Masdar has joined Iberdrola in Spain to invest in a 476 megawatt offshore wind farm in Germany, as Abu Dhabi Clean Energy is advancing its ambitious strategy to increase renewable energy production capacity.

The two companies stated that the Baltic Eagle wind farm located in the German waters of the Baltic Sea is worth approximately $1.77 billion. Iberdrola will retain a 51% majority stake in the wind farm and is expected to control and manage the asset.

When companies with a long history of exploring clean energy come together, they create lasting solutions for humanity and the Earth, "said Dr. Sultan Al Jaber, Chairman designate of COP28 and Chairman of Masdar. The landmark agreement between Masdar and Iberdrola will utilize Germany's abundant wind power in the Baltic Sea to provide electricity to nearly 500000 households while reducing emissions, "said Dr. Al Jaber, who also serves as Minister of Industry and Advanced Technology.

Two companies have stated that the Baltic Eagle will have 50 wind turbines, which are expected to generate 1.9 terawatt hours per year to power 475000 households and prevent 800000 tons of carbon dioxide from being released into the atmosphere. The wind farm is scheduled to enter initial operation by the end of 2024, with a minimum regulatory tariff of 64.6 euros per megawatt hour for the first 20 years. Both companies stated that all of their products have been sold through long-term contracts.

Ignacio Galan, the executive chairman of Iberdrola, stated that providing the clean energy the world needs requires visionary companies committed to investing in new infrastructure. Masdar was founded by Mubadara in 2006, playing a leading role in the field of global clean energy, and helping to promote the country's economic diversification and climate action agenda. It is currently active in approximately 40 countries and has invested or committed to investing in projects worth over $30 billion.

Masdar raised US $750 million through Green bond as part of a plan to raise up to US $3 billion to meet Masdar's equity financing commitments for new and renewable energy projects in the United Arab Emirates and overseas. The company increased its renewable energy production capacity to 20 gigawatts in 2022, producing 18000 gigawatts of clean energy and reducing carbon dioxide emissions by 10 million tons.

Masdar's goal is to increase its renewable energy production capacity to at least 100 gigawatts by the end of this century and become one of the world's largest renewable energy companies by 2030. According to the data of the International Renewable Energy Agency, by 2030, the annual renewable energy capacity must be increased by an average of 1000 GW per year to achieve the goal of the Paris Agreement.

The Abu Dhabi Institute said in the World Energy Transformation Outlook 2023 last month that although the renewable energy capacity of the global power industry increased by a record 300 GW last year, the gap between actual progress and the development needed to achieve long-term climate goals continues to widen. Iberdrola has a market value of over 74 billion euros, making it the largest electricity company in Europe and the second largest in the world. The company has over 40000 megawatts of renewable energy capacity and plans to invest 47 billion euros in power grids and renewable energy between 2023 and 2025.Editor/XingWentao