Abu Dhabi (WAM)
His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, launched a strategic partnership between the Abu Dhabi National Energy Company (TAQA), the Mubadala Investment Company (Mubadala), and the Abu Dhabi National Oil Company (ADNOC), to own each of these companies. A stake in the Abu Dhabi Future Energy Company (Masdar), with the aim of developing a leading global portfolio of clean energy, in addition to strengthening efforts in the field of renewable energy and green hydrogen in an effort to achieve climate neutrality by 2050.
His Highness stressed that the UAE is continuing to consolidate its capabilities and pioneering role in the energy sector, and that it continues to transform challenges into opportunities and find practical and innovative solutions to secure a low-carbon future.
The signing ceremony of the partnership agreement was attended by H.H. Sheikh Hazza bin Zayed Al Nahyan, Vice Chairman of the Executive Council of the Emirate of Abu Dhabi, H.H. Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, and H.H. Sheikh Khalid bin Mohamed bin Zayed Al Nahyan, member of the Abu Dhabi Executive Council and head of the Abu Dhabi Executive Office His Highness Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, Chief of the Abu Dhabi Crown Prince’s Court, and a number of officials.
The agreement, which took place at the UAE pavilion at Expo 2020 Dubai, was signed by His Excellency Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and CEO of ADNOC Group, His Excellency Khaldoon Khalifa Al Mubarak, Managing Director and CEO of Mubadala Group, and Mohammed Hassan Al Suwaidi Chairman of the Board of Directors of an energy company.
The partnership brings together three of the largest leading national companies in the energy sector, with a current and exclusive production capacity of more than 23 gigawatts of renewable energy. The company’s total production capacity is expected to reach 50 gigawatts by 2030, which means that Masdar will become one of the largest clean energy companies in the world, placing it in a leading position in this sector globally. And according to yesterday’s announcement, the efforts of the three companies will be unified by integrating their investment portfolios in the field of renewable energy and green hydrogen under the umbrella of “Masdar”, to take advantage of the company’s leading global position in the field of renewable energy and its distinctive corporate identity.
The new partnership in “Masdar” is an extension of the initiative of the “Abu Dhabi Hydrogen Coalition” that was launched in January 2021, and included under its umbrella “Mubadala”, “ADNOC” and “ADQ” (the parent company of TAQA), in addition to the strategic green energy partnership that It was launched on November 17 between ADNOC and TAQA, and the presence of the three partner companies in “Masdar” contributes to the growth and expansion of the company. As the UAE prepares to host the twenty-eighth session of the United Nations Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) in 2023, this strategic partnership will contribute to enhancing the position and efforts of the UAE and Abu Dhabi to keep pace with the transformation in the energy sector by enhancing capabilities in The field of clean energy and emission reduction. This strategic partnership will have a major role in reducing carbon emissions locally and globally, accelerating the UAE’s march towards achieving climate neutrality by 2050, and enhancing the country’s leading role in the field of green hydrogen production. On this occasion, His Excellency Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and CEO of ADNOC Group, said: “In line with the vision of the wise leadership to join efforts and enhance cooperation to benefit from partnership opportunities, this coalition brings together three of the largest companies in Abu Dhabi to allow us to keep pace with the transformation In the energy sector strong momentum. This partnership, which coincides with the country’s celebrations of its golden jubilee, marks the start of a whole new phase for Masdar’s global clean energy business. We are confident that this strategic partnership will create many opportunities for growth and development in the field of renewable energy and hydrogen locally and internationally.”
His Excellency added: “After the wise leadership directed the establishment of “Masdar” fifteen years ago, the company succeeded in establishing an advanced position for itself as a multifaceted initiative in the field of renewable energy and sustainability. After this strategic partnership, Masdar will enhance its role locally and globally, and we are confident that through ADNOC’s direct stake in Masdar and close cooperation with our partners, we will present a new model through smart and innovative projects and initiatives in the energy sector to achieve additional value and drive sustainable growth in the country. UAE”. ADNOC is one of the leaders in the emerging hydrogen market and has ambitious plans to develop hydrogen value chains at the local and global levels, utilizing its commercial capabilities, infrastructure and logistical network.
For his part, His Excellency Khaldoon Khalifa Al Mubarak, Managing Director and CEO of Mubadala Group, said: “Today marks the beginning of a new chapter in the path of Masdar, our world-leading company in the field of renewable energy, which we initiated 15 years ago due to our conviction in the ability of innovation to drive economic growth. “Masdar” today represents a successful example for the industries of the UAE, and reflects the future vision of our wise leadership.” His Excellency added, “The increasing climate challenges require us to continue searching for innovative ways to produce clean energy. This strategic partnership is in line with Mubadala’s approach and its constant endeavor to enhance joint action, and also supports the vision of the UAE and its efforts as a leading country in addressing climate change. We look forward to working with our partners in ADNOC and TAQA to support the growth of Masdar and its path to finding new solutions to climate challenges.” “TAQA’s strategy aspires to be the leading company in the low-carbon electricity and water sector,” said Mohammed Hassan Al-Suwaidi, Chairman of the Board of Directors of TAQA. There is no doubt that acquiring a controlling stake in the field of renewable energy in “Masdar” and entering into a partnership with “ADNOC” and “Mubadala” in the fields of renewable energy and green hydrogen, allows us to raise our production capacity of clean energy to more than 50 gigawatts by 2030. Which qualifies us to become one of the largest companies in the Middle East and North Africa region and one of the leading global contributors to the production of renewable energy. The huge capabilities to produce clean energy and the opportunity to benefit from the distinguished expertise in this partnership will enable us to occupy a leading position in the green hydrogen sector in the world, and we look forward to being the leading national company in the field of developing clean energy solutions in the UAE and globally.” The new partnership focuses on two main areas: renewable energy and “green hydrogen.”
Al-Jaber, Chairman of the Board of Directors of “Masdar”
His Excellency Dr. Sultan Ahmed Al Jaber continues his role as Chairman of the Board of Directors of Masdar to oversee its new strategy in the field of renewable energy and green hydrogen. Under the agreement, “TAQA” will assume the leading role in the renewable energy project Masdar, as it will acquire 43% of the share, while Mubadala will retain 33%.
ADNOC will own 24%. As for the Masdar Green Hydrogen Project, ADNOC will take the leading role by acquiring 43%, while Mubadala will acquire 33% and Taqah will have 24%. It is noteworthy that more details and governance structures for the new partnership are subject to the completion of the requirements for the deal, including obtaining approvals from regulators and related parties. Mubadala established “Masdar” in 2006 with the aim of strengthening the leadership role of the United Arab Emirates in the global energy sector, advancing the country’s economic diversification and promoting the climate agenda. Today, Masdar operates in more than 33 countries across six continents, and has developed and invested in various projects. Mubadala will continue to be under the ownership of Mubadala, which is worth nearly $20 billion worldwide, while Masdar City, which is a model for pioneering sustainable urban development in Abu Dhabi.
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