UAE’s Bold Step Towards Sustainable Aluminium Production
In a significant move towards sustainable development, the United Arab Emirates (UAE) has made headlines with new agreements among four leading companies: Emirates Global Aluminium (EGA), Abu Dhabi National Energy Company (TAQA), DUBAL Holding, and Emirates Water and Electricity Company (EWEC). These partnerships aim to decarbonise EGA’s aluminium production processes and expand the use of renewable energy sources in Abu Dhabi.
Major Decarbonisation Initiative
This initiative is set to become one of the largest decarbonisation projects within the global aluminium sector. With sustainability at the forefront, these agreements are designed to enhance EGA’s position as a leader in the industry’s journey toward achieving net-zero emissions by 2050. The collaboration also supports EWEC’s mission to optimise solar power generation across the emirate, further boosting efficiency in energy production and contributing to greenhouse gas emission reductions.
A Vision Driven by Partnership
Dr. Abdulla Humaid Al Jarwan, Chairman of the Abu Dhabi Department of Energy, emphasised that these agreements highlight Abu Dhabi’s commitment to delivering reliable and sustainable energy while minimizing carbon footprints. He noted, “This depth of partnership is only possible in Abu Dhabi,” underscoring the importance of collaborative ecosystems within the region.
In a pivotal aspect of the agreements, TAQA and DUBAL Holding will acquire EGA’s power and water generation assets located in Al Taweelah for approximately $1.9 billion (AED 7 billion). This power plant, notable for being the third largest in Abu Dhabi, boasts a capacity of 3.1 gigawatts and includes state-of-the-art desalination capabilities through combined-cycle gas turbines and reverse osmosis technology.
Formation of a New Joint Venture
The acquisition will lead to the establishment of a new joint venture between TAQA and DUBAL Holding, which will oversee the management of the assets. A new operations and maintenance company will be jointly owned by TAQA and EGA to ensure efficient functioning.
Moreover, EWEC has signed a Power Purchase Agreement (PPA) that will allow it to procure power from the Al Taweelah facility until 2049. This agreement guarantees a flexible power supply, fostering the integration of renewable energy into Abu Dhabi’s energy grid.
Enhancing Electricity Infrastructure
TAQA Transmission has also undertaken the task of acquiring EGA’s electricity transmission assets. The company is currently involved in a project aimed at increasing the overall interconnection capacity from the main grid to EGA’s facilities. The enhancement, expected to raise capacity from 640 to 3,360 megavolt-amperes (MVA), will further facilitate a reliable clean energy supply. This project is set for completion by 2027.
Under these newly forged agreements, EGA will emerge as the largest electricity consumer on the Abu Dhabi grid. It has secured a 24-year agreement with EWEC and TAQA Distribution to supply 23 terawatt-hours (TWh) of electricity annually, with a growing share coming from renewable sources.
Accelerating the Transition to Solar Energy
The initiatives taken by EWEC are crucial for the acceleration of Abu Dhabi’s energy sector decarbonisation. The company forecasts that by 2035, over 18 gigawatts of solar photovoltaic (PV) energy will be operational, contributing significantly to the reduction of total CO₂ emissions within the sector—projected to decline by approximately 50% by the mid-2030s.
EGA, in alignment with these sustainability goals, plans to boost its production of CelestiAL solar aluminium and MinimAL low-carbon aluminium (produced using nuclear energy) to nearly half of its total primary production by 2028. This ramp-up is slated to begin in the latter part of 2025, contingent upon market demand.
Significant Emission Reductions
The environmental impact of this collaborative effort is notable, with an expected reduction of 3.5 million tonnes in greenhouse gas emissions annually by 2035. This figure represents over 3% of Abu Dhabi’s current total emissions, underscoring the initiative’s significance in combating climate change.
Pending regulatory approvals and other closing requirements, this transformative transaction is expected to reach completion in the upcoming year.
Abdulnasser Bin Kalban, CEO of EGA, asserted, “This initiative stands as one of the largest decarbonisation projects in the aluminium sector, positioning EGA as a frontrunner in our industry’s transition to a sustainable future.” He emphasised that the project not only enhances the availability of low-carbon ‘premium aluminium’ for global customers but also strengthens EGA’s competitive edge in the market.
This collective effort marks a critical shift in the aluminium industry towards sustainability, lighting the path for future initiatives aimed at reducing the carbon footprint.
