National Central Cooling Company (Tabreed) has announced that it has entered into a concession agreement with Dubai Holding Investments, a part of Dubai Holding Group, to provide district cooling services for Palm Jebel Ali in Dubai.

 

The agreement will see the establishment of a joint venture, with Tabreed holding a 51% stake and Dubai Holding Investments 49%. The duo will set up the district cooling network at an investment of AED1.5 billion ($408 million).

 

Supported by Tabreed’s major shareholders, sovereign investor Mubadala (42%) and the French low-carbon energy and services company Engie (40%), this structure is designed to optimise cooling capacity, enhance information-sharing and strengthen customer protection, while ensuring sustainable cooling solutions for one of Dubai’s most transformative developments.

 

The agreement was signed by Tabreed CEO Khalid Al Marzooqi and Dubai Holding Investments CEO Omar Karim in the presence of senior officials from Tabreed, Dubai Holding, Mubadala and Engie.

 

Subject to customary approvals, construction of the district cooling network is expected to commence in Q2 2025, with the first cooling services expected to be delivered by 2027. 

 

Over time, the system will address the need for approximately 250,000 RTs of cooling capacity, it added.‍

 

Subject to customary approvals, construction of the district cooling network is expected to commence in Q2 2025, with the first cooling services expected to be delivered by 2027. 

 

Over time, the system will address the need for approximately 250,000 RTs of cooling capacity, it added.

 

Speaking on the occasion, Chairman of Tabreed and CEO of Mubadala’s UAE Investments Platform, Dr Bakheet Al Katheeri, said: "Mubadala has a worldwide reputation for being a responsible investor with an unwavering focus on its ESG framework and Tabreed is a vital part of our portfolio as a driver of sustainability and societal progress."

 

"The signing marks a major milestone in Tabreed’s 27-year history and underscores the company’s commitment to providing sustainable, high-efficiency cooling solutions for large-scale developments. I am eagerly looking forward to witnessing the successful progress of this landmark project," he stated.

 

On the strategic deal, Karim said: "This agreement reinforces Dubai Holding’s long-term vision of developing sustainable communities with high-quality infrastructure at their core. Palm Jebel Ali is one of Dubai’s most ambitious developments and by incorporating district cooling services we support our customers and align to our commitment to deliver future-ready urban environments."

 

Al Marzooqi said: "Palm Jebel Ali is a transformative project that will shape Dubai’s future and we are proud to play a role in ensuring its infrastructure meets world-class standards."

 

"With our extensive experience and cutting-edge technology, we will deliver reliable and environmentally responsible cooling that benefits residents, visitors and stakeholders alike," he added.-TradeArabia News Service