The project, in which ESIIC will invest over 40 million Egyptian Pounds (7.5 million USD), will replace the company’s consumption of mazut fuel oil with natural gas and is expected to reduce carbon emissions by an equivalent of 57,200 tons of carbon dioxide (CO2) per year for a period of 10 years.
Masdar will monetize the emission reductions and provide advisory services required to register the project at the United Nations in line with the requirements of the Kyoto Protocol’s clean development mechanism (CDM). Masdar will support the project execution in coordination with ESIIC and purchase the resulting carbon credits, thereby providing financial incentives for the development of the project.
Commenting on the agreement, Hassan Kamel Hassan Noman, CEO of ESIIC said, “This agreement marks an important milestone for ESIIC and we are proud to be paving the way within the sugar industry to develop a fuel-switch under the guidelines of the Kyoto Protocol’s Clean Development Mechanism (CDM). Through the cooperation with Masdar we aim to significantly reduce our emissions targets over the next 10 years and alleviate the negative impact that they are having on the environment.”
“This is our first CDM project in Egypt and we look forward to supporting ESIIC in its quest to reduce its carbon emissions,” added Sam Nader, director of Masdar Carbon. “We hope this agreement will act as a catalyst for other organizations to explore the financial and environmental benefits that CDM can offer. This project reinforces Masdar’s commitment to promote energy efficiency and sustainability in the region.”
ESIIC is a public sector company owned by the Egyptian government. It is considered as one of the largest industrial entities in the Middle East, and owns more than 20 plants for production of sugar and other related products.
The total assets of ESIIC is more than 1.5 billion USD, the total operating revenues is more than 800 million USD, and more than 20,000 employees.
ESIIC intends to transfer all of its factories in Upper Egypt to work with N.G instead of heavy fuel oil within three years to reduce the emission of CO2 to participate in keep environment clean according to Kyoto protocols.
Masdar is Abu Dhabi’s multi-faceted initiative advancing the development, commercialization, and deployment of renewable and alternative energy technologies and solutions. Masdar is driven by the Abu Dhabi Future Energy Co. (ADFEC), a wholly owned company of the government of Abu Dhabi through the Mubadala Development Co. For more information, visit www.masdaruae.com.