Abu Dhabi: Masdar, a wholly-owned subsidiary of the Mubadala Development Company, yesterday announced it signed an agreement with the Egyptian Sugar and Integrated Industries Company (ESIIC).
The agreement is aimed at developing a fuel-switch project under the guidelines of the Kyoto Protocol's Clean Development Mechanism (CDM).
The project, in which ESIIC will invest over 40 million Egyptian pounds (Dh27 million), will replace the company's consumption of mazut fuel oil with natural gas and is expected to cut carbon emissions by the equivalent of 57,200 tonnes of carbon dioxide per year for ten years.
Masdar will monetise the emission reductions and provide advisory services required to register the project at the United Nations in line with the requirements of the Kyoto Protocol's clean development mechanism (CDM).
Masdar will support the project execution in coordination with ESIIC and purchase the resulting carbon credits, thereby providing financial incentives for the development of the project.
Hassan Kamel Hassan Noman, CEO of ESIIC, said: "This agreement marks an important milestone for ESIIC. We are proud to pave the way within the sugar industry to develop a fuel-switch under the guidelines of the Kyoto Protocol's Clean Development Mechanism."
