Five legacy turbines at the Jebel Ali site will be put on standby upon completion
Mubadala and Dubal Holding have created a joint venture company to develop a power block and water desalination plant for Dubai’s EGA under a 25-year deal worth up to $272mn
The UAE’s most efficient power plant will be built in Jebel Ali to cut costs and emissions for industrial heavyweight Emirates Global Aluminium (EGA).
Mubadala and Dubal Holding created a joint venture company to develop the power block and water desalination plant for EGA under a 25-year deal worth up to $272m (AED1bn). The project will fuel EGA’s smelter in Jebel Ali, Dubai, generating 600MW of electricity.
Five legacy turbines at the Jebel Ali site will be put on standby upon completion of the project. Siemens has agreed to install the UAE’s first combined cycle H-class gas turbine at the plant.
Plans to build what Siemens called the “most efficient power plant in the UAE” were finalised at a signing ceremony attended by senior government and business leaders.
Chief executive officer of EGA, Abdulla Kalban, who attended the ceremony, said the agreement would boost energy efficiency, cut emissions linked to aluminium smelting, and reduce the company’s operating costs.
“Bringing in our shareholders to invest in such power facilities through a new company makes sense for EGA from a capital allocation perspective, as we expand our core business upstream and internationally,” he added.
Dubal Holding’s chief executive officer, Abdulnasser
Bin Kalban, said the business wanted to explore power generation, which made the EGA project an attractive “investment opportunity”.
“This project is expected to improve the overall power efficiency at Jebel Ali smelter and I look forward to further improvements in the near future,” he added.