meed-logo

line1 line2 line3
SIGN IN / REGISTER

UAE ramps up decarbonisation of water sector

10 October 2023

This package on the UAE's water sector also includes: 

> Dewa signs Hassyan water project agreements
> Petrojet joins Project Wave contractor team
> Project Wave first phase reaches financial close
> Alpha Dhabi acquires majority stake in Metito
> Hatta reservoir nears completion
> Sharjah moves Hamriyah bid deadline

 

As a water-scarce country, the UAE has relied on non-conventional water, particularly seawater treated in desalination plants, to meet rising demand.

Over the past decade, the energy-intensive water treatment process, especially when using older technologies, has been a key focus for policymakers tasked with aligning industries with the country’s energy diversification and, more recently, net-zero carbon dioxide emissions agendas.

Decarbonising the water supply has entailed decoupling power and water production and improving the level of treated sewage effluent (TSE) reuse. Other initiatives involve modernising the water pipeline transmission network and tapping renewable energy to power desalination plants.

Demand management initiatives such as tariff reforms and awareness campaigns to make end users conscious of their consumption have also been put in place.

The past few months have marked several milestones in the country’s plan to decarbonise its water sector.

Two private water desalination plants that use reverse osmosis technology to treat seawater are in the final commissioning stage, expanding the UAE’s water production capacity from more energy-efficient plants.

These are the 200 million-imperial-gallon-a-day (MIGD) seawater reverse osmosis (SWRO) plant in Taweela in Abu Dhabi and another plant in Umm al-Quwain, which has a capacity of 150MIGD.

Abu Dhabi’s second major SWRO project, the 120MIGD Mirfa 2 independent water producer (IWP), also reached financial close this year.

Crucially, Abu Dhabi dismantled the thermal-powered Taweelah A2 independent water and power producer (IWPP) plant last year, following the expiry of its long-term offtake contract. The plant’s desalination unit ran on the older multi-stage flash technology.

Hassyan 1 

Dubai achieved an important milestone in October when state utility Dubai Electricity & Water Authority (Dewa) and Saudi-headquartered Acwa Power signed a 30-year water-purchase agreement (WPA) and shareholder agreement for the Hassyan 1 IWP project.

Acwa Power will develop and operate the power plant for 30 years at a levelised water cost of 36.5 $cents a cubic metre, a record low, although not nearly as low as the tariff proposed by another developer when the contract was first tendered.

The project supports Dewa’s plan to increase its water desalination capacity from 490MIGD to 750MIGD by the end of the decade.

Dewa has said the Hassyan 1 IWP will be powered by solar energy, further reducing the plant’s carbon footprint.

In Abu Dhabi, the official signing of a WPA for the Shuweihat S4 SWRO project is imminent, which will add another 70MIGD  to the emirate’s installed water production capacity once complete.

The Shuweihat 4 plant will cater to potable water demand in Abu Dhabi’s Al-Dhafra region, a key focus of Abu Dhabi’s economic development plan.

The bidding process is also under way for two more SWRO plants in Abu Dhabi. The Hudayriat and Saadiyat RO plants, each with a capacity of 50MIGD, will be developed as one IWP contract.

Emirates Water & Electricity Company (Ewec) has not mandated the inclusion of a solar photovoltaic (PV) plant for its most recent IWP projects, as it did for the Taweelah RO plant in 2019. However, it will likely tap either solar or nuclear energy, or both, for its upcoming SWRO plants in line with its goal to halve its total carbon dioxide emissions to 22 million tonnes a year by 2035.

The northern Sharjah emirate is also procuring its first IWP. The planned Hamriyah SWRO plant will have a capacity of 90MIGD.

In addition to the utility clients, Abu Dhabi National Oil Company (Adnoc) has awarded the contract to develop the first phase of Project Wave, which aims to replace the aquifer water injection systems used to maintain reservoir pressure in Abu Dhabi's onshore oil fields.

The project is expected to reduce the water injection-related energy consumption of the oil fields by up to 30 per cent.

Wastewater

Dubai Municipality activated a major programme this year to develop deep tunnels and sewage treatment plants across the emirate. This long-term project could require an investment of up to AED80bn ($22bn).

Known as the Deep Tunnels Portfolio, the scheme will be developed as a public-private partnership (PPP) initiative and will expand the role of private companies in the emirate’s water infrastructure sector.  

It involves the construction of two sets of deep tunnels terminating at two terminal pump stations located at sewerage treatment plants (STPs) in Warsan and Jebel Ali. A conventional sewage and drainage collection system and STPs will be built in Hatta. The scheme also includes recycled water distribution systems connected to the STPs.

Approved by Dubai’s Executive Council in June, the project has been designed to serve the needs of the Dubai population for the next 100 years in alignment with the Dubai Economic Agenda D33 and Dubai Urban Plan 2040.

In the UAE capital, Abu Dhabi Sustainable Water Solutions, formerly Abu Dhabi Sewerage Services Company, received bids for the contract to design, build and operate a planned TSE polishing plant in Al-Wathba earlier this year.

