Masdar has signed two MoUs with banks to pursue clean energy projects and strengthen its profile as a major player in the commercialisation of clean energy technologies.

One was signed with the UK Green Investment Bank (GIB, a public company formed with £3 billion ($4.5 billion) of funding from the UK Government with a mission to accelerate the UK’s transition to a greener economy and to create an enduring institution, operating independently of government. The second agreement was reached with the International Finance Corporation (IFC), the private sector arm of the World Bank.

Under the MoU with the UK bank, the two parties will consider opportunities to jointly invest in green infrastructure projects in the UK over the next seven years. Together, they will introduce potential investment opportunities to one another and other potential investors. There is no change to the governance of both parties as joint investments will be made and managed independently.

The MoU was signed by Masdar CEO Dr Sultan Ahmed Al Jaber and GIB CEO Shaun Kingsbury at an event in London hosted by Prince Andew.

“The UAE and the UK have already forged a strong bond in the advancement of clean energy,” said Dr Sultan Ahmed Al Jaber, CEO of Masdar. 

“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,” he added.

Masdar has already independently invested over £500 million through its equity stake in the UK’s London Array, the world’s largest offshore wind farm. This new alliance unlocks the potential for further investment.

The MoU was the initiative of UK Energy and Climate Change Minister, Greg Barker.

Dignitaries attending the signing included, besides Barker, Sheikh Hamed bin Zayed Al Nahyan, chairman, court of the Abu Dhabi Crown Prince; Sheikh Ahmed bin Saeed Al Maktoum, president, UAE Department of Civil Aviation, CEO and chairman of The Emirates Group, and chairman of Dubai World; Khaldoon Khalifa Al Mubarak,  chairman, Executive Affairs Authority, and CEO, Mubadala Development Company; Abdul Rahman Ghanem Al Mutaiwee, UAE Ambassador to the UK; Dominic Jeremy, UK Ambassador to the UAE.

The Masdar-IFC MoU, signed in Washington DC, paves the way for the two parties to explore opportunities for the development of large-scale projects including carbon capture, use and storage; cleantech venture capital and private equity fund co-investment; solar desalination and utility-scale solar and wind power projects.

The newly-formed cooperative effort will investigate options for the IFC to finance up to $1.5 billion using financial products tailored to projects that may be developed by Masdar.  The MoU was signed by Al Jaber and IFC CEO Jin-Yong Cai.