Thursday 1 April 2021
Dubai Holding has partnered with 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 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 UAE.
The Dubai Center for Waste Processing, located in the Warsan area, will treat 5,666 tons of municipal solid waste produced by Dubai per day. A total of 1.9 million tons 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 minimizing 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 city and the targets outlined in the Dubai Clean Energy Strategy 2050.
Project finance loan agreements 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.
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.
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 and entertainment, media, ICT, design, education, retail, manufacturing and logistics, and science.