Noor Abu Dhabi
Apart from its reach within the UAE, Masdar has been spreading the renewable energy message in select overseas markets too. Image Credit: Supplied

Dubai: Three of Abu Dhabi’s corporate heavyweights – ADNOC, TAQA and Mubadala – have finalised binding agreements for the first two to purchase equity stakes in Masdar, the renewables energy company, from Mubadala.

The partnership will create a ‘global clean energy powerhouse’ that will integrate the renewable energy and green hydrogen efforts of TAQA (Abu Dhabi National Energy Co.), Mubadala and ADNOC under the ‘Masdar’ brand. TAQA will, as part of the deal, contribute its rights to a minimum 40 per cent share in future Abu Dhabi renewable projects and green hydrogen projects.

The transaction puts a value for the Masdar JV at around Dh7 billion ($1.9 billion) on a 100 per cent equity basis. The binding deal will see TAQA acquire a 43 per cent controlling stake in Masdar’s renewables business with Mubadala retaining a 33 per cent interest, and ADNOC owning the remaining - 24 per cent - interest.

Masdar (or the Abu Dhabi Future Energy Co.) was launched as a subsidiary of Mubadala Development Co. in 2006. It has spearheaded the development of Masdar City and has been in the vanguard in the UAE’s transition towards renewables and clean energy. The new deal will fuel Masdar’s push into clean hydrogen ventures, with Abu Dhabi having recently confirmed major investments at its Ta’ziz industrial complex.

"At the completion of this transaction TAQA will exceed its 2030 targets of having more than 30 per cent of its (power) generation capacity from renewable energy and will accelerate our future growth plans as the demand for renewable power and green hydrogen projects significantly increase," said Jasim Husain Thabet, TAQA’s Group CEO and Managing Director.

This is a ‘major milestone towards completing the transaction announced late last year by His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE,” said a statement.

Working closely with Mubadala and ADNOC we will transform the energy landscape through Masdar, grounded in collaboration and great ambition to drive forward the UAE’s ‘Net-Zero by 2050 Strategic Initiative

- Jasim Husain Thabet of TAQA

At the same time, ADNOC will hold 43 per cent in Masdar’s new green hydrogen joint venture, while Mubadala retains 33 per cent and TAQA will 24 per cent. "Signing of the binding agreements for this landmark transaction marks another important milestone in ADNOC’s ongoing journey to future proof its operations and grow its new energies business," said Khaled Salmeen, Executive Director of the Downstream Industry, Marketing and Trading Directorate, ADNOC. "We are excited to join forces with TAQA and Mubadala, consolidating our combined efforts to create a new national champion for renewable energy and green hydrogen."

More time to clear all regulatory needs
The transaction will take a further ‘number of months’ to formalise and will require to clear ‘necessary transaction requirements, including obtaining relevant third-party and regulatory approvals’.

"The new shareholding structure of Masdar solidifies the strategic partnership between Abu Dhabi’s powerhouses, consolidating the UAE’s pioneering position as a forward-looking global energy leader," said Musabbeh Al Kaabi, CEO, UAE Investments of Mubadala Investment Company. "We established Masdar 16
years ago with the foresight to diversify the UAE’s energy mix and advance the global energy transition."