Masdar to Invest in Iberdrola’s 1.4 GW East Anglia Offshore Wind Project

Business & Finance

December 5, 2023, by Adnan Memija

Iberdrola and Masdar have signed a strategic partnership agreement to evaluate the joint development of offshore wind and green hydrogen projects in Germany, the UK, and the US, which also includes an investment in Iberdrola’s 1.4 GW East Anglia 3 offshore wind project in the UK.

After the parties’ successful co-investment in the Baltic Eagle offshore wind farm in Germany, the new milestone of this alliance will be to achieve a further co-investment concerning the 1.4 GW East Anglia 3 offshore wind project in the UK, said the companies.

According to the partners, the deal has been under negotiation for the last few months and could be signed by the end of the first quarter of 2024. Masdar’s stake in the wind farm could be 49 per cent.

East Anglia 3 is currently in construction, with full commissioning scheduled for the fourth quarter of 2026. The offshore wind farm secured a 15-year Contract for Difference (CfD) from the UK Government in July 2022.

The offshore wind project will feature 95 Siemens Gamesa 14+MW wind turbines installed approximately 70 kilometres from shore in the southern North Sea.

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Beyond the East Anglia 3 transaction, both companies will work together to invest in future offshore wind and green hydrogen projects in Europe and other markets.

Work to identify other opportunities is already underway, said the partners, and it is anticipated that the total value of joint investments in offshore wind and green hydrogen could reach EUR 15 billion.

“At COP28, we know that the world must triple global renewable energy capacity by 2030 to keep 1.5C within reach. Robust partnerships such as the one between Masdar and Iberdrola today will propel towards this goal,” said Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President.

Iberdrola’s Executive Chairman, Ignacio Galán, said: “Now that 118 governments have already pledged to triple renewable energy capacity by 2030 at COP28, reaching this goal will require immediate action from these governments and the private sector.”

The news comes after Masdar announced that it will acquire a 49 per cent stake in RWE’s 3 GW Dogger Bank South offshore wind projects.

The partners acknowledged the signing of the new partnership during a ceremony at COP28 in Dubai as well.