Dubai to develop Dh4 billion energy from waste facility

Dubai - The facility will treat 5,666 tonnes of municipal solid waste produced by Dubai per day to generate 200MW electricity

By Muzaffar Rizvi

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Published: Mon 29 Mar 2021, 3:57 PM

Last updated: Tue 30 Mar 2021, 3:15 PM

Dubai Holding on Monday said it had signed an agreement with five firms to develop a Dh4 billion ($1.1 billion) energy-from-waste facility.

The consortium consists of Dubal Holding, Switzerland-headquartered Hitachi Zosen Inova, Japan’s ITOCHU Corporation, Belgium’s BESIX Group, and local construction firm Tech Group, according to Dubai Holding.


Khalid Al Malik, managing director of Dubai Holding, said this significant investment by the group of companies that form this consortium, highlights international confidence in the UAE market and Dubai’s continued appeal in attracting foreign direct investment, despite a more challenging global economic climate.

“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,” he said.


Dubai Holding, established in 2004, is a diversified global company with operations in 13 countries and employing over 20,000 people. It manages an extensive portfolio with over Dh130 billion worth of assets, which support the diversification and growth of Dubai’s economy across 10 sectors including real estate, hospitality, leisure and entertainment, media, ICT, design, education, retail, manufacturing and logistics and science.

35-year concession period

The build-and-operate project has a 35-year concession period with the Dubai Municipality. The facility will treat 5,666 tonnes of municipal solid waste produced by Dubai per day, the statement said, adding that it would generate energy by processing 1.9 million tonnes of waste per year.

Dawoud Al Hajri, director-general of Dubai Municipality, said the Dubai Centre for Waste Processing is proceeding according to schedule, with the support of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

“The strategic focus of this project is to achieve environmental protection, reduce carbon emissions, divert waste from the landfills, and contribute towards the realisation of Dubai's strategy to shift towards clean energy. Dubai Municipality is setting up an attractive environment for investors to support increased foreign direct investment,” he said.

Saad Maniar, senior partner at Crowe in the UAE, said it is a great initiative towards sustainable future.

“Dubai as always taking right and timely action to achieve its Vision 2040. The emirate is truly shaping well to be the best city to live in future. I feel the future of our kids is in the safe hands of the UAE's leadership,” Maniar told Khaleej Times on Monday.

Project financing

Project finance loan agreements worth $900 million have been finalised with Japan Bank for International Cooperation and financial institutions including Standard Chartered Bank and Sumitomo Mitsui Banking Corp.

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.

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,” he said.

Safest and efficient technology

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.

“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,” he said.

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," he said.

Shiraz Hasan, CEO of Tech Group, said 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,” he said.

muzaffarrizvi@khaleejtimes.com


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