The FEED for the development of the 80,000 tonnes per year plant will be done in 2022, with the potential final investment decision scheduled for early 2023
DUBAL Holding, Quantafuel, and BASF are moving to the front-end engineering and design (FEED) stage on the plant for the chemical recycling of waste plastics in Dubai.
After a six-month feasibility study where the main design parameters have been defined and the site and feedstock secured, the project is now entering the FEED stage with BASF as a partner for the new phase of the project. A potential final investment decision (FID) is targeted for early 2023.
DUBAL Holding, the investment arm of the Dubai Government in the commodities and mining, power and energy, and industrial sectors, Quantafuel, a technology-based recycling company, and global chemical company BASF SE, have signed an agreement to carry out a front-end engineering design (FEED) for developing a Plastics-to-Liquid (PtL) processing plant in Dubai.
The PtL project will be a significant step toward a circular economy converting low-quality, non-recyclable plastics into valuable products, helping Dubai achieve its objective of zero waste going to landfills by 2030.
The partners have agreed to cooperate and share the cost for the development of the plant-based on the learnings from and optimisation of Quantafuel’s first full-scale commercial plant in Skive, Denmark.
Italian engineering and construction major Saipem has been chosen as the FEED service provider. The FEED for the development of the 80,000 tonnes per year plant will be done in 2022, with the potential final investment decision scheduled for early 2023.
Ahmad Hamad Bin Fahad, CEO of DUBAL Holding LLC, said: “This agreement is an important step towards 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.”
Chris Lach, chief commercial officer of Quantafuel ASA said: “It is encouraging to see that this project in Dubai has taken pole position in Quantafuel’s project portfolio. Based on our learnings in Skive and the completed feasibility study, we are pleased that this strong partnership has decided to move forward with FEED towards FID.”