Energy sustainability in the desert

Against the backdrop of the UAE’s extraordinary oil and gas reserves and some of the world’s highest per-capita energy consumption and waste generation, the Masdar development looks set to transform the way developers look at the issue of sustainable development.

“Renewable energy continues to make absolute sense, even in difficult times such as these”
-Sultan Al Jaber

Abu Dhabi has a bold plan: to transform itself into a world leader in sustainability and newer, cleaner energy technologies. At the forefront of this vision is the construction of a city of 40,000 inhabitants with a zero-carbon footprint that will be powered entirely by renewable energy – a surprising goal, given that the emirate sits atop nearly one-tenth of the world’s oil reserves. Why is a nation so rich in hydrocarbons focusing on developing alternative energy sources? “The answer is simple,” says Sultan Al Jaber, Chief Executive Officer of Masdar, the developers planning the city. “Number one, because we can. Number two, because we should. And because this is a logical step and a natural extension for our involvement in the energy markets.”

Masdar promotes a long-term commitment to meeting the world’s growing energy needs in an environmentally sustainable manner, through the development of innovative and sustainable technologies. Throughout the world, leading universities, research centres and manufacturers are making great strides in the advancement of renewable energies and systems. The Masdar development will bring all these together in one ambitious plan.

For starters, the city will be car-free, powered by renewable energy with services digitally managed and providing real-time information. With a maximum distance of 200 metres to the nearest transport link and amenities, the compact network of streets will encourage walking and is complemented by a personalised rapid transport system. Shaded walkways and narrow streets will create a pedestrian friendly environment, while surrounding land will contain wind, photovoltaic farms, research fields and plantations, enabling the city to be entirely self-sustaining.

“There is nothing like this in the world,” explains Al Jaber. “We are creating a synergetic environment; it is a true alternative energy cluster. Here you will find researchers, students, scientists, business investment professionals and policymakers all within the same community. It will be a living example of sustainable development that will position Abu Dhabi and Masdar at the forefront of intelligent resource utilisation. And it will combine the talent, expertise and resources to enable the technological breakthroughs necessary for truly sustainable development.”

It’s a sizeable undertaking. The masterplan sets out a vision for a compact campus-style research and development infrastructure that provides a blueprint for a sustainable, socially vibrant mixed-use community. Special economic zones will attract the best in the fields of manufacturing and provide employment for the emerging students. The creation of new production facilities will help the region become an exporter of new technologies and a positive engineering base.

The blueprint documents encompass waste, energy, water and transport infrastructures as well as other aspects such as lifestyle, cultural heritage, climate and biodiversity. “We believe that a blueprint for sustainable urban development on the Masdar site is possible by combining innovative energy and environmental technologies with traditional principles of climatic and culturally responsive city planning in compact settlements throughout Arabia and other parts of the world,” says Al Jaber.

“For the first time in history, more than half of the world’s population now lives in cities, with their traditional energy inefficiencies, waste and pollution,” he says. “We must fundamentally re-think how cities can conserve energy and other resources. We must heavily employ new technologies and even create new urban models, as we are doing in Masdar City. Abu Dhabi recognises that a range of solutions are required to meet future energy needs, and Masdar reflects our leadership’s strategic vision to continue its role as a global energy leader.”

Challenging times
It is a compelling, if somewhat ambitious, vision of the future. But even with the backing of the Abu Dhabi government and an increased public appetite for greener, more environmentally friendly projects, the development faces some significant challenges – not least of which is the global economic slowdown. For one thing, the price of oil – Abu Dhabi’s most valuable resource – has plummeted to less than a third of its peak value last summer. In addition, the investment climate has slowed significantly as access to the credit markets has tightened.

“We cannot ignore that 2008 has been a difficult year,” admits Al Jaber. “The scale of the world’s financial challenges has had an impact on nearly every sector in the global economy, including renewable energy. The lack of available capital and lower oil prices has certainly created some doubts about the renewable energy sector and whether it can maintain its relevance and continue attracting investment in these difficult times. However, we should not accept this perspective. Renewable energy continues to make absolute sense, even in difficult times such as these.”

