Marubeni team wins Abu Dhabi waste-to-energy contract

27 March 2024
A team of Japan's Marubeni Corporation, Switzerland's Hitachi Zosen Inova and Japan Overseas Infrastructure Investment Corporation won the contract

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Abu Dhabi-based utility offtaker Emirates Water & Electricity Company (Ewec) and Tadweer Group have awarded the contract to develop and operate Abu Dhabi's first waste-to-energy (WTE) project.

A team of Japan's Marubeni Corporation, Switzerland-headquartered Hitachi Zosen Inova and Japan Overseas Infrastructure Investment Corporation won the contract.

As MEED previously reported, the winning team proposed a levelised waste treatment cost of AED175 ($47.6) a metric tonne (MT) for the project.

This is equivalent to 45% of the tariff of AED391/MT proposed by the second team, which comprises France's Suez and the local Pal Cooling Holding, according to industry sources.

MEED understands the power tariff for the project is fixed at 11.215 fils a kilowatt-hour (kWh). 

Regional projects tracker MEED Projects estimates the scheme will require an investment of about $600m.

US/India-based Synergy Consulting is the financial adviser to the Marubeni consortium.

The WTE plant will be located near the Al Dhafra landfill in Abu Dhabi. It will have a processing capacity of 900,000 tonnes of waste a year and generate enough electricity to power up to 52,500 households once complete.

The clients issued the request for proposals for the contract in July 2022 and completed the site visit with the companies qualified to bid in September of the same year.

The project will involve the financing, construction, operation and maintenance of the WTE plant, which will use advanced moving grate technology to convert municipal solid waste into electricity using a high-efficiency steam turbine generator set.

The plant is expected to reduce carbon dioxide equivalent emissions by up to 1.1 million tonnes a year, equivalent to removing more than 240,000 cars from the road.

The successful developer consortium will own a 40% shareholding in the project's special-purpose vehicle and sign a waste- and power-purchase agreement with Tadweer and Ewec.

The local/Australian Tribe Infrastructure Group is the client's financial adviser, while the UK's Ashurst and Denmark's Ramboll are legal and technical advisers, respectively.

The project aligns with the UAE's aim to divert 75% of waste away from landfills.

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