Emirates Global Aluminium (EGA), Mubadala and Dubal Holding has officially started construction on a new AED1 billion ($272 million) power block at EGA’s Jebel Ali smelter in Dubai.
EGA is the largest industrial company in the UAE outside oil and gas, and is jointly owned by Mubadala Investment Company and Dubal Holding.
The new, power facility is expected to reduce greenhouse gas emissions from EGA’s power generation at Jebel Ali by some 10 percent.
Emissions reductions per tonne of aluminium produced at Jebel Ali, which includes both power generation and aluminium smelting, are expected to be up to seven percent.
Mubadala and Dubal Holding have formed a joint venture to develop the new power facility while EGA intends to buy the facility’s output for 25 years following commissioning.
The ground-breaking ceremony was held in the presence of Saeed Mohammed Al Tayer, vice chairman of Dubal Holding and vice chairman of EGA, and Khaled Al Qubaisi, EGA board member and CEO of Aerospace, Renewables & ICT at Mubadala.
Kalban said: “We are pleased to break ground on this important project which will improve our power generation efficiency at Jebel Ali, saving costs and environmental emissions. We are now focused on safe construction and ultimately starting up the new power block in line with our plans.”
Once the new power block is commissioned, five older, smaller and less efficient turbines at EGA Jebel Ali will be put on standby for use only in emergencies.
The project is expected to reduce EGA’s NOx emissions at Jebel Ali by 58 percent. NOx, which is also emitted by motor vehicles, is among a group of emissions targeted for reductions under UAE Vision 2021 to improve local air quality.
EGA requires electricity for aluminium smelting and other industrial operations, and has captive power plants at both Jebel Ali and Al Taweelah. EGA’s electricity generation capacity is 5,450 megawatts. In 2018, EGA produced 2.64 million tonnes of cast metal.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.