Abu dhabi: Masdar, a global clean energy leader, and Iberdrola, one of the world's largest energy companies, have reached two major milestones with a co-investment in the UK's East Anglia THREE offshore wind farm - one of the largest offshore wind transactions of the decade - and the full energisation of their 476MW Baltic Eagle project in Germany.
According to Emirates News Agency, these developments mark significant progress in delivering Europe and the UK's offshore wind targets and advancing the companies' £15 billion strategic partnership to accelerate clean energy deployment across key markets including the UK, Germany, and the US. Signed in December 2023, the Masdar-Iberdrola partnership is one of the largest bilateral alliances in the global clean energy sector. Together, these projects accelerate Europe's offshore wind build-out and underscore Masdar and Iberdrola's commitment to tripling global renewable capacity by 2030.
Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology and Chairman of Masdar, emphasized that Masdar and Iberdrola are forging a powerful strategic clean energy partnership to accelerate capacity growth in Europe and worldwide. Offshore wind developments like Baltic Eagle and East Anglia THREE are seen as pivotal in reaching clean energy targets in major European nations, especially with the growing demand driven by AI and emerging markets.
The companies have announced a joint investment in the 1.4GW East Anglia THREE wind farm in the UK. Both companies will hold a 50 percent stake and co-governance of the asset, vital for advancing Europe's offshore wind development goals. All conditions precedent have been met, and the transaction is expected to close shortly.
Moreover, project financing for East Anglia THREE was secured on 9th July for approximately £3.5 billion with 24 international banks, becoming one of the largest transactions of its kind. This financing will significantly cover the project's costs without consolidating debt in the partners' financial statements. When operational by Q4 2026, East Anglia THREE will power 1.3 million British homes and benefit from a 15-year CPI-linked Contract for Difference and a Power Purchase Agreement with Amazon.
In addition to the UK venture, Masdar and Iberdrola have completed the Baltic Eagle offshore wind farm in the German Baltic Sea. This 476MW project supports Germany's clean energy targets and will provide renewable energy to approximately 475,000 households while reducing annual carbon dioxide emissions by about 800,000 tonnes.
Ignacio Gal¡n, Iberdrola's Executive Chairman, stated that the partnership with Masdar in the East Anglia THREE project bolsters Iberdrola's strategic investments in the UK. Mohamed Jameel Al Ramahi, CEO of Masdar, highlighted the partnership's role in advancing Europe's energy transformation and global climate objectives.
Masdar and Iberdrola plan to continue their joint investments in future clean energy projects across Europe and other markets, with efforts to identify further opportunities already underway. The anticipated total value of joint investments in offshore wind and green hydrogen as part of this partnership is estimated at £15 billion.