The plant is expected to have a design capacity of 700,000 cubic metres a day (cm/d), with the potential to expand this to 950,000 cm/d in a subsequent phase. The TSE facility will produce water for higher-end applications compared with TSE produced in a standard sewage treatment plant.

In addition to supporting the UAE’s long-term economic and demographic expansion, these water treatment projects also boost the country’s preferred circular carbon economy approach to energy transition.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11193002/main.gif
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Saudi Arabia seeks firms for six renewable projects

    17 September 2025

    Register for MEED’s 14-day trial access 

    Saudi Arabia's principal buyer, Saudi Power Procurement Company (SPPC), has invited interested companies to prequalify for the contracts to develop and operate solar photovoltaic (PV) and wind independent power producer (IPP) projects with a total combined capacity of 5,300MW.

    The following schemes comprise round seven of the kingdom's National Renewable Energy Programme (NREP):

    • 1,400MW Tabjal 2 solar PV IPP (Tabrijal, Al-Jouf Province)
    • 600MW Mawqqaq solar PV IPP (Mawqqaq, Hail Province)
    • 600MW Tathleeth solar PV IPP (Tathleeth, Aseer Province)
    • 500MW South Al-Ula solar PV IPP (Al-Ula, Medina Province)
    • 1,300MW Bilgah wind IPP (Bilgah, Medina Province)
    • 900MW Shagran wind IPP (Shagran, Medina Province)

    These projects are part of the NREP, which aims to achieve an optimal energy mix and supply 50% of the kingdom's electricity from renewable energy by 2030.

    Earlier rounds under the NREP have already put in place large capacities.

    Round six solicited around 4,500MW of solar and wind projects:

    • 1,500MW Dawadmi wind IPP  (Riyadh)
    • 1,400MW Najran solar PV IPP (Najran)
    • 600MW Samtah solar PV IPP (Jizan)
    • 600MW Al-Darb solar PV IPP (Jizan)
    • 400MW Al-Sufun solar PV IPP (Hail)

    In April, MEED reported that prequalified developers were forming teams to bid for the contracts to develop solar farms under the sixth round of the NREP.

    A separate set of bidders were prequalified for the 1,500MW Dawadmi wind farm, with contracts due to be awarded before the end of the year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14684103/main3708.jpg
    Mark Dowdall
  • Qatar tenders Smaisma infrastructure contract

    17 September 2025

     

    Register for MEED’s 14-day trial access 

    Qatar’s Public Works Authority (Ashghal) has tendered a contract inviting construction firms to bid for the remaining works on roads and infrastructure in the small seaside town of Smaisma.

    The contract covers package two in the south area of Smaisma, located 52 kilometres (km) north of Hamad International airport.

    The scope of work includes the completion of the remaining works and remedial works on three zones. Each zone is further divided into three sub-zones.

    The scope also covers the remaining works on road C1017.

    The contract duration is two years from the start of construction works.

    The tender was floated on 15 September with a bid submission date of 28 October.

    The latest notice follows the tendering for the construction of roads and infrastructure in Wadi Al-Banat North (Zone 70).

    Market overview

    After 2019, there was a consistent year-on-year decline in contract awards in Qatar’s construction and transport sectors. The total value of awards in that year was $13.5bn, but by 2023 it had fallen to just over $1.2bn.

    In 2024, the value of project contract awards increased to $1.7bn, bucking the downward trend in the market in the preceding four years.

    Of last year’s figure, the construction sector accounted for contract awards of over $1.2bn, while transport contract awards were about $200m.

    There are strategic projects in the bidding phase in Qatar worth more than $5bn, and these are expected to provide renewed impetus to the construction and transportation market, presenting opportunities for contractors in the near term.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14682452/main.jpg
    Yasir Iqbal
  • Dragon Oil to boost exploration and production in Egypt

    17 September 2025

    Register for MEED’s 14-day trial access 

    Dubai-based Dragon Oil has signed a deal with the state-owned national oil company Egyptian General Petroleum Corporation (EGPC), agreeing to increase exploration and production activities in the Gulf of Suez.

    Under the terms of the agreement, Dragon Oil will make investments worth about $30m.

    This will fund activities including a programme to drill at least two new wells in the East El-Hamd area.

    Abdulkarim Ahmed Al-Mazmi, the acting chief executive of Dragon Oil, said: “The signing of this agreement reaffirms Dragon Oil’s commitment to strengthening its strategic presence in the Arab Republic of Egypt and supporting EGPC’s efforts to develop energy resources in the Gulf of Suez region, in line with the company’s vision for growth and sustainability.”

    Dragon Oil is wholly owned by Emirates National Oil Company, which is fully owned by the Government of Dubai.

    Al-Mamzi said that the new investments are part of Dragon Oil’s broader strategy to expand in regional markets and to strengthen its position in the oil and gas sector, in line with the directions of the government of the UAE, and in particular the Government of Dubai.

    The agreement was signed at the EGPC headquarters in Cairo.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14680456/main.png
    Wil Crisp
  • Construction launched for final major projects of Iraq’s GGIP

    17 September 2025

    Register for MEED’s 14-day trial access 

    Officials have announced the start of construction on Iraq’s Common Seawater Supply Project (CSSP) and the full field development of the Ratawi oil field, which is also known as the Artarwi field.

