Major UAE companies sign agreements to decarbonise EGA’s aluminium production

The UAE once again showcased its commitment to sustainability when four major companies – Emirates Global Aluminium (EGA), Abu Dhabi National Energy Company (TAQA), DUBAL Holding, and Emirates Water and Electricity Company (EWEC) – signed a series of agreements to decarbonise EGA’s aluminium production and expand renewable and clean energy development in Abu Dhabi.

It promises to be one of the largest decarbonisation projects ever in the global aluminium industry.

UAE drives aluminium industry decarbonisation

The agreements cement an initiative that advances TAQA and DUBAL Holding’s growth strategies, makes EGA a leader in the global aluminium industry’s drive to net zero by 2050, supports EWEC’s optimisation of new solar power generation in Abu Dhabi, and improves the efficiency of power generation in the Emirate, further reducing greenhouse gas emissions.

Dr Abdulla Humaid Al Jarwan, Chairman of the Abu Dhabi Department of Energy, said: “These agreements demonstrate Abu Dhabi’s approach in action – delivering reliable and sustainable energy to enable the growth of a manufacturing industry, while minimising carbon footprint.

“The Department of Energy partnered with EWEC, TAQA, DUBAL Holding and EGA in bringing this initiative to the finish line. This depth of partnership is only possible in Abu Dhabi, where enabling ecosystems, strong collaboration, supporting regulations, clear policy, and a future-focused approach enable communities and industries to thrive.”

Among the multitude of agreements signed, TAQA and DUBAL Holding will acquire EGA’s power and water generation assets in Al Taweelah for US$1.9 billion (AED7 billion).

The power plant, the third largest in Abu Dhabi, has a capacity of 3.1 gigawatts (GW), and includes 6.25 million imperial gallons per day of desalination capacity, using high-efficiency combined-cycle gas turbines and reverse osmosis desalination technology.

TAQA and DUBAL Holding are forming a new joint venture, which will own the assets, and operations will be managed by a new operations and maintenance company, jointly owned by TAQA and EGA.

EWEC will purchase the power from the Al Taweelah plant until 2049 after signing a Power Purchase Agreement (PPA) with the TAQA-DUBAL Holding JV. The plant will provide flexible power supply, adding to 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), to allow for enhanced clean energy supply from the grid. The project is scheduled for completion in 2027.

EGA will become the largest single electricity customer on the Abu Dhabi grid after signing Abu Dhabi’s largest-ever electricity supply agreements with EWEC and TAQA Distribution. These agreements will provide EGA with 23 terawatt hours (TWh) of electricity per year for 24 years, with an increasing share from renewable and clean energy source.

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. It is also decoupling power and water production. The company projects total CO₂ emissions in the energy sector will decrease around 50 per cent by the mid-2030s.

EGA will increase the proportion of its production of CelestiAL solar aluminium and MinimAL low-carbon aluminium (produced using nuclear power) to nearly half of its total primary production by the end of 2028, depending on market demand. Production of CelestiAL and MinimAL will begin to increase from the fourth quarter of 2025.

The total greenhouse gas emissions reduced by the initiative is expected to be 3.5 million tonnes annually by 2035, more than three per cent of Abu Dhabi’s total current emissions.

The transaction is subject to regulatory approvals and other closing conditions, and is expected to close in the new year.

Abdulnasser Bin Kalban, Chief Executive Officer of EGA, added: “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.

“For our global customers, it significantly increases the availability of low-carbon ‘premium aluminium’, strengthening the role of our metal as an essential material to make modern life possible. For our current and potential future investors, it reinforces EGA’s competitiveness not only as the biggest ‘premium aluminium’ producer in the world, but also one of the most sustainable.”