Iberdrola, Masdar to co-invest up to €15Bn in offshore wind and green hydrogen projects

After the parties’ successful co-investment in the Baltic Eagle offshore windfarm in Germany, the companies also plan to invest in the 1.4-GW East Anglia 3 offshore wind project in the UK. The deal has been under negotiation for the last few months and could be signed by the end of Q1 2024. Masdar’s stake in the windfarm could be 49%.

East Anglia 3 is currently under construction, with full commissioning scheduled for Q4 2026. The windfarm secured a 15-year CPI-linked contract for difference from the UK Government in July 2022.

Beyond the East Anglia 3 transaction, the companies will work together to jointly invest in future offshore wind and green hydrogen projects in Europe and other markets. Work to identify other opportunities is already underway, and it is anticipated that the total value of joint investments in offshore wind and green hydrogen could reach €15 billion. The plan was announced at the UN’s climate change conference COP28 in the United Arab Emirates.

Iberdrola executive chairman Ignacio Galán said, “118 governments have already pledged to triple renewable energy capacity by 2030 at COP28. Reaching this goal will require immediate action from governments and the private sector. Following our long-term commitment to renewables, networks, and storage, this innovative alliance with Masdar shows once again our determination to continue delivering.”

Masdar chief executive officer Mohamed Jameel Al Ramahi said, “We are delighted to be working with our strategic partner Iberdrola once again as we explore developing one of the UK’s largest offshore windfarms and other prospects in Europe. 

“With an abundance of wind resource, the UK and Europe are prime markets for Masdar. As we target 100 GW by 2030, Masdar is focused on developing innovative projects from the very early stages to further strengthen our offshore wind expertise.

“We have been active in the UK for more than a decade, pioneering landmark projects including the world’s first floating offshore windfarm. At COP28, as the world looks to triple renewable energy capacity to secure a greener future, projects such as East Anglia 3 show how we can create jobs, power homes and cut emissions.”