Abu Dhabi is creating a global clean energy powerhouse that consolidates the combined efforts in renewable energy and green hydrogen of Abu Dhabi National Energy Company (TAQA), Mubadala Investment Company and Abu Dhabi National Oil Company (ADNOC) under the Abu Dhabi Future Energy Company (Masdar) brand.
The partnership between the big three Abu Dhabi companies will have a combined current, committed, and exclusive capacity of over 23 Gigawatts (GW) of renewable energy, with the expectation of reaching well over 50GW total capacity by 2030.
Upon completion of this transaction, the expanded Masdar entity will become one of the largest clean energy companies of its kind and be well positioned to lead the industry on a global scale.
The announcement was made by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the United Arab Emirates Armed Forces, who also witnessed the agreement-signing at the UAE Pavilion at EXPO 2020.
Also present at the signing were HH Sheikh Hazza bin Zayed; HH Sheikh Mansour bin Zayed; HH Sheikh Khaled bin Mohamed bin Zayed and HH Sheikh Theyab bin Mohamed bin Zayed.
Signatories included Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO; Khaldoon Khalifa Al Mubarak, Managing Director and Group CEO of Mubadala; and Mohamed Hassan Alsuwaidi, CEO of ADQ and Chairman of TAQA.
The announcement consolidates the efforts of all three partners, combining their renewable energy and green hydrogen portfolios into Masdar, leveraging the existing clean energy pioneer’s strong international legacy and brand identity. The new Masdar partnership builds on the creation in January 2021 of the Abu Dhabi Hydrogen Alliance, comprised of Mubadala, ADNOC and ADQ (TAQA’s majority shareholder) and the launch on November 17, 2021 of a new global renewable energy venture between ADNOC and TAQA.
As the United Arab Emirates prepares to host COP28 in 2023, this strategic partnership positions Abu Dhabi and the UAE at the forefront of the energy transition. The powerful new combination will further drive de-carbonisation of power across local and international markets, while accelerating the UAE’s path towards net-zero carbon by 2050.
Mubadala’s Khalifa Al Mubarak said: “This marks the start of a new chapter for our clean energy champion, Masdar. Fifteen years ago, Mubadala established Masdar out of our conviction that innovation can drive sustainable economic growth while safeguarding the future of the planet. Masdar is a true ‘Made-in-the-UAE’ success story that reflects our long-term strategy.
“Responding to the mounting challenges of a changing climate requires that we continue to look for innovative ways to create clean energy. With partnerships at the heart of Mubadala’s investment philosophy, this joint venture with Abu Dhabi’s energy leaders supports the UAE’s vision as a global leader in climate action.”
Dr Al Jaber commented: “As the UAE celebrates its jubilee, this historic collaboration between three Abu Dhabi powerhouses firmly places ADNOC at the forefront of the global energy transition and marks our entry into the international clean energy space. Through our direct interest in Masdar, and in close collaboration with our partners, ADNOC will further capitalise on the many exciting local and international renewable energy and hydrogen opportunities.
“Since our nation’s wise leadership founded Masdar 15 years ago, the company has established itself as a global pioneer across the clean energy and sustainability landscape. This bold and forward-looking strategic partnership, will bolster Masdar’s position both locally and globally, and is yet another example of how ADNOC has successfully developed a national and international partnership model.”
TAQA’s Alsuwaidi said: “TAQA’s strategy is to be a champion of low carbon power and water. By taking a controlling stake in Masdar’s renewable energy business and working in partnership with ADNOC and Mubadala we have created a path to grow to over 50GW of renewable capacity by 2030 making us the largest player in the MENA region and one of the leading global contributors to renewable power generation.
“This clean power capability and the opportunity to tap into the expertise in this partnership will also enable us to become a world leader in green hydrogen. We will be a true national champion for the UAE in developing clean energy solutions at home and around the world.”
It is planned that TAQA will take the leading role with a 43% shareholding in Masdar’s renewable energy business with Mubadala retaining 33% and ADNOC holding 24%. Meanwhile, ADNOC will take the leading role with a 43% shareholding in Masdar’s green hydrogen business, with Mubadala holding 33% and TAQA 24% respectively.
Masdar, established by Mubadala in 2006, is active in more than 35 countries across six continents today and has developed and invested in projects worldwide worth nearly $20 billion. Masdar City, Abu Dhabi’s flagship sustainable urban development, will continue to remain under Mubadala’s ownership.