Indeed, he points out that for those who are capable of looking beyond the current economic downturn, there are many signs that point to the renewable energy sector’s undeniable momentum and long-term viability. “There are national policy commitments and significant investments in renewable energy taking place all over the world,” he explains. “In the United States, President Obama has pledged to invest US$150 billion dollars in clean energy over the next 10 years. In the European Union, the European Parliament recently signed into law a series of measures designed to reduce carbon emissions by 20% by the year 2020. And in Australia, the federal government has just established a multibillion-dollar renewable energy investment fund.”

More importantly for the UAE and the region as a whole, significant progress is now being made closer to home, too. “Abu Dhabi has announced it will publish a comprehensive energy policy that includes a commitment that, by 2020, renewable energy sources will account for at least 7% of the emirate’s total power generation capacity,” says Al Jaber. “This is a bold statement from an OPEC member-state with an economy that is dominated by oil and gas. It is a testament to the environmental commitment of Abu Dhabi’s leadership, and should raise confidence in the long-term viability of renewable energy in this part of the world.”

It’s a decision that will also have positive economic impacts. It is estimated that Abu Dhabi’s 7% renewable energy target will create a market that is worth US$6-8 billion dollars over the next 10 years. This represents a significant business opportunity for many local and international companies. The city will provide up to 1500 companies with an attractive package of incentives, including a one-stop-shop program of government services, transparent laws, 100% foreign ownership, a tax-free environment, intellectual property protection and proximity to nearby manufactures, suppliers and markets.

In addition, some commentators believe that the current global financial difficulties could actually provide something of a blessing in disguise for Masdar. Company officials have revealed that offers have come flooding in from firms looking to set up their units at the new city development due to the lack of opportunities elsewhere for those in the green industry. Investment costs have also come down because of the fall in the prices of items like photovoltaics, steel and other commodities.

A leadership role
According to official estimates, Masdar will contribute 2% to the GDP of Abu Dhabi when the project is completed, through massive employment generation, savings on oil costs, the development of intellectual property and other economic factors. But the developers hope that the city can contribute much more to future generations.

“The world today faces two major challenges: global warming and the need to meet the ever-growing demand for energy,” says Al Jaber. “Leadership in both areas is needed. In Masdar we believe we can deliver practical leadership by showing what can be done, and by demonstrating how to do it. It is an ambitious aim, but one we are confident we can deliver. Our initiatives include substantial investment in innovative and renewable energy technologies; the fostering of talent, expertise and knowledge sharing in renewable energy disciplines; the construction of local and regional green power production facilities that complement and balance fossil fuel production; the reduction of carbon emissions through active participation in carbon markets; and the creation of a model, zero-carbon, zero-waste city that demonstrates the practical viability and appeal of living in alternative energy environments.”
 
And despite the current economic conditions, the initiative is beginning to build momentum. The recently built Masdar Institute of Science and Technology (MIST) will admit its first students next year, while the first phase of the city is already under construction. Masdar has built up a big portfolio of renewable-energy investments, including a stake in an offshore wind farm in Britain and three solar-thermal power plants in Spain, and has placed an order for machinery for two solar-panel plants: one that is already under construction in Germany, and another that is to be built in Abu Dhabi itself. It is also attracting interest from some of the biggest names in business. MIT is helping MIST with the recruitment and training of its faculty. Credit Suisse has invested $100 million in the initiative’s clean-tech fund (the same amount as Masdar itself). Foster + Partners, the renowned British architecture firm, has come up with the masterplan for the city itself. And BP and mining giant Rio Tinto will collaborate on a carbon-capture and storage scheme.

Masdar is working with such partners not because it lacks capital, says Al Jaber, but because it wants to take advantage of foreign expertise and have its ideas independently scrutinised. “Looking at recent local and international commitments, it is our view that the world has reached a tipping point in the acceptance of renewable energy,” he affirms. “We have a long, challenging journey ahead of us, but we are heading in the right direction and the progress we are making is irreversible.”

Cynics have suggested that it is in its own best interests for Abu Dhabi to diversify away from a carbon economy – so that when the oil runs out (which it eventually will), the emirate will be handily placed to sell the world solar, wind or whatever renewable technologies will be needed to supply people’s energy needs. But this is missing the point.

