A total of 12 companies have gathered in Munich to sign a memorandum of understanding to establish the Desertec Industrial Initiative (DII), which will develop a framework for carbon-free power generation in the deserts of North Africa.
The founder companies of the DII, whose regional focus is on Europe, the Middle East and North Africa (Mena), are ABB, Abengoa Solar, Cevital, Deutsche Bank, E.ON, HSH Nordbank, Man Solar Millennium, Münchener Rück, M+W Zander, RWE, Schott Solar and Siemens.
According to a statement issued by Munich Re, the Desertec concept, developed by the Trec Initiative of the Club of Rome, describes the perspectives of a sustainable power supply for all regions of the world with access to the energy potential of deserts.
Among the DII’s main goals are the drafting of concrete business plans and associated financing concepts, and the initiating of industrial preparations for building a large number of networked solar thermal power plants distributed throughout the Mena region.
The aim is to produce sufficient power to meet around 15% of Europe’s electricity requirements and a substantial portion of the power needs of the producer countries.
All of the DII's activities will be aimed at developing viable investment plans within three years of its establishment.
Besides the business opportunities for the companies, there are other economic, ecological and social potentials, which include the need for energy, water and climate security.
The DII planning entity is to be established as a GmbH (limited liability company) under German law by October 31, 2009. It is envisaged that other companies will join the DII once the company has been established. The aim is for the DII to include shareholders from a variety of different countries.
Santiago Seage, chairman and CEO of Abengoa Solar, comments: "Today we are building North Africa's first private integrated solar combined cycle plant in Algeria and the region’s largest utility-owned integrated solar combined cycle plant in Morocco. Tomorrow Abengoa’s experience in transmission, desalination and solar projects in North Africa will make a significant contribution to the success of the Desertec objectives."
Caio Koch-Weser, vice-chairman, Deutsche Bank, says: "We are pleased to participate in the Desertec Industrial Initiative and explore with our partners the feasibility of this trailblazing project. The Initiative shows in what dimensions and on what scale we must think if we are to master the challenges from climate change both in ecological and economic terms."
Torsten Jeworrek, member of the board of management, Munich Re, adds:
"We are pursuing a visionary plan. If it is successful, we will make a major contribution to combating climate change. The ecological and economic potential is huge.”
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