Britain signs green alliances with Gulf states

The agreements have been made with the United Arab Emirates’ multi-billion dollar renewable energy technology investment project Masdar, and with Qatar, through a £250 million low carbon joint venture investment fund.

The Memorandum of Understanding with Masdar, a wholly owned company of the government of Abu Dhabi – the capital of UAE – was signed today (November 4). It will see both the UK and UAE co-operating on renewable energy and low carbon technology and promises the prospect of millions of pounds from an oil rich state being pumped into UK technologies, such as on and offshore wind, carbon capture and storage, as well as solar and marine energy, over the coming years.

Masdar is the biggest fund of its kind, having received £10 billion of investment from the Abu Dhabi government this year. Last month, the fund invested in the London Array offshore wind farm project in the UK, which when built will be biggest wind farm of its kind in the world.

The £250 million partnership between Qatar and the UK, which is being described as groundbreaking, was signed yesterday (November 3) between the Middle East oil producing country and the UK’s Carbon Trust.

The Qatar-UK Clean Technology Investment Fund will seek to make venture capital investments in clean energy businesses primarily located in the UK. Alongside the Carbon Trust's commitment, the Qatar Investment Authority is investing £150 million in the fund, which will look for further funding from other investors to boost it to £250 million.

It also includes a commitment to undertake a feasibility study into developing a low carbon innovation centre in Qatar.

Both agreements are part of an effort by the UK Government to diversify its energy supplies and tackle climate change through global alliances.  

Commenting on the agreement with Masdar, Brown said: “The United Kingdom looks forward to collaborating with Masdar through this agreement, bringing together the best of British and Abu Dhabi expertise for the benefit not only of our two peoples but for the world as a whole."

Energy and Climate Change Secretary Ed Miliband, who was also present with Brown on the visit to the Gulf states, added: “These agreements show how Qatar and the UAE are serious about tackling climate change, diversifying their economies and providing secure energy supplies for the UK. The Gulf states recognise the UK too has natural assets, like wind, that offer investment opportunities for them.”

The visit to the Gulf comes ahead of The London Energy Meeting, a meeting in December of oil producing and oil consuming nations, to be chaired by Miliband.