Dubai Airports and Etihad Esco light up path to sustainability

Dubai Airports has signed an agreement with Etihad Energy Services Company (Etihad ESCO), a wholly owned subsidiary of Dubai Electricity and Water Authority (DEWA), to launch the final phase of its airport-wide lighting retrofit project, a key milestone in its ongoing sustainability agenda and a major step towards energy-efficient operations at both of Dubai’s airports.

This newly signed phase will see over 180,000 conventional lighting fixtures replaced with energy-saving alternatives across Dubai International (DXB) and Dubai World Central - Al Maktoum International (DWC), with Concourse A at DXB being the largest single area covered. Combined with the first phase completed earlier and covering 150,000 lighting units at DXB, the project will upgrade more than 330,000 lighting units in total, making it one of the most extensive airport lighting retrofit initiatives in the region.

The project is expected to cut annual energy consumption by 47 million kilowatt-hours (kWh), equivalent to powering over 4,300 homes for an entire year, a significant result that highlights the real-world impact of operational sustainability.

The initiative will also deliver annual cost savings of more than Dhs 20 million, contributing to Dubai Airports’ efforts to optimise efficiency while supporting Dubai’s wider environmental targets.

Saeed Mohammed Al Tayer, MD & CEO of DEWA, said: “Aligned with the UAE’s commitment to climate change resilience and sustainable growth, DEWA is dedicated to supporting Dubai’s journey towards a green economy. This aligns with the Dubai Clean Energy Strategy 2050 and the Dubai Net-Zero Carbon Emissions Strategy 2050. The partnership between Dubai Airports and Etihad ESCO is a prime example of our collective efforts to promote energy efficiency, reduce emissions and advance Dubai’s Clean Energy Strategy. Through initiatives like this large-scale retrofit, we are actively building a greener, more resilient future to support our country’s needs and ambitions.” Paul Griffiths, CEO of Dubai Airports, said: “In partnership with Etihad ESCO and DEWA, this project highlights the power of collaboration in achieving measurable sustainability results. Airports are significant energy consumers, and that gives us both the opportunity and the responsibility to lead meaningful change. This lighting project goes beyond efficiency upgrades; it is about embedding sustainability into the core of our day-to-day operations. Every kilowatt-hour saved moves us closer to reducing our environmental impact and building a more resilient future. It sets the benchmark for what a truly sustainable airport can and should achieve.”

Dr Waleed Alnuaimi, CEO of Etihad Energy Services Company, added: “At Etihad ESCO, we are driven by the mission to transform Dubai’s infrastructure as an outstanding example of energy efficiency. This final phase of the lighting retrofit project with Dubai Airports is a testament to how strategic partnerships and innovative solutions can deliver measurable impact - from substantial energy savings to a reduced carbon footprint. It reaffirms our shared vision of making Dubai a global leader in sustainable development.” Installation work is scheduled to begin later this year and conclude by H2 2027. This milestone reflects Dubai Airports’ commitment to decarbonising operations through practical, high-impact projects and reinforces Dubai’s position as a global hub for sustainable aviation infrastructure.

Meanwhile, the US production of renewable diesel and biodiesel fell sharply in the first quarter of 2025 (1Q25) because of uncertainty related to federal biofuel tax credits and negative profit margins. US Energy Information Administration, Petroleum Supply Monthly and Short-Term Energy Outlook, May 2025, forecasts production of both fuels to increase as the year progresses but biodiesel production to remain less than in 2024.

US renewable diesel production averaged about 170,000 b/d in 1Q25, down 12% from 1Q24. The decrease in renewable diesel production was not as large on a percentage basis as the decrease in biodiesel production, mostly because renewable diesel production increased at a greater rate than biodiesel production in 2024. Reduced output at renewable diesel plants was partially offset by the nearly 20% increase in renewable diesel production capacity since 1Q24. However, compared with 4Q24, when renewable diesel production capacity was comparable to current levels, 1Q25 production was down almost 25%.

Poor profitability in 1Q25 contributed to production declines. Diamond Green Diesel, Phillips 66, and Marathon all reported operating losses from renewable diesel in the quarter. In addition, trade press has suggested negative margins for biodiesel.

Another reason US production of biomass-based diesels declined in 1Q25 was uncertainty about federal biofuel tax credits. Before 2025, producers and importers of biomass-based diesel received a $1 per gallon (gal) blender’s tax credit (BTC) for each gallon blended with petroleum diesel. Under the Inflation Reduction Act, the BTC was slated to be replaced with the Section 45Z Clean Fuel Production Credit in 2025.

WAM