Abu Dhabi National Energy Co. (TAQA), Mubadala Investment Co. (Mubadala) and Abu Dhabi National Oil Co. (ADNOC) announced the completion of the Masdar transaction. TAQA is taking the leading role in Masdar’s renewable business with a 43% shareholding, while Mubadala retains 33% and ADNOC holds 24%. ADNOC is taking the leading role in Masdar’s green hydrogen business with a 43% stake, Mubadala holding 33%, and TAQA 24%. The partnership sets out to develop Masdar into a global clean energy powerhouse that consolidates the renewable energy and green hydrogen efforts of TAQA, Mubadala, and ADNOC under the single Masdar brand. TAQA paid US$1.02 billion in cash for its stake.
Masdar will become a national clean energy champion for the UAE and has a target of growing to at least 100 GW of renewable energy capacity globally by 2030. The largest share of this capacity will come from wind and solar technologies. Beyond its initial goals, the company aspires to develop in excess of 200 GW of renewable energy.
Masdar’s new green hydrogen business will scale up and target an annual green hydrogen production capacity of up to 1 million tonnes by 2030, equivalent to saving more than six million tons of CO2 emissions, the company said. Green hydrogen, which is produced using water and renewable energy, is fast emerging as an important carbon-free fuel for the decarbonization 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, with Masdar and the UAE set to take a leading role in the hydrogen economy.
The new Masdar will target growth opportunities around the world, including in the U.S., MENA, CIS, APAC, and key European countries as well as playing a central role in providing the clean energy needed for the UAE to achieve its own 2050 net zero target. Growth is expected to come from a combination of new and existing projects, as well as acquisitions.
TAQA will offer to contribute its ownership interests in future Abu Dhabi renewable power projects to Masdar. Masdar City, Abu Dhabi’s flagship sustainable urban development, will continue to remain under Mubadala’s ownership as the sole shareholder.