Sembcorp to Expand Desalination Capacity in UAE

Sembcorp Industries announced that its wholly-owned subsidiary, Sembcorp Utilities, has signed a Memorandum of Understanding (MOU) with the Abu Dhabi Water and Electricity Authority (ADWEA) in the United Arab Emirates to develop and build a new seawater reverse osmosis facility with potable water production capacity of around 30 million imperial gallons per day (migd).

When developed, the new plant will enhance Sembcorp's total seawater desalination capacity from 100 migd to 130 migd.

The new facility is expected to be located on the same site as the Fujairah 1 Independent Water and Power Plant (IWPP), the largest operating hybrid desalination plant in the world, owned by Emirates Sembcorp Water & Power Company. Emirates Sembcorp Water & Power Company is a joint venture between Sembcorp Gulf Holding Co and Union Power Holding Company, subsidiaries of Sembcorp Utilities and ADWEA respectively.

Expected to cost approximately US$200 million and to be operational before the end of 2013, the water output of the new reverse osmosis facility is expected to be sold to the Abu Dhabi Water and Electricity Company (ADWEC) under a 20-year water purchase agreement. This is in addition to the 22-year power and water purchase agreement for the current water and electricity output from the Fujairah 1 IWPP to ADWEC.

Besides the Fujairah 1 IWPP, Sembcorp has established a second beachhead in the Middle East with an investment to develop, build, own and operate a combined power and desalination plant in Salalah, Oman. The Salalah plant, with a gross power capacity of 490 megawatts and a seawater desalination capacity of 15 migd, is expected to begin full commercial operations in the first half of 2012.

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