-to-resource. The Group also offers its clients solutions for the financing, management and maintenance of these infrastructures. BESIX has been active in the UAE since 1965 and has grown to become one of the largest construction contractors in the Middle East. www.besix.com.
About Tech Group
Tech Group is a UAE based diversified group of companies active in various industries such as turnkey-construction and engineering, metal and glass works, wood joinery and interiors, ready-mix concrete, concrete blocks and pavement products, piling and foundations, real estate, petroleum logistics and trading, and sales & marketing services. Established in 2003, Tech Group has since grown exponentially through major investments in state-of-the-art technologies and producing and delivering value for our clients. With a focus on contributing to a sustainable future for the UAE, Tech Group has further transformed over the last five years as an investor and co-developer of projects that provide sustainable solutions for the environment and food security. The group is actively engaged in developing waste management, water treatment, aqua-culture and farming projects. www.techgroup.ae