Iberdrola and Masdar have announced a €15bn strategic partnership agreement that could include an investment in the 1400MW East Anglia 3 offshore wind project in the UK.
Both companies will work together to jointly invest in future offshore wind and green hydrogen schemes in Europe and further afield, including the UK, Germany and the US.
Work to identify opportunities is already underway, and it is anticipated the total value of joint investments in offshore wind and green hydrogen as part of the alliance could reach €15bn.
After the parties’ successful co-investment in Baltic Eagle, in Germany, the new milestone of this alliance will be to achieve a further co-investment in relation to EA3, which has been under negotiation for the last few months and could be signed in early 2024.
Masdar’s stake in EA3 could be 49%. The wind farm is in construction, with full commissioning scheduled for fourth quarter 2026.
The development secured a 15-year CPI-linked Contract for Difference (CfD) from the UK government in July 2022.
The plans, announced at the UN’s climate change conference COP28 in the UAE, demonstrate both companies’ firm commitment to accelerating the global energy transition, they said.
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.
“Following our long-term commitment to renewables, networks, and storage, this innovative alliance with Masdar today shows once again our determination to continue delivering.”
Masdar’s chief executive Mohamed Jameel Al Ramahi said: “We are delighted to be working with our strategic partners, Iberdrola, once again as we explore developing one of the UK’s largest offshore wind farms and other prospects in Europe.
“With an abundance of wind resources, the UK and Europe are prime markets for Masdar.
“As we target 100GW by 2030, Masdar is focused on developing innovative projects from the very early stages to further strengthen our offshore wind expertise.”