New owners eye global expansion for Middle Eastern green energy company

Three Middle Eastern companies have finalized their takeover of green energy company Masdar and pledge to rapidly grow the company’s green hydrogen and other capabilities.

Abu Dhabi National Energy Co. (TAQA), Mubadala Investment Co. (Mubadala) and Abu Dhabi National Oil Co. (ADNOC) announced the completion of the Masdar transaction. TAQA is taking the leading role in Masdar’s renewable business with a 43% shareholding, while Mubadala retains 33% and ADNOC holds 24%. ADNOC is taking the leading role in Masdar’s green hydrogen business with a 43% stake, Mubadala holding 33%, and TAQA 24%. The partnership sets out to develop Masdar into a global clean energy powerhouse that consolidates the renewable energy and green hydrogen efforts of TAQA, Mubadala, and ADNOC under the single Masdar brand. TAQA paid US$1.02 billion in cash for its stake.

Masdar targets at least 100 GW of renewable energy capacity and the production of up to 1 million tons of green hydrogen by 2030, with aspirations to grow its renewable energy portfolio by more than 200 GW. (Image: Masdar)

Under the new partnership, Masdar will become a national clean energy champion for the UAE and has a target of growing to at least 100 GW of renewable energy capacity globally by 2030. The largest share of this capacity will come from wind and solar technologies. Beyond its initial goals, the company aspires to develop in excess of 200 GW of renewable energy.

In addition, Masdar’s new green hydrogen business will scale up and target an annual green hydrogen production capacity of up to 1 million tonnes by 2030, equivalent to saving more than six million tons of CO2 emissions, the company said. Green hydrogen, which is produced using water and renewable energy, is fast emerging as an important carbon-free fuel for the decarbonization of hard to abate sectors such as heavy industry. It is expected to play a critical role in meeting the world’s net zero aspirations, with Masdar and the UAE set to take a leading role in the hydrogen economy.

Mubadala established Masdar in 2006 to extend the UAE’s leadership role in the global energy sector, while helping drive the nation’s economic diversification and climate action agenda. Today, Masdar is active in more than 40 countries across six continents and has developed and invested in worldwide projects with a combined value of over USD 20 billion.

The new Masdar will target growth opportunities around the world, including in the U.S., MENA, CIS, APAC, and key European countries as well as playing a central role in providing the clean energy needed for the UAE to achieve its own 2050 net zero target. Growth is expected to come from a combination of new and existing projects, as well as acquisitions.

“The Masdar clean energy powerhouse will unlock a new chapter of growth, development, and opportunity for renewable energy and green hydrogen projects, both in the UAE and worldwide,” said Dr. Sultan Ahmed Al Jaber, minister of Industry and Advanced Technology, managing director and group CEO of ADNOC, and chairman of Masdar. “As the founding CEO of Masdar, I am excited to see Abu Dhabi’s energy leaders coming together to take Masdar to the next level. As the UAE delivers on its Net Zero by 2050 strategic initiative and prepares to host COP28 next year, by leveraging the skills and experience of its partners, Masdar will build on its rich legacy as a pioneer in the renewable energy sector, accelerate the delivery of world-scale projects, and help meet the world’s growing demand for clean energy. For ADNOC, our participation in Masdar is an important pillar in our strategy to expand clean energy production, unlock new opportunities for industrial development and drive decarbonization.”

As part of the deal, TAQA will offer to contribute its ownership interests in future Abu Dhabi renewable power projects to Masdar. Masdar City, Abu Dhabi’s flagship sustainable urban development, will continue to remain under Mubadala’s ownership as the sole shareholder