ADFEC announces $250m fund

Abu Dhabi: Government-owned Abu Dhabi Future Energy Company (ADFEC) yesterday announced the launch of a $250 million Masdar Clean Tech Fund in partnership with Credit Suisse, a leading global bank, and Consensus Business Group (CBG) of the UK.

This initial capitalisation will invest in companies with promising cleantech, advanced energy and sustainability-related technologies.

Credit Suisse and CBG have committed $100 million and $50 million, respectively, to complement the $100 million seed capital committed by the government of Abu Dhabi at the April 2006 inauguration of the Masdar initiative.

"The fund's strategic objective is to attract advanced energy and sustainability-related technologies to Abu Dhabi by leveraging considerable energy expertise and financial resources", said Sultan Ahmad Al Jaber, Chief Executive of ADFEC.

"It reflects our long-term commitment to meeting the world's growing energy needs in an environmentally-sustainable manner through the development of innovative and sustainable technologies".

Michael Philipp, Chief Executive of Credit Suisse for Europe, Middle East and Africa, said the bank is pleased to partner with both ADFEC and CBG on investing in the development and growth of alternative energy sector technologies. "We believe that our extensive transaction experience, industry knowledge, strong relationships and access to top-tier investment capital will be a valuable asset to the Masdar Clean Tech Fund, its investors and portfolio companies."

The Masdar Clean Tech Fund also provides a unique opportunity to partner on a fund whose mandate complements Credit Suisse's own energy and environment policies, Philipp added.

"CBG has been at the forefront of the environmental industry, investing across all stages of the value chain. CBG is planning to scale technology transfer in the environmental sector globally and has been investing in early stage intellectual property as well as late stage and infrastructure projects across the sector," said Vincent Tchenquiz, CBG Chairman.

"The Masdar initiative provides us with an excellent opportunity to be part of a unique programme that will address the Middle East's role in preserving the global environment and creating sustainable alternatives to traditional energy sources.

"Our role as founding partner in the Masdar Clean Tech Fund signals our commitment to the Masdar initiative and belief that Abu Dhabi will become the alternative energy economy in the region."

Masdar is the only comprehensive initiative in the Gulf region dedicated to clean energy and sustainable technologies.

Complementing this fund are a special economic zone, an innovation centre, a collaborative energy research network spanning 6 global research universities, and core partners who are global leaders in the fields of alternative energy, such as GE, BP, and Shell," Al Jaber said.

The MRN has assembled programmes from leading universities and institutes from Asia, Europe and North America, including RWTH Aachen University, German Aerospace Institute, Columbia University, University of Waterloo, Imperial College of London, and Tokyo Institute of Technology.

Abu Dhabi Future Energy Company will also develop an innovation centre to support the demonstration, commercialisation and adoption of sustainable energy technologies, and a special economic zone tailored to hosting institutions that will invest in development and production of renewable energy technologies and products.

Energy company for diversification

- ADFEC is a private joint stock company wholly owned by the government of Abu Dhabi through Mubadala Development Company.

- ADFEC has been mandated to drive the Masdar initiative, champion the adoption of advanced energy technologies, and contribute to the diversification and sustainable growth of the Abu Dhabi economy.

-- The company will also host a "think tank" that advises the government on the development of new sustainability policies and will work closely with key government departments and companies such as Adnoc.

- ADFEC will also host the Masdar Research Network for reserch and development in the related field and technology.