Masdar flexes muscles with flurry of clean tech deals

Abu Dhabi's high-profile Masdar clean tech investment fund underlined its increasing international influence last week, inking a series of partnerships with companies and governments around the globe designed to accelerate the development of a wide range of low carbon technologies and increase the fund's involvement in the UN's Clean Development Mechanism (CDM) offsetting scheme.

Potentially the most wide-reaching deal saw Masdar reach an agreement with the Seychelles government – whose country is at serious threat from rising sea levels – to invest in wind energy, solar energy and waste-to-energy technologies across the island state.

The first stage of the plan will set a target of generating 18MW of electricity from wind power – enough to supply up to 15 per cent of Mahé Island's total energy demand and significantly reduce reliance on expensive imports of diesel and heavy fuel oil.

Masdar said that it would aim to monetise the Seychelles' renewable energy projects by certifying them under the UN's CDM scheme and then selling the resulting carbon credits.

The investment fund also announced similar plans with the Nigerian National Petroleum Corporation (NNPC), which will see the two organisations work to reduce gas flaring and promote energy efficiency in Nigeria through projects that will again apply for CDM certification.

"Driving a sustainable and environmentally friendly oil and gas industry is of prime interest to Nigeria, and NNPC is happy to work with Masdar to study and develop related carbon reduction projects." said Mohammed S Barkindo, group managing director of the NNPC.

On top of these agreements, Masdar signed a series of deals to promote research and development of clean technologies.

Engineering giant GE said it was to strengthen the links between its ecomagination clean tech division and Masdar, announcing plans to build a research centre in Masdar City, Abu Dhabi's futuristic clean tech hub which is currently under construction.

Meanwhile, Masdar also announced that it has joined Australia's new Carbon Capture and Storage Institute as a founding member. The Institute, which will be administered and funded by the Australian government, is aiming to become a global hub for CCS research and development and is likely to work with Masdar on its plans to capture five million tons of CO2 each year from a gas-fired power plant, an aluminum smelter and a steel mill in Abu Dhabi, and inject them into depleted oil reservoirs.

Finally, Masdar announced that its Institute of Science and Technology has joined the Massachusetts Institute of Technology Energy Initiative (MITEI) as a founding public member.

Speaking at last week's Future Energy Summit in Abu Dhabi, Masdar chief executive Sultan Al Jaber said that the various alliances demonstrated the investment fund's commitment to becoming a genuine leader in the global transition to low carbon technologies.

"Masdar will be at the forefront of the research, development and deployment of solutions that will enable governments around the world, including our own, to meet the targets they are setting for the adoption of renewable energy," he said.