Dubai Holding has partnered with Dubal Holding and an international consortium consisting of ITOCHU Corporation, Hitachi Zosen Inova, BESIX Group and Tech Group to develop one of the world’s largest energy-from-waste (EfW) facilities.
The consortium of leading international companies will build and operate the Dhs4 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 country.
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 200MW 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.
Khalid Al Malik, Managing Director of Dubai Holding, said: “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.”
In line with the UN Sustainable Development Goals (SDGs), the facility will contribute to reaching the goals set by Dubai Municipality in minimising 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 facility will have capacity of about one thousand trucks per day. Foundational works on the project are proceeding at pace. 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.
The project finance loan agreements, in the amount of Dhs900 million, have been finalised 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.
Dawoud Al Hajri, Director General of Dubai Municipality, said: “The Dubai Centre for Waste Processing is proceeding according to schedule. 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.”