Masdar fund to focus on solar and water projects

London, 16 November: Solar energy and water projects will account for 55% of the investments by Abu Dhabi's new $250 million Masdar Clean Tech Fund, it was announced this week.

$75 million will be invested in venture capital funds focussing on "cutting-edge clean technologies" and the remaining $37.5 million will be invested directly in technologies such as renewable energy, energy efficiency, and carbon management and monetisation.

It will also aim to make 25% of its investments in 'early stage' companies, 45% in 'growth stage' and 30% in 'late stage' companies. Within these criteria, it will seek to focus on technologies that are potentially suitable for commercialisation in the United Arab Emirates.

The Masdar fund was created by the Abu Dhabi Future Energy Company, investment bank Credit Suisse and Consensus Business Group, a London-based property investment company (see Environmental Finance, October 2006, page 4).

The realities facing Gulf countries in terms of water, power and other environmental issues are making demand for clean technologies "a pressing necessity rather than a luxury or short-term politics", the fund managers said.