Abu dhabi: Emirates Global Aluminium (EGA), Abu Dhabi National Energy Company PJSC (TAQA), DUBAL Holding, and Emirates Water and Electricity Company (EWEC) have signed a series of agreements to decarbonise aluminium production and expand renewable and clean energy development in Abu Dhabi.
According to Emirates News Agency, this initiative supports the growth strategies of TAQA and DUBAL Holding, positions EGA as a leader in the global aluminium industry’s drive towards net zero by 2050, enhances EWEC’s optimisation of solar power generation, and improves overall power generation efficiency in the Emirate. The agreements were signed by senior executives of the four entities in the presence of key figures, including Dr. Abdulla Humaid Al Jarwan, Chairman of the Abu Dhabi Department of Energy.
TAQA and DUBAL Holding will acquire EGA’s power and water generation assets in Al Taweelah for US$1.9 billion (around AED7 billion). The plant, with a generation capacity of 3.1GW and 6.25 million imperial gallons per day of desalination, uses high-efficiency combined-cycle gas turbines and reverse osmosis technology. These assets will be transferred to a joint venture equally owned by TAQA and DUBAL Holding, with operations managed by a new company jointly owned by TAQA and EGA.
The joint venture has signed a Power Purchase Agreement with EWEC for power supply from Al Taweelah until 2049. The plant will provide flexible capacity to support further integration of renewable and clean energy into the Abu Dhabi grid. TAQA Transmission will acquire EGA’s transmission assets and is upgrading interconnection capacity from 640 to 3,360MVA to enable greater clean energy flows to EGA’s sites, with completion expected in 2027.
EGA also signed long-term electricity supply agreements with EWEC and TAQA Distribution, becoming the largest single electricity customer on the Abu Dhabi grid. These agreements provide 23TWh of electricity annually for 24 years, with a rising share from renewable and clean energy sources as EWEC brings new solar generation online.
EWEC forecasts more than 18GW of solar PV capacity by 2035 and projects energy-sector CO2 emissions will fall by around fifty percent by the mid-2030s. EGA expects to increase production of its CelestiAL solar aluminium and MinimAL low-carbon aluminium, potentially reaching nearly half of total primary aluminium output by the end of 2028, depending on demand.
Production of CelestiAL and MinimAL will begin increasing from the fourth quarter of 2025 as EGA gains access to additional clean energy certificates from existing solar and nuclear generation assets. Adding EGA’s generation capacity to the grid will also improve fleet efficiency by providing greater flexibility in electricity dispatch, reducing gas consumption per unit of electricity generated, and contributing to TAQA and EWEC’s emissions-reduction targets.
EGA and EWEC will share the financial benefits arising directly from the initiative. By 2035, the project is expected to reduce annual greenhouse gas emissions by 3.5 million tonnes, more than three percent of Abu Dhabi’s current total emissions. The transaction is subject to regulatory approvals and customary closing conditions, with completion expected in the new year.
Dr. Abdulla Humaid Al Jarwan, Chairman of the Abu Dhabi Department of Energy, emphasized the importance of these agreements in delivering reliable and sustainable energy while reducing carbon emissions. Abdulnasser Bin Kalban, Chief Executive Officer of EGA, highlighted the project’s significance in the global aluminium sector’s decarbonisation efforts. Jasim Husain Thabet, Group Chief Executive Officer and Managing Director of TAQA, and Ahmad Hamad Bin Fahad, Chief Executive Officer of DUBAL Holding, echoed similar sentiments regarding the initiative’s support for sustainable industrial growth and the UAE’s clean energy transition. Ahmed Ali Alshamsi, Chief Executive Officer of EWEC, regarded the partnership as a benchmark for sustainable industrial development and deep emissions reductions.