Green energy giants Iberdrola and Masdar have 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 parties’ 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 1400 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 1Q24. Masdar’s stake in this wind farm could be 49%.
East Anglia 3 is currently in construction, with full commissioning scheduled for 4Q26. 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 2300 jobs.
Beyond the East Anglia 3 transaction, both companies will work together to jointly invest in future offshore wind and green hydrogen projects in Europe and other markets[i]. Work to identify other opportunities is already underway, and it is anticipated that the total value of joint investments in offshore wind and green hydrogen as part of the alliance could reach €15 billion. The plans, announced at the UN’s climate change conference COP28 in the UAE, demonstrate both companies’ firm commitment to accelerating the global energy transition.
“Now that 118 governments have already pledged to triple renewable energy capacity by 2030 at COP28, reaching this goal will require immediate action from these governments and the private sector. Following our long-term commitment to renewables, networks, and storage, this innovative alliance with Masdar today shows once again our determination to continue delivering,” Iberdrola’s Executive Chairman, Ignacio Galán, said. “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.”
“We are delighted to be working with our strategic partners, Iberdrola, once again as we explore developing one of the UK’s largest offshore wind farms and other prospects in Europe. With an abundance of wind resources, the UK and Europe are prime markets for Masdar. As we target 100 GW by 2030, Masdar is focused on developing innovative projects from the very early stages to further strengthen our offshore wind expertise,” said Masdar’s CEO, Mohamed Jameel Al Ramahi, said: 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 1400 MW East Anglia 3 offshore wind farm show how we can create jobs, power homes and cut emissions.”
For more news and technical articles from the global renewable industry, read the latest issue of Energy Global magazine.
The Autumn 2023 issue of Energy Global hosts an array of technical articles focusing on green hydrogen, wind installation technology, blade monitoring solutions, and more. This issue also features a regional report looking at some key renewables projects in Australia..
Read the article online at: https://www.energyglobal.com/other-renewables/05122023/iberdrola-and-masdar-form-renewable-investment-allowance/
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