Tabreed eyes India in next expansion phase

Abu Dhabi-based National Central Cooling Company, known as Tabreed, is looking at expanding its operations and investing in new technologies and partnerships to promote greater efficiency in terms of building cooling solutions, its chairman, Khalid al-Marzooqi, told MEED on the sidelines of the ongoing Cop28 climate summit in Dubai.

“District cooling still has a low adoption ratio in terms of the total cooling market despite offering 50 per cent greater efficiency compared to conventional solutions,” Al-Marzooqi told MEED.

The company is investing in new technologies to further drive efficiency for a  solution that already offers obvious environmental benefits.

For example, in November this year, Tabreed completed a pilot project of a  heat transfer technology that, when applied to cooling or heating systems, could improve energy efficiency by up to 15 per cent.

The Maxwell nanoparticle fluid technology is an engineered suspension of sub-micron aluminium oxide particles in a base fluid of water or water and glycol. It works as a drop-in additive for cooling and heating systems, which enhances heat transfer.

Tabreed tested the solution, along with Ireland’s HT Materials Science, in the summer of 2023 at its district cooling plant in Khalifa City.

In August, state-backed Abu Dhabi National Oil Company (Adnoc) and Tabreed also completed testing two geothermal wells in Masdar City. 

The wells produced hot water at temperatures exceeding 90 degrees Celsius and flow rates of approximately 100 litres per second (l/s). The hot water generated by the heat from the wells will then pass through an absorption cooling system to produce chilled water, which will then be supplied to Tabreed’s district cooling network at Masdar City.

“We are continuing to invest in new technologies to decarbonise our services, as well as expand our market presence,” says Al-Marzooqi.

Tabreed operates 91 district cooling plants with a total combined capacity of 1.3 million refrigeration tonnes  (RT) across six countries.

In the first nine months of 2023, the company added 41,319RT across its portfolio, which comprised a district cooling plant for SeaWorld Abu Dhabi, two new plants om Saudi Arabia, and the acquisition of a plant from Tata Realty in India. 

The company also inaugurated its first district cooling plant in Egypt with a capacity of 2,500RT this year.

Future expansion

India and Egypt are among the company’s main focus of expansion over the coming years.

India, particularly its main cities with high-density districts, offers a significant opportunity going forward, notes the company’s chief asset management officer, Yousif al-Hammadi.

“We are seeking to expand and grow, and we are pursuing both organic and inorganic growth, by acquiring suitable assets or companies if they pass our financial and commercial risk assessments.”

The company’s Saudi branch, Saudi Tabreed, is also exploring opportunities in the kingdom, where massive project developments are under way.

In September, Saudi Arabia’s King Salman Park Foundation signed a 25-year build-own-operate-transfer (BOOT) agreement with Saudi Tabreed to develop a district cooling plant catering to the King Salman Park in Riyadh.

The district cooling plant will have a capacity of 60,000RT.

The King Salman Park Foundation will off-take 20,000RT allocated for the project’s first phase. The remaining 40,000TR will be provided based on market demand and with project completion.

The executives note that implementing district cooling regulations will be key to expanding the deployment of district cooling solutions across the region and in the countries they expect to operate in. “This offers an excellent opportunity for regulators and service providers,” says Al-Hammadi.