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
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.”
Source: Company Press Release