Masdar has signed a strategic agreement with Iberdrola to co-invest in the 476MW Baltic Eagle offshore wind farm in the German Baltic Sea.
Under the agreement, Iberdrola will retain a majority 51% stake in the asset, which will help to accelerate green energy security in Europe.
According to the terms of the deal, Baltic Eagle wind farm is valued at approximately €1.6bn.
Iberdrola will control and manage the asset, providing operation and maintenance services and other corporate services.
The deal was signed in Madrid by Ignacio Galan (pictured: left), Iberdrola’s executive chairman, and Masdar’s chief executive, Mohamed Jameel Al Ramahi (pictured: right), as part of a wider acknowledgement agreement between the two clean energy companies.
Baltic Eagle will consist of 50 wind turbines built on monopile foundations, each with a unit capacity of 9.53MW.
Anticipated annual production is 1.9 terawatt-hours (TWh), enough clean energy to meet the electricity demands of 475,000 homes, saving 800,000 tonnes of CO2 being released into the atmosphere every year.
The wind farm, which is scheduled to come into initial operation at the end of 2024, has a minimum regulated tariff of €64.6/MWh for the first 20 years.
In addition, 100% of its production has already been sold via long-term contracts.
Galan said: “Delivering the clean energy that the world needs requires companies with vision and commitment that are willing to make major investments in new infrastructure.
“Masdar brings all of these qualities to Baltic Eagle.
“This a major project that will help to drive forward green energy security in Europe, reduce emissions for homes and businesses, and support thousands of highly skilled jobs.
“Building long-term partnerships with sustainable leaders like Masdar will help Iberdrola to continue leading the energy transition globally.”
Sultan Al Jaber, chairman of Masdar, added: “When companies with long histories of pioneering clean energy join forces, it creates lasting solutions for people and the planet.
“This landmark agreement between Masdar and Iberdrola will harness Germany’s abundant wind power in the Baltic Sea and bring electricity to nearly half a million homes, while cutting emissions.
“As the UAE looks ahead to hosting COP28, partnerships such as this show how we can hold back emissions, without holding back progress.”