Abu Dhabi looks to raise $600M for renewable energy hub, Masdar City
Masdar, Abu Dhabi’s state-owned energy company, announced over the weekend that it will be raising between $300 and $600 million to start construction on Masdar City, the massive planned hub for cleantech research and innovation, especially in the renewable energy sector. As its name suggests, the development will also be a zero-carbon, zero-waste city for about 50,000 residents, the government in the United Arab Emirates capital claims.
Today, the company followed up with more news that Masdar City will be home to the Persian Gulf’s first geothermal energy facility, which will be used to power its 5-megawatt air conditioning system. Engineers will start drilling wells as soon as Nov. 1. Water will be pushed into these hot wells to be converted into steam, which will then turn turbines. This project alone is estimated to cost $11 billion. So far, it has signed one $1.6 million contract with Reykjavik Geothermal, a company from Iceland, where Geothermal expertise runs deep. Masdar says it plans to recruit five to six more contractors by the end of 2009.
Last year, the price tag on the so-called Masdar Initiative was $15 billion — but it has grown quickly since. Most of the money will be used for the town’s infrastructure, but some will provide financial underpinnings for the research organizations setting down roots there, including the Masdar Institute of Science and Technology, the International Renewable Energy Agency (IRENA), and a host of green energy ventures. Last year, the Masdar Clean Tech Fund funneled $250 million into these companies.
The $600 million sought would give the project seven years of runway, enough time to complete the first phase of construction. Dow Jones’ VentureWire reported that Masdar shot down rumors that it was also seeking $18 billion from international banks.
Other than the recent geothermal development, the bulk of Masdar City’s energy will come from solar sources, including a 500-megawatt solar-thermal plant and a 100-megawatt concentrating solar array (in which mirrors are used to concentrate sunlight on solar cells for greater output). It also plans to make major investments in thin-film solar arrays. Hydrogen fuel cells will provide a substantial amount of power, as well.
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About the Author, Camille Ricketts
Camille is the lead writer for GreenBeat. She came to VentureBeat from Google where she worked on its traditional platforms team, particularly in TV. Before that, she was a reporter for the Wall Street Journal in New York and London. Follow her on Twitter at @camillericketts, and follow VentureBeat on Twitter at @venturebeat.
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