Masdar, a wholly-owned subsidiary of Mubadala Development Companyfocused on renewable energy and sustainability, and E.ON, one of theworld’s leading utility companies, today announced an agreement toestablish E.ON Masdar Integrated Carbon (EMIC), a joint venture companyfocused on developing carbon emission reduction projects on the globalmarket.
Headquartered in Abu Dhabi’s Masdar City, EMIC willcapitalize on the growth in the carbon market to monetize emissionreductions resulting from improving the energy efficiency of industrialfacilities. The company will develop, finance and implement projects inthe Middle East, Africa and Asia with a particular focus on powergeneration and oil and gas. The emission reductions will be monetizedin the form of carbon credits and traded under the current UnitedNations based Clean Development Mechanism or other applicable futureinternational climate trading schemes.
Masdar CEO, Dr. SultanAhmed Al Jaber said: “This initiative builds on our already establishedsuccessful relationship with E.ON and our matching vision about thecarbon market and the choice of technology. It is a good opportunity toleverage our competitive advantage to create value on the globalmarket."
EMIC will be one of the leading edge companies in thefull value chain management of a carbon abatement projects and will beable to achieve this all in-house.
The new joint venture willcapitalize on the strengths of its parent companies to identify anddevelop opportunities within the target markets. Projects will focus ontechnologies with large carbon abatement reduction potential, namely:fuel switching, open cycle to combined cycle gas turbine conversion,gas pipeline leakage reduction and gas flare reduction.
FrankMastiaux, CEO of E.ON Climate & Renewables added: “This activityfocused on the carbon market will add another strong pillar to thealready substantial business relationship between E.ON Climate &Renewables and Masdar in the space of sustainable and renewable energy.The JV underlines both our strong commitment to create a globalproject-driven carbon abatement business. Masdar and E.ON’s combinedsignificant and complementary expertise and market exposure will givethe new company a leading edge in the market."
The global carbonmarket has witnessed sharp growth in recent years reaching $168 billionin 2009, with a 68 percent increase over 2008 in global trading volume.
Theestablishment of EMIC is subject to obtaining the required regulatoryapprovals and completion of other conditions precedent to closing;these are expected to be finalized during the first quarter of 2010.