The agreement is the first for EGA to provide another company with all of its electricity needs. It will improve the overall efficiency of electricity generation and reduce environmental emissions in the UAE, while creating a new revenue stream for EGA. „Our agreement with the EGA is a cooperation that exemplifies our true spirit of promoting flight attendant and innovation. This agreement will strengthen our two activities for years to come and enable us to fulfill our mandate to meet the UAE`s energy needs. „EGA and DUGAS operate two of Dubai`s largest industrial facilities and this agreement makes our combined use of natural gas to generate electricity more efficient. This is in line with the objectives of the Dubai Plan 2021 and the UAE Vision 2021, which is to promote the sustainable use of resources, and also creates a new business opportunity for the EGA. Emirates Global Aluminium (EGA) and Dubai Natural Gas Company (DUGAS) have signed a pioneering toll agreement under which EGA will produce the electricity needed for dugas` industrial operation with natural gas purchased by DUGAS from the Dubai Supply Authority (DUSUP). Emirates Global Aluminium, headquartered in Abu Dhabi, United Arab Emirates, is an aluminium conglomerate created by the merger of Dubai Aluminium (DUBAL) and Emirates Aluminium (EMAL) in 2013. EGA had an estimated enterprise value of $15 billion at the time of the merger. The company is equally owned by the Mubadala Development Company of Abu Dhabi and the Investment Company of Dubai. Emirates Global Aluminium holds interests in bauxite/alumina and primary aluminium smelting. The deal is the first of its kind for EGA and the company says it will improve the overall efficiency of electricity generation and reduce costs and emissions. The agreement also opens up a new source of revenue for the company.
After splitting into two separate entities – Alcoa and Arconic – in 2016, Alcoa (NYSE: AA) successfully recorded approximately $0.7 billion in its aluminum business over the past three years, growing the revenue base from $6.5 billion in 2016 to $7.2 billion in 2018. Trefis believes sales would remain subdued over the next two years due to a decline in global aluminum prices (with an increase in Chinese exports), compounded by a decline in aluminum shipments with the expiration of the Tennessee toll agreement in December 2018, after which Arconic supplied canned products for some Alcoa customers. However, after 2020, revenue growth could be driven by strong end-market demand and rising global prices, which could help Alcoa increase its aluminum revenue by about $1 billion over the next five years (2019-2023). . . .