Big Names Join Middle Eastern Solar Plant Project

Cleantech company, Masdar, based in the green energy-friendly United Arab Emirates, has inked a deal with French energy giant Total (NYSE: TOT) and Spain's Abengoa SA (MCE: ABG) for their assistance in building Shams 1, the Middle East's first major solar power facility.

The project, located about 75 miles southwest of UAE capital Abu Dhabi and estimated to cost between US$500 and US$700 million, is expected to generate around 100 megawatts of power, and will be the world's largest concentrating solar power plant (CSP) when completed (by 2013).

Masdar currently operates a 10 MW photovoltaic (PV) power plant in Abu Dhabi. Unlike PV plants, which use solar panels that directly convert sunlight to electricity, CSPs reflect sunlight, usually with mirrors, heating liquids that produce steam to generate power.

Total, which has stepped up its presence in solar energy sphere as competitors like Shell (NYSE: RDS.A) and embattled BP (NYSE: BP), have turned their focus away from solar to second-generation biofuels, controls a 50% stake in both PV cell maker Phototech and solar energy system producer and operator Tenesol. Additionally, it's the biggest shareholder organic solar product developer Konarka. For its part, Abengoa brings vast experience building solar energy plants to the table.

Abu Dhabi, the UAE's most oil-rich emirate, is building the world's first zero-carbon city, and has committed to deriving 7% of its total energy needs from renewable sources by 2020.

Image courtesy of langalex via Flickr

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