Masdar and Bahrain Oil and Gas Authority partner to reduce carbon emissions

Manama - June 23, 2009 (WAM) - Masdar - Abu Dhabi's multi faceted renewable energy and sustainability initiative, wholly owned company of the government of Abu Dhabi through the Mubadala Development Company, signed a framework agreement with Bahrain's National Oil and Gas Authority (NOGA) to develop carbon emission reduction projects and monetize the carbon reductions under the Kyoto Protocol's Clean Development Mechanism (CDM) in Bahrain.
The partnership provides a framework for cooperation under which Masdar will work alongside NOGA to identify, study and develop CDM projects within the oil and gas sector in Bahrain.
CDM is a framework under the Kyoto Protocol which allows companies in developing countries to realize revenues by turning emission reductions into tradable assets or carbon credits through a mechanism governed and audited by the United Nations. As a result, CDM is playing a crucial role in assisting developing countries to achieve sustainable development and face the challenges of climate change.
"This agreement leverages the strong ties that exist between our countries and emphasizes our shared commitment to promote environmental responsibility" said Dr. Sultan Al Jaber, Masdar Chief Executive Officer. "This initiative by NOGA will unlock the carbon reduction potential in the oil and gas industry in the region."
The agreement mainly focuses on carbon emission reductions derived from energy efficiency projects in the upstream, transportation and downstream parts of the industry as well as a close collaboration on research and information exchange related to clean energy and sustainable technologies.
Speaking at the signing of the agreement, Dr. Abdul Hussain Bin Ali Mirza, Minister of Oil '&' Gas Affairs and Chairman of NOGA in Bahrain, said "Driving a sustainable and environmentally friendly oil and gas industry is of prime interest to our leadership, and we consider our engagement with Masdar an important milestone in this process". "We share Abu Dhabi government's vision to promote clean and renewable energy in the region, and we support the United Arab Emirates' efforts to host the International Renewable Energy Agency in Abu Dhabi" he added.
The recently established IRENA is mandated to become the main driving force for promoting a rapid transition towards the widespread and sustainable use of renewable energy on a global scale.
The UAE submitted its bid on April 29, 2009 highlighting its position as a politically neutral country with close ties to emerging and developed nations - able to engage both equally and help IRENA fulfil its mission.
The UAE is proposing to host the headquarters of IRENA in Abu Dhabi at Masdar City, the world's first carbon-neutral, zero-waste city and a new global hub for the intellectual and technological development of renewable energy. Masdar City is home to the Masdar Institute, the region's first post graduate level, research driven, scientific institution focused entirely on renewable energy.
Moreover, in the UAE, IRENA employees will be able to live their mission in the Masdar headquarters building - the world's first large-scale, mixed use positive energy building, producing more energy than it consumes. The IRENA facility will be custom-built within the signature building.
The UAE offer to IRENA allocates more than US$135 million to incubate the agency in its first 6 years, of which US$70 million in cash, approximately $12 million annually in perpetuity and access to a $50 million annual soft loan from the Abu Dhabi Fund for Development (ADFD) allocated through IRENA.