Abu Dhabi lining up massive investment in UK clean energy sector

Abu Dhabi has plans for massive investments with the Green Investment Bank (GIB) in the UK's clean energy sector.

Masdar, Abu Dhabi's state-backed renewable energy company has signed a Memorandum of Understanding with the GIB during a state visit to the UK by president of the United Arab Emirates, Sheikh Khalifa bin Zayed Al Nahyan at Buckingham Palace.

Though the investment figure has not been confirmed by DECC, according to press reports it could be as much as £1 billion.

The world's largest offshore wind farm, UK's London Array has already received over £500 million from Masdar with its stake in the farm. The Green Investment Bank started lending money this year and has a total of £3 billion to encourage firms to spend on green energy and efficiency technology.

The two would now look at making joint investments in green infrastructure projects in the UK over the next seven years.

According to climate change minister Greg Barker the alliance was a ''huge vote of confidence'' in the UK clean energy sector.

He added, the agreement was about more than just money. He added, given the pioneering low carbon achievements of Masdar, it made strong strategic sense too.

The MoU would be signed by Masdar CEO Dr Sultan Ahmed Al Jaber and GIB CEO Shaun Kingsbury.

Kingsbury said the new MoU was a bold and exciting statement of intent. He added, GIB and Masdar were new organisations - the first of their type in the world. He added the organisations would be working together closely to bring investment to UK clean energy projects and to share their expertise and experience.