Dubai: Dubai International Airport will now get its district cooling needs from Empower, the DFM-listed entity. This comes after Empower bought the acquisition rights for the Dubai travel hub.
With a total capacity of 110,000 refrigeration tons (RT) and with a value of Dh1.1 billion, five district cooling plants will be linked to Empower systems as part of an acquisition deal. (For perspective, the 110,000 RT is equivalent to 11 times the consumption of Burj Khalifa, the world's tallest tower.)
Apart from the five plants, Empower’s buy includes the related infrastructure that was until now part of Dubai Aviation City Corporation’s portfolio. "The acquisition was executed with a high level of professionalism and was flexible and smooth," Empower said in a statement.
Ahead of its IPO last year, Empower had gone in for a massive consolidation of district cooling capacity across Dubai, leaving it with a dominant position in the city. The subsequent IPO was one of the major highlights of 2022 for the UAE capital markets.
The Empower stock is at Dh1.72, close enough to its 52-week high of Dh1.82.
“Today we are witnessing a remarkable demonstration of successful strategic partnerships between the government and private sectors in Dubai, which is helping to establish the city as a distinct mode," said Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority, Chairman of Dubai Airports, Chairman and Chief Executive of Emirates Airline & Group. Sheikh Ahmed is also Chairman of Dubai Supreme Council of Energy.
The terms of the acquisition deal was concluded end 2021.
Empower adds to its already considerable heft in the Dubai district cooling space, with a market share that analysts say would be well over 80 per cent.
Its district cooling portfolio includes DIFC, the Dubai World Trade Centre, Dubai Healthcare City, Meydan City, Dubailand, Palm Jumeirah, JBR, Bluewaters Island, and Business Bay.
"Today, Empower plays very important roles in providing district cooling services that are environmentally friendly in Dubai and contributing to the protection of resources, the environment and the climate of the UAE and the world," said Saeed Mohammed Al Tayer, Managing Director and CEO of DEWA and Chairman of Empower.