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ACWA Power signs $911 million water purchase agreement with DEWA

The project will be 60% owned by DEWA and 40% by ACWA Power.
  • The project is part of DEWA’s efforts to increase its water desalination capacity to 730 MIGD by 2030, from 490 MIGD at present.  
  • This project is the largest of its kind in the world for water production based on Sea Water Reverse Osmosis (SWRO) technology using solar energy.  

Dubai, UAE — Dubai Electricity and Water Authority (DEWA) Tuesday signed a 30-year water purchaser agreement worth SAR 3.42 billion ($911 million) with Saudi Arabia’s ACWA Power for phase 1 of the Hassyan sea water desalination project using solar power.

The project is part of DEWA’s efforts to increase its water desalination capacity to 730 MIGD by 2030, from 490 MIGD at present.  

In a statement, DEWA said the project aligns with Dubai’s unparalleled economic growth and the Emirate’s thriving construction sector. This complements the Dubai 2040 Urban Master Plan, addresses the substantial population growth, and meets the steadily increasing demand for water in domestic, commercial, and other consumer sectors, it added.

The agreement was signed by Saeed Mohammed Al Tayer, MD & CEO of DEWA; and Mohammad Abunayyan, Chairman and Founder of ACWA Power.

Last August, DEWA announced ACWA Power as the ‘Preferred Bidder’ for the construction and operation of the 180 Million Imperial Gallon per Day (MIGD) Sea Water Reverse Osmosis Hassyan Phase 1 Independent Water Producer (IWP) project, with an investment of AED 3.357 billion ($914 million).

The allocated land area for the project is 252,300 square meters. DEWA achieved a world record by receiving the lowest bid of 0.36536 USD/m³ of desalinated water. This project is the largest of its kind in the world for water production based on Sea Water Reverse Osmosis (SWRO) technology using solar energy.  

It is DEWA’s first Independent Water Producer (IWP) model project. The water desalination capacity in Dubai is currently 490 MIGD. This capacity will increase to 670 MIGD in 2026 with the completion of this project.

“We are building water production plants based on Sea Water Reverse Osmosis (SWRO) technology which require less energy than Multi-Stage Flash distillation (MSF) plants, making it a more sustainable choice for water desalination. By 2030, DEWA aims to produce 100% of desalinated water by a mix of clean energy and waste heat,” said Al Tayer.