EGA signs UAE aluminium decarbonisation plan
Four UAE companies have signed a series of agreements to decarbonise Emirates Global Aluminium’s (EGA) production. The decarbonisation plan involving Emirates Global Aluminium will lead to a 3% reduction in greenhouse gas emissions.
The four companies – EGA, Abu Dhabi National Energy Company (TAQA), DUBAL Holding, and Emirates Water and Electricity Company (EWEC) – said the agreements will improve the efficiency of power generation in the Emirate enabling further reductions in greenhouse gas emissions.
EGA will increase the proportion of its production that is CelestiAL solar aluminium and MinimAL low carbon aluminium produced using nuclear power, to as much as almost half EGA’s total primary aluminium production by the end of 2028, depending on market demand.
Production of CelestiAL and MinimAL will begin to increase from the this quarter, as EGA will also have the ability to bid on increasing amounts of CECs for renewable and clean power from existing solar and nuclear power generation assets.
The TAQA and DUBAL Holding joint venture signed a Power Purchase Agreement with EWEC under which EWEC will purchase the power from the Al Taweelah plant until 2049.
The plant will provide flexible power supply, supporting the continued integration of renewables and clean energy into the Abu Dhabi grid.
TAQA Transmission will acquire EGA’s electricity transmission assets.
It is currently undertaking a project to increase the overall interconnection capacity from the main grid to EGA’s sites from 640 to 3,360 megavolt-amperes (MVA). This is set for completion in 2027 and will allow for more clean energy supply from the grid.
EGA signed Abu Dhabi’s largest-ever electricity supply agreements with EWEC and TAQA Distribution, which will make EGA the largest single electricity customer on the Abu Dhabi grid.
These agreements provide EGA with 23 terawatt hours (TWh) of electricity per year for 24 years, with an increasing share from renewable and clean energy sources as EWEC’s solar electricity generation projects come online.
EGA’s power demand supports EWEC’s continued optimisation and utilisation of solar generation assets.
EWEC is accelerating the decarbonisation of Abu Dhabi’s energy sector, and by 2035 forecasts more than 18GW of solar PV will be in operation.
EWEC projects total CO2 emissions in the energy sector will decrease around 50% cent by the mid-2030s due to these actions.
The addition of EGA’s generation capacity to the grid will enable further flexibility in the management of electricity despatch in response to demand fluctuations.
This is expected to reduce gas consumption per unit of electricity generated.
EGA and EWEC will share the financial benefits from this initiative on an ongoing basis.
The total greenhouse gas emissions reduced by the initiative is expected to be 3.5 million tonnes annually by 2035, more than 3% of Abu Dhabi’s total current emissions.
The transaction is subject to regulatory approvals and other closing conditions.
Abdulnasser Bin Kalban, Chief Executive Officer of EGA, said: “This initiative is one of the largest decarbonisation projects ever in the global aluminium industry, and makes EGA a leader in our industry’s drive towards a more sustainable future.”
