Dubai Holding announced a collaboration with a group of five companies on Monday to construct an energy-from-waste facility in Dubai worth Dhs4 billion ($1.1 billion).

Dubai Holding, ITOCHU Corporation, Hitachi Zosen Inova, BESIX Group, and Software Group make up the consortium. The project will be designed and operated by a consortium of leading foreign corporations under a 35-year concession agreement with Dubai Municipality.

The Dubai Centre for Waste Processing, which is located in the Warsan neighborhood, will process 5,666 tonnes of municipal solid waste per day. Waste can be turned into renewable energy at a rate of 1,900,000 tonnes per year. The clean energy produced will be fed into the local grid in the amount of 200 megawatts. The facility will be able to handle up to 45 percent of Dubai's existing municipal waste output.

In line with the United Nations Sustainable Development Goals (SDGs), the facility will help Dubai Municipality achieve its goals of minimizing urban waste in landfills and developing renewable energy sources, as well as contribute to sustainable and environmentally friendly waste management and the Dubai Clean Energy Strategy 2050's targets.

His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, had provided the go-ahead for the project, which will be built following international environmental standards and have a daily capacity of about 1,000 trucks.

The project finance loan agreements with Japan Bank for International Cooperation and financial institutions such as Société Générale Bank, KfW IPEX Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Siemens Bank, and Crédit Agricole Bank, totaling $900 million, have been finalized. The insurance will be issued by Nippon Export and Investment Insurance (NEXI).

“Dubai has been motivated by our wise leadership's unwavering ambition and commitment to excellence,” said Khalid Al Malik, Managing Director of Dubai Holding. Today, we are proud to be commemorating yet another move forward in the Emirate's efforts to ensure a more prosperous future for future generations. Amid a demanding global economic environment, the group of company’s substantial investment demonstrates international confidence in our business and Dubai's continued appeal in attracting foreign direct investment. We are keeping our pledge to help the Emirate's growth and diversification plan by collaborating with a large consortium of strategic and financial investors. Dubai Holding is committed to the United Nations Sustainable Development Goals and ensuring that everything we do contributes to the Good of Tomorrow as a responsible business.”

“The Dubai Centre for Waste Processing is progressing according to plan, with His Highness Sheikh Mohammed Bin Rashid Al Maktoum's support,” said Dawoud Al Hajri, Director General of Dubai Municipality. The project's strategic objectives are to protect the atmosphere, minimize carbon emissions, divert waste from landfills, and contributing to the achievement of Dubai's clean energy strategy.”

BESIX Middle East and Hitachi Zosen Innova are responsible for the project's construction. At the height of the project, 2,500 staff will be on-site, and up to 16 tower cranes, including the world's largest tower cranes, will be used to assemble equipment.

Observations from the consortium “Investment in green and sustainable projects is always dear to our heart, and we are very happy to work with a wide variety of individuals working towards the realization of one of the world's largest single-site waste to energy projects in Dubai,” said Ahmad Hamad Bin Fahad, Acting CEO of Dubai Holding.

“We are proud to participate in this significant project,” said Shinichi Aburaya, Chief Operating Officer of the Plant Project, ITOCHU Corporation's Marine and Aerospace Division. ITOCHU, with its strong emphasis on ESG, SDGs, is enthusiastic about the potential to contribute even more to SDGs by lowering environmental burdens and expanding renewable sources of energy.”

“Energy-from-waste technology is considered the best and most effective technology for sustainably processing municipal solid waste,” said Bruno-Frédéric Baudouin, CEO of Hitachi Zosen Inova.  This project marks our entry into a new market, and we look forward to working more on projects in the Middle East in the future, leveraging Hitachi Zosen's long history in the region.”

“BESIX Middle East is interested in the project in three ways: investment, development, and operations of the plant for 35 years,” said Pierre Sironval, Chief Operating Officer, BESIX Group The Emirate of Dubai has once again demonstrated its leadership in the area of sustainability and the environment with the EfW plant.