Iberdrola, Masdar to invest €15 bn in offshore wind, green H2 projects
At COP28 in Dubai, energy firms Iberdrola and Masdar announced a €15 billion strategic partnership agreement to evaluate the joint development of offshore wind and green hydrogen projects in key markets including Germany, UK and the USA.
After the companies' successful co-investment in Baltic Eagle in Germany, the new milestone of this alliance will be to achieve a further co-investment in relation to the 1,400 MW 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 Q1 2024.
Beyond the East Anglia 3 transaction, the companies have committed to work together to jointly invest in future offshore wind and green hydrogen projects in Europe and other markets. Exploration of other opportunities is already underway, they claim, anticipating a total value of joint investments in offshore wind and green hydrogen to be around €15 billion.
Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President, said, "We welcome this partnership which will see global clean energy pioneers, Masdar and Iberdrola, coming together to use their expertise and resources to advance renewables in Europe and around the world".
"At COP28, we know that the world must triple global renewable energy capacity by 2030 to keep 1.5C within reach. Robust partnerships such as the one between Masdar and Iberdrola today will propel us towards this goal", he added.
"Following our long-term commitment to renewables, networks, and storage, this innovative alliance with Masdar today shows once again our determination to continue delivering", said Ignacio Galán, Iberdrola's Executive Chairman.
He further added, "By combining our renewables experience and financial strength with those of Masdar, we can deliver more secure, competitive and clean energy, quicker. 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".
East Anglia 3 is currently in construction, with full commissioning scheduled for the end of 2026. The windfarm secured a 15-year CPI-linked Contract for Difference (CfD) from the UK Government in July 2022. The project will power over 1.3 million British homes and create 2,300 jobs.
Masdar's Chief Executive Officer, Mohamed Jameel Al Ramahi, commented, "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".
"We have been active in the UK for more than a decade, pioneering landmark projects including the world's first floating offshore wind farm. At COP28, as the world looks to triple renewable energy capacity to secure a greener future, projects such as the 1,400MW East Anglia 3 offshore wind farm show how we can create jobs, power homes and cut emissions", he added.