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Spain’s Iberdrola and the UAE’s Masdar agreed on Tuesday to form a strategic partnership looking to invest $16.2 billion (15 billion euros) in offshore wind and hydrogen in major markets including the U.S., the UK, and Germany.
Iberdrola, a utility giant with 41 gigawatts (GW) of renewables in operation, and the UAE’s clean energy developer Masdar will look to jointly invest in the 1.4-GW UK East Anglia 3 offshore wind project. This deal has been under negotiation for the last few months and could be signed by the end of the first half of 2024. Masdar’s stake in this wind farm could be 49%, Iberdrola said.
“Beyond the East Anglia 3 transaction, both companies will work together to jointly invest in future offshore wind and green hydrogen projects in Europe and other markets,” Iberdrola noted.
Iberdrola and Masdar agreed in July 2023 to co-invest in the Baltic Sea wind farm offshore Germany.
“We are very pleased to be expanding our existing alliance with a leading long-term partner like Masdar from Germany, where we are already constructing new offshore wind turbines, to the UK and across the world,” Iberdrola’s executive chairman Ignacio Galán said.
The agreement with Masdar was announced at the COP28 climate summit, at which 118 governments pledged to triple global renewable energy capacity to at least 11,000 gigawatts by 2030.
Last month, UK’s Octopus Energy said it was launching a $3.7-billion (£3 billion) offshore wind fund in cooperation with Japan’s Tokyo Gas as part of an ambition to invest in projects in Europe to reduce fossil fuel reliance and boost energy security.
Earlier this year, Octopus Energy said it plans to lead investments worth $18.6 billion (£15 billion) into offshore wind power projects globally by 2030. Octopus Energy said its plans “to unleash” the investments into offshore wind would go towards the generation of 12 GW of renewable electricity a year, enough to power 10 million homes.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.