Abu Dhabi clean energy company Masdar and Germany's RWE Renewables have signed a preliminary agreement to collaborate and explore the development of offshore wind projects in key markets. Under the agreement, the two companies will work on identified offshore wind project opportunities globally.

The announcement comes after the UAE and Germany signed a new Energy Security and Industry Accelerator Agreement, which aims to accelerate joint efforts to promote energy security, decarbonization and combat climate change. The agreement was reached in the presence of President Sheikh Mohammed and German Chancellor Olaf Schulz, who is on an official visit to the UAE. As part of ESIA, Masdar will actively explore offshore wind opportunities in northern Germany and the Upper Baltic Sea, with plans to achieve up to 10 GW of renewable energy production capacity by 2030.

Mohamed Al Ramahi, CEO of Masdar, said the agreement with RWE will allow Masdar to expand our capabilities in offshore wind, a market we believe is of strategic importance. By leveraging our two companies' extensive expertise in this area, we can help other countries meet their offshore wind goals, transition to clean energy, and achieve their net-zero emissions goals.

Renewables are expected to drive global energy investment to $2.4 trillion in 2022, with solar and wind accounting for the bulk, the International Energy Agency said. A separate report from research firm Bloomberg NEF found that global investment in the renewable energy sector rose by 11% in the first half of 2022 to $226 billion. During this period, offshore wind investment increased sharply, up 52% from the previous year to $32 billion, the report said. Many countries have set ambitious renewable energy targets.

The UK already has the largest installed offshore wind capacity in the world, and it aims to reach 50 gigawatts by 2030 under its energy security strategy. The United States aims to use 30 gigawatts of offshore wind by 2030 as part of its goal of halving greenhouse gas emissions by that date and achieving net-zero emissions by 2050. Meanwhile, South Korea plans to achieve up to 20 gigawatts of offshore wind capacity by the end of this decade, in a bid to reduce its reliance on imported fossil fuels and become carbon neutral by 2050.

Masdar, one of the fastest-growing renewable energy companies in the world, aims to reach a total capacity of 100 gigawatts by 2030, so there is an increasing focus on offshore wind projects. Its existing offshore projects include the Dudgeon offshore wind farm in the UK and HywindScotland, the world's first floating offshore wind farm, which went into operation in October 2017. It also announced that it has completed the financial close of the 500 MW Zarafshan wind power project, the first utility-scale wind farm in Uzbekistan. The project is expected to begin commercial operations by the end of 2024 and provide enough power for 500,000 homes.

Masdar and RWE are also shareholders in the LondonArray project, one of the largest wind farms in the world, which has been operating since 2012. The project has an operating capacity of 630 MW, powering more than 500,000 homes, while emitting nearly 1 million tons of carbon dioxide annually. With an investment and growth plan of around 50 billion euros, RWE plans to expand its green portfolio to 50 GW by 2030, including offshore and onshore wind, solar and battery storage.Editor/XingWentao