EGA, Mubadala and Dubal ink Dh1B agreement

dubai — Emirates Global Aluminium, Mubadala and Dubal Holding are to sign an agreement to develop a power block and a water desalination plant at EGA’s smelter at Jebel Ali in Dubai.

The new facilities will improve the efficiency of EGA’s aluminium smelting, reducing environmental emissions and natural gas consumption. Mubadala and Dubal Holding are to establish a joint venture to develop the new facilities. EGA intends to buy the facility’s output for 25 years following commissioning. EGA is the largest industrial firm in the UAE outside oil and gas, and is jointly owned by Mubadala and Dubal Holding.

The joint venture will install a combined cycle power facility at EGA’s Jebel Ali site capable of generating over 600MW. Shareholders of the joint venture have signed an agreement with Siemens to install the UAE’s first combined cycle H-class gas turbine.

Saeed Mohammed Al Tayer, vice-chairman of Dubal Holding and vice-chairman of EGA, said: “Our project includes a combined cycle power facility and a reverse osmosis water desalination plant that support the objectives of

UAE Vision 2021 and UAE Centennial 2071, which outlines the path for a brighter future for generations to come by making the UAE the best country in the world. We look forward to further achievements with this project.”

Once the project is complete, five older, smaller and less-efficient turbines at EGA Jebel Ali will be put on standby for use only in emergencies. The new, more efficient power facility is expected to reduce greenhouse gas emissions from EGA’s power generation at Jebel Ali by some 10 per cent. Emissions reductions per tonne of aluminium produced at Jebel Ali, which includes both power generation and aluminium smelting, are expected to be up to 7 per cent.

Khaled Al Qubaisi, CEO for aerospace, renewables and ICT at Mubadala, said: “This project creates an attractive opportunity for Mubadala to add to its portfolio of investments in power generation and utilities in the UAE and internationally. For EGA, structuring this project on the Independent Power Producer model provides certainty on power prices for decades ahead whilst preserving capital for other opportunities.”