Dubal Holding, the investment arm of the Dubai Government, Quantafuel, a technology-based recycling company, and global chemical company BASF, have signed an agreement to carry out a front-end engineering design (FEED) for developing a Plastics-to-Liquid (PtL) processing plant in Dubai.
The project is currently entering the FEED stage with BASF as the partner for the new phase following a six-month feasibility study where the primary design criteria have been defined and the location and feedstock secured. According to a report, a potential final investment decision (FID) is expected for early 2023.
The partners have agreed to cooperate and share the cost for the development of the plant-based on the learnings from and optimization of Quantafuel’s first full-scale commercial plant in Skive, Denmark. Italian engineering and construction major Saipem has been chosen as the FEED service provider. The FEED for the development of the 80,000 tons per year plant will be done in 2022, with the potential final investment decision scheduled for early 2023.
“This agreement is an important step towards cooperation that will foster the advancement of sustainable technology and help attain a circular economy in the UAE. The basis of this agreement is to pursue investments that favor recycling and sustainability in the region. This project is in line with Dubal Holding’s commitment to invest in promising projects, giving the Emirate a leading position globally in this emerging field.”
Mr. Chris Lach, Chief Commercial Officer of Quantafuel, said that “It is encouraging to see that this project in Dubai has taken pole position in Quantafuel’s project portfolio. Based on our learnings in Skive and the completed feasibility study, we are pleased that this strong partnership has decided to move forward with FEED towards FID.”
Mr. Udo Huenger, Vice President and Head of Market Area Middle East, BASF FZE stated that “We are excited about the opportunity to be a partner in this FEED study for the Plastics-to-Liquid plant in Dubai based on our know-how in the European ChemCyclingTM project. Supporting our technology partner Quantafuel and working with the visionary people at Dubal Holding to drive Dubai’s vision of zero waste to landfill by 2030, brings us another step closer to a circular economy.”