    The two projects are the two last major contracts of the Gas Growth Integrated Project (GGIP).

    The GGIP is led by France’s TotalEnergies, which is the operator and has a 45% stake in the project.

    Its partners are Iraq’s state-owned Basra Oil Company, which has a 30% stake, and QatarEnergy, which has a 25% stake.

    An event in Baghdad to mark the launch of the two projects was attended by senior officials including Patrick Pouyanne, the chairman and chief executive of TotalEnergies; and Saad Sherida Al-Kaabi, who is Qatar’s Minister of State for Energy Affairs, as well as the president and chief executive of QatarEnergy.

    In a statement, TotalEnergies said: “All four parts (natural gas, solar, oil, water) of the GGIP are now in the execution phase.”

    The CSSP will be built on Iraq's coast, near the town of Um Qasr. It will process and transport 5 million barrels a day (b/d) of seawater to the main oil fields in southern Iraq.

    Treated seawater will be substituted for the freshwater currently taken from the Tigris, Euphrates and aquifers to maintain pressure in the oil wells.

    The project is expected to help alleviate water stress in the region and free up to 250,000 cubic metres of freshwater a day for irrigation and local agriculture needs, according to TotalEnergies.

    The Ratawi redevelopment was launched in September 2023. Phase one aims to increase production to 120,000 b/d of oil and is expected to come on stream by early 2026.

    The launch of phase two, the full field development, will enable production to be increased to 210,000 b/d starting in 2028, with no routine flaring, according to TotalEnergies.

    In a statement, it said that all 160,000 cubic feet a day (cf/d) of associated gas produced will be fully processed by the 300,000 cf/d Gas Midstream Project (GMP), the construction of which began in early 2025.

    The GMP, which will also treat previously flared gas from two other fields in southern Iraq, will deliver processed gas into the national grid, where it will fuel power plants with a production capacity of approximately 1.5GW, providing electricity to 1.5 million Iraqi households.

    An early production facility to process 50,000 cf/d of associated gas will start in early 2026, together with the Ratawi phase one oil production.

    Pouyanne said: “We are delighted today to award the two final contracts of the GGIP, in particular the seawater treatment plant, which has been long awaited by the oil industry in Iraq.

    “In less than two years since the GGIP effective date in August 2023, TotalEnergies and its partners have fully executed their commitment towards the people of Iraq and launched all projects included in the multi-energy GGIP project, the best showcase of TotalEnergies' transition strategy.

    “All these projects will bring a significant contribution to the Iraq economy and employ during the construction phase 7,000 Iraqi nationals.

    “Furthermore, I am proud to confirm that the first phase of the associated gas, oil and solar projects will start up as soon as early 2026.”

    Turkiye’s Enka has signed a contract to develop a central processing facility at the Ratawi oil field as part of the second phase of the field’s development.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14680455/main.png
    Wil Crisp
  • Saudi drilling firm raises acquisition offer for Dubai rival

    16 September 2025

    Register for MEED’s 14-day trial access 

    Saudi Arabia-based ADES International Holding has increased its offer to buy Dubai-based, Oslo-listed rival Shelf Drilling to 18.50 Norwegian Krone ($1.88) per share, representing a 6% increase in the acquisition’s enterprise value.

    The offer was revised from an earlier deal of $1.42 per share or a total of $379.33m.

    ADES International Holding, a subsidiary of ADES Holding Company, signed a transaction agreement to acquire all issued and outstanding shares of Shelf Drilling through a cash merger, with ADES International Cayman (BidCo) also participating in the proposed merger.

    According to a joint statement, irrevocable commitments have now been provided by additional shareholders, including China Merchants, Anchorage Capital Group and Magallanes Value Investors, which, combined with ADES’ 17.9% stake in Shelf Drilling, represent 53.4% of the outstanding shares in the company.

    ADES International Holding raised its offer for Shelf Drilling after reassessing the company’s current market performance and revising its estimated annual cost synergies upwards by $10m, bringing the total to $50m-$60m.

    All other terms of the merger remain unchanged, along with the transaction timetable, with closing expected to occur in the last quarter of the year.

    Shelf Drilling is incorporated under the laws of the Cayman Islands, with its corporate headquarters in Dubai.

    In April this year, ADES International Holding secured a 10-year extension for one of its standard offshore jack-up rigs from Saudi Aramco, valued at approximately $290m.

    The contract for the offshore jack-up marks the re-entry of ADES International Holding into the Saudi offshore oil and gas market. The rig was among six jack-ups whose charters were suspended by Aramco last April.

    ADES International Holding has secured deployments for three of those jack-ups in Qatar, Thailand and Egypt, while the fourth was recently redeployed to Thailand.

    ADES International Holding also said it has increased its footprint since the start of 2025 by securing an offshore drilling job off the coast of Nigeria, marking its entry into West Africa.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14676037/main0952.jpg
    Indrajit Sen