Mubasher: Dubai Electricity and Water Authority (DEWA) and ACWA Power Company signed a 30-year water purchase agreement (WPA) for phase 1 of the Hassyan Sea Water Reverse Osmosis (SWRO) desalination project.
The project will be carried out by using solar energy based on the Independent Water Producer (IWP) model, according to a press release.
Under the deal, DEWA will hold a 60% stake in the joint venture (JV), while ACWA Power will own the remaining 40% equity.
The Saudi firm pointed out that the contract is valued at SAR 3.42 billion ($914 million), adding that the financial impact of the contracted revenues is expected to appear after the first quarter (Q1) of 2027.
The JV is part of the UAE-based company’s efforts to increase its water desalination capacity to 730 million imperial gallons per day (MIGD) by 2030, from 490 MIGD at present.
Saeed Mohammed Al Tayer, Managing Director and CEO of DEWA, commented: “We are building water production plants based on SWRO technology which require less energy than Multi-Stage Flash distillation (MSF) plants, making it a more sustainable choice for water desalination.”
“By 2030, DEWA aims to produce 100% of desalinated water by a mix of clean energy and waste heat,” Al Tayer indicated.
Mohammad Abunayyan, Founder and Chairman of ACWA Power, said: “The Hassyan IWP will be the largest plant of its kind in the world, and we have set a new record for the lowest levelised water tariff.”
“With this project, we are reaffirming our commitment with our partners towards achieving the Dubai Clean Energy Strategy 2050,” Abunayyan highlighted.
In the first half (H1) of 2023, ACWA Power generated 26.29% higher net profits after Zakat and tax at SAR 684.13 million, compared to SAR 541.72 million in H1-22.
During the January-June 2023 period, the net profits attributable to the shareholders of DEWA retreated to AED 2.67 billion from AED 3.14 billion a year earlier.
