Abu Dhabi National Energy Company (TAQA), Mubadala Investment Company, and Abu Dhabi National Oil Company (ADNOC) have successfully completed their Masdar transaction, and are now shareholders in the entity, it was announced on Thursday.
As part of the transaction, TAQA will hold 43 per cent in Masdar’s renewable business, while Mubadala will retain 33 per cent, and ADNOC 24 per cent.
In Masdar’s green hydrogen business, ADNOC will hold a 43 per cent stake, Mubadala 33 per cent, and TAQA 24 per cent.
The partnership aims to develop Masdar — also known as Abu Dhabi Future Energy Company — into a global clean energy powerhouse that consolidates the renewable energy and green hydrogen efforts of its three parent companies under a single brand. TAQA paid $1.02 billion in cash for its stake.
Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and Group CEO of ADNOC, and Chairman of Masdar said: “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. 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.
“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.”
Mohamed Hassan Alsuwaidi will be deputy chairman of the new entity, while Mohamed Jameel Al Ramahi will continue as CEO.
Jasim Husain Thabet, Farid Al Awlaqi, Khaled Salmeen, Musabbeh AlKaabi, Ahmed Saeed Al Calily and Bakheet Saeed Al Katheeri have been named board members.
Mubadala established Masdar in 2006. Today, the company is active in more than 40 countries with investments of over $20 billion.
Under the new partnership, Masdar will become a national clean energy champion for the UAE and has an ambitious target of growing to at least 100GW 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, reinforcing its position as a world leader in the renewable energy sector.
In addition, Masdar’s new green hydrogen business will rapidly 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 new Masdar will target growth opportunities around the world including in the US, 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.
Khaldoon Khalifa Al Mubarak, Managing Director and Group CEO of Mubadala, said: “We established Masdar 16 years ago based on an early conviction that building capabilities and supporting innovation and scale across the clean energy spectrum would be transformative for the nation and an investment in future generations. Today, Masdar is one of the world’s fastest-growing renewable energy companies. This significant milestone helps unlock synergies in Masdar’s continued growth journey and the UAE’s global energy leadership.”
Mohamed Hassan Alsuwaidi, Chairman of TAQA, added: “This transaction marks the start of Masdar’s journey towards becoming one of the largest clean energy companies in the world, backed by three of the UAE’s energy and investment pacesetters. Over the next decade, Masdar will rapidly expand its renewable energy and green hydrogen investments to accelerate decarbonisation. Last year, TAQA committed to a renewable energy share of 30 per cent of its total power generation capacity by 2030. Our stake in Masdar is a key part of delivering on this target, while supporting the UAE’s ambition to cut greenhouse gas emissions and be a driving force in the global energy transition.”