Mubadala and ACWA Power reportedly building a $891m water desalination plant

Abu Dhabi’s Mubadala and Saudi Arabia’s ACWA Power have agreed to develop a Dhs3.27bn ($891m) independent water desalination plant, according to a report on Reuters.

The facility which will be capable of handling 200 million gallons per day (mgpd) will be constructed in Taweelah and will use reverse osmosis technology to desalinate the water.

Emirates Water and Electricity Company will purchase the water for 30 years.

The plant is expected to be operational by Q4 2022.

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It is the first time that Abu Dhabi is building a water desalination plant independent of a power plant.

A new company called Independent Water Producers has been set up as a joint venture between the two state entities. Mubadala Investment Company and Abu Dhabi Corp hold a 60 per cent stake in the new entity while ACWA Power holds a 40 per cent stake.

The engineering, procurement and construction of this project will be handled as a joint venture between Abengoa and PowerChina.