Dubai to build one of the world’s largest energy-from-waste projects

A consortium including Dubal Holding, Itochu Corporation, Hitachi Zosen Inova, Besix Group and Tech Group will develop one of the world’s largest energy-from-waste (EfW) facilities in Dubai.

The consortium will build and operate the Dhs4bn project under a 35-year concession period with Dubai Municipality.

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 per cent of Dubai’s current municipal waste generation, 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 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 meet targets outlined in the Dubai Clean Energy Strategy 2050.

The consortium of leading international companies will build and operate the AED 4 billion project under a 35-year concession period with @DMunicipality. This landmark public-private partnership represents one of the most significant renewable energy investments in the #UAE. pic.twitter.com/X8y4FjLkCe

— Dubai Media Office (@DXBMediaOffice) March 29, 2021

The project finance loan agreements, amounting to $900m, 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, Siemens Bank and Crédit Agricole Bank. Nippon Export and Investment Insurance will provide the insurance for a part of the loan being provided by the financial institutions.

“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,” said Khalid Al Malik, managing director of Dubai Holding.

Work on the project has already begun after receiving the green light from Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and the Ruler of Dubai.

The construction of the project is being carried out by Besix Middle East and Hitachi Zosen Innova. At the peak of the construction, 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.

“Energy-from-waste 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,” said Bruno-Frédéric Baudouin, CEO of Hitachi Zosen Inova.

In 2016, the world’s cities generated more than 2 billion tonnes of solid waste, according to the World Bank. And by 2050, that figure is expected to increase by 70 per cent to 3.4 billion tonnes.

Read: Waste-to-energy initiatives across the GCC pick up pace