EGA, TAQA, DUBAL Holding And EWEC Collaborate On Aluminium Decarbonisation Initiatives

Emirates Global Aluminium (EGA), Abu Dhabi National Energy Company PJSC (TAQA), DUBAL Holding, and Emirates Water and Electricity Company (EWEC) have entered into agreements to decarbonise aluminium production and boost renewable energy in Abu Dhabi. This initiative aligns with TAQA and DUBAL Holding's growth strategies, positions EGA as a leader in the aluminium industry's net-zero efforts by 2050, and enhances EWEC's solar power generation optimisation.

The agreements were formalised by senior executives from the four organisations. Dr. Abdulla Humaid Al Jarwan, Chairman of the Abu Dhabi Department of Energy, Homaid Al Shimmari, Chairman of EGA, and Jasim Husain Thabet, Group CEO and Managing Director of TAQA were present during the signing ceremony.

TAQA and DUBAL Holding will purchase EGA’s power and water generation assets in Al Taweelah for US$1.9 billion (approximately AED7 billion). The plant has a capacity of 3.1GW for electricity generation and 6.25 million imperial gallons per day for desalination. It employs high-efficiency combined-cycle gas turbines and reverse osmosis technology.

The assets will be transferred to a joint venture equally owned by TAQA and DUBAL Holding. Operations will be managed by a new company jointly owned by TAQA and EGA. A Power Purchase Agreement was signed with EWEC to supply power from Al Taweelah until 2049, supporting further integration of renewable energy into Abu Dhabi's grid.

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 an increasing share from renewable sources as EWEC expands solar generation.

TAQA Transmission will acquire EGA’s transmission assets, upgrading interconnection capacity from 640 to 3,360MVA to facilitate greater clean energy flows to EGA’s sites. Completion is expected in 2027.

Future Projections

EWEC forecasts over 18GW of solar PV capacity by 2035. They project that energy-sector CO2 emissions will decrease by around fifty percent by the mid-2030s. EGA plans 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.

Environmental Impact

The addition of EGA’s generation capacity to the grid will improve fleet efficiency by providing greater flexibility in electricity dispatch. This reduces gas consumption per unit of electricity generated while contributing to TAQA and EWEC’s emissions-reduction targets.

EGA and EWEC will share financial benefits arising directly from this initiative. By 2035, it is expected to reduce annual greenhouse gas emissions by 3.5 million tonnes, more than three percent of Abu Dhabi’s current total emissions.

Regulatory Approvals

The transaction is subject to regulatory approvals and customary closing conditions with completion anticipated in the new year.

"These agreements show Abu Dhabi’s approach in practice," said Dr. Abdulla Humaid Al Jarwan, "delivering reliable and sustainable energy to support industrial growth while reducing carbon emissions."

"This initiative is one of the largest decarbonisation projects in the global aluminium sector," stated Abdulnasser Bin Kalban, CEO of EGA, "significantly increasing the availability of low-carbon premium aluminium for customers."

"The agreements highlight the strength of TAQA’s integrated model," noted Jasim Husain Thabet, "and enhance our portfolio while advancing decarbonisation."

"This step advances sustainable industrial growth," remarked Ahmad Hamad Bin Fahad, CEO of DUBAL Holding, "strengthening the UAE’s clean energy transition."

"This partnership sets a new benchmark for sustainable industrial development," commented Ahmed Ali Alshamsi, CEO of EWEC.

With inputs from WAM