Dubai Smelter Approves Construction of $272Mn Power Plant

by Zaara 20, Feb 2020

Dubai, the city, acclaimed for its extravagant infrastructure and skyscrapers has been the centre of attraction for new industrial and architectural projects in the region. Dubai has seen numerous investments in the construction sector over the years. Many leading architectural and engineering firms such as Al Hashemi and Aedas choose Dubai as their preferred location for building commendable landscapes. The boom in the construction and manufacture industry in Dubai has not only attracted the local engineering companies but also top firms from New York, Chicago, and many other cities worldwide. World-famous skyscrapers like Burj Al Arab, Burj Khalifa, defines the architectural beauty of Dubai.  

The city is about to see a new power plant project being constructed in its region. Emirates Global Aluminium (EGA) the most significant industrial company in the UAE outside the oil and gas industry, has started the construction of a new power plant project worth AED1 billion ($272 million). The upcoming project is considered to be the most efficient power plant which will provide energy services to the country.

How Will the Power Block be Beneficial for the EGA

The Emirates Global Aluminium (EGA) which is jointly owned by Mubadala Investment Company and Dubai Holding will be aiming to complete such a project through which they can provide effective power generation services to the region. There is a wide variety of modern architectural structures and has an immensely spread construction industry in the UAE. The location designated for the construction to begin at is the Jebel Ali smelter in Dubai. The smelter will provide sufficient space and resources for the project to complete and will be an excellent base for the power plant to be constructed.

The primary target of the project will be reducing greenhouse emissions and also cutting down the operational costs for Emirates Global Aluminium (EGA). The power plant is expected to be generating more than 600MW of electricity and providing convenient and effective energy services to the region. The current power facility at Jebel Ali has been emitting the green gas house gas at a higher level, and hence this new project will help reduce the emission by nearly 10 per cent. Both power generation and aluminium smelting production are expected to increase by seven per cent with power plant installation. Mubadala Investment Company and Dubai Holding both have together formed a joint venture to establish new power production in the region while EGA will be intending to make the further profit through commissioning by the facility’s output for 25 years.

The innovative ceremony was attended by authorities of all three firms (EGA, Dubai Holding, and Mubadala). Dubai Holding and EGA’s vice-chairman Saeed Mohammed Al Tayer and CEO of Aerospace, Renewables & ICT at Mubadala  Khaled Al Quabaisi were present at the time of the ceremony. The authorities were quoted praising the upcoming venture and 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.”

Future Aspects in Construction Industry

Dubai has seen an enormous boom in its architecture sector over the year with many commendable buildings being built up in the city. Business setup in Dubai in upcoming years brings In context with the power, the block is expected to complete by 2021 and is expected to provide a boost to the economy of the country even further.

This project is expected to reduce EGA’s emission percentage at Jebel Ali by 58 per cent, which means the mono-nitrogen oxide emitted by the industries and motor vehicles will be overcome through this project. This reduction approach will eventually lead to the UAE’s vision of 2021 to improve the overall quality of air in the city.

The power plant will require electricity for aluminium smelting and other industrial operations. EGA has power plants at both Jebel Ali and Al Taweelah; hence, the power generations will be monitored through those plants only. EGA has quite useful power plants with both of them combined producing near 5,450 megawatts of energy. The installation of a new power block will lead to shutting off of a few other production houses and turbines which were previously used to generate the electricity. Five older, smaller and less efficient turbines at EGA Jebel Ali will be put on standby to be used only during emergencies.     

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