By Amy Glass
Abu Dhabi-owned Masdar takes 20% stake in London Array project, UK PM welcomes deal.
Abu Dhabi’s Masdar has signed a deal with German-based energy firm E.ON to take a position in the construction of the world’s largest off-shore wind farm, the group announced on Thursday.
Masdar has taken a 20 percent stake in the UK’s London Array project, by purchasing 40 percent of E.ON’s half share in the project, the firm's said in a statement.
The cost of the stake was not disclosed. Denmark wind farm developer DONG owns the other half of the project.
Sultan Al Jaber, CEO of Masdar described the deal as an important investment into the wind sector.
“We believe that the off-shore 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.
“Through this project, we also hope to build a partnership with the UK government to drive the future growth of the renewable energy sector for the benefit of both our economies,” he said.
According to the statement, UK Prime Minister Gordon Brown welcomed the partnership.
“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,” Brown said.
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.
When fully operational, it would make a substantial contribution to the UK government’s renewable energy target of providing 10% of the UK’s electricity from renewable sources by 2010, the statement said.