ITOCHU in partnership with Dubai Municipality commences Dubai’s first and one of the world’s largest Energy-from-Waste project

March 29, 2021

ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Yoshihisa Suzuki, President & COO; hereinafter “ITOCHU”) announced that Dubai Waste Management Company P.S.C. (“DWMC”), a newly established project company, whose shareholders are ITOCHU, Dubai Holding LLC (“Dubai Holding”), DUBAL Holding LLC (“Dubal Holding”), Hitachi Zosen Inova AG, NV Besix SA (“BESIX”) and Tech Group, entered into a project finance loan agreement on March 28 for a total amount of around 900 million USD with Japan Bank for International Cooperation and private financial institutions including Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Société Générale, KfW IPEX Bank GmbH, Standard Chartered Bank, Crédit Agricole Corporate and Investment Bank, and Siemens Bank GmbH. Nippon Export and Investment Insurance (NEXI) will provide the insurance for a part of the loan by the private financial institutions.

This project, on a build, operate, and transfer basis with a 35-year operation period with Dubai Municipality, is the first of its kind in Dubai and will be one of the largest Energy-from-Waste (“EfW”) projects in the world. ITOCHU, through its subsidiaries, holds a 20% stake in DWMC, which last December undertook the concession with Dubai Municipality, who are overseeing the waste management in the Emirate of Dubai, the United Arab Emirates (“UAE”).

Located 15km east of downtown Dubai, the facility will treat 5,666 tons of municipal solid waste from the Dubai area per day, making a total of 1,900,000 tons a year that will be converted into renewable energy. The approximate 200 MW of electricity generated will be fed into the local grid as baseload energy.

In line with the UN Sustainable Development Goals (SDGs), the facility will contribute to reaching the goals set by Dubai Municipality in minimizing the volume of municipal waste in landfills and developing alternative energy sources as well as contribute to sustainable and ecologically friendly waste management in the Emirate and the targets outlined in the Dubai Clean Energy Strategy 2050.

In the United Kingdom, ITOCHU is involved as a developer, investor, and operator in 4 energy-from-waste projects for municipal governments. In aggregate, these projects treat around 1.3 million tonnes of waste annually, accounting for roughly 15% of the UK's waste incineration market and generating enough electricity to power 160,000 British households. Currently, in the Central European country of Serbia, we are working with the government, international financial institutions, and other partners to advance initiatives aimed at solving some of the region's biggest environmental and social problems. Furthermore, ITOCHU have taken a new step toward the hazardous waste management services by acquiring a 20% stake in Environmental Development Company (EDCO) who provides such services including transportation, treatment and final disposal in Jubail Industrial City, Saudi Arabia last November.

ITOCHU, as a leading ESG company, aims to expand its involvement in such projects to contribute to the realization of sustainable communities and the reduction of environmental burden in the world, through achieving of the realization of the 5 SDGs shown below:

Expected view of the EfW in Dubai

Construction work progressing

Outline of the EfW Project in Dubai

Location Warsan, the Emirates of Dubai, United Arab Emirates
Project Scope Design, Build, Finance, Operate and Maintain an EfW facility
Operation Period 35 years
Sponsors Dubai Holding, Dubal Holding, ITOCHU, HZI, BESIX and Tech Group
Contract Counterparty Dubai Municipality

About Dubai Holding
Dubai Holding is a diversified global company with operations in 13 countries and employing over 16,000 people. Established in 2004, Dubai Holding manages an extensive portfolio with over AED 130 billion worth of assets, which support the diversification and growth of Dubai’s economy across 10 sectors, including Real Estate, Hospitality, Leisure & Entertainment, Media, ICT, Design, Education, Retail, Manufacturing & Logistics and Science. Learn more about Dubai Holding: http://www.dubaiholding.com/

About Dubal Holding
DUBAL Holding LLC (Dubal Holding) was established in 2014 as an investment arm of the Investment Corporation of Dubai (ICD), the Sovereign Wealth Fund for the Government of Dubai. Dubal Holding owns a 50% stake in Emirates Global Aluminium (EGA) in the UAE. Dubal Holding’s focus is to develop a balanced portfolio of assets through careful investments in green and sustainable projects in the downstream value chain and progressively expand its industrial footprint in the region.

About Hitachi Zosen Inova
Zurich-based Hitachi Zosen Inova (HZI) is a global leader in energy from waste (EfW), operating as part of the Hitachi Zosen Corporation Group. HZI acts as an engineering, procurement and construction (EPC) contractor and project developer delivering complete turnkey plants and system solutions for thermal and biological EfW recovery. Its solutions are based on efficient and environmentally sound technology, are thoroughly tested, and can be flexibly adapted to user requirements. HZI’s Service Group combines absolute commitment to research and development with extensive manufacturing and assembly capabilities and looks after your plant throughout its entire life cycle. HZI’s innovative and reliable waste and flue gas treatment as well as gas upgrading and power-to-gas solutions have been part of over 700 reference projects delivered since 1933.
To find out more about HZI, please visit http://www.hz-inova.com/ .

About BESIX Group
BESIX is a leading Belgian group, based in Brussels and operating in 25 countries and on 5 continents, in the construction, real estate development and concessions sectors. Active since 1909, its iconic achievements include Dubai's Burj Khalifa, the tallest tower in the world, buildings of the European Parliament in Brussels as well as the Grand Egyptian Museum, on the Giza pyramids plateau. The Group's engineering department enables BESIX to carry out complex and unique projects, particularly in terms of technical and environmental aspects. As such, BESIX designs and builds state-of-the-art environmental facilities, particularly in the fields of drinking water, wastewater treatment and waste-to-resource. The Group also offers its clients solutions for the financing, management and maintenance of these infrastructures. BESIX has been active in the UAE since 1965 and has grown to become one of the largest construction contractors in the Middle East. To learn more about BESIX, please visit http://www.besix.com/

About Tech Group
Tech Group is a UAE based diversified group of companies active in various industries such as turnkey-construction and engineering, metal and glass works, wood joinery and interiors, ready-mix concrete, concrete blocks and pavement products, piling and foundations, real estate, petroleum logistics and trading, and sales & marketing services. Established in 2003, Tech Group has since grown exponentially through major investments in state-of-the-art technologies and producing and delivering value for our clients.
With a focus on contributing to a sustainable future for the UAE, Tech Group has further transformed over the last five years as an investor and co-developer of projects that provide sustainable solutions for the environment and food security. The group is actively engaged in developing waste management, water treatment, aqua-culture and farming projects. For more information about Tech Group: www.techgroup.ae