MASDAR NEW ENERGY CITY EXPANDS ITS REACH

UAE's Masdar Inks Carbon Trading, Cleantech Deals
Michael Burnham, January 19, 2010 (NY Times)

"The United Arab Emirates' ambitious Masdar "eco-city" is positioning itself to profit from a carbon-constrained global economy…

"The desert city, slated for completion over the next decade, would generate electricity on site from the wind and sun and produce zero net greenhouse gas emissions. And in a new twist, Masdar also would generate cash by buying and selling carbon dioxide emissions globally."

Artist's conception of what Masdar City will look like. (click to enlarge)

"The German utility E.ON AG and Masdar, a unit of Abu Dhabi's state-owned Mubadala Development Co., announced a joint venture…[to] develop tradable carbon credits from emission-reduction projects in Asia and Africa…E.ON Masdar Integrated Carbon (EMIC), will launch later this quarter and focus on projects within the power generation and fossil fuel production sectors…Projects will include reducing leakage from natural gas pipelines, gas flaring from oil wells and electricity consumption at industrial facilities…The resultant carbon credits would be traded under the United Nations' Clean Development Mechanism, as well as future emissions-trading programs…

"E.ON's climate and renewables portfolio includes 2.8 gigawatts of installed capacity in the United States and Europe…When completed, Masdar will be the home of about 50,000 residents, a university and dozens of companies -- all on just 3.7 square miles of land…The walled city will also be the home of the International Renewable Energy Agency, an intergovernmental agency that supports renewable energy deployment…"

click to enlarge

"The Abu Dhabi government contributed $15 billion to the city's first phase of development. The master plan calls for seven development phases through 2018, including the infrastructure to capture, transport and inject industrial CO2 emissions in oil wells…Masdar officials aim to capture and sequester 20 million metric tons of CO2 by 2020…

"Masdar has already inked cleantech finance and development deals with General Electric Co., Siemens AG and other major companies…Boeing, Etihad Airways, Honeywell International Inc. and the nascent Masdar Institute of Science and Technology…[will form the] Sustainable Bioenergy Research Project [which] will use saltwater to grow shellfish as well as mangrove and salicornia, a plant that thrives in salty conditions. The plants would be harvested to produce aviation biofuels and co-products…Masdar and Deutsche Bank launched the DB Masdar Clean Tech Fund and at its first closing, raised $265 million…[to] invest primarily in expansion and later-stage companies in the clean-energy, environmental resources and energy/material efficiency sectors."