Abu Dhabi’s ADNOC, TAQA, Mubadala enter agreements to acquire Masdar stakes

by Energy, UAE0 comments


Abu Dhabi National Energy Company (TAQA), Abu Dhabi National Oil Company (ADNOC) and Mubadala Investment Company have entered into binding agreements that will see TAQA and ADNOC buy stakes in Masdar from Mubadala.

The partnership aims to create a global clean energy entity that would consolidate the renewable energy and green hydrogen efforts of the three entities under the Masdar brand.

The transaction puts a value for the new Masdar joint ventures at approximately Dhs7bn ($1.9bn) on a 100 per cent equity basis.

The agreement will see TAQA acquire a 43 per cent controlling stake in Masdar’s renewables business, with Mubadala retaining a 33 per cent interest and ADNOC owning the remaining 24 per cent stake.

Meanwhile, ADNOC will hold a 43 per cent controlling stake in Masdar’s new green hydrogen joint venture, Mubadala will retain a 33 per cent interest, and TAQA will hold a 24 per cent stake. As part of the deal, TAQA will contribute its rights to a minimum 40 per cent share in future Abu Dhabi renewable projects and green hydrogen projects. The transaction is subject to the completion of necessary transaction requirements, including obtaining relevant third party and regulatory approvals, official news agency WAM reported.

Jasim Husain Thabet, TAQA’s group chief executive officer and managing director, commented, “Today’s signing of binding agreements for this transaction demonstrates how TAQA has firmly established itself as a low carbon power and water champion. At the completion of this transaction, TAQA will exceed its 2030 targets of having more than 30 per cent of its generation capacity from renewable energy and will accelerate our future growth plans as the demand for renewable power and green hydrogen projects significantly increase.

Khaled Salmeen, executive director of the Downstream Industry, marketing and trading directorate of ADNOC, said: “We are excited to join forces with TAQA and Mubadala, consolidating our combined efforts to create a new national champion for renewable energy and green hydrogen. ADNOC has been a reliable supplier of energy to customers worldwide for more than five decades, and we are confident that this new world-class partnership will continue to position the UAE at the forefront of the global energy transition, while cementing ADNOC’s foray into the international clean energy space.”

Musabbeh Al Kaabi, CEO of UAE Investments of Mubadala Investment Company, said, “We established Masdar 16 years ago with the foresight to diversify the UAE’s energy mix and advance the global energy transition. Today’s signing with two of Abu Dhabi’s key energy players, ADNOC and TAQA, further cements Mubadala’s responsible investing strategy and is one step closer to delivering on the UAE’s sustainability aspirations.

The UAE has undertaken considerable initiatives in recent times to establish itself as a pioneer in green hydrogen and renewable energy. Earlier last year, Mubadala, ADNOC and ADQ signed an MoU to establish the Abu Dhabi Hydrogen Alliance.

Read: Mubadala, ADNOC and ADQ form alliance to grow green hydrogen economy in the UAE

DNOC also joined over 100 companies from around the world in the global Hydrogen Council last year.

Read: Abu Dhabi’s ADNOC joins global Hydrogen Council 

Meanwhile, a global renewable energy and green hydrogen venture was launched between ADNOC and TAQA last year.

Read more: Abu Dhabi’s ADNOC, TAQA form global green energy joint venture





Source link

0 Comments

Submit a Comment

Your email address will not be published.