Abu Dhabi state-owned firm Masdar is planning to develop the Gulf’s first geothermal power plant
Abu Dhabi state-owned firm Masdar is planning to develop the Gulf’s first geothermal power plant at a cost of USD11bn and is also looking to raise between USD300m and USD600m in new funding. Masdar has awarded a USD1.6bn drilling contract to Icelandic firm Reykjavik Geothermal and will select further contractors by the end of the year. Drilling is set to begin early next month. Electricity generated at the geothermal plant will be used to meet the 5MW energy requirements of Abu Dhabi’s air conditioning systems.
Masdar plans to raise the new funding over a seven-year period, starting from the beginning of next year. It will use the capital to support the development of Masdar City, which is aiming to be a zero-carbon and waste settlement for a population of around 50,000.
In June, Masdar Clean Tech Fund said it would launch a second venture capital fund of at least USD250m later this year.