ARBORESCENCE CAPITAL

Desertec project : The ambition of a consortium of twenty German companies to install gigantic solar power farms in Africa to supply Europe.

The aim of this project is to build an installation of several thousand square kilometres in the African desert for a cost of about Euros 400 billion before 2050. This power plant would produce approximately 15 % of the European energy needs. Among the initiators of the project are companies such as Deutsche Bank, RWE or Siemens.

Munich Re, a reinsurer, is leading the efforts and plans a conference on July 13th in Munich. Observers of the Arab League are due to attend.

Desertec would go beyond energy production and participate to the development of the selected African countries thanks to on-site job creation and construction of factories to desalinate sea water.

The German Federal Economy Ministry participates to the discussions as well as the Club of Rome.

Under the plan, energy would be gathered mostly using concentrating solar power, a technology that uses mirrors to harness rays from the sun to produce steam and drive turbines that make electricity. The power would then be delivered to Europe through high-voltage direct current (HVDC) cables.

But some commentators questioned the wisdom of putting renewable energy hubs in a potentially unstable part of the world.

For more information, click on the following link : Website Desertec project : http://www.desertec.org/