The British government's Department of Energy & Climate Change has announced that a deal will be signed on Wednesday that will see Abu Dhabi invest $1.5 billion into the UK's alternative energy sector.
The deal, which will see around $1.5 billion invested over the next seven years, will be between the UK Green Investment Bank (GIB), a recently established institution that helps to attract foreign capital to the country's green energy sector, and Masdar, the state owned renewable energy company.
Masdar has already invested $500 million in the giant London Array offshore wind farm.
Related Article: Can Obama Lame-Duck His Way to a Greener Future?
The British government explained that "the creation of the Green Investment Bank is one of the Coalition Government's key green achievements. Initially capitalised with a huge injection of £3 billion, we always intended this brand-new financial institution to act as a catalyst to attract other finance into the UK Low Carbon economy."
Dr. Sultan Ahmed Al Jaber, the CEO of Masdar, stated that "this alliance is a big step in that direction, and a huge vote of confidence in the UK clean energy sector."
Shaun Kingsbury, the CEO of the GIB, said that "this new Memorandum of Understanding is a bold and exciting statement of intent. GIB and Masdar are new organisations - the first of their type in the world. We'll be working together closely to bring investment to UK clean energy projects and to share our expertise and experience."
By. Joao Peixe of Oilprice.com
Joao is a writer for Oilprice.com More