Abu Dhabi’s ADNOC, TAQA and Mubadala complete deal to acquire Masdar stakes

Abu Dhabi National Energy Company (TAQA), Mubadala Investment Company (Mubadala) and Abu Dhabi National Oil Company (ADNOC) have completed the Masdar transaction, following which they will all become shareholders in the Abu Dhabi-based clean energy company.

We are proud to announce the successful completion of a landmark transaction for the @Masdar shareholding structure in partnership with national champions @ADNOCGroup and @TAQAGroup. pic.twitter.com/4gkU6HxUMK

— Mubadala (@Mubadala) December 8, 2022

The transaction, first announced in December 2021, sees the three entities partnering to grow Masdar under an expanded mandate, covering renewable power, green hydrogen and other enabling clean energy technologies, a statement said.

Read: Abu Dhabi’s ADNOC, TAQA, Mubadala enter agreements to acquire Masdar stakes

TAQA is taking a 43 per cent share in Masdar’s renewable business, while Mubadala retains 33 per cent and ADNOC holds 24 per cent. ADNOC will take a lead in Masdar’s green hydrogen business with a 43 per cent stake, with Mubadala holding 33 per cent, and TAQA holding 24 per cent. TAQA paid $1.02bn in cash for its stake.

“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,” said Dr Sultan Ahmed Al Jaber, managing director and group CEO of ADNOC, and chairman of Masdar.

“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,” added Dr Al Jaber, who is also the Minister of Industry and Advanced Technology.

We are now shareholders of @Masdar alongside @TAQAGroup and @Mubadala – and together, we will take Abu Dhabi’s flagship clean energy company to the next level.#EnergyForLife #renewables #hydrogen #AbuDhabi

— ADNOC Group (@ADNOCGroup) December 8, 2022

Mubadala established Masdar in 2006 to help drive the nation’s economic diversification and climate action agenda. Masdar is currently active in more than 40 countries across six continents, and has developed and invested in worldwide projects with a combined value of over $20bn, the statement added.

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Read more: Abu Dhabi’s Masdar inaugurates 100MW Nur Navoi solar project in Uzbekistan

Masdar also recently inaugurated its new office in Riyadh, to strengthen its support for Saudi Arabia’s clean energy objectives.

Read: Masdar inaugurates new office in Saudi Arabia to expand presence

Under the new partnership, Masdar targets a minimum of 100GW in renewable energy capacity and the production of up to one million tons of green hydrogen by 2030, with aim to grow its renewable energy portfolio to more than 200GW.

Green hydrogen, which is produced using water and renewable energy, is emerging as an important carbon-free fuel for the decarbonisation 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.

“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,” noted Khaldoon Khalifa Al Mubarak, managing director and group chief executive officer of Mubadala.

“Today, Masdar is one of the world’s fastest-growing renewable energy companies. Global cooperation is vital to achieving the critical scale in clean energy sources, and we are committed to leveraging our partnerships to enable Masdar to deliver a broader global impact.”

The new Masdar will target growth opportunities around the world including in the US, MENA, CIS, APAC, and key European countries as well as being instrumental in providing clean energy needed for the country to achieve its own 2050 net zero target. Growth is expected to come from new and existing projects, as well as acquisitions.

Read: UAE reveals Net Zero 2050 Strategic Initiative

“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,” said Mohamed Hassan Alsuwaidi, chairman of TAQA.

“Over the next decade, Masdar will rapidly expand its renewable energy and green hydrogen investments to accelerate decarbonisation.”

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

Alongside the completion of the transaction, a new board of directors has also been appointed for Masdar’s renewable business with Dr Al Jaber reappointed as chairman. Members include: