Dubai-based district cooling services provider Emirates Central Cooling Systems Corporation (Empower) has signed an agreement to acquire property developer Nakheel’s district cooling assets with a total cooling capacity of 110,000 refrigeration tons (RT), for $234 million (Dh860 million).
Under the agreement, Empower will buy all the assets of Nakheel’s district cooling systems that serve more than 18,000 clients in 17 major urban projects through 19 plants across Dubai. Further, it will manage and operate them, as well as perform all activities, functions, operations, and responsibilities.
According to Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Dubai Supreme Council of Energy, Empower’s acquisition of Nakheel’s whole cooling systems illustrates Dubai’s expanding economic environment and the increase in the quantity and type of acquisition deals.
“The acquisition agreement is in line with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to promote sustainable development, and with Dubai Demand Side Management Strategy 2030, for which district cooling is one of its foundations. District cooling contributes to enhancing energy efficiency in Dubai. The positive implications of such partnerships far exceed their investment dimensions. We are keen that the deal would give thrust to improving the efficiency of the energy sector, achieving a qualitative breakthrough in the standards of meeting the growing demand for district cooling services, and nourishing the momentum of establishing environmentally sustainable communities across the Emirate. This indeed goes in line with Dubai’s vision to be one of the most sustainable cities in the world and to lead by example in energy efficiency.”
Empower CEO Mr. Ahmad bin Shafar noted that the company’s acquisition of Nakheel’s complete district cooling activities is a significant milestone for the company, which will serve some of the prestigious developments in Dubai.
According to the statement, Empower has been consistently growing its portfolio of projects, and the addition of the Nakheel projects will further diversity Empower’s portfolio which will include, The Gardens, Nakheel Mall, Dragon Mart, Souk Al Marfa, Jumeirah Islands, Circle Mall, Al Khail Avenue, and so on.