Iberdrola and Masdar plan to jointly invest up to EUR 15 billion in offshore and green hydrogen in Germany, the UK and the US
During COP28 in Dubai on December 5, prominent renewable energy leaders, Iberdrola and Masdar, disclosed a significant strategic partnership agreement valued at EUR 15 billion. This collaboration aims to explore cooperative ventures in offshore wind energy and green hydrogen projects across pivotal markets, encompassing Germany, Great Britain, and the USA.
Following the triumph of their collaborative investment in the Baltic Eagle offshore wind farm in Germany, Iberdrola and Masdar are set to mark another significant milestone with a joint investment in the UK’s East Anglia 3, boasting a capacity of 1,400 MW. This agreement, in negotiations for months, is anticipated to be finalized by the end of the first quarter of 2024, potentially securing Masdar’s stake at 49% in this wind installation.
Currently in construction, the East Anglia 3 offshore wind farm is slated for full commissioning in the fourth quarter of 2026. The project holds a CPI-linked 15-year Contract for Difference (CfD) sanctioned by the UK Government in July 2022. Once operational, the farm is poised to power over 1.3 million British households and contribute to the creation of 2,300 jobs.
Future offshore wind and green hydrogen projects
Beyond their collaboration on East Anglia 3, Iberdrola and Masdar are set to expand their joint investments in future offshore wind and green hydrogen projects across Europe and other global markets. The ongoing efforts to identify additional opportunities suggest that the total value of joint investments within this partnership could soar to EUR 15 billion. This commitment, unveiled at the UN COP28 climate conference in the United Arab Emirates, underlines the resolute dedication of both companies to expedite the global energy transition.
Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology of the United Arab Emirates, Chairman of Masdar, and President of COP28, emphasized the significance of this partnership. He highlighted its potential to harness the expertise and resources of Masdar and Iberdrola in developing renewable energy sources globally, essential in striving to triple global renewable energy capacity by 2030 to keep 1.5°C within reach.
Iberdrola CEO Ignacio Galán echoed the urgency of immediate action by governments and the private sector in light of COP28’s commitment to tripling renewable energy capacity by 2030. He emphasized this innovative alliance’s role in continuing their commitment to renewable energy, networks, and energy storage, aligning with long-term goals and the pressing need for swift action.
Mohamed Jameel Al Ramahi, CEO of Masdar, expressed delight in collaborating with Iberdrola to explore significant offshore wind farm development in the UK and other European prospects. Stressing Masdar’s focus on reaching 100 GW by 2030, he highlighted their commitment to pioneering projects, such as the East Anglia 3 offshore wind farm. Al Ramahi emphasized the pivotal role of projects like these in generating employment, powering homes, and reducing emissions amid global efforts to triple renewable energy capacity for a sustainable future.
Source: press release