Abu Dhabi National Energy Company (TAQA), Abu Dhabi National Oil Company (ADNOC), and Mubadala Investment Company have entered into binding agreements to become shareholders of Abu Dhabi Future Energy Company (Masdar).
This agreement is a significant step toward concluding the strategic partnership announced by UAE President Sheikh Mohammed bin Zayed Al Nahyan in December of last year.
The deal effectively combines the renewable energy and green hydrogen efforts of the three major companies under the Masdar brand. It also puts a value for the new Masdar joint ventures at approximately 7 billion dirhams ($1.9 billion) on a 100 percent equity basis.
The transaction will see TAQA acquire a 43 percent controlling stake in Masdar’s renewables business with Mubadala retaining a 33 percent interest, and ADNOC owning the remaining 24 percent.
ADNOC will also hold a 43 percent controlling stake in Masdar’s new green hydrogen joint venture, while Mubadala will retain a 33 percent interest, and TAQA will hold a 24 percent stake.
The statement also noted that, as part of the deal, TAQA will contribute its rights to a minimum 40 percent share in future Abu Dhabi projects in the renewable and green hydrogen space.
“At the completion of this transaction, TAQA will exceed its 2030 targets of having more than 30 percent of its 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 CEO and managing director.
For his part, Khaled Salmeen, Executive Director, Downstream Industry, Marketing and Trading, ADNOC, stated that signing these binding agreements aims to unite efforts in making Masdar one of the world’s largest new and renewable energy companies.
Musabbeh Al Kaabi, CEO of Mubadala’s UAE Investments platform, the new Masdar shareholders will play a critical role in strengthening the existing strategic partnership between the major energy companies in Abu Dhabi. This will contribute to consolidating the UAE’s leading position and forward-looking vision in the field of energy.