UAE fund to invest in Japan renewable energy firms

Published: 23 Jan 2009 01:25:12 PST

TOKYO, Jan 23 - Abu Dhabi's Masdar, a clean energy venture, and Japan's SBI Holdings Inc may invest up to $300 million in Japanese alternative energy start-ups through a joint investment fund, SBI said on Friday.

Masdar's investment vehicle, the Masdar Clean Tech Fund, and SBI have agreed to each put up $10 million to create a first fund to invest in firms involved in solar, wind and other alternative energy, SBI officials said.

Each firm would receive around $2 million.

The Japanese financial services firm and Masdar are in talks to boost investment to around $200 million to $300 million, after the first $20 million fund has used up its capital, they said.

Masdar has been set up by the Abu Dhabi government to develop sustainable and clean energy. It aims to ensure a leading role in future energy industries for Abu Dhabi, holder of 90 percent of the United Arab Emirates' oil reserves.