EGA’s recycling hedge goes live + Etihad Energy moves downstream

Emirates Global Aluminium (EGA) completed the UAE’s largest aluminum recycling plant at Al Taweelah, adding 185k tons of annual capacity while its primary smelting operations remain under repair, according to a statement. The facility turns post- and pre-consumer scrap into low-carbon billets and T-bars, bringing onshore material that has largely been exported for processing.

The road to launch was bumpy: Production began in February, but final commissioning was paused after a drone attack damaged EGA’s Al Taweelah smelter in March. Work resumed in April and recycled-metal output restarted in early May, with full capacity expected within six months, subject to scrap availability.

REMEMBER- Recycling has become a more important hedge for EGA following the Al Taweelah disruption, which took out a significant chunk of capacity at its 1.6 mtpa facility, and last year’s Guinea mining dispute. The company has since restored bauxite supplies through a settlement and is aiming to reach 400k tons in total recycling capacity by 2028. It’s also working on expanding its production base through takeovers, with a planned Italian acquisition and a possible takeover of a stake in Oman’s Sohar Aluminium, which produces 400k tons per year.

Etihad Energy moves downstream

Maritime and energy infrastructure player Etihad Energy Holding — formerly Gulf Navigation — will spend USD 300-350 mn developing a 15k bbl / d refinery in Fujairah, marking its first move into refining, according to a DFM disclosure (pdf). The preliminary estimate could change following studies and engineering work.

The details: The project, being developed through its subsidiary Brooge Petroleum and Gas Investment Company with Italy’s PEG and US-based Honeywell UOP, will process naphtha into Euro 5-compliant gasoline and other higher-value products. CEO Saif Al Hazaymeh told CNBC Arabia the output would also include 95-octane gasoline, low-sulfur diesel, lubricating oil, and naphtha.

Zoom out: Al Hazaymeh also said that the refinery sits within a AED 1.5 bn, three-year investment plan covering oil and gas and maritime shipping. The group is targeting around 28% of Fujairah’s storage market.

REMEMBER- The UAE is increasingly viewing Fujairahas critical infrastructure and an asset to hedge against future disruption through the Strait of Hormuz.