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UAE district cooling firms to expand 18% in five years
Published in The Saudi Gazette on 10 - 01 - 2016

The UAE district cooling companies, which include top names such as Emirates District Cooling (Emicool), Empower and Tabreed among others, are expected to play pivotal roles in the growth of the industry across Middle East and Africa (MEA) region and projected to grow by over 18 percent in the next five years, said experts.
Moreover, the MEA district cooling companies are expected to dominate over 40 percent of the overall demand globally by 2019, which is expected to reach $29 billion in value terms in the next four years, they said citing a research.
With the ongoing construction boom in the UAE and across the region, it is not only good news for companies in the sector, but also for the district cooling industry with each vying for more market share, if the performance and expansion plans – both capacity and geographical footprint – of the leading players in the segment are any indication, they stated.
The UAE district cooling sector, which pioneered the concept of hassle-free, eco-friendly, maintenance-free and energy-efficient solutions with its electric-powered and solar interface cooling services, is set to take its pride of place on a regional and global scale amidst rapid construction and surging demand for power and cooling.
New projects are witnessing a steady shift from traditional air-conditioning to comprehensive district cooling that help save energy, and cut down on maintenance and environmental damages.
The expert said the district cooling comes with manifold advantages and is highly sustainable as it uses 40 to 50 percent less energy than traditional air-conditioning systems, which can account for 70 percent of a building's electricity bill.
Producing one ton of refrigeration using conventional air conditioning takes 1.8 kw of electrical power, while district cooling can consume as little as 0.85 kw per ton.
According to experts, one of the leading players, Emicool - a joint venture between Dubai Investments and Union Properties - is set to boost its market share from the current 12 to 20 percent amidst this surging demand.
In line with the projected growth, Emicool is targeting expansion of its plant capacity in Dubai Investments Park (DIP), an integrated residential, commercial and industrial community in the Middle East and wholly-owned by Dubai Investments, to 250,000 tonnes of refrigeration (TR) in the coming years from the existing 115,000 TR.
This is part of the Emicool's overall growth plans which will see it increase its capacity to 500,000 TR by 2020 as DIP plans to build over 1,150 residential units in the near future.
The company has also unveiled plans to expand its geographical presence to Saudi Arabia and Qatar in the coming years.
Adib Moubadder, CEO of Emicool, said: "Regionally, there is a huge commitment to the cause of sustainability, and no wonder district cooling industry has a profound role to play in eco-friendly infrastructure of districts, cities and countries."
"The benefits of district cooling are evident and master planners are increasingly incorporating district cooling systems in future projects. As a company, Emicool is eyeing strong growth as residential projects and demand picks up in the region," he noted.
Moubadder said recently, the company has managed to change concept design of many projects by convincing master developers for low-rise buildings and villas that district cooling is now the most viable solution.
Emicool currently offers district cooling in DIP as well as Dubai Motor City, Dubai Sports City, Uptown Mirdiff and Palazzo Versace & D1 Tower at Al Jaddaf.
The company had witnessed a 21 percent increase in overall consumption last year compared to 2014 consumption, he added.
In DIP alone, the Emicool district cooling plant has helped to save electricity by 312.95 million kWh per annum (34 percent less than conventional air-conditioners), which is the equivalent of reducing 159,028 tonnes of CO2 yearly – thus reinforcing its key role in reducing the overall carbon footprint.
"It is a known fact that developers and the governments alike appreciate district cooling as it drastically reduces building maintenance costs and electricity consumption," said Moubadder.
"Emicool's centralized systems, and its partnership with world-class metering technology such as Aquametro, has proven to be far more economical and sustainable than conventional air conditioning. District cooling is here to stay as the demand heats up – locally, regionally and globally," he added. — SG


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