By Gavin Davids
UAE based Masdar will monetise emission reductions and purchase carbon credits.
Masdar announced on Wednesday that it had signed an agreement with the Egyptian Sugar and Integrated Industries Company (ESIIC) to develop a fuel switch project under the guidelines of the Kyoto Protocol’s Clean Development Mechanism (CDM).
ESIIC will invest over $7.5 million into the project, which hopes to replace the company’s consumption of mazut fuel oil with natural gas. It is expected to reduce carbon dioxide emissions by the equivalent of 57,000 tons per year, for a period of ten years.
Commenting on the agreement, Sam Nader, director, Masdar Carbon, said: “We hope this agreement will act as a catalyst for other organisations to explore the financial and environmental benefits that CDM can offer.”
Masdar will monetise the emission reductions and provide the advisory services required to register the product at the United Nations, in line with the requirements of the Kyoto Protocol’s CDM.
The company will also support the project’s execution in coordination with ESIIC. It will purchase the resulting carbon credits, which, it hopes, will provide financial incentives for the development of the project.
During talks with Malaysia over plans for its first carbon neutral city, Dr Sultan Ahmed al Jaber, Masdar CEO, said: “We are committed to building strategic partnerships and creating worldwide networks in the push for new, low carbon energy technologies and clean, sustainable ways of living.”
The UAE government funded Masdar has been heavily involved with the country’s plan to cut both emissions and prepare for a future less dependent on oil.
Along with the carbon neutral city in Malaysia, Masdar is in the advanced stages of constructing Abu Dhabi’s own carbon neutral city, Masdar City. The first phase of that project will be operational in 2013.
Hassan Noman added: “Through the cooperation between Masdar, we aim to significantly reduce our emission targets over the next ten years, and alleviate the negative impact that they are having on the environment.” (Reuters)