Mubadala and Dubal Holding to sign 25-year deal with EGA for new power block

Mubadala and Dubal Holding to sign 25-year deal with EGA for new power block

Emirates Global Aluminium (EGA) and Mubadala and Dubal Holding are to sign an agreement to develop a power block and water desalination plant at EGA’s Jebel Ali smelter in Dubai. The new facilities will improve the efficiency of power for aluminium smelting as well as reduce environmental emissions and natural gas consumption.

Mubadala and Dubal Holding are to establish a joint venture (JV) to develop the new facilities. EGA intends to buy the facility’s output for 25 years following commissioning. EGA is jointly owned by Mubadala and Dubal Holding. The JV 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 JV 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. 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%. Emissions reductions per tonne of aluminium produced at Jebel Ali, which includes both power generation and aluminium smelting, are expected to be up to 7%.

EGA’s total CO2 equivalent emissions, from all its operations in the UAE, were 8.1 tonnes per tonne of aluminium produced in 2017 and are currently below eight tonnes. The estimated average greenhouse gas emissions per tonne of aluminium produced globally is 12.7 tonnes CO2 equivalent. In addition, EGA’s NOx emissions at Jebel Ali are expected to reduce by 58%. NOx, which is also emitted by motor vehicles, is amongst a group of emissions targeted for reductions under UAE Vision 2021 to improve local air quality.

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