Mubadala and Dubal Holding to sign $272 ml deal with EGA
The new power facility is expected to reduce greenhouse gas emissions by 10%
Emirates Global Aluminium (EGA) is set to sign an agreement with Mubadala and Dubal Holding to develop a power block and water desalination plant at its smelter in Jebel Ali under a 25-year deal worth up to $272 million.
The new power facility is expected to improve the efficiency of EGA’s aluminium smelting, reducing environmental emissions and natural gas consumption, reported the WAM. It also said that Mubadala and Dubal Holding will establish a joint venture to develop the new facilities.
EGA intends to buy the facility’s output for 25 years following its commissioning, which can generate over 600 megawatts of electricity. The companies have also signed an agreement with Siemens to install the UAE’s first combined H-class gas turbine. The ceremony was attended by Suhail Mohamed Faraj Al Mazrouei, Minister of Energy and Industry and executives from Mubadala, Dubal Holding, EGA and Siemens.
Saeed Mohammed Al Tayer, Vice Chairman at Dubal Holding said: “Our project includes a combined cycle power facility and a reverse osmosis water desalination plant that support the objectives of the UAE Vision 2021 and the UAE Centennial 2071, which outlines the path for a brighter future for generations to come by making the UAE the best country in the world. We look forward to more achievements with this project.”
Abdulnasser Bin Kalban, CEO of Dubal Holding added that this project at EGA is an attractive investment opportunity and builds on the partnership with Mubadala following the successful establishment of EGA itself.
“This project is expected to improve the overall power efficiency at the Jebel Ali smelter and I look forward to more improvements in the near future.”
Abdulla Kalban, Managing Director and CEO of EGA, said: “This deal will enable EGA to further improve energy efficiency, save natural resources and reduce the costs and environmental emissions associated with our aluminium production.”
“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.”
Karim Amin, CEO Sales at Siemens Power Generation, said: “This project is a breakthrough on many levels; the first Siemens H-class globally to power an aluminium smelter, the most efficient power plant in the UAE and the most efficient in EGA’s fleet.”
Amin also said that this technology will likely be a boost to the UAE’s industrial sector.
The five older and smaller turbines which are less-efficient, at EGA Jebel Ali will be put on hold to use only in case of emergencies. The new power facility is expected to reduce greenhouse gas emissions by 10%.
