Abu Dhabi state fund Mubadala and Saudi Arabian utility developer Acwa Power are developing a 3.27 billion dirhams ($891 million) independent water desalination plant, one of the world's largest, a senior official said on Wednesday.
This is the first time Abu Dhabi is building a water desalination plant independent of a power generation plant. It has traditionally built water and power plants side by side.
A company Independent Water Producers has been set up with Mubadala Investment Co and Abu Dhabi Power Corp holding a 60% stake and Acwa Power holding 40%, a statement said.
A joint venture between Abengoa and PowerChina have been awarded the engineering, procurement and construction (EPC) contract to build the 200 million gallon per day (mgpd) facility in Taweelah, using reverse osmosis (RO) technology to desalinate water, the official said.
The plant is due to start full commercial operations in the fourth quarter of 2022, they said. Emirates Water Electricity Company (EWEC), a local firm, will be the buyer of the water produced for a 30-year period.
"The choice of Reverse Osmosis sea water desalination technology will play a critical part in significantly reducing water production costs, contributing to our goals to build a more sustainable and efficient water and energy sector in the UAE," Othman Al Ali, chief executive of EWEC told reporters.
($1 = 3.6728 UAE dirham)
(Reporting by Stanley Carvalho; editing by Jason Neely and David Evans) ((Nafisa.Eltahir@thomsonreuters.com))