Masdar eyes East Anglia 3 stake under massive offshore wind and hydrogen pact with Iberdrola

Abu Dhabi-based Masdar is in final negotiations to buy nearly half of the 1.4GW East Anglia 3 offshore wind project in the UK from Spain’s Iberdrola as part of a new alliance planning to invest up to €15bn ($16.2bn) in joint offshore wind and green hydrogen projects in key markets.

The two renewables giants during the COP28 climate summit in Dubai signed a strategic partnership agreement to evaluate the joint development of projects in Germany, the UK and the US, among others.

The deal on East Anglia 3 could be signed by the end of the first quarter of next year, with Masdar taking a 49% stake.

“Now that 118 governments have already pledged to triple renewable energy capacity by 2030 at COP28, reaching this goal will require immediate action from these governments and the private sector,” Iberdrola executive chairman Ignacio Galán said.

“Following our long-term commitment to renewables, networks, and storage, this innovative alliance with Masdar today shows once again our determination to continue delivering.”

East Anglia 3 is currently under construction, with full commissioning scheduled for the end of 2026. The project had secured a 15-year inflation-linked contract for difference (CfD) from the UK government last year.

The two companies are also working to identify other opportunities for joint projects in future offshore wind and green hydrogen, Iberdrola said.

 “We welcome this partnership which will see global clean energy pioneers, Masdar and Iberdrola, coming together to use their expertise and resources to advance renewables in Europe and around the world,” Masdar chairman and United Arab Emirates industry and advanced technology minister Sultan Al Jaber said.

“At COP28, we know that the world must triple global renewable energy capacity by 2030 to keep 1.5C within reach.

“Robust partnerships such as the one between Masdar and Iberdrola today will propel us towards this goal.”

Al Jaber is also COP28 president, but his appointment to the post has been questioned by climate campaigners, as well as blocs of lawmakers in Europe and the US, due to his simultaneous position as head Abu Dhabi National Oil (Adnoc), one of the world's biggest oil companies.

Iberdrola is one of the world’s largest producers of wind and solar power, with 41GW of renewables in operation, and offshore wind projects worth more than €10bn under construction globally.

Masdar is targeting a renewables capacity of at least 100GW by the end of the decade and an annual green hydrogen production capacity of up to 1 million tonnes. The company is jointly owned by Adnoc, Mubadala Investment Company (Mubadala), and Abu Dhabi National Energy Company (TAQA).

“We are delighted to be working with our strategic partners, Iberdrola, once again as we explore developing one of the UK’s largest offshore wind farms and other prospects in Europe,” said Masdar CEO Mohamed Jameel Al Ramahi.

“With an abundance of wind resources, the UK and Europe are prime markets for Masdar.”