Abu Dhabi: Abu Dhabi’s Mubadala Investment Company and Dubal Holding plan to set up joint venture to develop power and water desalination plant in Dubai.

The new state-of-the-art plant with a capacity of over 600 megawatts of electricity will be built at EGA’s (Emirates Global Aluminium) smelter at Jebel Ali in Dubai, according to a statement from Emirates Global Aluminium on Tuesday.

Mubadala and Dubal Holding signed a 25-year deal with EGA worth over Dh1 billion to develop the project.

EGA intends to buy the facility’s output for 25 years following commissioning.

EGA is the largest industrial company in the UAE outside oil and gas, and is jointly owned by Mubadala and Dubal Holding.

“This deal will enable EGA to further improve energy efficiency, saving natural resources and reducing the costs and environmental emissions associated with our aluminium production. Bringing in our shareholders to invest in such power facilities through a new company makes sense for EGA from a capital allocation perspective as we expand our core business upstream and internationally,” said Abdulla Kalban, Managing Director and Chief Executive Officer of EGA.

The shareholders of the joint venture also signed an agreement with Siemens to install the UAE’s first combined cycle H-class gas turbine, a leading technology in efficient power generation.

The new power facility is expected to reduce greenhouse gas emissions from EGA’s power generation at Jebel Ali by some 10 per cent.