Abu Dhabi’s state-backed renewable energy company, Masdar, has agreed to form an investment alliance with the UK Green Investment Bank (UK GIB) in order to exploit investment opportunities in the UK clean energy sector. The Memorandum of Understanding (MoU) will be signed on the 1st May 2013 during the visit of His Highness Sheikh Khalifa bin Zayed Al Nahyan, the President of the United Arab Emirates, who will be attending an event hosted by HRH Prince Andrew, the Duke of York, at Buckingham Palace. The MoU itself will be signed by Dr. Sultan Ahmed Al Jaber, the Masdar CEO, and Shaun Kingsbury, CEO of the GIB.
Under the MoU the two companies will consider opportunities to jointly invest in UK green infrastructure projects over the next seven years. Masdar has already, independently, invested over £500 million through its equity stake in the UK London Array, currently the world’s largest offshore wind farm. The new agreement is intended to unlock further potential investment opportunities and was the initiative of the UK Energy and Climate Change Minister, Greg Barker, who will witness the signing of the MoU.
“The creation of the Green Investment Bank is one of the Coalition Government's key green achievements” Mr Barker said. “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.”
Shaun Kingsbury, CEO of the GIB, commented that the GIB will be an enduring institution and that the signing of the MoU with Masdar shows how the GIB can act as a catalyst to bring in additional funds for UK clean energy projects to complement funds already provided by the UK Government.
“The United Arab Emirates and the United Kingdom have already forged a strong bond in the advancement of clean energy” Dr Al Jaber added. “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.”
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