The agreement intends to carry out a front-end engineering design (FEED) for developing a Plastics-to-Liquid (PtL) processing plant in Dubai
Officials of the three company at the signature ceremony. (Credit: Quantafuel)
Norway-based Quantafuel, DUBAL Holding, and chemical company BASF have signed a front-end engineering design (FEED) agreement for the chemical recycling of waste plastics in Dubai.
With BASF as the partner for the new phase, the project is currently entering the FEED stage.
It is followed by a six-month feasibility study where the primary design criteria have been determined and the location and feedstock have been secured.
The potential final investment decision (FID) is anticipated in early 2023.
Quantafuel, DUBAL Holding, the investment arm of the Dubai Government, and chemical company BASF have signed an agreement to carry out a FEED to develop a Plastics-to-Liquid processing plant in Dubai.
The PtL initiative is a big step toward a circular economy and assists Dubai in reaching its goal of having zero trash going to landfills by 2030 by transforming low-quality, non-recyclable plastics into valuable products.
The FEED for the construction of the 80,000 ton/year plant will be finished in 2022, and a potential final investment decision is expected to be made in the early months of 2023.
Based on the lessons learned from and optimisation of Quantafuel’s first full-scale commercial plant in Skive, Denmark, the partners have decided to work together and split the cost for the development of the plant in Dubai.
Saipem, a leading name in Italian engineering and construction, has been selected to provide FEED services.
DUBAL Holding CEO Ahmad Hamad Bin Fahad said: “This agreement is an important step towards a cooperation that will foster the advancement of sustainable technology and help attain circular economy in the UAE.
“The basis of this agreement is to pursue investments that favour recycling and sustainability in the region.
“This project is in line with DUBAL Holding’s commitment to invest in promising projects, giving the Emirate a leading position globally in this emerging field.”