Image: Iberdrola chairman Ignacio Galán and Masdar CEO Al Ramahi signing deal in Dubai | Credit: Iberdrola
In a groundbreaking announcement on the sidelines of the COP28 Climate Summit in Dubai, UAE's state-owned clean energy juggernaut, Masdar, and the Spanish energy titan, Iberdrola, unveiled a monumental pact. This collaboration is set to span multiple nations, focusing on powerhouse destinations like the UK, Germany, and the USA.
At the heart of this partnership lies an ambitious vision, with the total investment value estimated at a staggering €15 billion. This formidable commitment aims to reshape the landscape of offshore wind and green hydrogen, ushering in a new era of sustainable energy solutions.
COP28 President and Masdar chairman Sultan Al-Jaber welcomed the new partnership, which he said would help achieve new global clean energy goals being debated by governments at the summit.
"At COP28, we know that the world must triple global renewable energy capacity by 2030 to keep 1.5C within reach," he said. "Robust partnerships such as the one between Masdar and Iberdrola today will propel us towards this goal."
As a pivotal component of this agreement, Masdar is poised to solidify its position by investing in Iberdrola's remarkable 1.4GW East Anglia Three offshore wind project in the UK. This strategic manoeuvre could grant the UAE-based corporation a formidable 49 per cent ownership stake in this noteworthy asset.
East Anglia Three is already in the works, bolstered by a 15-year Contract for Difference (CfD) inked with the UK government in July 2022. The joint efforts of Masdar and Iberdrola are aimed at sealing the deal for this wind farm by the close of the first quarter in 2024.
This alliance extends the pre-existing collaboration between these energy titans as they join forces on the offshore Baltic Eagle wind farm in Germany, poised to commence operations next year.
Iberdrola's executive chairman, Ignacio Galan, also said the company was pleased to expand its alliance with Masdar. "Now that 118 governments have pledged to triple renewable energy capacity by 2030 at COP28, reaching this goal will require immediate action from these governments and the private sector," he 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."
It's worth noting that this announcement comes in the wake of allegations against the COP28 Presidency for promoting the interests of Masdar and the state-owned oil and gas company ADNOC during bilateral meetings preceding the crucial climate talks. The controversial tenure of Sultan Al-Jaber, serving as CEO of ADNOC and Chairman of Masdar while overseeing international climate negotiations, continues to spark debate.