Green Investing gone Haywire

Masdar,Abu Dhabi’s Renewable Energy company is facing a rocky time  as top executives have left the company or been shown the door.The resignation of its Research Head follows a long line of resignations and dismissals as its whole ambitious Renewable Energy strategy unravels.Masdar had tried to invest in almost every area of the still nascent Green Industry without worrying about the returns (it seems).Solar,Wind,CCS,Green Buildings,Energy Efficiency – Hardly any Green sector was left out of Masdar’s Investment Sphere.With the Green Sector facing a rough time with the onset of the Global Financial Crisis,only the best have managed to thrive.Masdar despite massive financial backing has suffered a number of setbacks as it jack of all trades strategy has backfired.

Jack of all Trades Master of None

Oil Rich Abu Dhabi had decided to make a major push into Green Energy with plans to build the world’s first carbon free Masdar City.Along with this initiative,Masdar also invested heavily into research and manufacturing in various green areas.However its lack of a cohesive strategy and recent setbacks have made it reexamine its whole approach.Masdar’s lack of a comprehensive focus is reflected in its investment into various areas like Solar Thermal plants in Spain,Offshore wind in UK,Manufacturing of Thin Film Solar modules in Germany and Research JV with MIT.This haphazard strategy has already made it focus on solar thermal technology as its thin fim division faces huge troubles.It is also planning to scale back its Masdar City ambitions which was supposed to be the first carbon neutral city in the world.With Abu Dhabi’s  huge investment and reputation at stake , Masdar will continue to survive.However it will need a major management effort to turnaround its fortunes as it needs a complete overhaul of its strategy.It needs to decide whether its an Investor,Manufacturer or a Real Estate player.

U.A.E. Masdar Said to Lose Research Chief in Year One – Bloomberg

Tariq Ali quit as head of research at Masdar Institute of Science and Technology after a year in the post, said two people familiar with the matter, the latest departure from Abu Dhabi’s flagship renewable energy project.Dan Weisser, head of real-estate investments at Masdar City, and the head of the program management department Alistair Murray are also leaving, said two people familiar with each departure, declining to be identified because they are not authorized to speak with the media.

The resignations follow a strategic review of Masdar, a $22 billion company funded by the government of Abu Dhabi as it seeks to become an international hub for renewable energy. Founded in 2006, Masdar includes a research university as well as units that plan to invest in solar power and carbon capture and storage in a country that is one of the world’s biggest per capita producers of carbon emissions.“It is well-known that the company was reconsidering the original plans for Masdar City,” said Eckart Woertz, an economist at the Gulf Research Center in Dubai. Resignations “might hint to some problems at the university, but a lot of the renewable energy projects will go ahead as planned,” Woertz said, referring to an accord Masdar signed June 9 with Total SA and Abengoa SA to build the Middle East’s biggest solar plant.