Masdar Finalises Investment In UK's 3GW Offshore Wind Project With RWE

Abu Dhabi Future Energy Company PJSC – Masdar, a leading entity in the UAE's clean energy sector, has recently finalized its acquisition of a 49 percent stake in the Dogger Bank South (DBS) project. This venture, one of the largest planned offshore wind farms globally, marks a significant £11 billion joint investment with RWE, a top renewable energy company based in Germany. This collaboration is set to significantly contribute to the UK's economy and aligns with the UAE's dedication to aiding net-zero objectives both in Britain and internationally. This move is part of the broader £10 billion UAE-UK Sovereign Investment Partnership (UK-UAE SIP), focusing on investments across technology, infrastructure, and energy transition sectors.

The DBS offshore wind farm, situated over 100 kilometres off England's northeastern coast, encompasses two sites, DBS East and DBS West. Each site boasts a capacity of 1.5 GW and covers an area of 500 square kilometres. The facility is projected to supply electricity to three million typical UK homes, creating 2,000 jobs during its construction phase and over 1,000 jobs in direct and indirect roles throughout its operational period.

Masdar's CEO, Mohamed Jameel Al Ramahi, expressed the company's commitment to expanding its offshore wind capacity and expertise as a crucial part of achieving a target of 100GW renewable energy portfolio capacity by 2030. Markus Krebber, CEO of RWE, also shared his enthusiasm about the partnership with Masdar, emphasizing its significance for offshore wind development in the UK.

The collaboration between Masdar and RWE was officially announced at COP28 in the UAE last December. With this transaction now complete, Masdar holds shares in both projects while RWE retains a 51 percent stake. The partners are set to jointly develop and operate these wind farms.

Construction on the DBS projects is anticipated to commence by the end of 2025, with the initial 800MW of electricity expected to be generated by 2029. The projects are slated for full commissioning by the end of 2031. The next significant phase for these projects involves submitting applications for Development Consent Orders in the second quarter of 2024. Following successful applications, the projects will move towards securing Contracts for Difference (CfD), financing, construction, and eventual commissioning by 2031.

Masdar's ambitious goal for a renewable energy portfolio capacity of 100GW by 2030 supports The UAE Consensus's target to triple global renewables capacity by the decade's end. This initiative underscores Masdar's ongoing support for global offshore wind projects, including significant investments in the London Array wind farm, Hywind project – the world's first floating offshore wind farm – and the Dudgeon offshore wind farm. Last year's agreement to co-invest in the Baltic Eagle offshore wind farm further highlights Masdar's active role in promoting sustainable energy solutions worldwide.

With inputs from WAM