28.01.2008 The first World Future Energy Summit, held in the United Arab Emirate of Abu Dhabi, has just ended. The emirate aims to become an alternative energy hub, by boosting research in this field. The summit brought together all sectors involved in the development of clean energies. Credit Suisse was the summit’s main sponsor.

The renewable energy industry may have found a new hub. The World Future Energy Summit (WFES), the first global meeting of energy for the future, ended in Abu Dhabi on January 23rd. About 3,000 participants from around the world attended the conference in the capital of the United Arab Emirates. Participants included heads of state from Iceland, Djibouti and the Maldives; the Prince of York and the US Energy Minister Samuel Brodman, the Foreign Trade Minister of the Netherlands, Frank Heemskerk, and government representatives from many other countries. Eight countries including Germany, Britain, the Netherlands and Austria had a stand at the exhibition which took place in parallel to the conference. Equally important as the presence of the states: 230 companies from the whole industry and from all over the world made the event into a real trade show. These included banks and other investors such as Credit Suisse - the main sponsor - and Merrill Lynch; energy giants with roots in the oil business such as BP, Shell, and Total; infrastructure companies such as Oerlikon Solar, Abengoa and MAN Solar Millenium as well as energy providers such as Vattenfall and Enel. Some of the best universities including the RWTH Aachen University, Imperial College London and MIT sent their main representatives in the subject.

Abu Dhabi, the New Renewable Energy Hub?
The event made clear: Abu Dhabi is aiming to become the global hub for renewable energy. To this end the Emirate is constructing a model village near its airport. Masdar is to become the first city in the world which emits no carbon dioxide and generates no waste. The city will produce its own energy, have no cars and use modern as well as traditional means to drastically reduce the use of natural resources. It is to be a place where research is conducted into renewable energies while the corresponding facilities are built next door. The model city is to be the home of 50,000 people and 1,500 companies. Masdar will make it easier for interested actors to find new sources of energy, said Abu Dhabi’s crown prince, Sheik Mohammed bin Zayed Al Nahyan, at the beginning of the summit. With the WFES the Emirate also brought together for the first time all actors from business and politics who are involved in the development of Masdar - as well as attracting others who are interested in this 15 billion dollar-strong project. The ground breaking is planned for February 9th.

All Renewable Energy Sectors Present
However the WFES was more than a meeting of actors interested in Masdar. It was the first summit to bring together all sectors involved in the development of renewable energies. Representatives of producers met with potential buyers of their facilities; with scientists, consultants, bankers and politicians. One is left with three main impressions: first, the industry has grown up. The “renewables” have come out of their corner and have become a promising business. With a worldwide volume of 100 billion dollars they can no longer be ignored. In view of the 3 trillion dollars per year which are still being spent on traditional energies, they still have a huge growth ahead of them. Wind energy alone has shown an annual growth of almost 30 percent this decade. It is the first new renewable source of energy which is competitively priced. In this sense, solar energy is also catching up. Second, the industry has become global.

In 2007 for the first time more wind power capacity was established outside Europe than on the continent which is home to renewable energy. In particular, wind power has established itself in the US; and biomass in Asia. Solar power works are now also appearing in the sun-rich belt of the world, such as in North Africa. The Gulf States are interested in the whole range of renewable energy sources. They want to reduce their own use of oil and gas in favour of solar and wind power, in order to expand increasingly lucrative exports. Finally, the WFES in Abu Dhabi may be the first business event of this scale to no longer ignore climate change, but rather to see it as an opportunity for innovative firms.

Credit Suisse’s Innovation Stall
The diversity of the branch could notably be seen at Credit Suisse’s stall. The British company, Beacon Power, offers power transmission products and services. Another British company, G24, produces solar modules. The British company Lotus Engineering advices the car industry. The Swiss firm Geberit is the European leader in sanitary technologies. Cleantech Network arranges risk capital for firms which produce clean technologies. “We contacted international firms with various technologies and sizes,” says Bernd Schanzenbächer, co-head of the Credit Suisse Environmental Business Group.

Alternatives for Fossil Fuels
However, questions remain. While the future of wind energy for a good part appears to lie on the water, the direction of other renewable energies is less clear. According to a representative of a large Spanish engineering firm, it is not yet clear what kind of solar power works will determine the future. For the alternatives to oil in individual mobility there are three main areas of research: fuel cells, electric motors and renewable fuels. None of these technologies are ripe, says Nigel Brandon of Imperial College London. The future of agrofuels is also open, with their reputation of wanting to secure the mobility of the rich at the cost of food for the worlds’ poor. The first world summit for renewable energies has created the possibility to discuss these and other questions with a broad circle of interested people.

The summit was a success. “I’m surprised in a positive sense about the big international presence and the high quality of the speakers attracted by the organisers”, says Bernd Schanzenbächer, head of the Credit Suisse Environmental Business Group. Ruud Dekker of MAN Solar Millenium is also pleased from a business point of view: “We have found a number of potential partners.” And also one of the pioneers of the green change of direction in politics and business, Klaus Töpfer, sees the meeting in Abu Dhabi as an important step. “It helps dispel the false image that renewable energies are just a ridiculed minority and it is extraordinarily important that it takes place in Abu Dhabi, which is so rich in fossil fuels.” As German Environment Minister at the end of the 80s, Töpfer made the rise of renewable energies possible by introducing state subsidies for alternative power products. Following this he was head of the UN Environment Programme in Nairobi. “In the past we were criticised for our compensation for electricity fed into the grid and subsidies. Now they are paying off. One feels vindicated.”

Second WFES in 2009?
The WFES is intended to take place regularly from now on. The second such event is planned for 2009. Abu Dhabi could become a second Davos with WFES, said the German Secretary of State for the Environment Matthias Machnig, referring to the annual World Economic Forum in the Swiss resort: a platform for future energy concepts, for cooperation and for international deals. The industry for renewable energy is taking off. Or, as Klaus Töpfer says, “We’ll be surprised at how quickly the ball with roll”.

More About the Masdar Initiative
Last year, Abu Dhabi made a historic decision to embrace renewable and sustainable energy technologies by launching the Masdar Initiative, a project launched with the backing of the Abu Dhabi Future Energy Company (ADFEC), which has been mandated to drive Masdar, champion the adoption of advanced energy technologies, and contribute to the diversification and sustainable growth of the Abu Dhabi economy. Also in 2006, as part of the government’s initiative, Credit Suisse, ADFEC and other partners launched the 250-million-dollar Masdar Clean Tech Fund (www.masdarctf.com), which invests in clean energy and sustainable technologies, thus contributing to the economic diversification of the Gulf region.
For more information on WFES visit www.wfes08.com

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