Emirates Global Aluminium (EGA), Mubadala and Dubal Holding are set to sign an agreement to develop a state-of-the-art power block and a water desalination plant at EGA’s smelter in Jebel Ali, Dubai, a media report said.

The new facilities will improve the efficiency of power for EGA’s aluminium smelting, reducing environmental emissions and natural gas consumption, reported Emirates News Agency Wam.

Mubadala and Dubal Holding are to establish a joint venture to develop the new facilities. EGA intends to buy the facility’s output for 25 years following its commissioning.

The joint venture will install a combined cycle power facility at EGA’s Jebel Ali site capable of generating over 600 MW of electricity. The shareholders of the joint venture have signed an agreement with Siemens to install the UAE’s first combined cycle H-class gas turbine, a leading technology in efficient power generation.

A signing ceremony was witnessed by Suhail Mohamed Faraj Al Mazrouei, Minister of Energy and Industry; Khaldoon Khalifa Al Mubarak, CEO and managing director of Mubadala Investment Company and chairman of EGA; Saeed Mohammed Al Tayer, vice chairman, Dubal Holding and vice chairman of EGA, and Joe Kaeser, president and CEO of Siemens.

Al Tayer said that the 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.

Khaled Al Qubaisi, CEO Aerospace, Renewables and ICT, Mubadala, said, "This project creates an attractive opportunity for Mubadala to add to its portfolio of investments in power generation and utilities in the UAE and internationally. For EGA, structuring this project on the independent power producer model provides certainty on power prices for decades ahead whilst preserving capital for other opportunities."

Abdulnasser Bin Kalban, chief executive officer of Dubal Holding, said, "In addition to our broader industrial mandate, Dubal Holding is also developing businesses in power generation, making this project at EGA attractive for us as an investment opportunity. This builds on our investment 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, 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. This proven technology will be a boost to the UAE’s industrial sector, and we look forward to working hand-in-hand with the EGA, Mubadala and Dubal Holding team to bring this project to fruition."

Once the project is complete, five older, smaller and less efficient turbines at EGA Jebel Ali will be put on standby for use only in emergencies. The new, more efficient power facility is expected to reduce greenhouse gas emissions from EGA’s power generation at Jebel Ali by some 10 per cent.