“The development of clean sources of energy is a global responsibility with benefits for every aspect of life on our planet,” agrees Al Jaber. “We recognise that, to achieve our aspiration to play a leading role in fulfilling this responsibility, we need to collaborate with a broad range of partners who share our vision and commitment to a cleaner future. We are investing considerable resources to create a groundbreaking global network that fosters creativity and encourages innovation.

“This is just the beginning of a long story,” he concludes. “Our aspirations are broad and our ambitions global. It is going to take time for Abu Dhabi to become a truly global centre of excellence, but we are committed to making that happen.”

A busy year

In the past 12 months, Masdar has made significant advancements across the full spectrum of renewable energy solutions to help build a renewable energy sector in Abu Dhabi and to accelerate the deployment of clean technologies globally.
• Breaking ground on the development of Masdar City, the world’s first carbon-neutral city
• Building a solar manufacturing plant in Germany, creating green-jobs and technical know-how to transfer to Abu Dhabi
• Enrolling a pre-class of students at the Masdar Institute, the world’s first graduate institution dedicated to future energy solutions
• Investing in leading renewable technologies, forming joint ventures and R&D partnerships to apply scale and capital to accelerate technology deployment and commercialisation

Future visions

Masdar is comprised of six strategically designed and focused units:

MASDAR INSTITUTE OF SCIENCE AND TECHNOLOGY. In partnership with the MIT, will offer Masters and PhD programs in science and engineering focused on advanced energy and sustainable technologies
MASDAR RESEARCH NETWORK. A unique collaborative network of world-class scientists and post-doctoral researchers linking the Masdar Institute and seven leading global scientific research institutions in three continents
INNOVATION & INVESTMENT. The investment and commercialisation vehicle for advanced energy and sustainability technologies
SPECIAL PROJECTS. Develops capital-intensive projects including large-scale manufacturing and deployment of new energy technologies and systems
CARBON MANAGEMENT. Spearheads the development of multi-sector greenhouse gas reduction projects
MASDAR ZONE DEVELOPMENT. A unique, integrated Green Community in the heart of Abu Dhabi hosting Masdar and a carefully selected pool of international tenants who will invest, develop, and commercialise advanced energy technologies

The masterplan

A low-rise, high-density approach allows the buildings to be more sustainable in terms of their energy usage and enables them to make better use of energy and recycling systems. Perhaps more importantly, it is also key to the creation of communities and neighbourhoods. High densities not only achieve the benefits of a more concentrated urban form in terms of energy efficiency, but also represent a more effective way to provide urban vitality and quality of life for the population. Inspired by the culturally and climatically responsive traditional cities of the Arab region, the guiding principle of the masterplan proposal is to create a sense of community and shared commitment to social and environmental responsibility.

The Masdar development also fundamentally changes the most unsustainable aspect of contemporary cities: the reliance on motorised private transport. Instead, it promotes pedestrianised routes to satisfy a basic quality of life in an urban environment. The necessary precondition for walkable, pedestrian-friendly urban environments requires a balanced programme of mixed-uses that will complement a dense urban population. Shaded walkways and narrow streets aligned with cooling breezes make walking a reality even in this extreme climate. In addition, personalised rapid transport systems allow easy access to all areas of the city without the need for cars. A maximum distance of 200m to the nearest transport link has been imposed to ensure a flexible and efficient system.

The clearly demarcated external wall of the development mirrors the tightly planned, compact nature of traditional fortified or walled cities throughout the ages. It also has the added benefit of controlling urban sprawl. A phased approach to the expansion of the city allows growth and expansion without the negative effects of sporadic development. It also set limits for the city in terms of its zero carbon credentials and its ability to sustain itself.

The requirement for the surrounding land is also essential in allowing the city to farm it’s own energy and research. It consists of a series of energy-creating measures such as wind and photovoltaic farms that are manufactured in specially built factories outside the wall zones generating energy for the construction phases. The support land also houses testing fields, research centres, plantations and recreation facilities, as well as being home to the water management and desalination facilities that will recycle water for the inhabitants and grey water for the irrigation systems. The support land forms the basis of the city’s future by providing the capacity to generate and manufacture fuel and energy with potential for export.