Abu Dhabi National Energy Company (Taqa), Abu Dhabi National Oil Company (Adnoc), and Mubadala Investment Company have entered into binding agreements for Taqa and Adnoc to purchase stakes in Abu Dhabi Future Energy Company (Masdar) from Mubadala.
This is a major milestone towards completing the transaction announced late last year by President His Highness Sheikh Mohamed bin Zayed Al Nahyan. The partnership sets out to create a global clean energy powerhouse that consolidates the renewable energy and green hydrogen efforts of Taqa, Mubadala, and Adnoc under the Masdar brand.
The new Masdar joint venture is valued at $1.9 billion on a 100% equity basis, the companies said in a statement. UAE energy company Taqa will take 43% of Masdar’s renewables business, with Mubadala and ADNOC retaining 33% and 24% interests respectively. Taqa will also contribute to a minimum of 40% share in the Abu Dhabi emirate’s renewables and green hydrogen projects. The transaction is pending regulatory approvals, which are expected to take a few months.
“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 percent 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 increases,” Jasim Husain Thabet, Taqa’s group chief executive officer and managing director, said.
The Emirati parties will acquire a 67 percent stake in total from Mubadala Investment Co., which owns Masdar, reducing its ownership to 33 percent following the deal. As part of the deal, TAQA will have the right to own at least a 40 percent share in Abu Dhabi’s renewable energy and green hydrogen projects going forward. The transaction is still subject to the completion of necessary transaction requirements, including obtaining relevant third party and regulatory approvals, which are expected to take a number of months.
