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Abu Dhabi National Energy Company (TAQA), Abu Dhabi National Oil Company (ADNOC) and Mubadala Investment Company have entered into binding agreements to become shareholders Abu Dhabi Future Energy Company (Masdar).
The transaction, which sets out to create a global clean energy powerhouse, will see TAQA acquire a 43 percent controlling stake in Masdar’s renewables business with Mubadala retaining a 33 percent interest, and ADNOC owning the remaining 24 percent.
ADNOC will also hold a 43 percent controlling stake in Masdar’s new green hydrogen joint venture, while Mubadala will retain a 33 percent interest, and TAQA will hold a 24 percent “effective stake”, according to a statement on the Abu Dhabi Securities Exchange (ADX) on Tuesday.
The deal effectively combines the renewable energy and green hydrogen efforts of the three major companies under the Masdar brand. It also puts a value for the new Masdar joint ventures at approximately 7 billion dirhams ($1.9 billion) on a 100 percent equity basis.
“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 increase,” said Jasim Husain Thabet, TAQA’s Group CEO and managing director.
The statement also noted that, as part of the deal, TAQA will contribute its rights to a minimum 40 percent share in future Abu Dhabi projects in the renewable and green hydrogen space.
The partnership was announced late last year as part of a strategy to grow Masdar’s renewable power capacity to 50GW by 2030 and support UAE’s net-zero ambitions.
(Reporting by Cleofe Maceda; editing by Seban Scaria)
