Empower signs deal with Mitsubishi to expand district cooling capacity

The deal will allow the Dubai utility company to double the number of its centrifugal chillers over the next two years

Jumeirah Beach Residence in Dubai is one of the areas serviced by Dubai district cooling firm Empower. Photo: Satish Kumar / The National

Dubai’s Emirates Central Cooling Systems Corporation, or Empower, as it is known, signed an agreement with Mitsubishi Heavy Industries Thermal Systems for the supply of advanced water-cooled centrifugal chillers.

The chillers will significantly expand the utility company’s district cooling capacity.

District cooling companies deliver chilled water through insulated pipes to offices, residences and industrial buildings to run air conditioning systems buildings.

Business has boomed for the sector in recent years, leading to a string of acquisitions within the sector.

The new chillers supplied by Mitsubishi will have a cooling capacity of 100,000 refrigeration tonnes (RT), state news agency Wam said on Sunday.

The deal also allows Empower to double the number of its centrifugal chillers, equivalent to a cooling capacity of 200,000 RT, over the next two years.

“These achievements are in line with our long-term strategy that aims to reduce energy and water consumption by 30 per cent by 2030, as well as the UAE’s strategy and sustainability plans to reduce carbon footprint,” said Ahmad bin Shafar, chief executive of Empower.

The company said it would use the new units in its plants being built in Zabeel, Business Bay, Madinat Jumeirah and Dubailand.

Last month, Empower said it would acquire the district cooling assets of the property developer Nakheel.

The deal, valued at Dh860 million ($234m), will give the company access to Nakheel’s district cooling systems, which serve more than 18,000 customers in 17 major urban projects through 19 plants in Dubai.

In April, Emaar Properties, Dubai’s largest developer, sold its district cooling business in Downtown Dubai for Dh2.48 billion to the Emirati district cooling provider Tabreed.

Tabreed also bought two district cooling units on Saadiyat Island, Abu Dhabi, from Aldar Properties for Dh963m in December.