Font Size

- Aa +

Tue 14 Jan 2020 07:03 PM

Font Size

- Aa +

UAE's Masdar buys 40% stake in $352m Australian project

Subsidiary of Mubadala Investment Company makes first investment in Australia after acquiring stake in utility-scale waste-to-energy facility

UAE's Masdar buys 40% stake in $352m Australian project

Mohamed Jameel Al Ramahi, CEO of Masdar.

Masdar, a subsidiary of Mubadala Investment Company, has made its first investment in Australia after acquiring a 40 percent stake in the country’s second utility-scale waste-to-energy facility.

The company announced at Abu Dhabi Sustainability Week 2020 that under the terms of the investment, Masdar and Abu Dhabi-based advisory and development firm Tribe Infrastructure Group have invested in the via their joint venture holding company, Masdar Tribe Energy Holdings Limited.

Niall Hannigan, chief financial officer of Masdar, and Peter McCreanor, CEO of Tribe Infrastructure Group, signed the agreement .

Financial close on the A$511 million ($352 million) greenfield East Rockingham Resource Recovery Facility, which will be located in the Rockingham Industry Zone, 40km south of Perth in Western Australia, was achieved last month and construction has already started.

When completed, the facility will process 300,000 tonnes per year of non-recyclable municipal, commercial and industrial waste and up to 30,000 tonnes of biosolids per year.

The facility will also recover approximately 70,000 TPA of bottom ash, which will be processed for use in road bases and other construction materials while generating 29MW of baseload renewable energy, enough to power more than 36,000 homes.

Equity investors in the project also include UK company John Laing Investments, alongside Acciona Concesiones and Hitachi Zosen Inova.

“Extending our reach into Australia is an exciting step forward for Masdar’s clean energy operations and our efforts to expand the company’s global renewable energy portfolio, which now encompasses more than 30 countries,” said Mohamed Jameel Al Ramahi, CEO of Masdar.

He added: “The Australian waste-to-energy sector provides excellent commercial potential in the long-term. The problem of dealing with everyday waste is a global challenge, with more than 2 billion tonnes of municipal solid waste generated each year.”

Construction is expected to take 35 months and the facility is slated to begin operations by the end of 2022.

The East Rockingham Resource Recovery Facility is the second waste-to-energy project that Masdar is involved in. In 2017, Masdar and Bee’ah, the environmental management company, announced a joint venture to develop the Sharjah Waste-to-Energy Facility, which will divert more than 300,000 tonnes of municipal waste away from landfill sites each year when it begins operations in 2021.

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.