Abu Dhabi’s alternative-energy investment fund, Masdar, announced it has acquired a 20% stake from German utility E.ON (EOA.MU) in a massive offshore wind farm project to be built in the United Kingdom.
The London Array, when built, will be the world’s largest offshore wind farm. Financial terms of the deal were not disclosed, but E.ON and Masdar said they will extend their relationship further to work together across a range of potential projects that will "complement their existing renewable energy strategies."
Before the deal, E.ON owned half of the landmark project. DONG Energy owns the other half. Under the agreement, Masdar has purchased 40% of E.ON’s half share of the London Array scheme, giving Masdar a 20% stake in the project overall.
The London Array project is situated in the outer Thames Estuary, east
of London and will consist of up to 271 turbines, generating enough
power for three-quarters of a million homes and contributing
significantly to the UK’s renewable energy targets. Once given the
green light, the scheme will be built more than 20km (12 miles) off the
Kent and Essex coasts. The wind farm will be installed on a 90 square
mile site and will be built in two stages. It is hoped the first stage
will be completed in 2012 and will consist of up to 175 turbines. The
second stage will add enough capacity to bring the total to 1,000 megawatts (MW).
Initially, the focus of the Masdar-E.ON agreement will be on wind power and the UK’s London Array project. As the partnership develops over the coming months, the companies expect to be able to announce a series of exciting projects across the broad spectrum of renewable energy. Early discussions about potential projects have focused on the area of carbon emission reduction. Both companies would look to jointly develop JI/CDM projects that would reflect both parties’ technical expertise in these areas.
E.ON CEO Dr. Wulf Bernotat said: "We have secured in Masdar a strong partner to work with us on the London Array scheme and on future renewable energy projects which will help push the industry to its next stage. With this aim, E.ON plans to invest €6 billion by 2010 to help move renewable energy projects from boutique to an industrial scale."
"London Array is an important investment for Masdar into the wind sector. We believe that the offshore wind market will be a major force in the future and this is a very opportune time for us to enter this developing segment of the renewable energy market," said Dr. Sultan Al Jaber, CEO of Masdar.
A delegation from E.ON and Masdar met with senior UK Government Ministers and officials on Friday to discuss progress on the project and to reaffirm the Government’s commitment to the London Array scheme.
Prime Minister Gordon Brown said: "I very much welcome Masdar’s decision to invest in renewable energy in the UK. This is an excellent example of the partnership we need between oil producing and oil consuming countries to develop new energy sources and technologies, diversifying their economies and reducing our dependence on carbon. The scale and vision of the London Array is groundbreaking, and places the UK at the forefront of offshore wind development".
Loading...