Sadara Chemical Company said it signed a preliminary agreement with Veolia Middle East SAS to construct a sustainable central utilities facility in PlasChem Park to provide a long-term waste management solution for Sadara.
The Memorandum of Understanding enables Veolia, a Paris-based industrial waste management group, to manage a substantial portion of Sadara’s waste streams, the Saudi chemicals company said in a statement.
“One of Sadara’s main drivers is the enablement of a vibrant downstream manufacturing industry in Kingdom,” said Dr. Faisal Al-Faqeer, CEO at Sadara. “Another is to always act responsibly towards the environment. This deal allows us to combine those two key objectives, and we are very excited indeed to partner with Veolia to deliver this waste product management solution. With partners like Veolia, we are confident that we will continue to catalyse the growth of the Kingdom’s downstream manufacturing industry.”
The central utilities “island” will incinerate industrial wastes and recover the heat from this process to produce a usable steam by-product. This will act as an incentive to attract PlasChem Park investors, providing their proposed manufacturing plants with third-party steam at an attractive price.
Additionally, the Veolia facility will produce cooled water and compressed air, which will also be made available to PlasChem Park tenants for industrial use.
“We are very excited to be contributing our knowledge and experience to the further development of PlasChem Park, a truly exciting endeavour in Jubail Industrial City. This new utilities facility will implement environmentally responsible principles of the “Circular Economy,” a favored international economic model that keeps resources in use for as long as possible, extracting maximum value and then recovering and regenerating additional products and energy, a concept that we ascribe to wholeheartedly at Veolia,” said Faisal Al Dawish, Veolia Arabia CEO.
The utilities project will be developed by Veolia and potential partners. The investment will be made by Veolia and partners, and Sadara will act only as facilitator to the project’s success and has agreed to transfer waste products to the plant.
Veolia, a global group, develops sustainable responsible services and expertise to companies in many types of industries. It currently operates 29 similar utility facilities worldwide.
In Jubail, Veolia group has a track record in operation and maintenance of industrial waste water projects and in delivering EPC works – specifically, the Marafiq Desalination Plant (800,000 m3/day) and the Sadara SWRO plant (178,000 m3/day).
PlasChem Park, adjacent to the Sadara Chemical Complex, is a joint venture between Sadara and the Royal Commission for Jubail and Yanbu (RCJY) in Jubail Industrial City II.