Sadara, Veolia sign agreement for sustainable central utilities facility in Jubail

Veolia to build and manage waste management and waste energy facilities at chemical complex

Sadara Chemical Company and Veolia Middle East SAS will jointly build a sustainable central utilities facility in PlasChem Park, the industrial park adjacent to the Sadara Chemical Complex in Saudi Arabia’s Jubail Industrial City II.

Sadara signed a Memorandum of Understanding (MOU) last week with Veolia, the Paris-based industrial waste management group for a long-term waste management solution, to build a utility plant including waste management and waste energy facilities at PlasChem Park. The agreement also provides for Veolia to manage a substantial portion of Sadara’s waste streams.

Dr. Faisal Al-Faqeer, CEO, Sadara, said: “One of Sadara’s main drivers is the enablement of a vibrant downstream manufacturing industry in Saudi Arabia. Another is to always act responsibly towards the environment. This deal allows us to combine those two key objectives, and we are very excited to partner with Veolia to deliver this waste product management solution. With partners like Veolia, we are confident that we will continue to catalyse the growth of the Kingdom’s downstream manufacturing industry.”

According to the two companies, the central utilities “island” will incinerate industrial waste and recover the heat from this process to produce a usable steam by-product. This will act as an incentive to attract PlasChem Park investors, providing their proposed manufacturing plants with third-party steam at an attractive price. Additionally, the Veolia facility will produce cooled water and compressed air, which will also be made available to PlasChem Park tenants for industrial use.

Faisal Al Dawish, CEO, Veolia Arabia, added: “We are very excited to be contributing our knowledge and experience to the further development of PlasChem Park, a truly exciting endeavour in Jubail Industrial City. This new utilities facility will implement environmentally responsible principles of the ‘Circular Economy’, a favoured international economic model that keeps resources in use for as long as possible, extracting maximum value and then recovering and regenerating additional products and energy, a concept that we ascribe to wholeheartedly at Veolia.”

The utilities project will be developed by Veolia and potential partners. The investment will be made by Veolia and partners, and Sadara will act only as facilitator to the project’s success and has agreed to transfer waste products to the plant.

Veolia, which already operates 29 similar utility facilities worldwide, has a track record in Jubail of operating and maintaining industrial waste water projects and in delivering EPC works – specifically, the Marafiq Desalination Plant (800,000 m3/day) and the Sadara SWRO plant (178,000 m3/day).


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