UAE-based Masdar and E.On of Germany are aiming to take advantage of existing and emerging carbon markets around the world through a new joint venture company.
The two companies have announced an agreement to establish E.On Masdar Integrated Carbon (EMIC), which will develop carbon emission reduction projects around the world.
The agreement is one of a number of key deals sealed by Masdar at the World Future Energy Summit in Abu Dhabi in January.
EMIC will be based in Abu Dhabi’s Masdar City and will aim to monetize emission reductions resulting from improving the energy efficiency of industrial facilities. The reductions will be monetized in the form of carbon credits and traded under the UN’s Clean Development Mechanism or other future international trading schemes.
Masdar Chief Executive Officer, 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. It is a good opportunity to leverage our competitive advantage to create value on the global market.”
The global carbon market was worth around $168 billion in 2009, a 68 per cent increase over 2008 in terms of trading volume, according to E.On.
The new company will develop, finance and implement projects in the Middle East, Africa and Asia and will have a particular focus on power generation and oil and gas. It will be one of the world’s leading companies in the full value chain of carbon abatement projects, says E.On.
Projects implemented by EMIC will include fuel switching, open cycle to combined cycle gas turbine conversion, gas pipeline leakage reduction and gas flare reduction.
Masdar has made a number of other key announcements at the World Future Energy Summit, including the launch of the DB Masdar Clean Tech Fund with Deutsche Bank and a cooperation agreement with 1Malaysia Berhad (1MB) to explore clean technology projects and the possibility of building a carbon neutral city in Malaysia.
The UK government and the Masdar Institute have also agreed £1 million of joint funding for renewable energy policy research.
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