Tadweer Waste Treatment

30 August 2010

The Dubai-based waste management firm is looking to boost current levels of production

Company snapshot: Tadweer Waste Treatment

Date Established 2004

Main business sectors Recycling and waste management

Main business region UAE

Chairman Faris Saeed

General Manager Mousa Awad

Tadweer Waste Treatment structure

Tadweer Waste Treatment was set up in 2004 as a joint venture with Dubai Municipality to meet the emirate’s urgent need for a solid waste sorting and recycling facility.

Although current figures are still being compiled, in 2007, Dubai Municipality treated more than 31 million tonnes of general solid waste, 83 million gallons of liquid waste and 347 tonnes of hazardous waste.

The joint venture is run on a build, own, operate, transfer (BOOT) scheme. Tadweer’s chairman, Faris Saeed, is also the chief executive officer and owner of Dubai-based real estate firm Diamond Developers. The firm employs some 500 staff.

Tadweer Waste Treatment operations

Tadweer’s main plant at Warsan can recycle up to 4,000 tonnes of solid waste per day (t/d). It is one of the first solid waste sorting plants to handle refuse from the entire emirate. The firm also recycles about 700 t/d of residential and commercial garden (green) waste.

The $136m facility, which became operational in March 2006, consists of six waste sorting and recycling lines covering an area of 1 square kilometre. In total, the plant treats 1.4 million tonnes of municipal waste a year.

The facility recycles waste to produce a range of raw materials for use in the manufacture of paper, plastics, metals and glass. Biological waste is also treated to produce compost. In 2009, an additional three sorting lines to wash and treat raw materials were added to process up to 80 t/d of waste.

End products include cardboard, plastic polyethylene terephthalate (PET), metals, organic materials, aluminium cans, glass, paper and newspaper.

For its compost production programme, Tadweer uses technology supplied and managed by Germany’s Kompost und Substrate Service (Kuss).

The green waste is placed in large compost vats, which are supplied with oxygen that produce high temperatures to eliminate bacteria, microbes and seeds contained in the plants, while preserving nutrients in the black soil that is produced. A single large compost bin requires about 2,000-4,000 kWh of electricity a year. The compost produced at Warsan is used for local agricultural, residential and commercial landscaping and domestic gardening purposes.

Dubai municipal solid waste  
YearMillion tonnes produced
20001.05
20011.15
20021.32
20031.52
20041.79
20052.36
20062.91
20073.35
20084.11
20094.29
Source: Dubai Municipality 

The plant also produces refuse-derived fuel (RDF). Municipal solid waste such as plastics and biodegradable waste is shredded and then treated in a steam-pressured autoclave. The RDF produced is used by the cement sector.

Power generation is another product of Tadweer’s waste management. Although still in its early stages, the firm claims to be able to produce up to 1,000 kWh of power by anaerobic digestion technology and generators using methane gas to process the waste.

Tadweer Waste Treatment ambitions

As a public-private partnership with the Dubai Municipality, Tadweer is not only concerned with increasing its profit margins. Its primary focus is the domestic market.

The company’s stated objectives are to change popular perceptions and educate Emiratis on the need to sort and manage waste produced in the UAE by means of awareness campaigns and education programmes. The waste management firm places its activities and objectives within the framework of the Dubai Strategic Plan 2015.

With these aims in mind, Tadweer unveiled plans in May to establish a Dubai-based college in collaboration with the University of California Davis (UCD) in the US. The proposed college will offer one of the first environmental programmes in the region. According to Saeed, a location in Dubai has already been selected and negotiations between UCD and the firm are in the final stages.

Dubai construction and demolition waste 
YearMillion tonnes
20003.09
20034.85
200610.54
200727.7
200823.27
Source: Dubai Municipality

At its Warsan facility, Tadweer has the capacity to treat up to 79 per cent of the total waste it receives, while rejecting at least 21 per cent that ends up at landfill sites located at Al-Ghusais, Jebel Ali, Lehbab and Hatta.

As the level of municipal waste generated in Dubai continues to climb, Tadweer is aiming to boost the current levels of production to be able to handle up to 2.5 million t/y of waste.

Tadweer awareness campaigns are key to success

The sole concern of most private firms is to improve their profit margin year on year. Tadweer has to run a large waste management and recycling plant for the entire emirate, while continuing to help to promote environment awareness programmes across the country.

The firm’s educational campaigns are not the result of its BOOT contract with Dubai Municipality, but they are integral to its business. Without greater public awareness, all of the start-up recycling firms in the emirate whether public or private will struggle to make profit.

Tadweer is heavily reliant on such awareness schemes. It would be easier to sort and manage the municipal waste if the refuse were separated out by residents and industrial units before it arrived at the plant at Warsan. Education can improve the situation. However, the recent scheme with UCD to set up a Dubai-based college with an environmental studies programme will take some time to make any impact.

Only 6-10 per cent of the waste from households and the construction sector is recycled across the UAE

Enforcement by the municipality is also an issue for the firm. Municipal waste can still be dumped at landfills relatively cheaply or free of cost nearby in Abu Dhabi and Oman. It is hard to create a financially viable recycling sector in Dubai when such options are available to the public and industry. Without specific legislation and enforcement the recycling sector will struggle to take off. Tadweer’s fortunes are closely linked to government action on this problem.

Yet despite these challenges Tadweer’s joint venture with the municipality also places it in a strong position for growth in the future. Not only can state backing provide the necessary capital investment for more treatment and sorting lines at Warsan, but also it is clearly in the interest of Dubai to advertise and market the need for the firm’s waste management and recycling services.

The vast commercial and industrial developments in the country and the rise in population have increased demand on the state’s resources and required Dubai to invest in environmental and pollution control projects. Companies such as Tadweer are clearly well placed to benefit from the urgent need of the emirate to manage and sort its waste.

In May, at a regional waste summit in Dubai, a study completed by the UN Environment Programme found that the UAE produced 22 per cent of the 22.2 million tonnes of waste produced by the GCC in 2009.

Only 6-10 per cent of the waste from households and the construction sector is recycled across the UAE compared to 70 per cent in some European countries.

The scale of the challenge to educate the local population in Dubai is clear. And how the municipality meets this challenge will directly affect Tadweer’s future business.

However, if awareness campaigns and education programmes gear up sufficiently over the next few years to tackle this problem, the plant at Warsan has more to offer than simply managing and recycling the waste it receives. If it can increase its power generation capabilities, it might supplement the government’s increasing electricity needs. Also, the RDF and soil produced by the facility at Warsan will significantly aid the cement and agricultural and real estate sectors in Dubai respectively.

Like other newly created environmental waste and management firms in Dubai, Tadweer’s future prospects will depend on the level of state success with its recycling and awareness campaigns.

If these are successful in educating the population over the next few years, the plant at Warsan could play a more diversified role in managing waste in Dubai.

 

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.