Dubal Holding, the investment arm of the Dubai Government, has partnered with recycling company Quantafuel and BASF to develop a plant to chemically recycle plastic waste in Dubai.

The partners will carry out the front-end engineering and design (FEED) this year for the development of the Plastics-to-Liquid (PtL) processing plant.

Advancement to the FEED stage comes after the companies completed a six-month feasibility study to define the plant’s main design parameters and secure the site and feedstock.

The PtL plant will convert low-quality, non-recyclable plastics into valuable products.

It will have an annual capacity of 80,000t and help Dubai meet its goal of sending zero waste to landfill by 2030.

Dubal Holding CEO Ahmad Hamad Bin Fahad said: “This agreement is an important step towards a cooperation that will foster (the) advancement of sustainable technology and help attain circular economy in the UAE.

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“This project is in line with Dubal Holding’s commitment to invest in promising projects, giving the Emirate a leading position globally in this emerging field.”

The partners have agreed to cooperate and share the cost for the development of the plant based on experience from Quantafuel’s first full-scale commercial plant in Skive, Denmark.

They have also contracted Italian engineering and construction firm Saipem as the FEED service provider.

The final investment decision for the PtL plant is due to be made early next year.

BASF FZE Middle East market area head and vice-president Udo Huenger said: “We are excited about the opportunity to be a partner in this FEED study for the Plastics-to-Liquid plant in Dubai based on our know-how in the European ChemCycling project.

“Supporting our technology partner Quantafuel and working with the visionary people at DUBAL Holding to drive Dubai’s vision of zero waste to landfill by 2030 brings us another step closer to a circular economy.”