Germany's Süddeutsche Zeitung newspaper reported Wednesday that the companies behind the Desertec Industrial Initiative (Dii), which aimed to generate renewable energy in northern African and parts of the Middle East, are likely to exit the project.

The 20 Dii remaining companies, including Germany's RWE, MunichRe, ABB and Deutsche Bank, were said to be no longer in a position to continue the joint renewables initiative in its current form.

The newspaper said contracts with the partners were expiring and that only speedy pledges for a new budget of some 2 million euros ($2.5 million) could save the group from falling apart.

High-flying ambitions

But agreement on future funding was not in sight, it said.

The Dii partners are set to meet in Rome next Monday and Tuesday to debate the future of the project. There was no immediate comment from any of the companies involved in the Desertec Industrial Initiative.

The Dii had been billed as on of the most ambitious renewable energy projects ever. It was to pave the way for the construction of hundreds of environmentally friendly power stations in northern Africa and the Middle East with a view to covering most of the regions' future energy needs as well as providing some 15 percent of Europe's requirements.

hg/sgb (Reuters, AFP)