UAE | General

Masdar to cooperate in green energy projects

New memorandum of understanding signed with UK Green Investment Bank to explore opportunities

  • Staff Report
  • Published: 22:49 May 1, 2013
  • Gulf News

Abu Dhabi: Masdar and the UK Green Investment Bank (GIB) signed a Memorandum of Understanding to explore project investment opportunities in the UK’s clean energy sector.

Officials did not confirm earlier reports that the deal could be worth up to Dh5.7 billion.

The MoU was signed on the occasion of a state visit to the UK by President His Highness Shaikh Khalifa Bin Zayed Al Nahyan, at an event hosted by Prince Andrew, the Duke of York, at Buckingham Palace.

“Masdar is pleased to be contributing to the UK’s renewable energy portfolio through the London Array and we are actively engaged in exploring new investment opportunities in the UK offshore wind and clean technology sectors,” said Dr Sultan Ahmad Al Jaber, Minister of State and CEO of Masdar.

Dignitaries attending the signing included Shaikh Hamed Bin Zayed Al Nahyan, Chairman of the Abu Dhabi Crown Prince’s Court; Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai of Civil Aviation and Chairman and Chief Executive of Emirates airline and Group and Chairman of Dubai World; Khaldoon Khalifa Al Mubarak, Chairman of the Executive Affairs Authority and CEO of the Mubadala Development Company; Abdul Rahman Ghanem Al Mutaiwee, UAE Ambassador to the UK; Greg Barker, UK Energy and Climate Change Minister; and Dominic Jermy, UK Ambassador to the UAE.

Opportunities

Under the MoU, the two parties will consider opportunities to jointly invest in green infrastructure projects in the UK over the next seven years. Together, they will introduce potential investment opportunities to one another and other potential investors.

There is no change to the governance of both parties as joint investments will be made and managed independently.

The MoU was signed by Masdar CEO Dr Sultan Ahmad Al Jaber and GIB CEO Shaun Kingsbury. “The UAE and the United Kingdom have already forged a strong bond in the advancement of clean energy,” said Dr Sultan Ahmad Al Jaber, CEO of Masdar.

This collaborative investment effort will not only strengthen those ties, it has the potential to pay healthy dividends for both countries.

“Masdar is pleased to be contributing to the UK’s renewable energy portfolio through the London Array and we are actively engaged in exploring new investment opportunities in the UK offshore wind and clean technology sectors,” said Dr Al Jaber.

Masdar has already independently invested over £500 million through its equity stake in the UK’s London Array, the world’s largest offshore wind farm. This new alliance unlocks the potential for further investment.

“This new MoU is a bold and exciting statement of intent. GIB and Masdar are new organisations – the first of their type in the world,” said Shaun Kingsbury, CEO of GIB. “We’ll be working together closely to bring investment to UK clean energy projects and to share our expertise and experience.

“At GIB we are building an enduring institution; one that’s here for the long term. This relationship shows how we can act as a catalyst to bring in additional funds for UK clean energy projects to complement the support we’ve already received from the UK Government,” added Kingsbury.

Achievements

The MoU was the initiative of UK Energy and Climate Change Minister, Greg Barker, who said: “The creation of the Green Investment Bank is one of the Coalition Government’s key green achievements. Initially capitalised with a huge injection of £3 billion, we always intended this brand-new financial institution to act as a catalyst to attract other finance into the UK Low Carbon economy.

“This alliance is a big step in that direction, and a huge vote of confidence in the UK clean energy sector. But this agreement is about more than just money. Given the pioneering Low Carbon achievements of Masdar, it makes strong strategic sense too.”

Gulf News