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Masdar signs $16bn alliance with Spain’s renewables giant

By Andy Sambidge
Iberdrola’s Executive Chairman, Ignacio Galán; HE Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology; Masdar Chief Executive Officer, Mohamed Jameel Al Ramahi. Masdar
Iberdrola’s executive chairman, Ignacio Galán, left, with Dr Sultan Al Jaber, centre, and Mohamed Jameel Al Ramahi, CEO of Masdar
  • Partnership to explore global projects
  • Germany’s Baltic Eagle is first investment
  • UK and Europe are ‘prime markets’

Green energy companies Iberdrola and Masdar announced a €15 billion ($16.3 billion) partnership agreement on Tuesday to explore joint offshore wind and green hydrogen projects across the world.

After a co-investment in Baltic Eagle wind farm in Germany, the two parties will invest in the 1,400MW UK East Anglia 3 offshore wind project. 

The deal, which will see Masdar take a 49 percent stake, is expected to be signed by the end of the first quarter of 2024. 

East Anglia 3 is under construction, with full commissioning scheduled by the end of 2026, and the project will power more than 1.3 million homes and create 2,300 jobs in the UK.

Under the new agreement, the companies have committed to combine on other projects across the world. 

Work to identify other opportunities is already underway, and it is anticipated that the total value of joint investments could reach €15 billion. 

Iberdrola’s executive chairman, Ignacio Galán, described the alliance with Masdar as “innovative”, while Masdar CEO Mohamed Jameel Al Ramahi said the UK and Europe are “prime markets” for the UAE-based renewables company. 

Europe’s largest utility

Headquartered in Spain, Iberdrola is the largest utility in Europe and one of the two largest globally, serving a population of more than 100 million people around the world. 

The company has €150 billion of total assets, 41GW of renewables in operation and 1.2 million kilometres of networks globally.

Masdar has developed projects in more than 40 countries and is targeting a renewable energy portfolio capacity of at least 100GW by 2030 and an annual green hydrogen production capacity of up to 1 million tonnes by the same year.

On Monday, Masdar also announced the acquisition of eight solar and wind projects in Poland alongside Taaleri Energia, a Finnish-based renewable energy developer and fund manager.

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