One of the leading global investment holding companies in the region Dubai Holding is partnering with an international team which Japanese holding company ITOCHU Corporation, Hitachi Zosen Inova, BESIX Group and Tech Group to build one of the world’s largest energy-from-waste (EfW) facility in the emirate.
The $1.09 billion project is one of the most significant renewable energy investments in the United Arab Emirates. To be located in the Warsan area, The Dubai Centre for Waste Processing will be operated under a 35-year concession period with Dubai Municipality.
Every day, 5,666 tonnes of municipal solid waste produced by the emirate will be processed by the proposed facility. A total of 1,900,000 tonnes of waste is expected to be converted into renewable energy on a daily basis, feeding 200 MW of electricity into the local grid as clean energy.
The facility will have the capacity to process up to 45 percent of Dubai’s current municipal waste generation which will in turn considerably reduce the volume of municipal waste which is dumped into landfills.
The proposed facility will support Dubai’s efforts to meet the UN Sustainable Development Goals (SDGs) while honoring the Dubai Clean Energy Strategy 2050 targets.
The consortium has also finalized $900 million worth of project finance loan agreements 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.
“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.”
Mr. Al Malik further added that “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.”
Brussels-based international contractor BESIX’s regional wing, BESIX Middle East and Hitachi Zosen Innova will carry out the construction of the project which is expected to employ 2,500 workers during the build.