Al-Jimi Plant
The other partner, Tabreed, is a pioneer in the provision of district cooling services in the Middle East and currently provides district cooling service at 27 locations in the UAE and two overseas. Sumitomo and J-Power have each invested 30% in the new entity, with the remaining 40% coming from Tabreed. Sahara Cooling, as a special purpose corporation, has begun operations after it purchased six plants in the UAE owned by Tabreed.
Operating funds for the new company will be managed and raised by Sumitomo Mitsui Banking Corporation.
With the growing demand for environmentally friendly, energy-saving district cooling in the UAE and neighboring nations, the three companies are planning further expansion of business in the UAE and the surrounding region.
In 2004, Sumitomo and Tabreed established a special purpose corporation, the Summit District Cooling Company, with 49% invested by Sumitomo and 51% by Tabreed. One project was started by this corporation in October last year. The new company is designed to build on the foundation established by Summit District Cooling to further expand business.
This will be the first time for J-Power, which has previously provided consultation on the supply of district heat both in Japan and abroad, to participate in a Middle East-based cooling project as a Japanese electric power company, utilizing its knowledge.
| Attachments: |
1. Sahara Cooling Limited: Project Overview |
| 2. Corporate Profile of Tabreed |
(Attachment) 1. Sahara Cooling Limited: Project Overview
| 1. Company Name |
Sahara Cooling Limited |
| 2. Location |
United Arab Emirates |
| 3. President |
Ronald Stuart Thompson |
| 4. Establishment |
May 30, 2007
Investors: Sumitomo (30%), J-Power (30%), Tabreed (40%) |
| 5. Capital |
Approximately AED* 160 million (approximately 5 billion yen) including stockholders' subordinated loans)
* AED = UAE dirham |
| 6. Project Outline |
Content:
Purchase of six district cooling plants operated by Tabreed. Business plan to be implemented by Sahara Cooling Limited. Attempted improvement of potential, including refinancing. Sahara Cooling will supply wholesale chilled water to Tabreed, and Tabreed will continue to supply chilled water to its current customers, which include facilities connected with the government.
Water-cooled electrical refrigerators running on power generated by the electrical power system and gas engine generators will supply chilled water.
Specifications of the six plants
| Plant Name |
Contracted
capacity (in RT*) |
First year of
operation |
| Phoenix 1 |
18,000 |
2004 |
| Phoenix 2 |
6,800 |
2004 |
| Tabreed 3B |
10,000 |
2003 |
| Tabreed 4 |
10,000 |
2003 |
| T 20 |
4,000 |
2001 |
| Al-Jimi |
5,700 |
2001 | * RT = Refrigeration ton. The capacity of refrigerators is measured in RTs. 1 RT is necessary to glaciate a ton of water at 0° C in 24 hours. |
(Attachment) 2. Corporate Profile of Tabreed
| 1. Company Name |
Tabreed (The National Central Cooling Co.) |
| 2. Location |
Abu Dhabi, United Arab Emirates |
| 3. Background |
Year of establishment: 1998
Background of establishment: Tabreed was established by the UAE Offsets Group (UOG), a UAE government organization set up to help attract foreign capital in the UAE and promote privatization projects. The UOG is now known as Mubadala Development and its chairman is H.H. General Sheikh Mohammed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the United Arab Emirates Armed Forces. Since Tabreed's establishment, Mohammed Saif Al Mazrouei, who is also CEO of the Offset Program Bureau, has occupied the position of chairman.
|
| 4. Capital |
AED 1,050 million (approximately 32.5 billion yen) |
| 5. Business |
District cooling service |
|
