Dubai will host one of the largest energy-from-waste plants in the world
By 2024, Warsan’s greenfield facility will process up to 45% of Dubai's municipal waste as well as generate up to 200 MW green electricity supplying 120,000 households.
Located in the Emirate of Dubai, Warsan is a greenfield conventional energy-from-waste facility that will transform the waste management sector. First of its kind in the Middle East and energy-from-waste sector, it will set a benchmark in a region where around 150 million tons of waste are produced annually.
Early works started in July 2020, with full commissioning expected in 2024. Once operational, the facility will treat 1,900,000 tonnes of municipal solid waste per year. It will process up 45% of all waste produced from landfill and will produce up to 200 MW of thermal energy which will be fed into the local grid. Its size and capacity make this facility one of the largest in the world.
The project is led by a group of sponsors composed by and Itochu Corporation and Hitachi Zosen (Japan), Besix (Belgium), as well as local companies Tech Group, Dubai Holding. Besix and Hitachi Zosen will be responsible of the construction, operation, and maintenance of the facility, while Dubai Municipality will act as concessionaire and offtaker.
A LANDMARK TRANSACTION WITH STRONG ENVIRONMENTAL BENEFITS
This 1.2 billion US dollars project is critical for the long-term waste management policy in the Emirate of Dubai and is an important milestone to achieve various Governmental Energy Transition targets: UAE Vision 2021, Dubai Clean Energy Strategy and the UAE’s commitment to UN Sustainable Development Goals (SDGs).
Designed by the government, the UAE Vision 2021 in an initiative aiming to divert 75% of all waste produced away from landfill. The plant will definitely help to achieve this goal and to increase the share of clean energy in Dubai’s total power output to 25% by 2030 and 75% by 2050.
Societe Generale acted as MLA, Hedging Bank, Market Hedge Coordinator, Insurance Bank, Contingent FX Provider, NEXI Covered Lender and Commercial Lender in the financing for the Warsan energy-from-waste project.
This multi-source financing with JBIC and NEXI is also the first Project Finance Export Credit in relation to a Waste-to-Energy project, allowing Societe Generale to reinforce its franchise with Japanese ECAs on this key sector. Japanese ECAs have been instrumental in this financing, supporting 90% of the ca. USD 900 million limited-recourse amortizing debt on an untied basis.