Masdar, the UAE’s flagship renewable energy company, has signed a strategic agreement with Iberdrola, a global clean energy leader, to co-invest in the 476-megawatt (MW) Baltic Eagle offshore wind farm in the German Baltic Sea. Iberdrola will retain a majority 51% stake in the asset, which will help to accelerate green energy security in Europe.

According to the terms of the deal, Baltic Eagle wind farm is valued at approximately €1.6 billion euros. Iberdrola will control and manage the asset, providing operation and maintenance services and other corporate services.

The deal was signed in Madrid by Ignacio Galan, Iberdrola’s Executive Chairman, and Masdar’s Chief Executive Officer, Mohamed Jameel Al Ramahi, as part of a wider acknowledgement agreement between the two clean energy powerhouses. Both parties consider this a strategically important transaction and a critical milestone as they strengthen their partnership to explore further renewable energy investment opportunities in a range of technologies and regions.

Baltic Eagle will consist of 50 wind turbines built on monopile foundations, each with a unit capacity of 9.53 MW. Anticipated annual production is 1.9 terawatt-hours (TWh), enough clean energy to meet the electricity demands of 475,000 homes, saving 800,000 tons of CO2 being released into the atmosphere every year.

The wind farm, which is scheduled to come into initial operation at the end of 2024, has a minimum regulated tariff of €64.6/MWh for the first 20 years. In addition, 100% of its production has already been sold via long-term contracts.

HE Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President-Designate, said: “When companies with long histories of pioneering clean energy join forces, it creates lasting solutions for people and the planet. This landmark agreement between Masdar and Iberdrola will harness Germany’s abundant wind power in the Baltic Sea and bring electricity to nearly half a million homes, while cutting emissions. As the UAE looks ahead to hosting COP28, partnerships such as this show how we can hold back emissions, without holding back progress.”

Ignacio Galan, Iberdrola’s Executive Chairman, said: “Delivering the clean energy that the world needs requires companies with vision and commitment that are willing to make major investments in new infrastructure. Masdar brings all of these qualities to Baltic Eagle. This a major project that will help to drive forward green energy security in Europe, reduce emissions for homes and businesses, and support thousands of highly skilled jobs. Building long-term partnerships with sustainable leaders like Masdar will help Iberdrola to continue leading the energy transition globally.”

Dr Sultan Al Jaber and Mr Ignacio Galan met earlier this month. Ahead of the UAE hosting the UN climate change conference, COP28, they discussed the urgent need to triple global renewable energy capacity to ensure the Paris Agreement goals of limiting global temperature rises remain within reach.

In September 2022, the UAE and Germany signed an agreement to advance projects of joint interest on areas including energy security, decarbonization and climate action. The Energy Security and Industry Accelerator Agreement (ESIA) signed between the two countries involved plans for Masdar to explore offshore wind opportunities in the Baltic Sea to support Germany’s clean energy goals. Today’s €1.6 billion deal with Iberdrola marks a significant contribution towards that aim.

The strategic partnership between Masdar and Iberdrola will help to advance Europe’s ambitious offshore wind development targets. By joining forces, the two flagship clean energy companies will share knowledge and develop innovative solutions. This can also lead to enhanced project management practices and improved operational efficiencies, which ultimately drives down costs and makes offshore wind more competitive.

Source: Masdar