AMSTERDAM, 26/05/09 - Amsterdam is working on the establishment of a sustainable energy company, to invest together with private industry in sustainable energy production in the city. "Amsterdam wants to become the solar and wind energy city of the Netherlands and provide for one-third of its energy requirements with locally-produced sustainable energy by 2025," the city executive said yesterday.

The company will invest along with private industry and local public housing corporations in sustainable energy projects in the city. "These are solar and wind projects and possibly also other sustainable energy projects. The company will also invest in the construction of a 'smart grid' - an intelligent electricity network," according to the city council.

Amsterdam has not given any details on the form of the partnership with companies. Nor does the city council say how it expects to obtain the approval of competition authorities. These will have to be convinced that the plan does not involve any forbidden state support.

Amsterdam says it is targeting a 40 percent reduction in the city's CO2 emissions by 2025 compared with 1990. A business plan for the sustainable energy company will be drawn up in the next few weeks.

"Together with companies, we want to make Amsterdam the leader in sustainable energy production," said Alderman Vos (Environment). Alderman Gehrels (Companies) added: "Reduced dependence on fossil energy sources is not only important for the climate, but also for a healthy economic future for Amsterdam."