The strategic energy partnership between the United Arab Emirates (UAE) and the United States (U.S.) continues to reinforce both nations’ shared vision for a sustainable future. This collaboration involves significant joint investments in clean and renewable energy technologies, aimed at improving global energy security and supporting emerging economies.
A pivotal initiative is the UAE-U.S. Partnership for Accelerating Clean Energy (PACE), launched in November 2022, which aims to mobilize $100 billion in financing and investment to deploy 100GW of clean energy by 2035.
As part of this initiative, the two countries announced in January 2023 a $20 billion allocation to develop 15GW of clean energy projects in the United States by 2035. This initiative is spearheaded by Masdar in collaboration with private-sector investors from the United States.
The Abu Dhabi National Oil Company (ADNOC) has also joined the clean energy movement by acquiring a 35 percent equity stake in ExxonMobil’s blue hydrogen project in Texas, which will be capable of producing up to 1 billion cubic feet daily of blue hydrogen, with approximately 98 percent of carbon dioxide removed, and more than 1 million tonnes of low-carbon ammonia annually.
In support of innovation, the Abu Dhabi Department of Energy signed agreements with the University of Arizona and the International Renewable Energy Agency (IRENA) to explore advanced clean energy technologies, including space-based solar power and climate acceleration tools.
Masdar’s growing U.S. presence
The United States remains a key market for Masdar, which is aiming for a clean energy portfolio of 25GW in the United States within the next decade. Masdar’s portfolio in the U.S. includes wind, solar, and battery storage projects in California, Texas, New York, and New Mexico, reflecting the company’s long-term commitment to transforming energy systems.
Masdar’s U.S. operations began in January 2019 with investments in the Rocksprings and Sterling wind farms in Texas and New Mexico. In 2020, it partnered with EDF Renewables North America on a portfolio of seven operational projects, comprising 1.3GW of operating capacity.
In 2024, Masdar acquired a 50 percent stake in one of the U.S.’s leading renewable power producers, Terra-Gen, adding another 3.7GW of operating capacity, 6GW of projects under construction, and advanced pipeline assets, as well as significant early-stage pipeline developments. With this acquisition, Masdar’s gross operating portfolio in the U.S. now exceeds 5.0GW.
Prior to the Terra-Gen acquisition, Masdar’s 1.3GW portfolio in the U.S. included four utility-scale wind projects in Texas and New Mexico, along with five solar projects in California. Two of the solar projects, Big Beau and Desert Harvest, incorporate battery energy storage systems.
The acquisition of Terra-Gen expanded Masdar’s gross operating portfolio to 3.7GW of wind, solar, and battery storage projects, featuring 5.1GWh of energy storage facilities across 30 renewable power sites, predominantly located in California and Texas. Terra-Gen is currently developing an additional 12GW of wind, solar, and battery storage projects in California, Texas, and New York.
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UAE reliable, long-standing energy partner
Ben Dietderich, press secretary and chief spokesperson at the U.S. Department of Energy, stated that the U.S. and the UAE share a long-standing partnership in the energy sector and are dedicated to enhancing cooperation on global energy supply security and resilient infrastructure.
In remarks to the Emirates News Agency (WAM), Dietderich noted, “We see great potential to expand our collaboration and welcome the UAE’s growing investments in American energy projects,” adding that new partnerships would foster economic growth for both nations.
Dietderich emphasized the trusted partnership between the two countries in the realm of civil nuclear cooperation, highlighting the department’s commitment to the continued safe and innovative deployment of nuclear technologies.
He also pointed out the increasing significance of developing energy infrastructure to support emerging sectors such as data centers and artificial intelligence, underscoring the U.S. commitment to advancing joint efforts in this area.
The energy relationship between the UAE and the United States, he stressed, extends beyond trade and investment—it encompasses knowledge exchange, institutional development, and the promotion of affordable, reliable, and secure energy in both nations.
In April, the UAE welcomed U.S. Energy Secretary Chris Wright during his first official overseas visit since taking office, marking the UAE as the first stop on his Middle East tour. During his two-day visit, Wright engaged in high-level discussions with senior government and industry leaders throughout the country.
