Iberdrola and Masdar to invest $15 billion in offshore wind and green hydrogen

Masdar, the Abu Dhabi Emirate's renewables group, and Iberdrola announced at COP28 a strategic agreement to jointly invest up to 15 billion euros. From this signing, the two companies will evaluate the development of new offshore wind and green hydrogen projects in Germany, the United Kingdom and the United States, following the successful co-investment agreement already in place at Baltic Eagle in Germany. 

The first milestone of this alliance will be to co-invest in the UK's 1,400 megawatt (MW) East Anglia 3 offshore wind project, which is in the final stages of negotiation and could be signed by the end of the first quarter of 2024. Masdar's stake in this wind farm could reach 49%.

East Anglia 3 is already under construction and is expected to be commissioned in the fourth quarter of 2026. In July 2022, Iberdrola signed contracts for difference (CfD) with the UK Government for the sale of power from the farm at a price that will increase in line with inflation. The project will supply power to more than 1.3 million UK homes and create 2,300 jobs.

Beyond the East Anglia 3 transaction, both companies will work to jointly invest in future offshore wind and green hydrogen projects in Europe and other markets. Work is already underway to identify other opportunities and the total value of the investment in offshore wind and green hydrogen is expected to reach 15 billion euros. This project, announced at the COP28 UN Climate Change Conference in the United Arab Emirates, demonstrates the strong commitment of both companies to accelerate the global energy transition.

Iberdrola Chairman Ignacio Galán said: "Now that 118 governments have already committed at COP28 to triple renewable energy capacity by 2030, reaching this target will require immediate action by governments and the private sector. After decades of commitment to renewables, grids and storage, this groundbreaking partnership with Masdar today once again demonstrates our determination to continue to scale up investment."

"Combining our renewables expertise and financial strength with Masdar's will enable us to more quickly, competitively and safely develop more megawatts of clean energy. We are pleased to extend our alliance with a leading, long-term focused partner like Masdar, which is already resulting in the installation of a new offshore wind farm in Germany, to the UK and around the world."

Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar and Chairman of COP28, said, "We welcome this partnership in which two global pioneers of clean energy, Masdar and Iberdrola, will come together to use their expertise and resources to promote renewable energy in Europe and around the world. At COP28, we know that the world must triple global renewable energy capacity by 2030 to keep 1.5°C within reach. Strong partnerships like the one between Masdar and Iberdrola today will propel us towards this goal."
 
Masdar CEO Mohamed Jameel Al Ramahi said, "We are delighted to once again be working with our strategic partner, Iberdrola, as we explore the development of one of the UK's largest offshore wind farms and other projects in Europe. With abundant wind resources, the UK and Europe are major markets for Masdar. As our target is 100 GW by 2030, Masdar is focused on developing innovative projects from the early stages to strengthen our offshore wind expertise. We have been working in the UK for over 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 like the 1,400 MW East Anglia 3 offshore wind farm show how we can create jobs, power homes and reduce emissions."

Iberdrola, a leader in clean energy

Iberdrola is Europe's largest electric utility and one of the two largest globally, serving a population of more than 100 million people worldwide. The company has 150 billion euros of total assets, 41,000 MW of renewable energies in operation and 1.2 million kilometers of networks worldwide.

Iberdrola has more than €10 billion worth of offshore wind projects under construction that are progressing according to plan, all with financing and supply chain secured.

Turbine installation is already underway in the U.S. on the 800 MW Vineyard Wind 1 project, the country's first commercial-scale offshore wind farm, and the farm is expected to begin generating power imminently.

In July of this year, Iberdrola connected to the grid the Saint-Brieuc offshore wind farm in France, the first large-scale offshore wind project in the Brittany region.

In addition, the Baltic Eagle wind farm in Germany is under construction and will be operational in 2024. East Anglia 3 in the United Kingdom and Windanker in Germany are also scheduled to start production in 2026.

These projects will be added to the 1,258 MW of offshore wind power already in operation, which include the West of Duddon Sands wind farms in the Irish Sea, Wikinger in the German Baltic Sea and East Anglia ONE in the southern part of the North Sea. The investment made in these projects amounts to EUR 4 billion.

Masdar, the EAU clean energy driver

As the UAE's clean energy leader and one of the fastest growing renewable energy companies in the world, Masdar has been driving the development and deployment of renewable energy and green hydrogen technologies to address global sustainability challenges. Established in 2006, Masdar has developed projects in more than 40 countries, helping them achieve their clean energy goals and advance sustainable development.

Masdar has been investing in clean energy projects in the UK and Europe since 2013, including significant investments in the battery energy storage sector, key to overcoming intermittency issues. Last year, Masdar acquired London-based Arlington Energy, the developer of battery energy storage systems that has commissioned more than 170 MW of assets. Off the coast of Scotland, Masdar has developed the world's first floating offshore wind farm, the 30 MW Hywind project. A decade ago, Masdar and its partners launched the 630 MW London Array offshore wind farm, the largest in the world at the time. Masdar's Global Offshore Wind Division is based in London and the company is pursuing a strategy of joining large-scale, early-stage projects to further strengthen its expertise as an offshore wind developer.

Masdar is jointly owned by Abu Dhabi National Oil Company (ADNOC), Mubadala Investment Company (Mubadala) and Abu Dhabi National Energy Company (TAQA), and under this ownership, the company is targeting a renewable energy portfolio capacity of at least 100 GW by 2030 and an annual green hydrogen production capacity of up to one million tons by the same year.