Sadara Chemical Company (Sadara) said it has signed a memorandum of understanding (MoU) with Veolia Middle East, a Paris-based group and world leader in industrial waste management, to construct a sustainable central utilities facility in PlasChem Park, an industrial park adjacent to the Sadara Chemical Complex.

PlasChem Park is a collaborative effort between Sadara and the Royal Commission for Jubail and Yanbu in Jubail’s Second Industrial City.

The MoU provides a long-term waste management solution for Sadara, and creates an opportunity for Veolia to build a utility plant including waste management and waste energy facilities at PlasChem Park, enabling it to manage a substantial portion of Sadara’s waste streams.

The central utilities “island” will incinerate industrial wastes and recover the heat from this process to produce a usable steam by-product. This will act as an incentive to attract PlasChem Park investors, providing their proposed manufacturing plants with third-party steam at an attractive price.

Additionally, the Veolia facility will produce cooled water and compressed air, which will also be made available to PlasChem Park tenants for industrial use.

Veolia Arabia CEO Faisal Al Dawish said: “This new utilities facility will implement environmentally responsible principles of the ‘circular economy’, a favoured international economic model that keeps resources in use for as long as possible, extracting maximum value and then recovering and regenerating additional products and energy – a concept that we ascribe to wholeheartedly at Veolia,” he added.