Abu Dhabi to Invest in London Array

27 October 2008

Abu Dhabi to Invest in London Array

Photo: Mads Armgaard

E.ON and Abu Dhabi-based company Masdar have joined forces to partner in the London Array offshore wind farm project – which, when built, will be the world's largest offshore scheme. The two partners will also extend their relationship further and intend to work together across a range of potential projects that will complement their existing renewable energy strategies.

Masdar has entered into the London Array scheme through a joint venture agreement with E.ON, which currently owns half of the landmark project. DONG Energy owns the other half. Under the agreement, Masdar has purchased 40 per cent of E.ON's half share of the London Array scheme, giving Masdar a 20% stake in the project overall. Masdar will become an important shareholder in the project which could significantly expand the UK's renewable energy capacity.

E.ON CEO Dr. Wulf Bernotat said: “The London Array offshore wind farm scheme is a pioneering project and marks a significant increase in scale for offshore wind farms in the UK, and also for E.ON. We welcome the Government's continued support for the London Array scheme as we move forward with our partners to realize this important project. As with all major steps forward in our industry, the project will raise important challenges and the lessons we learn will be vital for the development of the next generation of offshore projects. We have secured in Masdar a strong partner to work with us on the London Array scheme and on future renewable energy projects which will help push the industry to its next stage. With this aim, E.ON plans to invest €6 billion by 2010 to help move renewable energy projects from boutique to an industrial scale.”

Photo: Lars Sundshøj

The agreement signed today in London brings together the two successful companies' complementary resources and experience to partner with each other on a wide range of renewable energy projects. Initially, the focus of the agreement will be on wind power and the UK's London Array project. As the partnership develops over the coming months, the companies expect to be able to announce a series of exciting projects across the broad spectrum of renewable energy. Early discussions about potential projects have focused on the area of carbon emission reduction. Both companies would look to jointly develop JI/CDM projects that would reflect both parties' technical expertise in these areas.

Prime Minister Gordon Brown said: “I very much welcome Masdar's decision to invest in renewable energy in the UK. 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”.

http://www.eon.com/

http://www.londonarray.com

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