DEWA and Acwa Sign Dh1.76 Billion Deal to Expand Hassyan Desalination Plant

Once complete, the two phases together will produce 240 MIGD, which DEWA says will make Hassyan the world's largest seawater reverse osmosis (SWRO) plant. The expansion matters for a city whose population and industrial base are growing quickly and which depends almost entirely on desalinated seawater; reverse osmosis uses far less energy than the thermal desalination that once dominated the Gulf, and can be run on solar power.

The Water Purchase Agreement and Shareholder Agreement were signed by Saeed Mohammed Al Tayer, DEWA's managing director and chief executive, and Mohammad Abunayyan, Acwa's founder and chairman. DEWA will own 60% of the project company and Acwa 40%. The company will finance, develop, build and operate the plant and sell its output to DEWA under a 30-year contract. The new phase will produce about 272,000 cubic metres of water a day.

Acwa had already disclosed the agreement to the Saudi Exchange on October 28, according to MEED, which reported that the company expects the financial impact to begin in 2030 after the project is completed.

"With the addition of 60 Migd, Hassyan will become the world's largest SWRO desalination plant with a total production capacity of 240 MIGD," Al Tayer said. He said the expansion would improve production efficiency, reduce emissions and help meet rising demand.

Abunayyan said the project builds on more than a decade of work with DEWA on Dubai's power and water projects. "Water security is fundamental to sustainable economic growth and long-term resilience," he said.

The first phase of Hassyan, with capacity of 180 MIGD, was DEWA's first water project developed under the Independent Water Producer model, in which private companies finance, build and operate plants and sell water to the state utility. It cost Dh3.357 billion. Its agreements were signed in October 2023 and it reached financial close in April 2024, according to MEED, which reported that the plant was more than 90% complete in early August. Its first 60 MIGD block entered service earlier this year, and DEWA has said it expects to add the remaining capacity during 2026.

DEWA said Dubai's total desalinated water capacity is expected to reach about 735 MIGD by 2029 once both Hassyan phases are complete. MEED has reported the same 735 MIGD figure as a target for 2030, with 308 MIGD from SWRO plants powered by renewable energy.

The project forms part of the UAE Water Security Strategy 2036 and Dubai's goal of net-zero emissions by 2050, the utility said. No construction contractor for the second phase has been named.