UAE's Masdar Launches Facility to Produce 1GW of Uninterrupted Renewable Energy

Windmill turbines stand in Masdar's wind farm on Sir Bani Yas Island, in Abu Dhabi, United Arab Emirates, September 28, 2023. REUTERS/Amr Alfiky/File photo
Windmill turbines stand in Masdar's wind farm on Sir Bani Yas Island, in Abu Dhabi, United Arab Emirates, September 28, 2023. REUTERS/Amr Alfiky/File photo
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UAE's Masdar Launches Facility to Produce 1GW of Uninterrupted Renewable Energy

Windmill turbines stand in Masdar's wind farm on Sir Bani Yas Island, in Abu Dhabi, United Arab Emirates, September 28, 2023. REUTERS/Amr Alfiky/File photo
Windmill turbines stand in Masdar's wind farm on Sir Bani Yas Island, in Abu Dhabi, United Arab Emirates, September 28, 2023. REUTERS/Amr Alfiky/File photo

UAE state-owned renewables firm Masdar has launched a renewable energy facility that will produce 1 gigawatt of uninterrupted clean power and that is expected to cost around $6 billion, company executives said on Tuesday.

Speaking at the opening of Abu Dhabi Sustainability Week, chairman Sultan Al Jaber, who also serves as the chief executive of energy giant Abu Dhabi National Oil Co (ADNOC) and is the UAE minister of industry and advanced technology, called the project a significant step in transforming renewable energy into baseload power, Reuters reported.

"This will, for the first time ever, transform renewable energy into baseload energy. It is a first step that could become a giant leap," Al Jaber said.

"How can we power a world that never sleeps with energy sources that do? How can we transform renewable resources into reliable power? Today...we have an answer," Al Jaber said before announcing the project.

The project is expected to start operations by 2027, Masdar's chief operating officer Abdulaziz Alobaidli said during the event.

It is expected to cover 90 square kilometres (34.75 square miles) in "the desert of Abu Dhabi" and cost around $6 billion, he said, adding it will be "equity and project finance debt funded."

The facility "is just the beginning for more projects here and in the region, where we can unlock the full potential of solar," the UAE energy minister Suhail al-Mazrouei told the public at a summit taking place in the same Abu Dhabi venue.

Earlier on Tuesday, Al Jaber had said that the rapid growth of energy-hungry applications like ChatGPT could lead to a 250% increase in energy demand by 2050, reaching 35,000 GW. This highlights the need for diverse power sources to meet the unprecedented demand, he added.



Gold Extends Gains as Trump Tariffs Fuel Safe Haven Flows

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
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Gold Extends Gains as Trump Tariffs Fuel Safe Haven Flows

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo

Gold prices rose for a second straight session on Tuesday, but traded below the recent all-time highs, as uncertainty around US President Donald Trump's tariff plans continued to fuel economic growth concerns and safe haven flows into bullion.

Spot gold gained 0.6% at $2,913.79 an ounce as of 0714 GMT. It hit a record high of $2,942.70 last week.

US gold futures added 0.9% to $2,925.50.

"Trump's disruptive modus operandi, aggressive rhetoric and tariffs - whether actual or threatened - could unravel global trade and intricate supply chains," said Nikos Tzabouras, senior financial writer at trading platform Tradu, Reuters reported.

"With uncertainty surrounding the global economy and the broader geopolitical landscape in the Trump 2.0 era, gold is set to remain a natural beneficiary of risk-off flows and central bank buying."

Since taking office last month, Trump has swiftly redrawn the global trade battlefield with a series of tariffs, while plans are already in motion for sweeping reciprocal tariffs, aimed squarely at any nation that taxes US products.

"Gold continues to benefit from the uncertainty surrounding the US. government's tariff policy. Central bank buying should also continue to provide support, even if there is no new data on this," Commerzbank analysts said in a note.

The market's focus has now shifted to the US Federal Reserve's January meeting minutes due on Wednesday for clues into the central bank's interest rate trajectory.

"Price gains are also supported by growing expectations that the Fed will cut rates in 2025 - a sentiment that gained further traction among traders after last week's disappointing US retail sales figures," Ricardo Evangelista, senior analyst at brokerage firm ActivTrades, said.

Bullion benefits from geopolitical and economic uncertainties, as well as rising price pressures, but higher interest rates diminish the asset's allure.

Spot silver fell 0.9% to $32.50 an ounce. Platinum jumped 0.9% to $985.20 and palladium climbed 1.6% to $978.00.