Abu Dhabi-based state-run renewable energy company Masdar will form a £1bn joint venture with Green Investment Bank (GIB) to explore renewable energy sector in the UK.
Masdar and GIB are scheduled to sign a memorandum of agreement (MoU) on 1 May 2013 at Buckingham Palace, London.
Under the terms of the agreement, the two companies will jointly invest in the country’s green infrastructure projects over the next seven years.
Commenting on the alliance, UK Energy and Climate Change Minister Greg Barker stated that the agreement with Masdar will help GIB’s goal to procure additional funds for the UK Low Carbon economy.
"This alliance is a big step in that direction, and a huge vote of confidence in the UK clean energy sector.
"But this agreement is about more than just money. Given the pioneering Low Carbon achievements of Masdar, it makes strong
strategic sense too," explained Barker.
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By GlobalDataThe collaboration is said to be on the back of British Prime Minister David Cameron’s lobbying with Emirati state energy investors including Masdar, seeking invest in the country’s energy sector.
Masdar CEO Dr. Sultan Ahmed Al Jaber noted that through this partnership UAE and UK are striking a strong bond to further clean energy resources of the country.
"This collaborative investment effort will not only strengthen those ties, it has the potential to pay healthy dividends for both countries," added Al Jaber.
Prior to this alliance, Masdar has marked its foray into UK renewable energy sector by investing nearly £500m through its equity stake in the UK London Array offshore wind farm.