Masdar and the European utility E.ON (EOAN.DE) today announced an agreement to establish E.ON Masdar Integrated Carbon (EMIC), a joint venture company focused on developing carbon emission reduction projects on the global market.
Masdar is a wholly-owned subsidiary of Mubadala Development Company focused on renewable energy and sustainability in Abu Dhabi, United Arab Emirates.
EMIC hopes to capitalize on the
growth in the carbon market to monetize emission reductions resulting
from improving the energy efficiency of industrial facilities. The
company will develop, finance and implement projects in the Middle
East, Africa and Asia with a particular focus on power generation and
oil and gas. The emission reductions will be monetized in the form of
carbon credits and traded under the current United Nations based Clean
Development Mechanism (CDM) or other applicable future international climate
trading schemes.
Projects will focus on technologies with large carbon abatement
reduction potential, namely: fuel switching, open cycle to combined
cycle gas turbine conversion, gas pipeline leakage reduction and gas
flare reduction.
Masdar CEO Dr. Sultan Ahmed Al Jaber said, “This initiative builds on our already established successful relationship with E.ON and our matching vision about the carbon market and the choice of technology."
Masdar and E.ON Climate & Renewables already work together on the massive London Array offshore windfarm.
The global carbon market has witnessed sharp growth in recent years reaching $168 billion in 2009, with a 68% increase over 2008 in global trading volume.
In a Separate Release…
Masdar and Deutsche Bank (NYSE: DB) Monday announced the launch of the DB Masdar Clean Tech Fund and its first closing, raising $265 million.
Co-managed by Masdar Venture Capital1 and DB Climate Change Advisors
(DBCCA), the DB Masdar Clean Tech Fund seeks to build a diversified
venture capital and private equity portfolio in clean tech and renewable
energy companies. The Fund will invest primarily in expansion and later
stage companies in the clean energy (power generation, storage),
environmental resources (water, waste management) and energy and
material efficiency (advanced materials, building and power grid
efficiency, enabling technologies) sectors.
The initial
investor group is led by Siemens (NYSE: SI) and includes the Japan Bank for
International Cooperation, Japan Oil Development Co., Ltd., which is a
wholly-owned subsidiary of INPEX CORPORATION, Nippon Oil Corporation (NPOIF.PK),
Development Bank of Japan and GE (NYSE: GE).
In Related News…
A joint venture between Masdar and BP (NYSE: BP) aims to complete a $2.2 billion hydrogen power plant with carbon capture and sequestration (CCS) by 2014.
Read Reuters coverage at the link below.
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