Abu Dhabi-based Masdar to begin work on London wind farm

The group, which is wholly-owned by the Mubadala Development Company, and by extension Abu Dhabi itself, issued a joint statement along with project partners Denmark-based Dong Energy and German power company E.ON.

'The leadership of Abu Dhabi recognizes the importance of global collaboration and engagement to deploy renewable energy on a large scale,' said CEO Dr Sultan Al Jaber.

'The London Array represents Masdar's strategic approach to renewable energy, whereby real partnerships are formed between government and the private sector.'

Dong Energy owns 50% of the project, with E.ON owning 30% and Masdar 20%, which it bought from E.ON in October 2008. The group has jointly invested Dhs11bn in the first phase of the scheme.

The London Array is set to be the world's largest offshore wind farm, capable of producing 1GW of energy once completed. Set on a 90 square mile site in the Thames Estuary, construction on the first phase, which will deliver an estimated 630MW, is to begin in the summer. The project is scheduled to produce the first renewable power in 2012.

The project had shown signs that it might be cancelled following difficulties in raising funding, but the British government last month offered funding for offshore wind power generation projects, supporting the London Array's viability.

Green capital

Although the UAE is primarily looking at solar power as its main alternative to conventional energy sources, wind power is also a primary focus. Last September Masdar invested $175m in Finnish wind turbine manufacturer WinWind.

Abu Dhabi is also gearing up for its bid to become the host city for the interim, and subsequently official, headquarters of the International Renewable Energy Agency, which the government has said would be located within Masdar City. Having officially announced its candidature earlier this month, the city is awaiting a decision from a vote of the agency's 78 member states during its preparation committee meeting to be held in June in Egypt.

The UAE capital's bid is supported by the Arab League, and is the only one by a developing country. Austria, Germany and Denmark are also competing to become the host nations.