Spanish electric utility Iberdrola and Abu Dhabi Future Energy (Masdar) have agreed to co-invest up to €15bn in offshore wind and green hydrogen projects in Germany, the UK, the US, and other key markets.
The global partnership agreement between the parties was signed during the ongoing UN Climate Change Conference (COP28) in Dubai, UAE.
According to Iberdrola, the first step will be a co-investment in the 1.4GW East Anglia 3 offshore wind project in the UK.
The deal for which negotiation have been going on for the last few months, is expected to be inked by the end of Q1 2024.
Following the completion of the deal, Masdar could hold an interest of 49% in the East Anglia 3 offshore wind project.
Currently under construction, the East Anglia 3 project will power more than 1.3 million British households. It is scheduled to be fully commissioned in Q4 2026.
The offshore wind facility also secured a 15-year consumer price index (CPI)-linked contract for difference (CfD) from the UK government in July 2022.
Iberdrola executive chairman Ignacio Galán said: “Following our long-term commitment to renewables, networks, and storage, this innovative alliance with Masdar today shows once again our determination to continue delivering.
“By combining our renewables experience and financial strength with those of Masdar, we can deliver more secure, competitive and clean energy, quicker.”
As part of the collaboration, Iberdrola and Masdar will also jointly invest in future offshore wind and green hydrogen projects in Europe and other markets.
The new partnership comes after the parties’ co-investment in the 476MW Baltic Eagle offshore wind farm located in the German Baltic Sea.
Masdar CEO Mohamed Jameel Al Ramahi said: “We are delighted to be working with our strategic partners, Iberdrola, once again as we explore developing one of the UK’s largest offshore wind farms and other prospects in Europe.
“With an abundance of wind resources, the UK and Europe are prime markets for Masdar. As we target 100GW by 2030, Masdar is focused on developing innovative projects from the very early stages to further strengthen our offshore wind expertise.”
Separately, Masdar has signed a joint development agreement with the Jordanian Ministry of Energy and Mineral Resources during the COP28 climate summit to develop a 1GW wind project with a battery energy storage system (BESS).
The UAE-based clean energy company also signed a memorandum of understanding (MoU) with the Jordan government for a feasibility study on installing a green hydrogen plant in Jordan.
