Abu Dhabi is preparing for a major shift in how its heavy industries draw power, following a multi-party agreement that will tie Emirates Global Aluminium (EGA) more closely to the emirate’s expanding clean-energy grid. EGA, TAQA, DUBAL Holding and Emirates Water and Electricity Company (EWEC) have signed a broad set of accords aimed at cutting emissions from aluminium production while supporting the next phase of renewable and clean-energy development in the region.
Image source: EGA
For TAQA and DUBAL Holding, the initiative sits neatly within their growth plans. For EGA, it represents a decisive move toward its 2050 net-zero target. And for EWEC, it strengthens efforts to optimise solar deployment and improve the efficiency of Abu Dhabi’s power generation fleet.
The agreements were signed by Farid Al Awlaqi of TAQA’s Generation business, EGA CEO Abdulnasser Bin Kalban, DUBAL Holding CEO Ahmad Hamad Bin Fahad and EWEC CEO Ahmed Ali Alshamsi. Senior officials — including His Excellency Dr. Abdulla Humaid Al Jarwan, Chairman of the Abu Dhabi Department of Energy; EGA Chairman Homaid Al Shimmari; and TAQA’s Group CEO and Managing Director Jasim Husain Thabet—witnessed the event.
The agreement will involve USD 1.9 billion (approximately AED 7 billion) sale of EGA’s Al Taweelah power and water generation assets to a new joint venture owned equally by TAQA and DUBAL Holding. The Al Taweelah plant is the third-largest in Abu Dhabi, with 3.1GW of power capacity and 6.25 million imperial gallons per day of desalination. It runs on high-efficiency combined-cycle gas turbines and reverse-osmosis technology. The JV will take ownership of the plant, while operations will be handled by a new O&M company jointly held by TAQA and EGA.
Explore- Most accurate data to drive business decisions with 50+ reports across the value chain
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. 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.”
Ahmad Hamad Bin Fahad, Chief Executive Officer of DUBAL Holding, said, “These agreements mark a key step toward driving sustainable industrial growth across the United Arab Emirates. We are pleased to partner with EGA, TAQA, and EWEC and this reinforces DUBAL Holding’s commitment to driving the country’s clean energy transition and positioning the UAE as a global leader in low-carbon aluminium production. Through targeted investments in low-emission power infrastructure, we are not only enabling sustainable manufacturing but also supporting the goals of the UAE’s Net Zero by 2050 Strategy, creating long-term value for both the economy and the wider society”.
Grid integration, transmission upgrades and power supply deals
The joint venture has signed a long-term Power Purchase Agreement with EWEC, which will buy electricity from the plant through to 2049. Its flexible output is expected to support the smoother integration of solar and other clean-energy sources into Abu Dhabi’s grid.
In another strand of the deal, TAQA Transmission will acquire EGA’s transmission network. The company is already working on a major upgrade to increase the interconnection between the main grid and EGA’s sites from 640MVA to 3,360MVA. This expansion, scheduled for completion in 2027—will allow larger volumes of renewable and clean power to be delivered directly to EGA’s operations.
EGA has also signed the emirate’s largest electricity supply agreements with EWEC and TAQA Distribution, becoming the single biggest consumer of power on the Abu Dhabi grid. The long-term arrangements cover 23TWh of electricity each year for 24 years, with a rising share of energy coming from renewable and clean sources as EWEC’s solar projects ramp up. EGA’s steady demand will help EWEC optimise how it deploys and dispatches its growing solar capacity.
Jasim Husain Thabet, Group Chief Executive Officer and Managing Director of TAQA, said, “Today’s agreements demonstrate the strength and breadth of TAQA’s integrated model, spanning generation, transmission and distribution. The acquisition of EGA’s Al Taweelah power assets enhances our portfolio and supports our 2030 ambition of reaching 150 GW of power generation capacity globally. With our proven expertise in operating critical transmission and distribution infrastructure, we are well positioned to deliver reliable and efficient power to meet the increasing demand of industry and communities. Importantly, by connecting EGA to the Abu Dhabi grid, we are collectively enabling the decarbonisation of one of the UAE’s important industries, significantly reducing their emissions and further advancing our ambition for a cleaner energy future.”
Also read: Limited commissioning of new projects leads to slow growth in aluminium production in 2025
Clean aluminium output to surge as sector decarbonises
EWEC’s broader strategy remains unchanged: by 2035, more than 18GW of solar PV is expected to be operating, and water and power production will be fully decoupled. On that basis, the company projects the energy sector’s CO₂ emissions could fall by around 50 per cent by the mid-2030s.
For EGA’s product mix, the shift should be significant. The company plans to lift output of its CelestiAL solar aluminium and MinimAL low-carbon nuclear-powered aluminium to nearly half of its primary production by the end of 2028, depending on demand. Increases are expected to begin in the fourth quarter of 2025, with EGA also able to bid for growing volumes of clean-energy certificates from existing solar and nuclear generation.
Once the Al Taweelah assets are fully integrated, EWEC forecasts an improvement in the overall generation fleet’s efficiency. Greater grid flexibility is expected to lower gas consumption per unit of electricity, contributing to the emissions-reduction objectives of both TAQA and EWEC.
Ahmed Ali Alshamsi, Chief Executive Officer of EWEC, said, “This landmark partnership redefines what is possible for sustainable industrial growth. Long-term collaboration between the energy sector and major industrial companies can deliver significant reductions in carbon emissions and accelerate the decarbonisation of energy-intensive manufacturing. EWEC is uniting our world-leading renewable and clean energy capabilities with the expertise of our partners, advancing the decarbonisation of aluminium production, and setting a new global benchmark for how UAE industries can lead and thrive on the international stage while accelerating toward a net-zero future.”
Financial benefits from the initiative will be shared between EGA and EWEC. By 2035, the changes are expected to cut greenhouse-gas emissions by about 3.5 million tonnes each year, equivalent to more than 3 per cent of Abu Dhabi’s current total emissions.
The entire transaction still requires regulatory approvals and standard closing conditions. All parties expect completion in the new year.
Also read: Sustainability & Recycling: Aluminium's Dual Commitment
Responses
