Palm District Cooling renews partnership with Barrel Energy

Palm District Cooling renews partnership with Barrel Energy

Move underscores Palm Utilities' commitment to support the development of small and medium enterprises in the UAE

May 05, 2009
Palm Utilities (PU), the water and district cooling utility service provider established by government-owned investment firm Istithmar, a major investment holding and part of the Dubai World group of companies, has announced that Palm District Cooling (PDC) has recently renewed its partnership with Barrel Energy L.L.C., a leading Dubai-based fuel supply management and lubricants service company. The move underscores PDC's strong commitment to support the Mohammed Bin Rashid Establishment for Young Business Leaders, a government program that facilitates the development of business and entrepreneurial activity among UAE nationals, of which Barrel Energy is a member.

Barrel Energy has supplied over AED 100 million or nearly 7 million IG (Imperial Gallons) of fuel to PDC and has also delivered logistics management services to PDC's district cooling station since 2007, supporting the temporary cooling service provided to customers. At its peak, Barrel Energy delivered up to 1 million IG of fuel a month to PDC; the company has also served most of its project sites including Palm Jumeira, Discovery Gardens, and Jumeira Lake Towers, and has also been a key supplier of other government and non-government entities.

Mohammed Abulhoul, Founder and Managing Director, Barrel Energy L.L.C. said: "It is certainly an honour for us to be a business partner of Palm District Cooling, which has distinguished itself as a world-class provider of district cooling services in the country. Barrel Energy is fully committed to support Palm District Cooling in its growing business ventures across the UAE market by maintaining the highest quality standards in the delivery of our products and services."

Shafiq Khoori, Managing Director, Palm District Cooling said: "Barrel Energy has been a very dedicated and quality-oriented business partner of Palm District Cooling. We are thus pleased to renew our partnership with them as their professionalism and strong work ethic are important qualities that will help us further raise the standards of our services and consolidate our portfolio of high-stakes projects."

PDC currently provides district cooling services to several prestigious mega developments in the UAE, including the Gardens Residential Complex, Jumeirah Islands, Discovery Gardens and Palm Jumeirah Trunk. PDC is also renowned for being a socially responsible company and a leading innovator in the district cooling industry.

Palm Utilities, through PDC and Palm Water (PW), has been established to address the region's unique requirements in the distinctly critical areas of district cooling, and wastewater treatment. PU has revealed that it is exploring possible joint venture initiatives for other utility projects in the Middle East, India and across Asia as part of its growth strategy for 2009.

Palm District Cooling raises AED 519 million financing for future expansion

Palm District Cooling raises AED 519 million financing for future expansion

March 22, 2009

Palm District Cooling (PDC), a leading Dubai-based integrated provider of district cooling services, and a subsidiary of Palm Utilities, owned by Istithmar, a Dubai World group entity, has announced that it recently raised an AED 519 million bridge financing facility. This is in line with its growth strategy within the UAE.

Yousuf Kazim, Chief Executive Officer, Palm Utilities, said, “This financing commitment comes at a time when the region is experiencing severe liquidity constraints. It clearly validates the strength of our business model and the key role that PDC plays in helping to develop infrastructure in the UAE.”

The financing will be utilised for capital expenditure requirements of the company and is part of a wider financing strategy that will include accessing the syndicated loan and capital markets in the future.

“Raising finance in the present environment was challenging, but with the support of all the parties involved, we were able to get it done,” said Murtaza Chevel, Chief Financial Officer, Palm Utilities.

PDC specialises in Build-Own-Operate model of development offering design, construction, operation & maintenance services in the district cooling space and has pioneered the concept of using treated sewage effluent for its district cooling operations. The company’s current capacity 450,000 TR is expected to increase to 1 million TR over the next few years. Some of the key clients it currently services include developments such as the Palm Jumeirah Island, Discovery Gardens, Jumeirah Lake Towers and Ibn Battuta Mall.

Palm District Cooling pursues long-term strategic plan to leverage growing demand for economical cooling alternatives

Palm District Cooling pursues long-term strategic plan to leverage growing demand for economical cooling alternatives

Mega developments take advantage of cost-saving and pro-environmental qualities of PDC's cooling solution

February 26, 2009
Palm Utilities (PU), the water and district cooling utility service provider established by government-owned investment firm Istithmar, a major investment holding and part of the Dubai World group of companies, has recently announced that it has been actively promoting the strategic benefits delivered by Palm District Cooling's (PDC) world-class cooling solution as part of a campaign to consolidate its presence in the GCC and other key international markets. With recent studies by Middle East Economic Digest (MEED) predicting the regional market to grow by up to 8.3 million tonnes of refrigeration (TR) by 2015 from just 1.8 million TR in 2007, PDC has devised a long-term growth plan and complementary awareness campaign to promote district cooling as an economical solution for the region's increasing air conditioning requirements.

PDC currently provides district cooling services to a significant number of prestigious mega developments in the UAE, including the Gardens Residential Complex (25,000 TR), Jumeirah Islands (15,000 TR), Discovery Gardens (126,000 TR) and Palm Jumeirah Trunk (126,000 TR). Several developers all over the region are likewise increasingly deploying PDC's cost-efficient and environmentally friendly district cooling solutions.

Shafiq Khoori, Managing Director, PDC said: "Palm District Cooling is focusing its efforts on creating a sustainable development plan that will help us overcome the ongoing economic challenges and maintain our long-term growth prospects. We are also trying to leverage the growing interest towards our products and services as an increasing number of developers are beginning to appreciate the long-term benefits of district cooling solutions following PDC's successful deployment of district cooling facilities within a number of landmark developments in the UAE. Our new growth strategy ultimately aims to help our clients improve utility costs and maximise energy efficiency, which is one of the most important concerns among developers right now."

Other high-stakes projects that utilise PDC's district cooling solution are The Jumeirah Lake Towers (167,000 TR), Palm Jumeirah Crescent (124,000 TR), Jumeirah Village South (255,000 TR), International City (125,000 TR) and Dubai Maritime City (100,000 TR)

Wherever water resources are scarce and expensive, PDC utilises Treated Sewage Effluent (TSE) supplied by Palm Water (PW) – a strategic collaboration that results in reduced energy consumption, ultimately benefiting end-users and the entire community through lower utility costs and minimal environmental impact.

Palm Utilities, through PDC and PW, has been established to address the region's unique requirements in the distinctly critical areas of district cooling, and waste water treatment.