The UAE’s renewable energy firm, Masdar, has signed a strategic agreement with Spain’s Iberdrola, to co-invest in the 476-megawatt (MW) Baltic Eagle offshore wind farm in the German Baltic Sea.
The deal was signed in Madrid by Ignacio Galan, Iberdrola’s Executive Chairman, and Masdar’s Chief Executive Officer, Mohamed Jameel Al Ramahi. As per the statement, Iberdrola will retain a majority 51% stake in the asset, helping accelerate green energy security in Europe.
Further, as per the deal, Bathe ltic Eagle wind farm is valued at approximately €1.6 billion ($1.77 billion). Iberdrola will control and manage the asset, providing operation and maintenance services and other corporate services.
In a statement, both the firms consider this a strategically important transaction and a critical milestone to strengthen their partnership and 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 9.53MW. The annual production is expected to be 1.9 terawatt-hours (TWh), that will meet the electricity demands of 475,000 homes, saving 800,000 tons of CO2 being released into the atmosphere every year.
The wind farm is scheduled to begin its initial operation the end of 2024, that will have 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.
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.”
It may noted that Dr. Sultan Al Jaber and Ignacio Galan had met earlier this month, ahead of the UAE hosting the UN climate change conference, COP28, where 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.